HomeMy WebLinkAboutRELIANCE SURETY CO. - 1994-10-17 'FY COUNCIUREDEVELOPMENT AGENCY
'� ACTION
19 9
ED-94-47
Crty c x Date October 17, 1994
Submitted to Honorable Mayor/Chairman and City Council/Agency Members
Submitted by Michael T Uberuaga, City Administrator/Executive Director
Prepared by Barbara A Kaiser Director of Economic Development� —a
Redevelopment Director
Gail Hutton City Attorney
Subject APPROVAL OF THE CONTINUING AGREEMENT OF INDEMNITY
MISCELLANEOUS SURETY BONDS BETWEEN THE CITY OF HUNTINGTON
BEACH/REDEVELOPMENT AGENCY AND RELIANCE SURETY COMPANY, AND
AUTHORITY TO SIGN ESCROW INSTRUCTIONS AND RELATED DOCUMENTS
Consistent with Council/Agency policy? [ 1 Yes [ 1 New Policy or Exception
Statement of Issue Recommended Agency Action Analysis Funding Source Alternative Actions Attachments
Statement of Issue
Ownership of the Ocean View Estates mobile homes must be transferred to the current tenants
according to the Driftwood Acquisition and Relocation Agreement previously authorized by the
City Council/Agency In order to complete this transfer, the Continuing Agreement of Indemnity
Miscellaneous Surety Bonds between the City of Huntington Beach/Redevelopment Agency and
Reliance Surety Company must be approved In addition the escrow instructions and other escrow
documents must be authorized for signature by the City Administrator/Executive Director or the
Director of Economic Development/Redevelopment Agency Director, upon the review and
approval by the City Attorney
Recommended City/Agency Action
1 Approve and authorize the execution of the Continuing Agreement of Indemnity
Miscellaneous Surety Bonds between the City of Huntington Beach/Redevelopment Agency
and Reliance Surety Company(Attachment 3) by the designated officers
2 Approve and authorize the City Administrator/Executive Director or the Director of
Economic Development/Redevelopment Director to sign the following documents for those
mobile homes listed in Attachment 2
Escrow instructions as approved by the City Attorney and documents referred to in
the escrow instructions, so long as consistent with the applicable settlement and
other agreements on file in the City Clerk's office as
1) Julie Ford Settlement Agreement approved June 6, 1994
2) Jones vs Redevelopment Agency O C S C Case No 62 30 62 Court Supervised
Debits & Credits Settlement Agreement with OVE I Mobile Home Tenants
approved August 1, 1994, and
3) Driftwood Relocation and Acquisition Agreement dated September 26, 1988
RCACR2 DOC Page 1
Analysis:
Twenty-five mobile homes located at Ocean View Estates are not titled with the State Department
of Housing and Community Development(HCD). Escrows remained opened during the lengthy
litigation between the residents, Performance Mobile Homes, and the city. Performance Mobile
Homes did not provide a sales agreement nor complete its Dealer's Report of Sale. Therefore,
HCD requires that a bond (Attachment 1)be posted for each mobile home to be titled. A list of the
mobile homes needing the bonds is provided as Attachment 2.
The Purchasing Division selected Pacific Coast Surety as the most cost effective company to
provide the bonds. Pacific Coast Surety is a broker for Reliance Surety Company, from whom the
bonds cannot be purchased from directly. Reliance Surety Company requires that the city
indemnify the company from any liability in its provision of the mobile home bonds. The bonds will
be purchased by the Redevelopment Agency at a cost of 1% of the mobile home purchase price,
totaling $6,500 for the 25 mobile homes. Sufficient funds remain in an Agency escrow account
(22856-E)to provide for the cost of the bonds and no additional funds are required. The
Continuing Agreement of Indemnity Miscellaneous Surety Bonds between the City of Huntington
Beach/Redevelopment Agency and Reliance Surety Company has been approved by the City
Attorney(Attachment 3).
Escrow documents for the twenty-five mobile homes will differ according to the various groupings
to be considered: two are Agency owned, eighteen are owned by tenants represented by attorneys,
and five mobile homes are owned by tenants not represented (three of whom are from Pacific
Trailer Park). The escrows will reflect the Settlement Agreements as approved by City Council
(City Council Actions Julie Ford Settlement Agreement, June 6, 1994 and Jones vs. Redevelopment
Agency O.C.S C. Case No 62 30 62 Court Supervised Debits& Credits Settlement Agreement with
OVE I Mobile Home Tenants, August 1, 1994), the provisions of the Driftwood Relocation and
Acquisition Agreement dated September 26, 1988, and the City Council action taken March 20,
1989, approving the extension of the relocation benefits of the Driftwood Agreement to the Pacific
Trailer Park residents. All escrow instructions and documents will be individually reviewed and
approved by the City Attorney before execution by the duly delegated officers as approved by this
action.
As twenty-five mobile homes are involved, in the interest of efficiency, staff requests that City
Council delegate the authority to sign the mobile home bonds, escrow instructions, and titling
documents to the City Administrator/Executive Director or to the Director of Economic
Development/Redevelopment Director.
Funding Source:
Escrow Account, 22856-E
Alternative AGJiQns:
1. None- Governed by Settlement Agreements and the Driftwood Acquisition and Relocation
Agreement
Attachments:
1. Sample Mobile Home Bond (HCD form 480.OA)
2. List of Ocean View Mobile Homes
3. Continuing Agreement of Indemnity Miscellaneous Surety Bonds between the City of
Huntington Beach/Redevelopment Agency and Reliance Surety Company
RCACMDOC paps 2
RELIANCE SURETY COMPANY UNITED PACIFIC INSURANCE COMPANY
Reliance Philadelphia.Pennsylvania Philadelphia,Pennsylvania
RELIANCE INSURANCE COMPANY RELIANCE NATIONAL INDEMNITY COMPANY
Philadelphia,Pennsylvania Philadelphia_Pennsylvania
CONTINUING AGREEMENT OF INDEMNITY
MISCELLANEOUS SURETY BONDS
THIS AGREEMENT is made by the undersigned for the continuing benefit of RELIANCE INSURANCE COMPANY,UNITED PACIFIC INSURANCE COMPANY, RELIANCE NATIONAL
INDEMNITY COMPANY and/or RELIANCE SURETY COMPANY(thereinafter referred to collectively as the-SURETY")for the purpose of saving each and all of them harmless and
rrhderrirhifyvig each and al of them from all loss and expense in connecricia with any Bonds executed on behalf of any One or more of the following persons,firms or corporations:
CITY OF HUNTINGTON BEACH REDEVELOPMENT AGENCY
(hereinafter referred to as Applicant)
Y+9TNESSETH,
WHEREAS,the Applicant,individually,jointly with others or on behalf of any of its subsidiaries,affiliates or divisions or their subsidiaries.affiliates or divisions now in existence a
hereafter formed or acquired,or on behalf of individuals,partnershipsor corporations,may desire or be required from time to time togive cerlain bonds,undertakings.or instrumentsof
guarantee(all of which will hereinafter be included within the term-BOND"or-BONDSJ.and
WHEREAS,upon the express condition that this instrument be executed,the Surety has executed or procured the execulion,of or may from time to time hereafter execute or procure
the execution of such Bonds,and the Surely may continue the Bond or Bonds heretofore executed and may forebear Cancellation of such Bonds,
NOW,THEREFORE,in consideration of the execution of any such SW or Bonds or the forbearance of cancellation of existing Bonds and as an inducement to such execution or
forbearance,we,the Undersigned,agree and bind ourselves,our heirs,executors,administrators.successors and assigns,jointly and severally,as follows:
FIRST To pay to the Surety in advance upon the execution of each Bond the initial premium computed in accordance with the rates currently charged by the Surely at the lime such Bond
is executed and the Undersigned will also pay all renewal or additional premiums computed at such rates until proof is furnished satisfactory to the Surety of its discharge from all
liability under such Bond
SECOND To indemnify,and keep indemnified,and hold and save harmless the Surely against all demands,claims,loss,costs,damages,expenses and attorneys'lees whatever,and
any and all Iiabilitytherefoi sustained or incurred by the Surely by reason ofexecutingorprocuringtheexecutionofanysaidBoredorBonds,oranyotherBonds,whichmaybealreadyor
hereafter executed for or at the request of the Undersigned,or renewal or continuation thereof.or sustained or incurred by reason of making any investigation on account thereof,
prosecuting or defending any action brought in connection therewith,obtaining a release therefrom,recovering or attempting to recover any salvage in connection therewith or
enforcing by litigal*n or olherwise any of the agreements herein Contained.Payment of amounts due Surety hereunder together with legal interest shall be payable upon demand.
THIRD That if Surely shall be required or shall deem it necessary to set up a reserve in any amount to cover any claim,demand,liability,expense,suit,order,judgment or adjudication
under or on any Bond or Bonds or for any other reason whatsoever,to immediately upon demand deposit with Surety an amount of money sufficient to cover such reserve and any
increase thereof,at anytime,in payment or compromise of any liabklily,claims,demands,judgment,damages,fees and disbursements or other expenses.and the Undersigned,in the
event of lheir failure to comply with such demand,hereby authorize and empower any attorney of any court of record of the United States or any of its temtones or DOsmssions.to
appear for them or any of them in any suit by Surely and to confess judgment against item or any of them for any sum or sums Of money up to the amount of any or all Bond or Bonds,
with costs,interest and reasonably altorneys'fees,such judgment,however,to be satisfied upon the payment of any and all such sums as may be found due by the Undersigned to
Surety under the terms of this agreement The auihonty to confess judgment as set 1011h herein shall not be exhausted by any one exercise thereof,but may be exercised from time to
time and more than onetime until all Iiabilityof the Undersigned to Surety shall have been paid in full_Demand shall be sufficienl if sent by registered or certified mail toIheUndersigned
at the address or addresses given herein or Iasi known 10 Surety,whether or not actually received.
FOURTH-All collateral sKurily held by Or assigned to the Surely may be used by the Se rely at any lime in payment of any claim,loss or expense which the Undersigned have agreed to
pay hereby,whether or not such Claim,loss Or expense arises out of or in connection with such Bond under which such collateral is held-The Surety may sell or realize upon any Of all
such collateral security,at public or private sale,with or without notice to the Undersigned or any of them,and with the right to be purchaser itself at any public sale,and shall be
accountable to the Undersigned only for such surplus or remainder of such collateral secunly or the proceeds thereof as may be in the Surety s possession after it has been fully
indemnified as in this agreement provided.The Surety shall not be liable for decrease in value or loss or destruction of or damage to such secunly,however caused.
FIFTH_The Surety shall have the fight,at its option and in its sole discretion'.
(a) To deem this Agreement breached should the Applicant become involved in any agreement or proceeding of liquidation,receivership,or bankruptcy,voluntarily or
involuntanly,or should the Applicant,if an individual,die,be convicted of a felony become a fugitive from justice,or for any reason disappear and cannot immediately be
found by the Surely by use of usual methods
(b) To adjust,settle or compromise any claim.demand,suit or judgment upon said Bond or Bonds,or any of them,unless the Undersigned shall request in writing the Surely to
litigate such claim or demand,Or delend such Suit.or appeal from such judgment,and shall deposit with the Surety.at the lime of such request,cash or collateral
satisfactory to the Surety in kind and amount to be used in paying anyjudgment or judgments rendered with interest,costs and allomeys'lees-
A1l damage,loss or expense of any nature which the Surety may incur under Section FIFTH shall be bome by the Undersigned-
SO.144 419t
SIXTH-Each of the Undersigned expressly consent that in the event of any action against the Surety ansing out of its execution of such Bond or Bonds which is not handled pursuant to
the provisions of Section FIFTH subparagraph(b),the Surety shall have the right to apply to the Court in which such action is brought for an order making them or anyone or more of
them defendants and hereby further conSenl to the granting of such appficalmon for making such order and agree to become Dailies defendent.
SEVENTH-The Surely shall have the exclusive right for itself and for the Undersigned to decide and determine whether any Claim,demand,suit or judgment upon said Bond or Bonds
shall,on the basis or ltabililyexpediencyorotherwise,be paid.set tied.defended orappea!ed,and its determinal ion shall be hnal.conclusive and binding upon the Undersigned(except
as provided in Seclion FIFTH(b)hereof);and any loss.cVS,charges,expense or liability thereby sustained or incurred,as well as any and all disbursements on account of costs,
expenses,and attorneys'fees,deemed necessary or adviSSNe by-the Surety,shall be borne and paid immediately by the Undersigned,together with legal interest to the evenl of any
paymeni,Selflement,compromiseor investigation,an itemized statement of the paymenlJoSS,costs,damages,expenses orattorneys'fees.Sworn t0 by anyofficeroi the Suretya the
voucher or vouchers or other evidence of Such payment,settlement or comprorniSeshall be prima facie evidence of the fact and extent of the iiabilify of the Undersigned lathe Surely in
any claim or suit thereunder and in any and all matters arising between the Undersigned and the Surely
EIGHTH Until the Surety shall have been furnished with competent legal evidence of its discharge wilhoul loss from any and all Bonds,the Surety shall have the right at all limes to free
access to the books,records and accounts of each of the Undersigned for the purpose of examining the same Each of the Undersigned hereby authorizes and requests any and all
depositories in which funds of any of the Undersigned may be tlepos+ted to furnish to the Surely the amount of such deposits as of any dale requested and any person.lien or
corporation doing businesswiththeUndersignedisherebyaulhorizedlofurnishanyintormalronrequestedbytheSurelyconcerninganylransaclion The Surely may furnishcophespt
any and all statements,agreements and financial statemenls and any information which is now has or may hereafter obtain concerning each of the Undersigned.10 other persons or
companies lor the purpose of procuring caSurelyship or reinsurance or of advising interested persons or companies
NINTH Each of the Undersigned does hereby waive all right to claim any properly.including homestead as exempt from levy.execution,sale or of her legal process under the law of aly
state,province or other government as against the rights of the Surely 10 proceed agains:the same for indemnity hereundet The Undersigned hereby waive all notice of any delaull or
any other actor acts giving rise to any claim under any said Bond or Bonds,and waive notice of any asd all liabmhtyof the Surely under any said Bond or Bonds or any and all laitxlityon the
pan of the Undersigned to the effect and end that each of the Undersigned Shall be and continue liable 10 the Surety hereunder nofwilhslandrng any notice of any kind to which the
Undersigned might have been or be entitled and notwithstanding any delerises which the Undersigned might have been or be entitled to make
TENTH:The Surety shall have every right and remedy which a personal surely without compensation would have,including the right to secure its discharge from the suretyship,and
nothing herein contained shall be Considered or Conslrued to waive.abridge or diminish any right or remedy which the Surety might have it this instrument were not executed The
Undersigned will,on request of the Surety procure the discharge of the Surely from any Bonds,and a;l liability by reason thereof Separate suds maybe brought hereunder as causes of
action may accrue.and the pendency or lermination of any such suit shall not bar any subsequent action The Surely Shall be notified immediately by the Undersigned of any claim or
action which may result in actaim against the Surely_Such notice to be given by registered mad to the Surely at its Home Of lice-In the event of legal proceedings against the Surety,upon
or on account of any said Bond or Bonds,the Surety may apply for a court order making any or all of the Undersigned panies defendants.and such Undersigned hereby consents to the
granting of such application and agrees to become such a party defendant and to allcw judgment,in the event of judgment against the Surely,to be rendered also against such
Undersigned in like amount and in favor of the Surety,it the Surety so desires.
ELEVENTH The Surety may decline to execute any Bond herein applied for and it shall not be liable to the Undersigned and the Undersigned shalt make no claim for any damages
alleged to arise from such declination nor shall it be liable to the Undersigned Should its Bond or Bonds be not accepted-Furthermore.the Surely shall have the absolute right to cancel
any Bond in accord with any cancellation provision contained therein.to procure its release from any Bond under any law to(the release of sureties.and the Surely is hereby released
from any liability for expense,cost of damage alleged to be sustained by the Undersigned by reason of such cancellation or release of bond obligation
TWELFTH This Agreement shall,in all its terms and agreements,be for the benefit of and protect any person or company joining with the Surety in executing said Bond or Bonds,orany
of them,or executing at the request of the Surety said Bond or Bonds,or any of them as well as any company or companies assuming co-suretyship or reinsurance thereon-
THIRTEENTH-The Undersigned warrant that each of them is specifically and beneficially interested in the obtaining of each Bond-Failure to execute,or defective execution,by any
party,shall not affect the validity of this obligation as to any of her party executing the same and each such other party shall remain fully bound and liable hereunder Invalidity of any
ponlon or provision of this Agreement by reason of the laws of any state or for any other reason shall not render the other provisions or portion hereof invalid_Execution of any
application for any Bond by the Applicant,or of any other indemnity agreement 4 any Undersigned for the Applicant shall in no way abrogate•waive or diminish any rights of Surely
under this Agreement_The undersgined acknowledge that the execution of this Agreement and the undertaking of indemnity was not made in reliance upon any representation
concerning the financial responsibility of any Undersigned,or concerning the compelence of the Applicant to perform.
FOURTEENTH:Each of the Undersigned expessly recognizes and covenants that this Agreement is a continuing obligation applying 10 and indemnifying the Surety as to any and all
Bonds{whether or not covered by any application signed by Applicanl—such application to be considered between the parties•herelo as merely supplemental to this continuing
Agreement of Uldemnity)herelofore or hereafter executed by Surety on behalf of Applicant(whether acting alone or as a Co•advenlurer)until this Agreement shall be canceled in the
manner hereinafter provided-Any of the Undersigned may notify the Surety at its Home Office,of such Undersigned's withdrawal from this Agreement;such notice shall be sent by
certified or registered mail and shall stale when,not less than thirty days after receipt of such notice by the Surety such withdrawal shall be effective Such Undersigned will not be liable
under this Agreement as to any Bonds executed by the Surety after the effective date of such notice.provided,that as to any and ail such Bonds executed or authorized by the Surety
prior to effective date of such notice and as to all and all renewals,continuations and extensions thereof or substitutions therefor regardless of when the same are executed,such
Undersigned stall be and remain fully liable hereunder,as if said notice had not been served Such withdrawal by any Undersigned shall in no way affect the obligation of any other
Undersigned who has given no such notice of lerminatlon.
FIFTEENTH-The Surely shall have the right,and is hereby authorized and empowered but not required-(a)To increase or decrease the penally or penalties of any such Bond or Bonds•to
change the obligee or obligees therein,to execute any continuations,enlargements,modifications and renewals thereof or substitute therefore with the same or different conditions,
provisions and obligees,and with the sank'or larger or smaller penalties,it being agreed that this instrument shall appty to and cover such new or changed bonds or renewals even
though the consent of the Surety may or does substantially increase the liability of the Applicant and the Undersigned-.(b)10 lake such steps as it may deem necessary or proper to
obtain release from liability under any such Bond or Bonds
SIXTEENTH:The foregoing indemnity Shall apply as to all Bonds as aforesaid unless the Undersigned herein shall specifically designate in this paragraph the Bond to which his
indemnity shall be limited and affix his signature louowing that designation
BOND DESCRIPTION:
SIGNATURE-.
SEVENTEENTH-The Surely shall be entitled to enforce the obligations hereof directly against any and all Undersigned without the necessity of first proceeding against The Applicant.
EIGHTEENTH-This Agreement or a carbon photographic,xerographic or other reproduction or copy of tors Agreement shall constitute a Security Agreement to Surety and also a
Financing Statement both in accordance with the provisions of the Uniform Commercial Code of every jurisdiction wherein such Code is in effect but the filing or recording of this
Agreement shall be solely 61 the option of Surety and the failure to do so shall not release or impair any of the obligations of the Applicant or the Undersigned under this
Agreement or otherwise arising•nor shall Such failure be in any manner in derogation of the rights of Surely under this Agreement or otherwise_
4
NlNtEENTH The rights of indemniircatIon of each Surety signatory to this Agreement shalt be indWiduar and not Point with At the other signatory Sureties as respects any Bond
issued by it to any Applicant and shall be enforceable against the Undersigned as to any and all bonds issued to any Apoticant hereunder
Signed.seated.and dated this / day of J( � JLJ t9 ''
ma]) CITY OF HUNTINGTON BEACH (Seal)
REDEVELOPMENT AGENCY
Attest Witness:✓ (Seal) B/ )
Michael Tiberuaga.1 City Administ or/
Executive Director
(Seat) (Seat)
Attest/Witness: T ) aJ
nda Moulton—Patterson, Mayor/Chairperson
(Sea►) 6eA
AttestMitness; (Seaq By a Zvf�- � (;;?djOC . jA �eA.0-1
Connie Brockway, City/Agency 041erk
l�l I�1
(SeA IS�A
i.S TO FIORIf:(� GDVTL,-ram Name ofSuret)fies)
t:i ';-� Attorney y4_
By-
tAIPORTANT:Print or"the now and address of each signatory to this agreement Each signature must be actrwwiedged—See REVERSE H EREOE
a
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
ti
State of CALIFORNIA
County of
Ono( �0 Jr• 91� before me, ✓ ,
DATE ,TITLE OF OFFICER eG..'JANE E,NOTARY PUBLIC
personally appeared Michael Uberuaga
NAmE(S)OF SIGNER(S)
personally known proved to me.on the basi of satisfactory evidence
°y�`L SEAL to be the person whose name ,r ll
UNDA SUE SURACI P c �
`- Notary PWl1C-00Ilf0rN0 subscribed to the within instrument and ac-
»m ORANGE COUNTY
my commidon Expuc:. ' knowledged to me that(Epspe>i[ihe executed _
Aupug 21• 1995 the same in hi h-W#e+r: authorized
capacity, and that by is Ne A4e4
S"Gy signatureWon the instrument the personK,
E C�foomla or the entity upon behalf of which the
TY
Ib�y FxprA. person Kacted, executed the instrument.
21, 1995
CIAL SEA L WITNESS my hand and official seal.seal.LINODA UE SURACI
Not Pu Ic-contorNo
ORANG COUNTY
my corn E1prres
August 2 1995 SIGNATURE OF NOTAAY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL Agreement of Indemnity BD-1446 4/94
❑ CORPORATE OFFICER City of Huntington Beach
Redevelopment Agency, Applicant
TITLE OR TYPE OF DOCUMENT
nTLE(Sj
❑ PARTNER(S) ❑ LIMITED
❑ GENERAL
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
® OTHER: City Adminisjrator
DATE OF DOCUMENT
SKINER tS REPRESENTING:
NAME OF FERSGN(S1 OR ENTTTY(IES1
CITY OF HUNTINGTON BEACH SIGNER(S)OTHER THAN NAMED ABOVE
REDEVELOPMENT AGENCY
BD-1133 3,94 Of 993 NATIONAL NOTARY ASSOCIATION•82W Remmof Ave.,P-O.Box 7184•Cerlops Perk,CA 91309.7184
CALIFORNIA ALL-PURPOSE 11KNOWLEDGMENT • Na_SW7
State of
County of
On 4. u1 R, 199y before me,
DATe NAME.THE FILER-E G..KW DOE.NOTAR 1C-
personally appeared - ,
NAMES)OF S*NER(S)
a personally known to me -
to be the person(s) whose name(s149�are
subscribed to the within instrument and ac-
knowledged to me that +,�l hey executed
M01310ML,1OHNION the same in #4FI4eNtheir authorized
Nalopy°0 t#°41°M If capacity ies , and that by 44d4e+4their
ORANN"CIXNN
W Comm r 0 --MAY 11.MR signature(s,) on the instrument the person(,
or the entity upon behalf of which the
persons acted, executed the instrument.
WITNESS my hand and official seal.
OF NOTARY
OPTIONAL
Though the data below is not required by law,it may prove valuable to persons retying on the document and could prevent
traudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDMDUAL
❑ CORPORATE OFFICER
Tmatsl TITL R PE OF DOCU
❑ PARTNER(S) ❑ LIMrrED
❑ GENERAL
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIANIC'ONSERV 7 R
DATE OF DOCUMENT
SOONER OS REPRESEN>M:
NAME OF vets"S)OR OES)
SIGNER )OTHER THAN NAMED ABOVE
VIM NATIONAL NOTARY ASSOCIATION-SM Remmet Ara-,P_o.Box 7184-Canope Pane.CA 91309-7184
Attachment 1
r 1
MOBILEHOME, COMMERCIAL COACH, TRUCK CAMPER OR
FLOATING HOME BOND
!KNOW ALL MEN BY THESE PRESENTS:
Thai We,
as Principal, and _
corporation organized under the laws of the State of
a , and authorized to transact a general surety
business in the State of Caldomia, as Surety, are held and firmly bound unto the State of California, bepartment of
Housing and Community Development thereof, its officers and employees, for the use and benefit thereof and of any
Irnarested person as here[nafter specified in the penal sum of Dollars
(S ) lawful money of the United States of America, for the payment whereof well and truly
to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and
Severally, firmly by these presents_
THE CONDITION OF THE FOREGOING OBLIGATION IS SUCH THAT-
WHEREAS, the above bounden Principal has made application to the Department of Housing and Community
Development of the State of California for the registration of and the Issuance of a California Certificate of Title for
the following described Mobilehome, Commercial Coach, Truck Camper or.Floating }come to wit:
1WHERE4S, The said Principal has not presented to the said Department of Housing and Community
Development the regularly required supporting evidence of ownership of the said Mobilehome, Commercial Coach.
Truck Camper or Floating Home, and:
WHEREAS, The said Department has required said Principal to deposit with It a bond In accordance herewith
as a condition to the Issuance of a California Certificate of Title for the said Mobilehome. Commercial Coach, Truck
Camper or Floating Home.
NOW THEREFORE, if said obligors shall fully protect, Indemnify and save harmless the Department of Housing
and Community Development of the State of Callfomla, and arty and all officers and employees thereof and any and
all subsequent purchasers of said Mobilehome, Commercial Coach, Truck Camper or Floating Home and any and
all persons acquiring any lien or encumbrance thereon and the successors in the interest of any and all of said
persons, against any and all claims, sults, actions, Ions and damage on account of any defect In or undisclosed claim,
lien, or encumbrance of whatever nature upon sa;d Mobilehome,Commercial Coach,Truck Camper,a Floating Home
or the dght., title and Interest of said Principal in or to said Mobilehome, Commercial Coach, Truck Camper or gloating
Home, then this obligation shall be null and void, otherwise to remain In full force and effect.
THIS BOND 1S SUBJECT TO THE FOLLOWING PROVISIONS:
1. Thai arty Interested person may, in addition to any other remedy he may have, bring an action in his own
name to recover hereon arty damages sustained by him by reason of any breach of the condnfons for which this
bond Is deposited and in such shall have and recover costs and reasonable attomey's tee.
2. Thai the aggregate liabithy of the Surety above named on this obligation to all such interested persons shall
In no event exceed the penal sum of this bond.
(continued to page 2)
11CU 480.0 (REV. 3M)
Attachment 1
3. Upon written request from the applicant, this bond may be returned and surrendered 8t the end or three
yawls from the date hereof of prtar thereto In the event the said Mobilehome, Commercial Coach. Truck Camper of
FIoating Home Is no longer registered In the State of Callforrtla and the curre" vaQd Certificate of Title Is
surrendered to the Departmertt of H&Jsing and Community Development. Provided. that such return or surrender
of this bond shall M affect any Lability ftretolore incurrod or acxrued.
Signed and sealed this day of is
!tJONCIPAL
SvREiY
(AlUcS Noury Public's ADDRESS OF SURETY
C4ni scale Of Admowledtemcnl
of Principal&M Sumry)
TFJLE OF OFFICER
Page 2
Attachment 2
Ocean View Estates - Mobile Homes - 7051 Ellis Avenue
Purchase
Space Price of
Tenant Number Serial Number Insignia Number Mobile Home
Phil Carlin 3 4572-0420-Y A&B CAL 360039-40 23,963
Stan & Helen Parker 7 2073-0217-Y A&B CAL 360153-54 38,000
Jack & Mary Armstrong 11 2073-0215-Y A&B CAL 36014849 38,265
Rose Perez 12 0672-0421-Y A&B CAL 360033-34 17.565
Redevelopment Agency 15 4572-0372-Y A&B CAL 359421-22 21.538
Becky Bolton, heir of Mary
Marinovich deceased 18 4572-0454-Y A&B CAL 360089-90 25,595
Redevelopment Agency 20 2372-0451-Y A&B CAL 360069-70 26,462
Ted, Betty, & Teri Hendrix 22 4572-0440-Y A&B CAL 360067-68 24,750
Eugene Collins 24 4572-0447-Y A&B CAL 360073-74 17,045
Barbara Dittrick& Don
Kolishnick 26 4572-0449-Y A&B CAL 360087-88 26,400
Marge Stipe 28 0671-0617-Y A&B CAL 360221-22 19.555
Pat Hodge & Ma Sheldon 29 4572-0441-Y A&B CAL 360065-66 22,065
Ingrid Gaddis 30 2372-0450-Y A&B CAL 360083-84 28.194
Catherine Ford/Ken Maloney* 31 2372-0476-Y A&B CAL 360686-87 31,050
Bill Franke 33 2372-0445-Y A&B CAL 360071-72 22.840
Grace Brooks 34 4572-0448-Y A&B CAL 360085-86 25,715
Carol & Bob Deilsite 35 2372-0444-Y A&B CAL 360075-76 31,986
Evelyn Claude 36 4572-0423-Y A&B CAL 360079-80 22,325
Patricia Simon 38 0671-0619-Y A&B CAL 360223-24 17,525
Dan Brennan 39 0671-0618-Y A&B CAL 360228-29 18,435
Pat Falkenstein 40 2372-0446-Y A&B CAL 360081-82 30.231
Mazie Kroesch 41 2372-0455-Y A&B CAL 360095-96 27.467
Harry & Betty Stone 42 4572-0419-Y A&B CAL 360035-36 19.846
Geo e & Sally Fader 43 2073-0220-Y A&B CAL 360158-59 38,215
Harold & Nan Jones 44 2372-0443-Y A&B CAL 360077-78 30,386
Total 645,418
OVENUMB-XL5 916+94
EXHIB11 A
r x W A L
AFQ WDME ACQUISITION AND REL' YCATION AGRFEMF.NT
QDILEHOME ACQUISITION Arp RELOCATI N ACRFEMENT
( "Agreemen��' � -�� entered into this Play of
1988 by and �nong the REDEV£Lf}PME
a T7 AGENCY OF HE CITY OF
HUNTINGT;ON BEACH ( "Agency" ) , RLM PROPERTIES , t,TD . , a California
Limited Partnership ( " RLM" ) , DRIFTWOOD BEACH C11US MOBILE
HomEOWNERS ASSOCIATION , INC . , a California Non- Profit Corporation
( "Association " ) and the INDIVIDUAL TENANTS of the Driftwood Beach
Club . Mobile Home Park , who have executed this Agreement
( individually "Tenant " and collectively "Tenants " ) .
RECITALS
A . The City of Huntington Beach ( "City" ) is the owner of
that certain real property comprised of approximately 44 acres ,
shown on the Site Map attached hereto as Exhibit A ano
incorporated herein by reference ( "Site " ) .
B . In 196:1 the City entered into a lease ("Master [,ease " )
with the original Master Tenant , of -wh ) ch RLM is a successor in
interest , for the development and use of the Site as a Mobi ) ehome
Park , go] f course , clubhouse , pool , hotel , restaurant and gas
station . Under the provisions of this Master Lease the term
expires in the 'year 2013 .
C . RLM ccntends that the Hobilehome Park , clubhouse cr.d
pool are separ�r - from the other operations described above . 1".e
Association cont.Ends that the golf course and clubhouse are part-
' of the Mobi lehomo� Park .
D . For purposes of reference within this Igreement , the
Mobilehome Park , golf course , clubhouse and pool will he referred
to as the "Park . "
F,-_ In , 1978 RLM became the Master Lessee and presently i
operates the Site in substantial compliance with the original [
author i-zed use .
F . In 198 2 f the City and RLM modified the Master Lease to
provide - that RLP, as Tenant , was authorized to develop and
maintain- the Site in accordance with its highest and hest lawful
use .
G. RLM subleases spaces ( "Space Leases " ) within the Park to
the Tenants on which spaces Tenants have locatmed individually
-)wned mobi lehomes ( "Mob.i lehomes" ) . A list of the Tenants , their
membersbip in the Association , and the location of each within the
park is set forth in Exhibit 8 ' attached hereto and incorporated
• • P I N A L
herein by reference .
H . The Association is authorized , by its members , to
negotiate a resolution of their disputes regarding the use of the
Site ; however , each individual Tenant has retained the right to
execute this Agreement and must agree to be bound by its
provisions in order to qualify for the 'benefits bestowed upon the
Tenants as here inaf ter provided .
I . The City and the Agency would like the Site redeveloped
as part of an overall redevelopment plan for the downtown area of
the City of Huntington Beach . As part of this plan , the City
intends to transfer a portion or all of its ownership interest in
the Site to the 1,.gency .
J . RLM has proposed to the Agency a renegotiation of the
Master Lease and a redevelopment of the Site . Exhibit C, attached
hereto and incorporated herein by reference , indicates the
proposed phasing schedule of the redevelopment . All references
hereinafter to "Conversion Phases " shall he with reference to the
designation as shown on Exhibit C.
K . The redevelopment of the Site as proposed by Ri,M would
ultimately require a complete demolition of the existing improve-
ments on the Sire , removal of the Mobilehomes and relocation of
the Tenants .
L . RLM has given to the Tenants and others various notices
of its intent to change the use of the Park and discontinue the
use of the Park as a mobilehome park . The Association contends
that .
1 . On--e these notices were given to the Tenants anti
others , the tenants have been unable to sell their Mobilehomes
and/or refinance same .
2 . Prospective buyers have been unwi11 i ng to buy
because R:.M has required proposed i nyL-rs to waive relocation
rights and benefits , as well as acknowledge that - the Site will
cease ,being used as a mobilehome park and golf course during the
year 1990 .
3 . Deupite these actions , those persons who have peen
willing to buy nave been unable to finance the purchase , as
Lenders will not lend money using the Mobilehomes_ as collateral
in light of the announced intent by RLM to chanye ' the use of the
Park .
4 . The City and RLM are obligated to maintain the
current use of the Park at least until the year 2013 when the
Master Lease expires , and the Association has - requested that the
City reject the proposed change
^ of use and maintain the Site as
L
presently develded until the year 201
M . RLM contends as follows :
1 . That as Master Lessee it has the complete right to
change the use of the Mobilehome Park under said Master Lease and
under .state , federal and local law;
2 . That all notices that have thus far been required
have been properly served upon the Tenc..,ts ;
3 . That RLM has thus far complied with all lawl
concerning the change of use and proposes to comply with all
state , federal and local laws in order 1_o effect a change of use
of the Park ;
4 . 'That RLM has not required any prospective buyer of
any Mobilehome in the Park to waive any rights or relocation
benefits ;
5. That neither RLM nor any Agency has any responsibil-
ity , legal or moral , for the loss in value of the Mobilehomes in
the park ; and
b . T-)3t the inflated value of the Mobilehomes in the
Park deprives R T M of its property rights as a lessee .
N . Agency Would like the Site redeveloped as proposed ar.d
the Tenants comaensated for the resulting dislocation as prov .,ded
for herein .
O. R[.M, he Agency , as successor in interest of the City ,
the Associatior , and the Tenants desire to compromise their
disputes regarding RLM ' s right to develop the Site prior to the
year 2013 , the relinquishment of property rights by the Tenants ,
and the adequacy of a Relocation Assistance Plan_
P . Concurrently herewith , the Agency and RLM have entered
into a Disposition and Development AgUement and Ground Lease
pursua7,t to which , subject to the terms and conditions set forth i
therein and herein , the Agency "would convey certain Land to RLM
and Ground Lease (modifying and extending the existing Master
Lease ) other Lased to RLM all for purposes of development thereon
in accordance with the DOA and Lease and this Agreement .
TERMS OF AGREEMENT
In view of the above , the parties do hereby agree to resolve ,
compromise and settle their disputes regarding their respective
entitlements under any plan to redevelop the 5 ite as follows :
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• P I N A L
I . AGENCY OBLIGATIONS
The Agency hereby agrees on behalf of itself , its successors
and assigns that it will guarantee to the Tenants exect,ting this
Agreement the following :
A . Ir. Will immediately cause appraisals to be made , at
its expense , of the Tenants ` Mobilehomes on the Site according to
the method described in Section IV below to determine tr,e
" Appraised Value" of the Mobilehomes ; and
H . Any development , redevelopment or change of use of
the Site prior to December 31 , 2013 will contain a plan which ;
1 . Bestows upon the Tenants the same rights and
benefits being given them as set forth in this Agreement ; and
2 . Prov ides for a Conversion Phasing schedule
consistent with that contained in Exhibit C hereto, and that the
scheduled phases of development contained therein will not he
accelerated unless additional benefits are paid to the Tenants as
provided for in Lhis Agreement .
C . •` h, c-Migations of the Agency under this Agreement
..Ilal l inurP to the benefit of RLM , the Association and the
1•,�nants , their ticcessors or assigns . The Agency shall adhere to
the Conversion Phasing schedule and shell timely take any and all
actions which are necessary to carry out and enforce the terms of
this Agreement as to the Tenants , including :
1 . Preparing and serving all Notices necessary to
notify Tenants to vacate the Mobilehome Park spaces including but
not limited to :
( a ) Within fifteen ( 15 ) days after receipt of
Notice from RLM of its intent to begin construction - of each and
any Post Conversion Phase A development , the Agency shall serve
all remaining Tenants notice of its intent LO proceed with
add i•t iona 1 cons t i-uct ion .
( b) To those. Tenants specifically affected by
the next, scheduled development the Agency shall serve a one
hundred eighty ( 18D ) day Notice to Vacate their Mobilehome space .
In the event Tentints fail to vacate within the one hundred eighty
( 160 ) day period the Agency shall also serve the Tenants with a
sixty ( 60 ) day Mc•t ice to Terminate Tenancy.
2 . Implementing and enforcing , by legal action if
required , any and all terms of this Agreement necessary to
accomplish this rgreement .
3 . Taking any and all actions necessary to clear
the Site and implement the phasing schedule to allow RLM to
-4-
F I N A L
develop the Site including , but not lin- iteo to :
( a ) Using its, best efforts to acquire the
necessary possessory rights to Ocean view Estates T ., as herein-
after defined , to enable it to provide for the occupancy at that
location by th•)se Tenants affected by—Conversion Phase A of the
redevelopment , however , the possessory rights to Ocean View
Estates I shalt be acquired hefore any construction at the Site
may commence ; and
( b ) Clearing the property , constructing mohile-
home spaces and otherwise improving Ocean View Estates I suffi-
ciently to accomodate those eligible Tenants electing to be moved
to this location ; and ,
( c) In the event the Agency desires to proceed
with any Post Conversion Phase A construction , it shall :
( i ) acquire the necessary possessory
rights to Ocean View Estates I and Ocean View Estates 11 to enable
it to provide for the occupancy of those areas by the Tenants as
provided for herein ; and
( i i ) clear the property , construct ,nihi le-
home spaces , anI otherwise improve Ocean View Estates I and Ocean
view Estates 11 sufficiently to acconunodaLe up to r,ne hLindred
forty- five ( 145 • spaces for Tenants electing to be moved to Ocean
View Estates I 4,ind Ocean View Estates 11 .
( d ) In the event t1:e Agency fails to acquire
the possessory eights to Ocean View Estates T and IT throijgh good
faith negotiati-)ns , the Agency will duly schedule , notice , and
hold a public hearing at which it will cons icier the adopt icn of
resolutions of necessity to authorize acquisition by eminent
domain of the per:sessory rights of Ocean View Estates I and Ti not
then owned by the !Agency . Following sucil Public hearing , t1.e
kgency will exercise its discretion in dc- Lermining whether or no_t
to adopt the reFol ut ions of necessity and to proceed with enti vent
domaiP _ In this regard , the Agency untlertakes no ohligacion to .
exercise powers of eminent domain with respect to Ocean View
Fstat" I• or I ' , or the leasehold interests , or any interests
therein .
1 1 . RLM (-`• 1.1rhT1fDNS
RI-M hereby 'agrees , on beha) f of itse ) f , its successors anti
i gns , as to T.- nant s executing this Agreement , that
A . An-, rievelopment , redevelopment or change _ of use of
the Site prior to December 31 , 2013 will contain a plan which :
1 . Bestows upon the Tenants the same rights and
•
benefits being given them as set fortn in this Agreement ; and
2 . Provides for a phasing schedule that is
consi'Stent with that contained in Exhibit C hereto , and that the
scheduled levels of development cc.nt_ained therein will not be
accelerated unless additional benef i cs ' E re paid to the Tenants as
expressly provided for in this Agret vent .
B . RLM shall notify Agency , in writing , of its
intention to begin construction of any Post Conversion Phase A
development two: hundred forty ( 240 ) days prior to the scheduled
date of constr«ction on the particular phase identified . Said
notice shall i-lentify the specific a. ea to be involved in the
construction and shall specifically lis . the spaces involved .
III . ASSOCIATION AND TENANT OBLIGATIONS
The Association and those Tenants executing this Agreement
hereby - agree , on behalf of themselves and their successors and
assigns , that :
A . The Association will confirm and approve this
Agreement , on behalf of itself , in accordance with any and all
laws , rules and regulations that govern its organization and
operation; and
B . The Association shall recommend to its members that
execution of this Agreement by the Tenants is in the Tenants ' best
interest ; and
C . Bt refits and obligations flow; to the Tenants under
this Agreement and the Tenants executing this Agreement are bound
by its terms and shall timely perform the : obl igations contained
herein in order to be entitled to the henefi;ts ; and
D . The , Association and Tenants , agree , recognize and
acknowledge that. any and all alleged representations , written or
oral , previously made to them concerning the use of the Site ,
incl wd-ing the facts that the present lease for the Site expires in
the year 2013 ar•d that the use -of the Site may be changed at that
time -it 'changes have not previously been made according to the
terms of this Agreement have been fulfilled as a result of this
Agreement .
E . The Tenants shall vacate the Park within the Notice
periods referenced herein provided they receive :'the benefits to
which they are entitled under this Agreement , and that upon
receipt of those benefits all prior representations , oral or
written , have been fulfilled and satisfied .
- F. Association and Tenants stipulate that the reason
for any termination of tenancy contained herein shall be change of
6-
use and so long RLM and Agency satisfy&eir obligations under
this Agreement , 01 requirements of state , federal and loc-1 law
shall thereby be deemed satisfied ; and
G . To the extent provided in Section XII of this
Agreement , Association and Tenants shall accept any and all
changes to the proposed Site Plan and the development of the Site
so long as such changes do not affect the Conversion Phasing
Schedule as set forth on Exhibit "C" hereof and the benefits they
are to receive according to the terms of this Agreement .
IV. APPRAISAL OF MOBILEHOM£S
A. Selection of Appraisers . within fifteen ( 15 ) days
from the date hereof , the Agency and- the Association shall each
separately designate �
-be- in existenee , a disinterested real estate appraiser having
appropriate qualifications ) to appraise the Mobilehomes as set
forth immediately below. All appraisers selected pursuant to the
provisions here,ff shall be impartial and unrelated , directly or
indirectly, so far as employment for services is concerned to any
of the parties hereto , or their successors , and shall have at
least ten ( 10 ) years professional experience in Southern
California appraising mobilehomes with- land anct improvements
similar to the Mobilehcmes on the Site .
B . Appraisal Criteria for netermination of "Appraised
Value" . As used herein , the Appraised Value " of the Nobilehomes
shams-be the in-place/in-park fair market value of the homes as of
November 1 , 1986 in location on the Site , as adjusted for general
Grange County in -place mobi lehome housing inflation to the date of
appraisal as determined by, the appraisers .
In determining _the "Appraised Value ," the appraisers
. shall base their determinations on com2arable sales in the park
during- the twelve ( 12) month period prior to November 1 , 1986.
The appraisers -shall , in addition to the in--place/in-
park factors such as the location of the park and the amenities
provided in the Park, consider the size , age , condition and
special features of each Mobilehome , the location of each Mobile-
home in the Park and the value of - any improvements made by Tenant
to the Mobilehome since November 1 , 1986 .
The appraisers shall also consider the Space Lease and
rental rates applicable thereto as they were in effect on November
1 , 1986 , and assume the continued existence of these leases in the
Park through December 31 , 2013 - wil~h all amenitkest but , shall not
-7-
��
P I w A L
consider the effect moving a Mobilehome would have on its value ,
the effect of any change of use of the Park , including , but not
1 invited to , that proposed by RLM , or the value of the Mobilehome
undeK. any local ordinances or codes .
All Space Leases shall be considered as being renewable
with - reasonable rent increases and all language in Space Leases ,
notices or other documents concerning possible change of use of
the Park shall he disregarded .
The terms of an existing sublease between the Tenant , as
sublessor , and a Renter , as sublessee , may be considered by the
appraiser in determining the Appraised Value . However , a Renter ' s
relocation entitlements , if any , under Article 927 of the
Ordinances of Huntington Beach will not be considered for purposes
of reducing this Appraised Value .
C . Appraisal Process and Appraised Value . The two
( 2 ) appraisers so appointed shall , independently of each other ,
determine the value of each Mobilehome within sixty ( 60 ) days
after they have been selected , as to Phase 1 and Phase 1-Optional
Tenants and ninety ( 90 ) days as to the balance of the Mobilehomes .
If the two ( 2 ) ippraisers appointed concur on the determined value
of a Mobilehome , the amount so determined shall be the Appraised
Value . If the appraisers do not concur , and the difference
between the two ( 2 ) determinations is an amount -less than ten
percent ( 10% ) of the amount of the higher determination , the mean
average of the two ( 2 ) determinations shall be the Appraised
Value . If the difference between the two ( 2 ) determinations
exceeds the amount specified above , the determination of value
shall be deemed "disputed . " Within fifteen ( 15 ) days after it is
determined that the value of a Mobilehome is disputed , the two
appraisers shall jointly select a third appraiser meeting the
qualifications ;et forth hereinabove , and if they are unable to
agreo on a third appraiser , either the Agency or Association , by
givinq fifteen ( 15 ) days notice to the other , may apply to the
Presiding Judge of the Superior Court of Orange County to select a
third appraiser who meets the appraiser qualifications set forth
above . The third appraiser , however selected , shall be a person
who has not acted in any capacity for either party. Within thirty
( 30 ) dayp after being selected , the third appraiser shall make an
independent appraisal of the Mobilehome using the ' criteria set
forth in Section IV, Paragraph B. above . This appraiser shall not
have access to the findings , data or conclusions of the other
appraisers . Tre original appraisers ' determinations as to the
value of the robilehome will then be compared to the value
determination of the third appraiser for the same Mobilehome . The
initial determination that is closest to the value determination
made by the third appraiser shall be deemed to be the Appraised
Value of that Mobilehome . All expenses related to the selection
and services of all three appraisers shall be the sole responsi-
bi l ity' of the Agency.
rti�tvJOeal rsc:GwI a.zi urn t �e1QC0.fi. W1 I�►�reeN�E� a A L
D. Alteste Valuation . Oi-ce thwppraised Value of a
Mobilehome is established by the appraisal method , the Appraised
Value may be adjusted to a higher value equal to eithert
~ I . That which Tenant would be entitled to receive
under the provisions of Article 927._ of the Huntington Beach
Municfpal Ordinetncel or
2 . The amount of the actual purchase price paid by
the Tenant for the Mobilehome plus proveable costs of any
subsequent capital improvements made to the Mobilehome after the
purchase , but before November 1 , 1986 , plus the actual value of
any capital improvements made after November 1 , 19861 or
3 . The amount necessary to pay in full those
secured financial obligations which were transacted prior to
November 11 1986 , to the extent that the amount does not exceed
the Appraised Value plus ten percent ( 101 ) , plus the actual value
of those capital improvements made after November 1 , 1986 .
. "Secured financial obligation' as used herein shall
be defined as the principal sum as of May 1 , 1988 which the
Hobilehome owner was obligated to pay to a lender whose sole
security for the loan was the Mobilehome , its improvements , the
Space Lease and the personal signature of the Tenant .
E . De =ermination of Agreed Value of Mobilehomes . The
Appraised Value for each Mo i z ome shall be a 3uste ac__c_o_r-cTTng to
the provisions of Exhibit D , attached hereto and incorporated
herein by reference , in order to determine the adjusted fair
market value (Agreed Value ) for each Mobilehome through December
3 1 , 2013 . in all cases where the application of the provisions of
Exhibit D would increase or reduce the value of a particular
Mobilehome , references in this Agreement to the "Agreed Value `
shall be deemed to mean the adjusted fair market value as
determined by the application of the provision of Exhibit D;
however , in no case shall the rent changes occasioned by this
Agre,ement affect Exhibit D except for regular annual increases .
Further , in no case shall the Agreed Value be reduced below the
Appraised Value prior to year 14 on Exhibit D .
V . TENANT CLASSIFICATION AND ENTITLEMENTS
A . Tenant Classifications . All Tenants shall be clas-
sified as follow n :
1 . Immediate Buyout Tenants : A limited number of
Tenants who apply reg—ar--31ess of their ocation within the Park,
because of their individual circumstances , will be qualified as an
Immediate Buyout Tenant .
-9-
r 1 n A 1,
2 . Phase I Tenants : T, nants who own Mobllehomes
located within the area dWsignat onversion Phase A on Exhibit C
shall be Phase I Tenants .
3 . Phase I--O tional . Tenants who own Mobilehomes
located within the area designated Corlverslon Phase B-Optional on
Exhibit C shalI be Phase I --Optional Tenants .
4 . Phase II .Tenants : All other Tenants of the
Park not speci f icaYl-yref erenced above shall be Phase II Tenants .
5 . Non-Resident Tenants : Tenants who own Mobile:
homes in the Park , regardless of their location within the Park ,
who sublet the premises to non-relatives , with or without compen-
sation , shall have the additional classification of Non-Resident
Tenants .
6 .. Renters : All persons who sublease from Tenants
shall be Renters ana not Tenants as referenced herein , except that
a person who was a non-owner resident on May 15, )987 shall be
entitled to the Tenant ' s rights and benefits hereunder if that
Resident had an option to buy the Mobilehome on that date and has
subsequently either :
( a) exercised the option to purchase ; or
( b) still has the option to purchase and
exercises same before the Tenant ' s final election of benefits is
due hereunder ; or
( c) has renewed the option and exercises same
before the Tenant ' s final election of benefits is clue hereunder .
;ny person who has obtained an option to purchase a
Mobilehome since May 15 , 1987 may obtain the rights and benefits
due the Tenant hereunder by proper exercise of the option to
purchase and be entitled to elect benefits as limited by this'
paragraph 6 .
'Both Tenant and resident/optionee shall be entitled to
concurrently select benefits under this-- Agreement ; however , when
the fenant and resident/optionee conflict in their election of
benefits , the Tenant ' s election shall prevail unless the option to
purchase has been exercised .
7 . Determination Date : The status 'of Tenants as of
May 15 , 1987 shall be the contro ling factor for determining the
Tenants ' classifications hereunder .
S. Tenant Entitlements . Tenants shall be entitled to
select certain relocation benefits under this Agreement . The
particular benefits to which each Tenant may be entitled depends
- 1(3 �-
upon the individual Tenant1a class it ation and the options the
Tenant selects . Tenants shall be obl . .rated to select the benefits
which they desire under this Agreemei.• and notify the Agency and
the Buyout Committee , as the case y be , of their selection
within the time periods specified h. ein . The entitlements by
Tenant cl aes i f 1 cat ion are as follows :
1 . Immediate Buyout Tej. ,nts
( a ) Purpose of Classifications : It is the
mutual desire of the parties hereto to ent i y and provide for
Ithose Tenants who (because of personal circumstances , financial
need or a particular impact the pr-ject ' s phasing plan may have
upon them) find it necessary or advi .ab , e to receive the financial
benefits of the Relocation Assistance r1an , to which they may he
entitled , in advance of the phasing sch.:dule as established by the
Relocation Assistance Plan . For this reason the Immediate Buyout
Classification is established .
W Available Funds : The Agency will provide
the sum of Three Mill ion Two HundredThousand Bol lays ( $3 2QB OOQ )
to pay for certain relocation costs it incurs to provide the
benefits to the Tenants herein during Conversion Phase A of the
plan.
( c) Expenditure Priorities : These expenditures
will be made for the following items in the following order of
priority :
( i ) Pay Buyout Tenants located in
Conversion Phase A and Phase A-Opt Tonal who elect to sel ) their
Mobilehomes as :.00n as possible ; then
( ii ) Pay development and construction
costs ( excluding costs associated with acquiring land or right to
possess same except for trucking and related uses at the corner of
Ellis and Goldenwest ) to build out the existing Ocean view Estates
I property to provide spaces for all Phase T and Phase I -n(itiona.1
Tenants who elect to be relocated to Ocean View Estates I before
�commewcement of construction of -Conversion Phase A;
• ( i i i ) Pay the . 'costs to move el ig ible
Tenants to Ocean View Estates I either ;
( aa ) by acquiring a new mobilehome
for Tenant and placing it at the new site with the necessary
hookups , and moving costs : or
(bb ) by moving the Tenants ' exist-
ing Mobilehomes to the new site and paying the other benefits to
which those Tenants may be entitled , as hereinafter described ;
then
--- l' I N l► L
( iv} pay the costs to 'relocate Phase I and
Phase I -Optional Tenants - who elect to be relocated in another
section of the Park; and
( v ) Pay the costs to relocate Phase I and
Phase I Optional Tenants who elect to 'be relocated to any location
within the United States within the limits of Section VIII . A.
hereof .
(vi ) With all funds remaining , purchase
the 'Mobilehomes of those remaining Tenants applying for Immedia�e
Buyout who are certified by the Buyout Committee .
(d ) Buyout _ Committee to Determine Ouaiifica-
tion : Al applications for certif cat16n as an Immediate Buyout
Tenant shall be submitted to and the issue of qualification
determined by the Buyout Committee . This Committee shall he
comprised of five ( 5 ) members . Two ( 2 ) seats on the Committee
will be filled with individuals designated by the Association , two
( 2 ) seats as designated by the Agency and one ( 1 ) seat as
designated by those Tenants . who are not members of the
Association . The Agency designees shall not be Tenants at the
Park . A majority vote of the Committee members shall be final and
binding .
( e) Time Limitations :
( i ) A written application by the Tenant ,
to be certified as an Immediate Buyout Tenant , must be submitted
to the Committee within thirty ( 30 ) days after receipt by that
Tenant of written notice of the Appraised Value determination for
his/her Mob ilehome . Any application received by the: Committee
after that elate shall be deemed to be unqualified . The ; Committee ,
however , may consider and rule upon a latex filed application if
it deems that denial of the application , under all of the
circumstances , would work an 'extreme hardship on the Tenant .
( ii ) All Phase I and Phase I--Opt ional-{
Tenants who timely apply for certification as Immediate Buyout)
Tenants shall be immediately qualified and certified .
( lit ) The Committee shall determine as
qualified or net qualified all Phase II and Non-Resident Tenants
who apply within forty-five ( 45 ) days of the last - Tenant in the
Park being notified of his/her Appraised Value. .'
( f) Oualification Criteria :
( i ) No criteria required . When the total
cost to purchase the Mobilehomes sought to _be certified does not
exceed the remaining available - funds , after meeting the pr iorty
expenditures listed above , there will be' no qualification criteria
- 1 2- +
established . In such event , all Immediate Buyout applicants will
be certified by the Committee to the Agency and the Agency will
thereafter purchase the applicants ' Mobilehomes as provided for
hereunder .
( ii ) Establishment of Criteria . In the
event the total cost to purchase the Mobilehomes sought to be
certified exceeds the funds available , after paying the priority
items , then the Buyout Committee will establish criteria used to
qualify the Phase II and Non-Resident applicants as Certified
Immediate Buyout Tenants . This criteria will strive to qualify an '
applicant on the basis of the physical and financial hardship that
will be created if the applicants are unable to sell their
Mobilehomes .
(9 ) A lication by Tenant : Any Tenant desirous
of immediate sale of- his or her Mo i e ome shall apply, in
writing , to the Buyout Committee for Immediate Buyout
Certification and sale pursuant to this paragraph. The
application shall state that the Tenant desires to sell and, if he
or she wishes , may set forth the reasons and/or state the hardship
that the applicant believes will be created should the application
be denied .
(h) Certification : The Buyout Committee shall
consider all applications for Imme late Buyout Certification based
on the agreed criteria . The Buyout -Committee shall thereafter,
within the time allowed by paragraph (-e ) ( i ) above, determine those
Tenants who qualify in view of the funds available and certify
those as Immediate Buyout Tenants to the Agency in writing .
( i ) Ac uisition Escrow: Within fifteen (15 )
days of receipt of the written; 'notice of certification by the
Agency , it shall establish an escrowfor its acquisition of the
Mobilehome with the closing to occur as soon as possible
( approximately thirty ( 301 days ) after- the opening of said escrow,
but in no event later than March 15 , 1989 for Phase I Tenants.
The Immediate Buyout purchase price shall be :
( i ) for Phase I and Phase I-Optional
Tenants : the Appraised Value at time of close of escrow; and
( ii ) for Phase 11 and Non-Resident
Tenants : the Appraised Value less five percent (51 ) .
{j ) Close of Escrow, Payment to Tenant and
Possession of Mobilehome-:
( i ) Before close of escrow the selling
Tenant shall execute and deliver to escrow all documents necessary
to transfer marketable title ,. free and clear of all liens and
encumbrances , to the Kobilehome to the Agency and Agency shall pay -
-13-
uncire purchase price and an additional amounts
vary to pay a escrow costs . ip
( ii ) Upon close , escrow shall :
j0 _ ( aa ) pay' all liens and encumbrances
against the Mobilehome ; and
( bb) pay to Tenant seventy-five
percent ( 75% ) of the remaining sale proceeds and deliver to Tenant
an acknowledgment that it holds the remaining sale proceeds which
shall be disbursed to the Tenant upon the Tenant vacating the
premises and providing escrow with an executed Declaration of
Vacancy and Receipt of Benefits in the form of Exhibit E attached
hereto ; and
( cc ) deliver all transfer documents
to the Agency.
( iii ) Tenant shall vacate the premises
within fourteen ( 14 ) days after receipt of the payment of seventy-
five percent ( 75% ) of the net sale proceeds and any holdover after
that date will be unlawful ;
( k ) Acknowledgment of Notice : A Tenant elect-
ing this Option hereby acknowledges that this Agreement shall
constitute a sixty ( 60 ) day Notice of Termination of Tenancy which
is effective as of the date of this Agreement and the tenancy
shall terminate within two ( 2 ) days after the date of closing .
( 1 ). Condition Precedent to Construction :
With the exception of the demolzton of that portion of the Hotel
located on the Site consisting of the forty-eight ( 48 ) units
closest to Huntington Street , RLM shall not commence construction
on the Site until all' escrows for Immediate Buyout cases for Phase
I and Phase I -Optional Tenants have been funded and escrows for
spaces 325 , 326 , 327-, 328 , 329 , 312 and 311 have all closed or
tht-se Tenants have been relocated to Ocean View Estates I as the
Tene-n-ts shall elect . r
2 . Phase I Tenants
4
within thirty ( 30 ) days after Tenant ' s receipt
of the Notice c,f the Appraised Value of the Tenant ' s Mobilehome ,
the Tenant shall select , in writing , one of the following
Options :
( a ) Oation 1 -Immediate Buvout/Offer to Sell
All Phase I Tenants who apply for certifi-
cation as an Immediate Buyout Tenant shall be certified and
- 1 4- '
a
entitled to me their Hobilehomes 04 chased by the Agency as
provided in Spotion V , Paragraph B. I . above .
( b ) Option 2-Relocation within Park
( i ) Exercise of One Time Option : Tenant
shall have tl•..- option , subject to availability of space , to he
moved once to another existing Mobilehome within an area of the
Park which is scheduled for redevelopment later than the
Conversion Phase in which• the Tenant is currently located . The
selection of Mobilehome and the actual location of the relocation
space must be determined no less than thirty ( 30 ) days before
+ construction of the Conversion Phase in Which the forAec
Mobilehome is located . Up to this time , the Tenant may revoke
this Option and elect Option- 1 Immediate Buyout for Phase 1
Tenants .
( ii: ) Purchase of Relocation Mobilehome :
The Tenant shall select the Mobilehome to which relocation is
desired and enter into a purchase agreement with the owner provid-
ing for the close - of escrow before scheduled commencement of
construct ion . The Agency shall pay all escrow costs and that
portion of thu purchase price , up to the whole thereof , that the
Agency would have been obligated to pay if the sel 1 i ng Tenant were
selling direct ' y to the Agency for the Agreed value . In the event
the purchase [-rice of the relocation Mobilehome is less Alan the
Agreed Value c-f the Buver ' s Mobilehome , the Agency shall pay the
difference to the Buying Tenant as provided in paragraph ( ivl
below. If thr- price paid for the relocation Mobilehome is mare
than the Agreed Value of the Buyer ' s mobileheme , the Buying Tenant
shall pay the lifference .
( i i i ) Costs of Relocation : Agency shal 1
pay all costs of the within-Park move including , but not limited
to , packing and unpacking of household goods and , in addition ,
shall reimburse the Tenant for up to One Thousand Five Hundred
Dollars ( $ 1 , 500 ) in costs incurred for refurbishment of the
Mobilehome to which Tenant moves .
( iv ) Purchase of Tenant ' s Existing Mobile
home : A Tenant who exercises- this option shall he paid , at the
time.- of the m-)ve , cash for his/her .original Mobilehome at the
Agreed Value .
(v ) Right to Purchase , Costs and Rents
for Tenant at f'elocation Mobilehome : The phase I Tenant electing
this Option may :
( aa ) Require the Agency to purchase
the relocation Mobilehome and thereafter rent the Mobilehome to
which the Tena,-t is being moved from the Agency for an initial
monthly rental of the Mobilehome equal to one-twelfth ( 1/12 ) of
nine -percent ( 11% ) of the Agency' s purchase price for same pl-us
0 F I N A L
space rent equal to one -half ( 1/2 ) of the rental rate that would
have otherwise been paid for that space . These rental rates shall
continue until the Mobilehome ' s removal is necessary for further
development c t the Site or , two ( 2 ) years after the date of the
relocation , whichever occurs first . If the Tenant occupies the
space after this date , the Mobilehome rent shall continue
unchanged ; however , the space rent shall he determined in the same
manner as other Tenants -who remain in the Park . A Tenant who
sells his/her Mobilehome and elects to rent a Relocation Mobile-
home will not be entitled to be relocated again , and will receive
1 no further revocation benefits other than those specified herein ;
or
(bb ) Purchase the Relocation Mobile-
home for the Agency' s purchase price or less , pay space rent as
provided in (aa ) above and thereafter , be eligible for all other
Phase I1 Tenant benefits except further in-park relocation .
( c ) Option 3-Relocation to Ocean View Estates l
All Phase I Tenants who have not elected either
option 1 or Option 2 above may elect to he relocated to Ocean View
Estates I by the Agency as hereinafter provided .
( i ) Location : Ocean View Estates i is the
area specifically marked as such on Exhibit F- 2 and includes , hut
is not limiter to , the existing mobilehome park located in th?
City northeast of the intersection of Ellis avenue and Coldenwest
Street , presen+ ! y known as Ocean View Estates .
( ii ) [qualification as Relocatab) e Mobile-
home and Notices : Within thirty ( 30 ) days after recaipt by the
Agency of a Tenant ' s written notice to elect to be relocated to
Ocean View Estates I , the Agency , in its sole discretion , shall
determine if a Mobilehome is relocatabie to Ocean View Estates 1 .
The Agency shall , within five ( 9 ) days thereafter , give the Tenant
written notice of its determination . The notice shall state
whether or not the Mobilehome is relocatable and , if it is, the
AgeVy ' s estimate of the relocation coats as described in subpara-
graph ( c) ( iv ) blow.
. ( iii ) Elections Determined by Mobilehome
Condition : Depending upon the relocatability of the Tenant ' s
Mobilehome , the Tenant may he entitled to the following benefits :
( aa ) when the Mobilehome is over
nineteen ( 19 ) } ears old , a- single-wide or has been determined to
be not relocatable , then the Tenant shall he entitled to have a
new mobilehome purchased in the Tenant ' s name by the Agency and
located at Ocean View Estates I ; or
( bb) when the Mobilehome is over
nineteen ( 19 ) years old , not a singly-wide , but is relocatat)le,
the Tenant may elect to have the Mobilehome relocated to Ocean
View Estates i , and in such event , the Agency shall pay to the
Tenant Five Thousand dollars ( $ 5 , 000 ) in addition to the reloca-
tion costs as described in subparagraph ( c ) ( iv ) below.
(cc ) wnen the condition of the
Mobilehome meets the requirements for relocation but the Tenant
prefers a new mobilehome , then the Tenant may , within thirty ( 30 )
days after receipt by the Tenant of the Agency ' s written determi-
nation regarding relocatability and estimated relocation costs,
require the Agency to purchase a new mobilehome for the Tenant .
The Tenant shall pay to the Agency the amount of the cost of the
new mobilehome after deducting therefrom the estimated relocation
costs. In this event the Tenant shall cause the old Mobilehome to
be removed from the Site .
(dd) Any new mobilehome purchased by
the Agency to fulfill its obligations hereunder shall be purchased
in Tenant ' s name and delivered to Ocean View Estates 1 , at Agency
cost and expc-nse . The new mobilehome shall be unused and
substantially equivalent in size , utility and quality as Tenant' s
existing Mobilehome . Agency shall consult with each Tenant and
cooperate to attain Tenant ' s reasonable preference with regard to
style and floorplan of the substitute mobilehome . Stiould a Tenant
desire a larg,rr or upgraded substitute n..iobilehome , the Tenant
shall be required to pay the ad_.ditional costs attributable to the
upgrade . _
( iv ) Costs of Relocation; The Agency will
pay all costs of relocating the Mobilehome , its contents and
add-ons , including , but not limited to, relocation of the Mobile-
home , packing , moving and unpacking of ail contents, all set up
and hook up charges and all replacement and/or refurbishment
inside and out to put the Mobilehome and all add-ons into a condi-
tion on site at Ocean View Estates I at least equivalent to that .
it enjoyed at the Park.
(v ) Relocation Availability: The Agency
will make available at Ocean View Estates I prior to March 15 ,
1989 as many spaces as are necessary to accommodate Phase I and
Phase I Optional Tenants who select this Option.
( vi ) Rent Abatement: A Tenant electing
this option will receive a one hundred percent ( 1.001) abatement of
his/her space rent for tie first twenty-four ( 24 ) months of
his/her residency at Ocean View Estates 1. If, by that date,
Ocean View Estates 11 has not been completed, the rent shall
thereafter be set at the same rate as those tenants who resided
tT r prior to the date of this Agreement . - Upon completion of
O oa . jG�i 3 7It&X 11 , the rental rate shall be set by the
Ass c {r�'t1. Y D
SFp 0 8 1988 -11-
OCPARTMrIvT OF
COM"J14'Ty OEYFLOPrv�:1vT
( vii ) Space SeIeption and Placement:
Space assignment for each new Tenant at Ocean View Estates I shall
be determined by the Agency based upon the availability of loca-
tions and , whenever feasible , the Tenant ' s expressed preference in
this regard.
(d ) Those Tenants failing to provide the
Agency with written notice of their elections contained herein ,
within the time allowed , will be de emed __ to have elected to sell
their Mobilehomes at the earliest possible time at the then exist-
ing Agreed Val,je .
(e) Notwithstanding the above, the implementa-
tion of any of these Options shall occur prior to March 15 , •1989 .
3 . Phase I-Optional
Phase I-Option-ate Tenants shall select , in writing , within
thirty ( 30 ) days after receipt by the Tenant of written Notice of
Appraised Valu? :
(a ) All Phase I Options : Phase I-Optional Ten-
ants shall have, the right to $elect, any benefit available to Phase
I Tenants ; or
( b ) O tion 4-Ri ht to Remain : Within the same
thirty ( 30 ) d.,y period , Phase' 1-00tional Tenants may elect to
remain in their Mobilehomes at their present locations until the
commencement of any Post Conversion Phase A of the development of
the Park under the following terms and corditions:
( i ) Abatement of Rents: Should Tenant
elect to remain in the Mobilehome at its present location , then
the Tenant will pay space rents from the commencement of
construction of Conversion Phase A for a period of twenty-four
( 24 ) months , thereafter at the rate of fifty percent ( 501 ) of the
rental rate as adjusted according to this Agreement. If , at that
time , there has been no Post Conversion Phase A development , the
space rents shall be computed in the same manner as Phase II
Tenants . Should construction commence after that date , the rents
would be abated to seventy-five percent ( 75% ) of the regular rate
as determined - for other Tenants who remain in the Park, or until
the space is deemed by RLM to be necessary for the development of
the next Conversion Phase and the Mobilehome is either purchased
by the Agency, the Tenant relocated to Ocean View Estates II as
hereinafter provided , or the Tenant elects to be relocated outside
the Park .
( ii ) Election Exclusion: All Phase I-
Optional Tenants , who elect to remain in their present space after
Commencement of Conversion Phase A, shall not be entitled to exer-
cise the Option to be relocated to Ocean View Estates I.
-18-
-- -- --- — c ! 1L L
{ iii ) Right to . Phase ; I Tenant Benefits :
Those Phase I-Optional Tenants who :elect to remain in their
current space or who relocate within the Park during the develop-
ment' of Conversion Phase A shall , in 'addition to those benefits
specified above , be entitled to the same benefits anti Options
bestowed upon Phase II Tenants .
( c ) Selection B ►_Default : Those Tenants fail -
ing to provide the Agency ujt 'written notice of their elections
contained herein , within the time allowed , will be deemed to have
elected to sell their Mobilehome at the earliest possible time at
the then existing Agreed Value .
4 , Phase II Tenants
Phase II 'tenants shall , within thirty ( 30 ) days of receipt of
Notice of Appraised Value of their Mobil-homes , select , in writing ,
one of the following relocation benefit Options :
( a) : Option t -Immediate B auaut� Cases : Any
Phase II Tenant may apply to the Buyout Committee for certifica-
tion as ar. Immediate Buyout Tenant as provided in Section V para-
graph B. I , abc ve .
( b) Option 2-Limited Right to Remain: Any
Phase II Tenant may elect to continue to occupy is/her Mobile-
home , at its present location , until the commencement of any Post
Conversion Phase A construction which affects his/her location and
Shall be entitled to:
( i ) Restricted Rents : - Effective on the
date of this Agreement , the Tenant shall pay to RLM , or its
designee , monthly space rent equal to the rental rate paid by the
Tenant of that space on January 1 , 1988 ( the ini t ial rent ) . This
rate shall be increased annually from the elate of this Agreement
by six percent ( 6% ) . , Upon commencemenC tit any Post Conversion
Phase A construction , the rent will be reduced to seventy- five
percent ( 75% ) of the rent paid by Tenant just prior to the
corrstruct ion a id this new rate shall The increased by six percent.
( b% ) per annum .
( ii ) Revival of Option to Sett : upon
commencement <•f any construction after the completion of the
second construction area , those Phase II Tenants selecting this
Option shall be entitled to a new offer to purchase before
commencement of each and any subsequent Conversion Phase in the
same manner as stated in paragraph ( c) nex.t below.
( c ) Option 3--Right to 5ell Mobilehome:
Any Phase II Tenant may elect to sell his/her mobilehome as
follows :
{ i } Offer to Purchase: Prior— to--' one
hundred eighty { 180 ) days before the : cheduled commencement of any
Post Conversio-i Phase A construction , the Agency shall offer to
purchase for the Agreed .Value the Mobilehomes of the then remain-
ing Tenants .
Acceptance or Rejection of Offer :
If the Tenant ' s space falls within the area designated as the next
construction p).ase , then the- Tenant shall give written notice to
the Agency , within sixty ( 60 ) days , of their acceptance of the
offer to purchase , or of their election to select another option ,
as herein- after provided , but in no event , shall these Tenants be
allowed to remain in their present space .
( iii ) Escrow and Payment for Mobilehome ..
Within. thirty 130 ) days after receipt of acceptance of its offer
to purchase , the Agency shall open an escrow with a scheduled
closing date sixty ( 60 ) days thereafter , or sooner if the parties
so agree . All costs of the escrow shall be borne by the Agency .
( iv ) Close of Escrow, Payment to Tenant
anti Possession of Mobilehome :
( aa ) Before close of escrow the
selling Tenant shall execute and deliver to escrow all documents
necessary to transfer free , marketable and clear title to the
Mobilehome to t.:ie Agency and Agency shall pay to escrow the entire
purchase price and any additional amounts necessary to pay all
escrow costs .
( bb ). Upon close , escrow shall :
( 1 ) pay all liens and encum-
brances against the Mobilehome ; ,a.nd
( 2 ) pay to the Tenant seventy-
five percent ( 751 ) of the remaining sale proceeds and deliver to
Tenant an acknowledgement thai it holds the remaining sale
proceeds which shall be di shursed to the Tenant upon the Tenant
vacating the premises and providing escrow with an executed
Declaration of Vacancy and Receipt of Benefits in the form of
ExhrVit E attached hereto ; and
( 3 ) deliver all transfer c?ocu-
ments to the Agency .
( cc) Tenant shall vacate the premises
within fourteen ( 14 ) days after receipt of the payment of seventy-
five percent ( 7511 ) of the net sale proceeds at which time the
balAnce due shall he paid and any holdover after that date will be
tinlauful .
(d ) Option 4--Rlght to Relocate Within Park :
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P I N A L
{ i ) Af ter re..ript of a one hundred eighty
( I80 ) day notice from the Agency of its intention to proceed with
any Post Conversion Phase A construction , any Phase II Tenant , %^o
has. not previously been relocated , may elect to be relocated
within the Park under the same terms and conditions offered Phase
I Tenants at the commencement of this Agreement . This Option is
avarilable and may be exercised , in writing , by all Phase 11
Tenants for sixty ( 60 ) days after receipt by the Tenant of Notice
from the Agency of its' intention to proceed with any Post
Conversion Pnase A construction . After that date this Option
expires .
( it ) Phase 11 "tenants will be relocated
within the Pack under this provision prior to the thirty ( 30 ) day
period just preceding the commencement of any Post Conversion
Phase A construction .
( iii ) phase II Tenants , who are relocated
under this provision_ , shall pay the same space rents charged for
the "new" space as the former owner would have paid under this
Agreement . Subsequent increases or decreases in the rents will be
determined in the same manner as any other Phase II Tenants
remaining in the Park .
( iv ) Phase II Tenants choosing this Option
will not be ertitled to be relocated more than one time within the
Park , but remain entitled to sell as provided herein and remain
eligible for those benefits enumerated under Section Vill of this
Agreement .
(v ) Phase II 'tenants electing this option
agree to :
( aa ) Sell his/her existing Mobile-
home to the , Agency for the Agreed Value within one hundred twenty
( 120 ) days from receipt by the Tenant of written notice from the
Agency of its intention to proceed with any Post Conversion phase
A development involving the Tenant ' s new location; or
(bb) Select any- other option availa-
ble to the Tenant under the Terms of this Agreement .
( e ) Opt ion S-Relocation to Ocean View Estates
IT : All Phase 11 Tenants shall have the option , subject to their
timely election thereof and the availability of space , to be
relocated to Ocean View Estates II .
( i ) Location : For purposes of this
Agreement , Ocean View Estates II is the area specifically marked
as Such on Exhibit F-2 and is located adjacent to an existing
mobilehome park in the City, which is northeast of the
intersection of Ellis Avenue . and Goldenwest Street , presently
L
known as Ocean View Estates . This area shall be that Which is
improved by the Agency in general conformity with the development
plan attached hereto as Exhibit F and incorporated herein by
reference .
( ii ) Offer to — Relocate : Unless other-
wise provided herein , the Agency shall offer to those eligible
Phase II Tenant -. within the , Park , and others who qualify , the
Option to be relocated to Ocean View Estates 11 when it is
completed .
( iii ) Completion o€ Ocean View Estates
T I : The Agency shall be under no obligation to develop Ocean View
Estates 11 , nor relocate any Tenant to Ocean View Estates II ,
unless and until it decides it wishes to commence development of
any portion of the Site beyond Conversion Phase A. In addition ,
no construction , other than that necessary to complete Conversion
Phase A , shall commence on the Site , nor shall any Tenant electing
to be relocated to Ocean View Estates II be required to vacate his
or her Mobilehome and/or space at the Part; unless :
( aa ) right to possess all real
property for the period of twenty- five ( 25 ) years required for
Ocean View Estate i 11 is vested in the Agency ; and
( bb ) the area previously described as
Ocean View Estates I is Fully developed as shown on Exhibit F:
and
( cc ) Ocean View Estates IT is
either :
( 1 ) fully developed as shown on
Exhibit F including the public park land , Iake , golf course ,
clubhouse and the mobilehome park ; or
( 2 ) the mobilehome park is
fully developed arid the remaining rkortions of the ' new site is at
least fully desi(}ned , but only partially completed , with the
balance of the construction guaranteed by a completion bond in
favor r of the Association and the Agency as their respective
interest may appear .
( iv ) Cost of Relocation : The Agency will
Pay for the costs of relocating each Mobilehome and all add-ons ,
including , but ru-t Iimitetd to , relocation of the Mohilehome ,
packing , moving , and unpacking of all contents , all set up and
hook up charges at Ocean View Estates II , anti all replacement
and/or refurbishme .t inside' and out to put the Mobilehome anri all
acid-or.s into a conc!ition on--site at Ocean View Estates Ii at least
egiri va l ent to that it enjoyed at the Park .
( v ) Space . Availability : The Agency shall
make available at 1)cean View Estates 1 and Ocean View Estates TI
2 2-- -
- - - — r I N A L
as many spaces as are required for the relocation of Tenants from
the Park up to one-hundred forty- five ( 145 ) relocation spaces and
may add to Ocean View Estates I up to eight ( 8 ) additional spaces
for relocation of Pacific Shores Tenants being relocated as a
result of Conversion Phase A.
( vi ) Selection of Tenants for Ocean View
Estates II :
( aa ) C)ualification for relocation to
Ocean View Esta-.es II will first be granted to those Tenants who
apply in wr i t i rig , for this relocation at the t hne the Tenant
executes this P-greement . If the ntimher of these applications
exceeds the numter of spaces remaining , then the selection will he
from this group and determined by lot .
( bb) In the event 'the first group of
applicants do not occupy all available spaces at Ocean view
Estates- II , then those Tenants who apply, in writing , for
relocation to Ocean view Estates II within thirty ( 30 ) days after
receipt of their Notice of Appraised Value , will next be qualified
for this relocation benefit . If the nu+aher of these applicants
exceeds the number of remaining spaces , selection among this
second group will be determined by lot .
( cc ) in the event the first two ( 2 )
groups of applicants do not occupy all available spaces at Ocean
view Estates II , then those Tenants who apply, in writing , for
relocation to Ocean View Estates II , within thirty ( 3() ) days after
receipt of written notice from the Agency of its intent to proceed
with the constru.-tion of any Post Conversion Phase A, will next he
qualified for this relocation benefit . If the number of these
applicants excee-is the number of remaining spaces , selection among
this third group will he determined by lot .
( c}d } If more- then one: hundred Forty-
five ( t 45 ) Tenari~s elect to he relocated to Ocean View Fstatrs I
and -mean View Estates II , then the Tenants electing this option
5 , bu;. . who are not selected , may elect ta:
( 1 ) 5elI their Mobi ; ehome to
the Agency for tl a Agreed Value as other Phase I I Tenants elect i ng
option 3 above=Right to Sell their Mobilehome ; or
( 2) If their space is not
required to be vacant for the completion of the Conversion Phase
ahoUt to he commenced , then they may restain in the Park _ anA
receive the same henef i is as Phase 11 Tenants electing option
2-Limited Right to Remain ; or
( 3) Select - one of the other
Relocation Assistance Benefits as defined_ in Section VIII hereof ;
23-
• P I N A L
or
( 4 ) Select mobilehome park
space- within a seventy- five ( 75 ) mile radius of the City and be
entitled to the same benefits of forll,d Phase t Tenants under
Section V . B . 2 - . c) , except that these 'nr.+iants will not be entitled
to relocation within the Park , Ocean Vi ,w Estates T or Ocean View
Estates II locations . If nQ space is available within the City
for this purpo:se , because of the age of a certain . Tenant ' s
Mobilehome then the Agency shall purchase a new mobilehome for
that . Tenant and relocate same to new park of Tenant ' s choice ,
within that radius , in the same manner as stated in Section V,
B . 2 ( c) .
( vii ) Space Selection : Specific space
assignments witnin Ocean View Estates 11 will be made by the
Buyout Committee using the guideline that each Tenant selected
will be placed on a space ( as nearly as possible ) comparable to
the location of the space presently occijpied by the Tenant at the
park.
( viii ) Qualification as Relocatable Robile-
home and Notices : Within thirty ( 30 ) days after receipt by the
Agency of a Tenant ' s written notice to elect to be relocated to
Ocean. View Estates 11 , the Agency, in its sole discretion , snail
determine if a Mobilehome is relocatable to Ocean View Estates II .
The Agency Shall , within five ( 5 ) days thereafter , give the Tfr.nant
written notice of tis determination . The notice shall state
whether or not the Mobilehome is relocatable and , if it is , the
Agency ' s estimate of the relocation costs as described in subpara-
graph ( e ) ( iv ) above .
( ix ) Elections Oetermined by Mobilehome
Condition : Deper:ding upon: the reIocatahiIity of the Tenant ' s
Mobilehome , the Tenant may be entitled to the following benefits :
( aa ) When the Mobilehome is over
nineteen ( 19 ) years old , a single-wide or has teen determined to
be npt_ relocatable , then the Tenant shall be entitled to have a
new mobilehome purchased in the Tenant ' s name by the Agency and
located at Ocean View Estates II , ; or
( bb) When the Mobilehome is over
nineteen ( 19 ) years old , not a single-wide , but is relocatable ,
the Tenant may elect to have the Mobilehome relocated to Ocean
View Estates 11 , and in such event , the Agency shall pay to the
Tenant Five Thc•usand dollars ( 55100[) ) in addition to the
relocation costs as described in subparagraph ( e ) ( iv ) above .
( cc) When the condition of the
Mobilehome meets the requirements for relocation but the Tenant
prefers a new mobilehome , then the Tenant may, within thirty ( 30 )
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J1 L
days after receipt by the Tenant of ti : Agency' s written determi -
nation regarding relocatabi 1 ity and estimated relocation costs ,
require the Agency to purchase a 'new mobilehome for the Tenant .
The Tenant shall pay to the Agency the amount of the cost of the
new mobilehome after deducting therefrom.. the estimated relocation
costs . In this event the Tenant shall._cauae the old Mobilehome to
be removed from the Site .
1 dd ) Any new mobilehome purchased by
the Agency to fulfill its obligations hereunder shall beE purchased
in Tenant ' s name and delivered to Ocean View Estates 11 , at Agency
cost ' and expense . The new mobilehome shall be unused and
substantially equivalent in size , utility and quality as Tenant ' s
existing Mobilehome . Agency shall consult with each Tenant and
cooperate to attain Tenant ' s reasonable preference with regard .to
style and floorplan of the substitute mobilehome . Should a Tenant
desire a larger or upgraded substitute_ mobilehome , the Tenant
shall be requi:-ed to pay the additional costs attributable to the
upgrade .
( x ) In the event that Tenant sloes not
notify the Agency , in writing , of his/her selection of this Option
within the allowed time frame , the Tenant Will be deemed to -have
waived the election to be relocated to Ocean view Estates II and
this option will no longer be available to that Tenant .
5 . Non-Resident Tenants
Each Non-Resident Tenant shall sell h I s/her
Mobilehome to the Agency and the Agency shall buy same under the
following terms and conditions :
( a ) Option 1 - Immediate Bu out Cases : Any Non-
Resident Tenant may , within thirty ( 30 ) ays of the date cif
receipt of the Notice of Appraised value , apply to the Buyout
Committee for certification as an Immediate Buyout Tenant as
specified under the Immediate Buyout Option above . All who are in
the Conversion Phase A or Conversion Phase B area , who timely
apply , shall be deemed qualified for cer_tifscation as an Immediate
BuyoJt' case .
(b) 'option 2-Sale
( 1 ) Offer to Purchase : Up to one hundred
eighty ( 180 ) days before the scheduled commencement of any Post
Conversion Phase A construction , the Agency shalt offer to pur-
chase the Mobile')omes of the- then remaining Non-Resident Tenants
for the Agreed Value . If the Agency determines that the removal
of any Mobilehorr= is required for that scheduled development , it
shall so notify the Tenant and it will be compulsory for the
Tenant to accept the offer . If the removal of the Mobilehome is
not required , as determined by - the Agency, then the Tenant shall
F I H A L
within sixty ( 66 ) days after receipt: Gf the offer accept or reject
same .
( ii ) Escrow and Payment for Mobilehome :
Within thirty ( 30 ) days after receipt of acceptance of its offer
to purchase , the Agency shall open a-h escrow with a scheduled
closing date sixty ( 60 ) days thereafter , or sooner if the parties
so agree . All costs of the escrow shall be borne by the Agency.
( iii ) Close of Escrow, Payment to Tenant
and Possession of Mobilehome :
( aa ) Before close of escrow, the
selling Tenant shall execute and deliver to escrow all documents
necessary to transfer free , marketable and clear title to the
Mobilehome to the Agency , and the Agency shall .pay to escrow the
entire purchase price and any additional amounts necessary to pay
all escrow costs .
(bb ) Upon close escrow shall :
( 1 ) pay all liens and encum-
brances against the Mobilehome ; and
( 2 ) pay to the Tenant 100% of
the remaining sale proceeds upon the Tenant vacating the premises
and providing escrow with an executed Declaration of Vacancy and
Receipt of Benefits in the form of Exhibit E attached hereto ; and
( 3 ) Deliver all transfer docu-
ments to the Ag- ncy .
( cc ) All Non-Resident Tenants who
sell their Mobilehomes , either under the immediate Buyout provi-
sion or this pt--ragraph , shall , in addition to other obligations
they may have t-erein , at close of escrow, deliver to the Agency
the Mobilehome free of any occupants .
r- - ( c) Option 3-Limited ' Ri ht to Remain and Rents
Due : If the Mobilehome owned -by t e Non-Resi ent Tenant is not
T 'ocated -within the next scheduled development phase , then the
Non--Resident Teliant may elect to remain in the space . In that
event , the rentzl rate for the space shall continue to he the same
with annual inc-reases determined in the same manner as other
Tenants who rerrain in the Park . Eligible Tenants electing to
reject the offer to purchase will be entitled to a new offer to
purchase before commencement of any subsequent construction
phase .
(dl Responsibility for Subtenants: It shall
be the responsibility of the Non--Resident Tenant to deliver his
or her Mobilehom to the Agency free of occupants , and any eompen-
-2b- -
ti A L
sat ion to which the Tenant ' s suhlesse,- (s ) may be entitled , if at
all , shall be bard one-half ( 1/2 ) by the Non--Resident Tenant up to
a total paid by the Non-Resident Tenant of One Thousand Dollars
( s1 ,on ) and the' remaining sum paid by the Agency. The Agency
shall indemnify and hold the Tenant haFmless from any other claim
for relocation be-nefits made by such occupants .
( e ) NonzAvailability of Options : Except for
the right and duty to sell—for tie Agreed Value as specifiers
above , or to apply as an Immediate Buyout Tenant , the Non-Resident
Tenant shall have no other Options to receive Relocation Assist-
ance Benefits under this Agreement ,
6 . Renters
( a ) Those parties who , as of the date of this
Agreement , occupy -a Mobilehome within the Park , but have no owner-,
ship interest therein are not entitled to receive any benefits
from the parties hereto under this Agreement . However , benefits ,
'if any, that might be due such Renters shall be paid in accordance
with the paragraph entitled Responsibility for Subtenants under
Paragraph 5 . (d ) of this Section .
( b) A party who , as of the date of this Agree-
ment , owns an option to purchase the Mobilehome in which he/she
resides and who timely exercises .the option to purchase shall he
deemed to be Lhe Tenant for purposes of this Agreement and
entitled to the benefits herein contained . There shall , howev.r ,
be only one benefit package offered for each space .
VIll . OTHER RELOCATI-ON BENEFITS
A . Moving of Mobilehome : All Tenants shall , in the
alternative to any other benef its specified herein , have the right
to have their Mobilehome relocated anywhere within the united
States at Agency ' s expense. The cost of this relocation 5r,aI l not
exceed fifty pei cent ( 5011 ) of the Agreed val oe . it the actual
cost' of relocation is less than fifty percent ( 50% ) of the Agreed
Value,r - then the difference shall be paid to the Tenant by the
Agency. if the cost is greater , then _the Teant shal i hear the
excess- expense .
8 . Discount and Lora Cost Ho%isin� : All Tenants shall he
offered , if reasons y available ,e , the arl; i t ional right to:
1 . Purchase a condominium, if one is built on the
Site , at a discounted price bf Fair Market Value less ten percent
( 10% ) , provided Tenant agrees to, and does , ieside in the premises
for a two ( 2 ) year period and not sell or otherwise transfer the
ownership interest therein for that 'period, un-1 ess Tenant pays to
the developer the amount previously discounted from the Fair
Market Value . RLM shall give each eligible Tenant written notice
-27- - -
re tl A L
of the scheduled completion and availability of these units no
less than six ( 6 ) months before such date . Within thirty ( 30 )
days thereafter , Tenant must contact RLM, in writing , indicating
the Tenant ' s i-lterest therein . This offer thereafter terminates
as to those Tenants who do not respond.. Those who have indicated
an isterest mu3t open an escrow for the purchase of the condo-
minium within thirty ( 30 ) days of the date the units are first
available for cccupancy .
2 . For a period of one ( 1 ) year from the first day
units are available , rent from RLM any available new residential
rental units built on the Site at the same rental rate offered to
the public less ten ( in ) percent provided a written application to
rent is given f?LM within thirty ( 30 ) days of the date the units
are first available for occupancy.
3 . Obtain low cost rental housing in the City at
Emerald Cove o!" housing similar thereto when available . This
offer . shall expire one year after the Option is first made avail-
able to the Teniints .
C . Eiirly Relocation Benefits : The parties anticipate
that the entire re eve opment will occur in the spanner anti/or on
the time schedule as stated -in Exhibit C previously referenced .
I f , however , the Agency desires to accelerate the redevelopment of
the Site , and a! a result , a Tenant is required to relocate sooner
than the projected dates affecting that Tenant , the Tenant shall
be entitled to receive an additional benefit . Thii benefit will
be the payment ry the Agency of an additional amount to the Tenant
equal to four p»rcent ( 4 % ) of the Agreed Value for each year , or
part thereof , that such Tenant is required to vacate his/her space
in the . Park in idvance of the projected dates . This sum shall be
paid at the time of payment of any other sums clue hereunder or at
the time of relocation , whichever first occurs .
D . Payment of Existinq Secured Financial Obligations .
In the event. a Tenant elects to relocate- his/her Mobilehome during
the fe'rm of this Agreement , either to Ocean View Estates I or II ,
or to some other location , or buy a relocation Mobilehome within
the Park * provided for herein , it is the. intent of the parties that
any secured financial obligation attached to the Mobilehome will
merely be transferred to the Mobilehome at the new location or to
the new mobilehome , as the case may be . However , if for any
reason , the action of moving the Mobilehome or acquiring title to
a different .mobilehome causes a secured financial obligation to
become due and l:ayable , in full , then the Agency shalt pay that
entire obligation and provide the Tenant with secured financing
f-or the same amok,nt , under the same terms , at the new location of
the sane or different mobilehosne . The amount so financed shall
not exceed those. sums elfgibI6 as defined in Section IV. D.
above.
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_
IX . TERM10ION OF SPACE AVAILAIiILIOP AT OCEAN VIEW ESTATES
I AND II
It is understood that Ocean View Estates I and II shall
be constructed pursuant to this Agreement and Shall exist only for
a period of twenty-five ( 25 ) years from the opening for occupancy
of the area known as Ocean View E6tatee it . It is further under-
stood that Ocean View Estates I and I1 will be a mobilehomr park
constructed solely for the purpose of providing temporary mobile-
home housing for certain Tenants displaced by the redevelopment of
Driftwood Beach Club Mobi .lehome Park . The Agency, as the provider
of the property upon which Ocean View Estates I and II will be
constructed , transfers no rights to occupy said property beyond
that twenty--fit-e ( 25 ) year period . Therefore , the following
provisions shall apply :
A . Tenant hereby agrees that he/she has no right to
possess or own the property upon which Ocean View Estates I and 11
shall be located except as a Tenant of a mobilehome park and said.
right shall cease automatically twenty-five ( 25 ) years after the
area known as Ocean View Estates II first opens for occupancy.
S . Tenant hereby represents that he/she has no expecta-
tions as to the " in place value " or " in park value" of mohilehomes
which are to be located in Ocean View Estates I and 11 other than
the Agreed Valu(- as established by the provisions of this Agree-
ment .
C. Tenant hereby represents that he/she has not relied
upon any belief or representation that the value of the mobile-
homes in Ocean View Estates. I and 11 will inflate or dec) i ne - prior
to the termination of his/her possessory rights thereto .
0 . It is mutually agreed that this Agreement shall act
as and shall be considered as the eighteen ( 18 ) month Notice of
Change of Use o ` Ocean View Estates I and Ii which is to take
place twenty- five ( 25 ) years after the area known as Ocean view
Estates II is first opened for occupancy. On said date , upon
proper notice by the Agency to the Tenants , Ocean ViewEstates I
and IT _wall convert to use as a _public park.
E . it is mututally agreed that this Agreement shall be
considered to bE and shall act as the six ( 6) month Notice of
Change of Use and any other notices of change of use required by
state , federal or local law.
F . Tenants , on behalf of themselves , and each of their -
executors , administrators , heirs , successors , and assigns hereby
waive the right to receive further not- ice that their tenancy at -
Ocean view Estates I and II shall be terminated as of a date
twenty-five ( 25 ) years after the area Known as Ocean Vier Estates
II is first opened for occupancy.
-29- _ .
F I N A L
•
G . I� is further agreed that the construction and-
maintenance of Ocean View Estates I and II are part of a Reloca-
t ion Assistance Plan and Relocatioi. Agreement: that have been
prepared and negotiated pursuant to b Conversion Impact Report on
the park and Article 927 of the Hunt ip9ton Reach Municipal Code .
Tenant agrees +:hat the Conversion Impact Report , Relocation Assis-
tance Plan and Relocation Agreement also apply to the conversion
of Ocean View Estates I and- II to public use which will take place
twenty- five ( 25 ) years after the area known as Ocean View Estates
II is first opened for occupancy. Tenants , on behalf of them-
selves and each of their heirs , executors , administrators ,
successors and assigns hereby waive any and all right , now and in
the future , tc. demand or require additional Conversion Impact
Reports and/or Relocation Assistance Plans as to Ocean View
Estates I and II .
H . Tenants , on behalf of themselves and each of their
heirs , executors , administrators , successors and assigns hereby
waive any and all tight to receive any relocation benefit utien
ocean View Estates I and II close except those specifically
enumerated herein .
I . Ti�nants , on behalf of themselves and each of their
heirs , executors , administrators , successors and assigns hereby
waive any and .ill right to object to the closure of Ocean View
Estates I and IT after the termination elate and agree to vacate
the space immediately Upon receipt of a written sixty ( 60 ) clay
Notice of Termination of Tenancy.
J . Tenants agree .o give notice to subsequent
purchasers of tf•eir mobi .lehomes at Ocean View Estates I and II of
this status and the requirements placed upon the buyers unLier this
Agreement . Said notice shall conform substantially to the notice
attached hereto marked Exhibit G .
X . PAYMENT OF UTILITY COSTS
It shall re the Tenant ' s obligation to pay all utility
charcMS attributable to his/her Mobilehome for so long as it is
owned or occupied by the Tenant or a Re-nter while at the present
Site or by the Tenant after relocation -to Ocean View Estates I or
II .
XI . FREE ALIENABILITY OF MORI LF110MES AND VALUE GUARANTEE
A. Sa? e Within Park:
1 . * It is the intent of the parties that this Agree-
ment will result in the Tenants enjoying free alienability of
their Mobilehomes without being burdened with a possible change of
use and the resulting consequences to the value of the Mobilehome
that might result . Therefore , Tenants wishing to sell their _
-30-
_
F I N A L
Mobilehomes within the Park may attemPL to do so after the date of
this Agreement . On each anniversary of this Agreement , up to ten
( 10 ) Tenants who have attempted to sell their Mobilehomes in the
Park -for a per iod of at least ninety ( 90 ) days and have been
unable to sell for the Agreed Value , may then offer to sell the
Mobilehomes to the Agency for the Agrved Value . The Agency may
then - elect within thirty ( 30 ) days to acquire the Mobilehomes at
the Agreed Value or elect to allow the Tenants to sell the Mobile-
homes on the opf:n market for ninety ( 90 ) days and immediately upon
the close of escrow, if the Tenants rece ive less - than the Agreed
Value ( before )j.iying any liens ) the Agency shall pay the differ-
ence to Tenants , but if the Tenants receive more than the Agreed
Value , Tenants !:hall retain all sale proceeds . In the event more
than ten ( 10 ) qualified Tenants offer to sell their Mobilehomes to
the Agency on e.,ch anniversary date , the Agency will determine by
lot which ten of these Mobilehomes it will buy and/or guarantee
the sale price .
2 . Tenants may transfer all of their relocation
benefits to buyers of the Mobilehomes , and the buyers shaII
receive all benefits to which the sellers were entitled , except
that the Agreed Values at time of purchase will be reduced for the
buyers to the an-ount paid by the buyers if the sale price is for
less than the Agreed Value , but it will not - increase the Agreed
Value if the sale price exceeds that amount . After purchase , the
Agreed values will be adjusted according to the provisions
contained in Exhibit D .
3 . Buyers will he approved and allowed to reside in
the Park only uri•ler the following conditions and/or circumstances :
( a ) Buyers must agree , in writing , to accept
the benefits why ._h the selling Tenants would have been entitled to
under this Agreement , and no more ; and
( h) Buyers must comply with all reasonahle
prerequisites , rules and regulations maintained by RLM for the
management of tho Park .
B . Sale At Ocean View Estates I and II :
~ 1 . Right of Resale and Price Guarantee- Any Tenant
who relocates to Ocean View Estates I or IT , and after the second
year following occupancy, is unable to sel ) the Mobilehome for a
price equal to the Agreed Value for a period .of no less than
ninety ( 90 ) days , may then offer to sell to the Agency for the
Agreed value . The Agency . may elect , within thirty ( 30 ) days
following written. notice of the offer to sell , to either :
( a ) Acquire Tenant 's Mobt ) ehome at the Agreed
Value and pay All costs occasioned by the sale ;- or
-31-
-
• F I N A L
(b) Permit Tenant to sell the Mobilehome on
the open market and immediately upon close of .. escrow, if the
Tenant receives less than the Agreed Value ( before paying any
1 iens-) , the Agency shall pay the difference to Tenant , but if the
Tenant receives more than the Agreed Value , Tenant shall retain
all sale proceeds ; '
( c) Failure by the Agency to provide Tenant
with written notice of its election within thirty ( 30 ) days of
receipt of the offer to sell by the Agency shall be deemed to be
rejection of the offer and an agreement to proceed under paragraph
8 . 1 . ( b) of this Section .
C . Certificate of Tenant Benefits and Rights :
Upon receipt of proper notice of any election of
benef its by any Tenant hereunder , Agency and/or RLM , as the -case
may be , shall promptly issue to the Tenant written receipt of the
notice - and certification of the particular rights and benefits
involved . These shall be confirmed in writing to third parties
such as a prosp,�ctive buyer or a lending institution by Agency
and/or RLM promptly upon written request of the Tenant ,
X11 . WAIVF'; OF RIGHTS AND ASSUMPTION OF OBLIGATIONS
A . Tenants ' Waiver of P,ights . Upon execution :of this
Agreement , the Tenants do hereby relinquish , release and waive any
rights they might have , past , present or future to object to any
redevelopment of the Site on the fol ?owino grounds :
1 . That they are entitled to continued use and
occupancy of the Site because of a sublease agreement they have
with RLM which extends beyond the commencement date of ' this
Agreement ;
2 . That they are entitled to occupy or possess any
space in the Park and any common areas therein under claim of
right which may be contained in the Mobile Home Residency Law
( Cali,tornia Civil Code Section 798 et seq . ) ; California Government
Code Sections 65963 . 7 and 66427 . 4 ; California Health and Safety
Code -Sections 33411 -33417 ; California Government Code Section
7260 ( et seq . ) and Section 6000 ( et seq . ) ; California Administra-
tive Code Title 25 and Article 927 of the Huntington Beach
Municipal Code .
3 . That their relocation benefits , or any other
form of financia ' compensation to which they are entitled under
this Agreement , are inadequate or do not provide for affordable or
replacement housing on or off of the Site .
B . Association _Waiver of Rights. Upon execution of
this Agreement , 1-he Association , for itself alone , and not on
3 2--
P I K A L
behalf of - its individual members , does hereby relinquish and waive
any right- it has , past , present or future , to object to the
present RLM plan to redevelop the Site .
C . Assumption of Obli atio'rrs . In the event the Site
is redeveloped under any plan approved by the Agency prior to the
year 2013 , the Tenants do hereby agree to:
1 . Vacate the spaces being occupied by the Tenants
upon. being givf-n at least one hundred eighty ( 180 ) days written
notice by the pgenr:y that the Agency has approved a redevelopment
plan for a portion of the Site , and that possession by the Agency ,
or its designee , of the spaces tieing occupied by the Tenants is
necessary for she implementation of the next Conversion Phase .
This determination shall be made by the Agency in its sole
. discretion ; however , there shall be no development commenced
beyond Conversion Phase A before the minimum - commencement dates
indicated in th•t Conversion Phase portion of Exhibit C, except as
Provided for h.evein . -
2 . Notify the Agency of the relocation benefit
Option under which they elect to receive relocation henefits as
provided _herein . .
3 . Cooperate with the Agency in anyway necessary to
implement the plans , except , notwithstanding the foregoing , Tenant
specifically reserves the right to object at any public hearing
pertaining to a plan for redevelopment of the Site provided the
basis for objection is not specifically waived in Section XIi .A .
above .
XIII . PAYM N'r OF COSTS AND EXPENSES TO ASSOCIATION
Upon execution of this Agreement ! RLM shall pay to the
Association a sun up to One Hundred Seventy-five Thousand Dollars
( $ 175 , 000 ) for reimbursement of all costs and expenses including
attorney ' s fees incurred by it , and its predecessurs to date of
this ,- Agreement . These costs and expenses were incurred in
responding to the proposed change of use of the Site and the
negotiation and preparation of this Agreement . Any additional
costs and expenses including attorney' s fees incurred by the
Association after the date of this Agreement , to implement the
terms of this Agreement , shall he paid by R1.M. This additional
sum shall not ext-eed Twenty- five Thousand Dollars (-$25,000 ) .
XIV . ASSOCIATION TO RE. MASTER TENANT AT OCEAN VIEW
ESTATES I AND II�'
Upon commercement of any Post Conversion Phase A construct-
ion , the Agency shall lease to the Association the premises
previously referred to as Ocean View Estates I and Ocean View
Estates II except the public park, la�s,_ and golf course areas
-33-
P I N A L
contained herein . The terms of that lease are indicated in that-
certain Lease Agreement between the Agency and the Association
Which is atta.-hed hereto , marked Exhibit H and incorporated
herein.
XV . AVAILABILITY OF BENEFITS UNDER THIS AGREEMENT
Tenants shall be required to execute this Agreement within
thirty ( 30 ), da-s after receipt of a copy of this Agreement and
Notice of its i-pproval by RLH , the Association , the City and the
A(3ency . In the event that any Tenant fails to execute this
Agreement withi}i that time period , or sooner , it shall he presumed
that the Tenants who so refuse to sign are refusing the benefits
herein , and thcse Tenants shall only be entitled to the minimum
benefits allow-�d under Article 927 of the Huntington Beach
Municipal Code .
XVI . MISCE).LANEOUS PROVISIONS
A . Ya iver . The waiver of any term , ciovenant or condi -
tion herein con-.:aine shal 1 not be deemed to be a waiver of such
term, covenant )r condition to any subsequent breach of the Sas,,e
or any other term, covenant or condition herein contained .
B . Marginal Headings . The Marginal headings anti
titles of this Agreement are not a part of this Agreesnent anti
shall have no {- ffett upon construction or interpretation of any
part hereof .
C. Time . Time is of the essence of this Agreement and
each and all of� ��s provisions in which see: formance is a factor .
a . Successors and Assigns . The covenants and condi-
tions herein coOtaine apply to and bind the heirs , successors ,
executors , adman istr-ators and assigns of the parties hereto .
_ E . Prior Agreements . This Agreement contains all of .
the Agreements (,` tie parties hereto with respect to any matter
conve'?ed or mentioned in this Agreement , and no prior agreements .
or understanding pertaining to any such chatters shall be effective
for ac�'y purpose . No provision of this Agreement may be amended or
added to except `)y an agreement , in writing , signed by the parties
or their respective successors in interest .
F . Partial Invalidity. Any provisions of this
Agreement which shallprove to be invalid , void , or illegal ,
shall in no way affect , impair or invalidate any other provisions
hereof , and such other provisions shall remain in full force and
effect .
- G . Ctoice of Law. This Agreement shall he governed by
the laws of the State of Ca ifornia .
J 4~
z Y N A L
N . Aorneys Pees . In i tie event of any action or
proceeding brought y any party against another party to this
Agreement , the prevailing party shall bo tntitled to recover
: reasonable attorneys fees , including costa of appeal .
I . Notices . All notices and demands which may or are
to by required or permitted to be given by a party on another ,
shall be in writing . All notices and demands shall be Bent by
United States mail , postage prepaid , certified/return receipt ,
addressed to the receiving party at the address hereinafter
stated , or to such other address as a party may from time to time
' designate in a notice to the other partied .
J . Enforcement .
1 . This Agreement is specifically enforceable by
the Agency , RLM , the Association and any Tenant who has executed
this Agreement and who has 'not received the benefits herein due to
a breach of this Agreement by either RLM or the Agency.
2 . A breach of obligation by RLM or the Agency with
respect to one or more Tenants shall not act to prevent perform-
ance by other Tenants .
3 . Tenants shall be obligated to perform under this
Agreement so' long as Agency and RLM perform those obligations
herein that specifically affect or apply to each of them Indivi-
dually. No Tenant may refuse to perform under this Agreement
where the Agency or RLM have failed to perform obligations that
are particular to any other Tenant .
continued on next page
p Y N A L
Y. , Counterpart Execution .
This Agreement may be executed in counterparts , each of which
shall be fully effective as an original and all of which together
shall constitute one and the same instrument .
In witnes�S wheveof , the parties have executed this Agreement
as of this' day of ,SQfe ��r. 1988 .
REDEVELOPMENT CF:NC OF THE APPROVE TO FORM:
CITY" OF HU N N TW
By
BY / ti Agency Counsel^
ATTEST: (!�
RLM P ERTIES , LTD . , a California
Limited Partnership
Clerk
By44' V 'd- -
DRIFTWOOD BEACH CLUB MOBILE
HOMEOWNERS ASSOCIATION , 1NC. , a
California Nonce Profit Corporation
INDIVIDUAL TENANT SIGNATUPE PAGE ATTACHED
-36-
I10IVIDUAL TENANTS SIGNATURE PAGE `
_ I/We , the undersigned ,
'( Please Print Your Name ( al
owner ( s) of the mobilehome located on Space of
( Fill 1n Num er
the Driftwood Beach Club Mobilehome Park, do hereby agree to the
terms and conditions of the MOBILEHOME ACQUISITION AND RELOCATION
AGRE£H.ENT by and between REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH , RLM PROPERTIES , LTD. , a California Limited
Partnership, DRIFTWOOD BEACH CLUB MOBILE HOMEOWNERS ASSOCIATION.,
Inc. , a California Non-Profit Corporation and the INDIVIDUAL
TENANTS of the Driftwood Beach Club Mobile Home park dated
1988 and hereby acknowledge receipt of a copy
of the Agreement totaling pages , including Exhibits A
through H and this signature page .
Date Signature
Date S gnature
The foregoing instrum nt Is a cW*d
e09y of the original on file in this office.
Attest 10 Lo 19,�'
City Cleck and Ex-officio Clerk of the City
-37-- C43uncil of the City of Huntingtoh_Beach,
Cal r ornIs.
BY Dept
i
260%
A
2ao% CONCEPTUALD.IUSTMENT TO "APPRAISED VALUE" �
TO DETERMINE "AGREED VALUE"
1 � 220%
w ,00
o ' 200%
cr
W
0 180?.
o cn
100
00
M
120% 400
�4/� r����- ♦ •
w ♦ f
¢. 2 :G*0r ASSUMES C.P.I. r- 0•/YEAR
D
� '►
a
w 807. "APPRAISED VALUE' %
c AT DRIFTWOOD %* ♦ , px of
%�3 , � b0?. "APPRAISED VALUE'
` AT DRIFTWOOD
� W
44
� 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 25
c 14,
YEAR _
GRAPH 1S AN ILLUSTRATION OF THE CONCEPT ONLY. SEE THE AGREEMENT FOR DEFINITION
OF TERMS AND FORMULA ON FOLLOWING PAGE FOR THE METHOD OF CALCUL-ATION
GRAPH ASSUMES PARK SPACE RENT ADJUSTUENTS EQUAL TO C P I
FORMUI,& FOR I)UERMI HE "AGREED VALUE" :
Let : n = the year, where n - 0 is the date of the
"Notice of Appraised Value" per Section IV of
the Agreement.
Vn = Agreed Value at year n, where Vp is the
"Appraised Value" per Section IV of the
Agreement. ,
Cn Change in the Consumer Price Index from the
previous year, calculated as follows:
(CPIs - CPin-1)/CPin-I
Example : (1 . 4 - 1 . 35)/1 . 35 - . 0370
Rn = Change in the mobile home park space rent
from the previous year, calculated as
follows:
(Rentn - Rentn-1)/Rentn-1
Example: ($200 - $195)/$195 - . 0256
S Salvage Value equal to 20% of the Appraised
Value, i'. e. , S - 0. 2 x VO
Given the above, then:
For n - 1 &hrouah 13:
Vn - Vn-1 + (Vn-1 X Cn) + [Vn-1 x (Cn Rn) ] -
Example:
$50, 000 + ($50, 000 X . 037) + [$50,000 X (. 037. - . 0256) ]
= $50,000 + $1, 850 + $570 - $52, 420
For n_= 14hroM 25:
Vn - ( I (Vn-1 - S)/12] x (25 - n) ) + S
Example assuming year 15 With V14 - $75, 000
and S - $10,000:
( ( ($75,000 - $10, 000)/12] x (25 - 15) ) + $10, 000
( [$65, 000/121 X 10) + $10,000
= $54, 167 + $10, 000 - $64, 167
Exhibit D-2
(to the Pobilehome Acquisition & Relocation Agreement, 9/26/88)
DECLARATION OF VACANCY
• ANT) •
RECEIPT OF BENEFITS
un ersigne owner ( s ) of the moETlehome in Space and
Tenant ( s ) of Driftwood Beach Club Mobilehome Park , hereby
acknowledge ( s ) receipt of any and all relocation benefits to which
he/she/they is/are entitled , 'and waive( s ) all rights to receive
further benefits under the Mobilehome Acquisition and Relocaton
Agreement except eligibility to purchase or rent housing
accomodations as specified in Section VIII thereof . The
undersigned further warrant ( s) and declare (s) that he/she/they
has/have vacated the above listed space and hereby relinquish ( es )
any and all rights , title , interest and right to possess the above
listed space .
EXHIBIT "B'
(to the Mobilehome Acquisition b Relocation Agreement , 9/26/88)
x. . . .. . . . . . ----- - - - - - - - - - -- - - - - - - - -
eggs --
.c tilf -
e r. ti iltt�js
r' r
vp
IL
SITE BOUNDARY '
, 1
i -
t
t
SITE
�`► 21462 Pacific Coast Highway
Huntington Beach, Ca. 92648
EXHI T A
( to the Mobilehome Acquisition Relocation Agreement, 9/26/88
1 Nr. i Mrs. George bari ..
2 Dorothy Pinkham
Hs , p Y
3 Ns. Wills Vee Winthers
4 Mr. t Mrs. Dennis Shea
5 Ms . Marian Phillips
6 Mr. i Mrs. Donald Cosby
7 Mr. 4 Mrs . Paul ' Beck
8 Ms . Geraldine Marie Florez Trustee )
Mrs. Claude Williams
9 Mr. i Mrs. H. B. Watson
10 Mr. i Mrs. Eduard Roger Fountain
11 Mr. John Richard Cooper
Ms. Lois Ione Earl
12 Ms. Bonnie Figgins
13 Mr, Richard Upton
14 Mr. i Mrs. Charles Cantrop
15 Mr. Albert Behar
16 Mr. i Mrs . William Shatto
17 Ms. Fern Ethel Gordon
18 Mr. 4 Mrs. Frank Cutrone
19 Hs . Elizabeth Rosenhauer
20 Ks . Susan Ziegler
21 Mr. i Mrs. Aniello DiCriaci
22 Mr, i Hrs. Dan Gleason
23 Ms. Carol Bell
24 Mr. i Mrs. David Markley
25 Mr. Donald Mullen
26 ' Mr. Otis Warb
27 Mr. & Hrs. Willis Anderson
28 Mr. i Mrs. William Shannon
—1—
EXHIaIT
(to the Mobilehome Acquisition & Relocation Agreement
9/26/88)
. . _ - - ------------------ -- ------------- ------ - - - - -- --------------- -------------------- -
1 _ t
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f CONVERSION PHASE Ado B
Conversion Paris Estimated '
SR NUMkM TQW CQunt Qato Qf CIO=
A 15
3211--329 19 11/15 j.IOL 988
B—Optional 301--305 Optional with
316--3" 10 Phase A
EWIBtT C—i
{to the Mobilehome Acquisition Relocation Agreelflen ,
� '.♦�iti•:ti-•?\»y'::'titi A�•'!•'�`:i�r�;J�ti:♦� �l♦\�ti \'�,X� � Z{d�1��ftN
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tit�;�':•:;::f.'.•�I::•:•:.':•:�:;:}:•••:L••I,�:,Y:.:..,•��
y -:titi i�°:.;i.•::;:;{r:}j�:• �p�1`P •�S Q,{r►;:. •q f �r
1
4
CONVERSION PHASE D
` Conversion Park Estimated
Phase Soave Numbers IQIA[ Count Date of Closure
D 1�10
402--444 53 5/1993
EXHIBIT C--3
(to the Mobilehome Acquisition 5 Relocation Agreement, 9/26/88)
ANWIRW
�c rtie e07
J
/ f
CONVERSION PHASE. E
..� ;
Conversion Park Estimated
SpN ffiwjku -ToW Cunt Die of Clouse
E 20-55
256 62- 5/1 994
Emiurr C--4
(to the Mohilehome Acquisition & w ocation Agreement, 9/26/88)
f � � ` • ...+ •.. •,�.-� �1�t` . '• � ".'r � M .`�• '••i• 'Iti11' ���r�••..r _mow. y .. •r .�
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PEDESTRIAN G(ldaso91
J +O► 1i . 1 J-1_ y i
J J ♦ J J
C.UE'ST PARKING f
eL�J13 Al1-ONK AREA �,
`W4 z sb p- I ; LEGFi'JO
•fSPaJ;\•�. f ,+ I t-TRASH ENCLOSURE
L4ice , " '� ! *LAUNDRY FACILITIES
- I
• , s ' . �J� -'� *SECURITY GATE
R WAS H �
iove
yy� 1C eS \� �7x
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- `
r���� y�f. � ;'•,;w, � NOTE:
�� • 3Q' TYPICAL ROAD
* PEDESTRIAN CORRIDOR -
E&EN fi 0 O irf'''��- \ 15' MINIMUM
f •MINIMUM LOT SIZE 45'X75'
o FLVITRAILER PARKING TO BE
�-
v PROVIDED IN THE IMMEDIATE
• y U ICY-MILVER-LAK AREA.
PARKING
COMMUNITY PROGRAM
LLM-raumm PLAN EXHIBIT f F^IZ
•r
CITY OF HLffrl4GT04 BEACH
(to the Mobilehome Acquisition & Relocation
Agreement, 9/26/88) -
OCEA* EW ESTATES MOBILE-40ME PAOAMENITiES
' Clubhouse/recreational area including :
- 2, 750 sq. ft . clubhouse to include large meeting room,
Board meeting room 16 ' x 24 ' , and fully equipped 10 ' x
20 ' kitchen, rest rooms
- 45 ' x 50 ' swimming pool ; spa ; barbeque
- Administration Offices facing entrance to park
* Picnic Area including :
- 1250 square foot conference rcom
- Barbeque
* 15 ' minimum pedestrian corridor leading to all open space/
recreational area
* 30 ' wide roads built to City standards
* Provision of street landscaping for every lot to enhance
neighborhood aesthetics .
r Provision of guest parking at convenient locations .
* All Mobilehome spaces shall be improved with driveways
from street to far end of coach , minimum 65 ' r. 121 ;
Awnings will be provided full width of driveway.
* Provision of entry monument .
* 25 ' landscape buffer along major arterial streets to
minimize noise impact ; 20 ' outside (between right of way
and wall ) of Mobilehome Park and 5 ' inside of wall (added
to minimum lot dimensions ) ; All 25 ' to be landscaped at
Agency expense not included in cost of development of
Mobilehome Park; exterior 20 ' ' maintained by Agency
interior 5' to be maintained by individual residents.
* Car Wash# covered area for (3 ) three cars
* Laundry Rooms with Washers and Dryers
* Security Gates
* Access to adjoining Public Golf Course, Park and Lake
* RV parking (20 spaces ) off site in immediate area
* Agency and Association shall meet and confer regarding
additional design detail for Ocean View Estates including
but not limited to surrounding public park, golf course and
lake improvements.
EXHIBIT F-3
(to the Mobilehome Acquisition b Relocation Agreement, 9/26/88)
. ADDENDUM TO EXHIBIT F •
1 . Agency will develop the area surrounding the mobilehome
park generally as shown on the Illustrative Plan Exhibit F- 1
including but not limited to the following :
a ) Agency will relocate the shooting range :
b ) Agency will improve the public park area ;
c ) Agency will construct a nine hole public golf course ;
and ,
d ) Agency will terrace , landscape and otherwise improve
Sully-Miller Lake.
2 . Agency will do what is necessary to deal with the methane
gas problem that exists on the property so that no adverse effects
will exist for Ocean View Estates residents or for users of the
public park and/or golf course .
3 . Agency will remove all existing buildings from the
property and clean up the entire area including all concrete slabs
(other than mobilehomes and pads ) prior to locating any mobilehome
tenants north of the area marked "Ocean view Estates I' on Exhibit
P-2 .
nVl 1�.r. AV our &^ VC rt71 Lr_nkjeS6
Ocean View Estat• I and II are , as AMined , a temporary
Po Y
Mobilehome Park designed to provide temporary housing assistance
to displaced Tenants of mobi lehome parks in Huntington Beach that
have been torn down and redeveloped . Ocean View Estates I and II
have been developed pursuant to a Mobilehome Park Relocation
Assistance Plan approved by the City of Huntington Beach .
Ocean View Estates I and II will cease to operate twenty-five ( 25 )
years from the date Ocean View Estates II is first open for
occupancy, at which time all Tenants at that location will be
required to vacate .
Tenancy in Ocean View Estates I and II exists pursuant to a
Mobilehome Acquisition and Relocation Agreement containing certain
obligations of the Tenants , their successors and assigns , and
various relocation benefits , Rights to relocation benefits are
limited to those specifically enunciated in the Agreement .
All terms , conditions and obligations under the Agreement must be
acknowledged and accepted before approval as a Tenant of Ocean
View Estates I or II is obtained .
Date Selling Tenant
Receipt acknowledged and the terms
Accepted.
Date Buying Tenant
EXHIBIT "G"
(to the Mobilehome Acquisition A Relocation Agreement, 9/26/88)
•
E. Screening. All outdoor storage of materials or equip-
ment shall be enclosed. or screened by walls_ , landscap-
ing, or enclosure to the extent and in the manner
reasonably required by the City/Agency staff and the
provisions of the Development Agreement (Attachment No.
9) and other applicable provisions of the Huntington
Beach Ordinance erode.
F. Landscaping. Subject to paragraphs 4 and 5 of the
Method of Financing (Attachment No. 5) , the Developer
shall provide all landscaping and irrigation required on
the Site, including the landscaping and irrigation
within the public rights-of-ways on or adjacent to the
Site, in accordance with the approved landscape plans.
The Developer shall maintain all landscaping on the Site
outside the public rights-of-way. After satisfactory
installation of the landscaping and irrigation systems
within the public rights-of-way on the Site in
connection with the development of each Separate
Development Parcel , the Agency shall accept or cause the
City to accept such improvements and maintain or cause
the city to maintain the same at no expense to the
Developer, and the Developer shall have no further
responsibility therefor.
G. Utilities. Subject to paragraphs 4 and 5 of the Method
of Financing (Attachment No. 5) , the Developer agrees to
extend all utilities required for the development, use
and maintenance of the improvements on the Site from the
locations to which such utilities will be brought
pursuant to Paragraph II .A. 6 (c) above to the private
improvements to be located on each applicable Separate
Development Parcel.
All utilities on the Site shall be located underground.
H. Vehicular Access . The number and location of vehicular
driveways and curb breaks shall be in accordance with
the approved plans.
' I . Relocation of Mobilehome Park Tenants. Prior to the
Effective Date of this Agreement, the Developer has
submitted to the City and Agency and the City and Agency
have approved an "Impact of Conversion Report" and
"Relocation Assistance Plan" for the "change of use" of
the Driftwood Mobilehome Park, all in accordance with
Article 927 of the Huntington Beach ordinance Code and
other applicable laws and regulations. The Developer
has also approved and executed the Mobilehome
Acquisition and Relocation Agreement which is attached
to the Relocation Assistance Plan. The Developer agrees
ATTACHMENT NO. 3
Page 14 of 20
08/03/88
r
` to perform all of its obligations under the approved !
Relocation Assistance Plan and Mobilehome Acquisition
and Relocation Agreement.
From December 1, 1986, through the Effective 'Date of
this Agreement, the Developer has incurred .costs of Two
Hundred Twenty-Five Thousand Eight Hundred Ninety-Eight
Dollars and Thirty-Nine Cents ($225, 898 . 39) to prepare
the Impact of Conversion Report and the Relocation
Assistance Plan for the Driftwood Mobilehome Park, which
costs are hereby approved by the Agency.
In addition to the foregoing, the Developer agrees upon
the Agency's written request to loan to the Agency an
amount or amounts not to exceed a cumulative total of
( i) Four Million Five Hundred Thousand Dollars
($4 , 500, 000. 00) , less the sum of (ii) the cost incurred
by the :Developer pursuant to Paragraph II.A. 6 (c) above
to extend the City domestic water line from .its existing
terminus at Olive and Third Streets to the Site, and
(iii) the amounts required to be advanced or paid by the
Developer directly to third parties pursuant to the
Mobilehome Acquisition and Relocation Agreement
including Paragraph XIII thereof) ; provided, however,
that- the Agency shall not be entitled to borrow more
than Three _Million Two Hundred Fifty Thousand Dollars
($3 , 250, 000 . 00) earlier than the date that the Developer
delivers the "Notice of _Phase _Closure"Aas_ that term is
defined in the approved Relocation Assistance Plan to
those tenants owners whose coaches must be removed in
_order to accommodate the Pt�ias.e._2..;And._l?hae 3 _,ommercial
, developments. The purpose of this loan shall be to
assist the Agency in performing its obligations to
acquire and terminate the property interests/occupancies
of the tenants and mobilehome owners in the Driftwood
Mobilehome Park and to relocate and remove them from the
Site, pursuant to Paragraph III. 0 below, the approved
Relocation Assistance Plan referenced therein, and the
Mobilehome Acquisition and Relocation Agreement. The
Developer shall advance the requested amount or amounts,
up to the maximum amounts specified above, within sixty
(60) days after receipt of each Agency request for
funds. The Agency shall deposit any such.- funds advanced
by the Developer into a special fund, with the principal
and interest earned on the. fund to be used exclusively
for the purposes authorized herein. Upon the
Developer's request, the Agency agrees to account to the
Developer for the expenditure of all amounts advanced by
the Developer pursuant to this Paragraph II . I .
ATTACHMENT NO. 3
Page 15 of 20
08/03/88
The ._Develop r shall have the _ right, but not the
obligation, to expend funds in excess of the maximum
loan amount referenced in the preceding paragraph or to
advance such additional funds to the Agency to relocate
tenants_f rnm_the Dr i�.S oa lehome Rarl mar; Pr than
thg tiMe required ia a "Notice of Phase Closure"
delivered pursuant to the approved Relocation Assistance
Plan. In such event, the additional optional
expenditure or advance by the Dey-c 11&Jl-JDjeL treated
as a ' loan to the Agency to be repaid without _interest
within _thirty 30) the date on which_the
Agency would _otherwise have been required to relocate
such tenant _pursuant to the Mobilehome Acquisition and
j Relocat_ion _Agreement_ (assuming. that the tenant is' a
■ signatory to said Agreement regardless. of whether such
i� bhe case) : _ _.. .
During the course of development of the Site , but not
more frequently than quarterly, the Developer shall
submit to the Agency- s Executive Director an itemized
statement, with such supporting information as the
Executive Director may reasonably require, documenting
the Developer's costs incurred for performing the
following obligations hereunder and under the approved
Relocation Assistance Plan and the Mobilehome
Acquisition and Relocation Agreement, as the same may be
amended from time to time: (i) the costs, including
attorney's fees and expert witness fees, incurred in
defense of any litigation filed which seeks damages,
injunctive relief, or any other remedies against the
iy City, Agency, or Developer arising out of the
processing, approval , and/or implementation of the
"change of use" of the Driftwood Mobilehome Park, and
actions to be taken pursuant thereto, all as set forth
in Section 707 of this Agreement; ( ii) the costs,
including att.orney's fees, incurred in prosecuting any .
unlawful detainer actions and related proceedings
required to be pursued to terminate the occupancies and
remove any tenants of the Driftwood Mobilehome Park . who
fail or refuse to relocate from the Premises within the
time specified in the Developer's "Notice of Phase
Closure" (as that term is defined in the approved
Relocation Assistance Plan) ; ( iii) the sum of any
purchase or rental discounts which the Developer
provides to eligible tenants of the Driftwood Mobilehome
Park pursuant to Paragraph VIII . H of the Mobilehome
Acquisition and Relocation Agreement; and ( iv) all other
costs reasonably incurred by the_Developer under the
Mobilehome Acquisition and ^ Relocation Agreement,
including without limitation paragraph X1II thereof .
The Executive Director shall approve or disapprove such
ATTACHMENT NO. 3
Page 15 of 20
08/03/88
statements within thirty (30) days, and thereafter the
approved cost figures shall be used for purposes of
determining the Agency's reimbursement obligations under
the Method of Financing (Attachment No. 5) . Approval
shall not be unreasonably withheld. Failure to approve
or disapprove any such statement within thirty (30) days
shall be conclusively deemed an approval thereof. Any
disapproval shall be in writing and shall either state
those portions of the Developer's costs that have been
approved and disapproved or the additional information
that the Developer must submit to obtain an approval .
In the event that the Agency and Developer are unable to
agree upon the Developer' s costs for any of the
foregoing items, either party may, by written notice to
the other, elect to have the dispute resolved by
arbitration, in which event the arbitrator(s) shall be
selected, and the arbitration shall be conducted, in
accordance with Section 611 of this Agreement.
Except as specifically set forth hereinabove with
respect to optional advances by the Developer to
effectuate earlier-than-required removal of tenants from
the Driftwood Mobilehome. Park, the Developer's costs
incurred pursuant to this Paragraph II . I shall be
reimbursed by the Agency in accordance with paragraph 5
of the Method of Financing (Attachment No. 5) .
Except as specifically set forth or referenced in this
Paragraph II . I , the Developer shall have no obligations
with respect to the "change of use" of the Driftwood
Mobilehome Park or compensating mobilehome tenants or
owners to be relocated therefrom, and the Developer
shall have no obligation for construction or provision
of any affordable housing on or off of the Site, all
such obligations being assumed by the Agency pursuant to
Paragraph III .0 below.
J . Liquor Licenses. The Agency recognizes that the hotels
and restaurants to be developed in the Commercial
Portion of the Site will require liquor licenses from
the California Department of Alcohol and Beverage
Control ("ABC") . Sale of liquor for on-premises
consumption in connection with such uses is in
conformity with the Downtown Specific Plan and other
local land use regulations and requirements of the City
and Agency. The Agency agrees not to oppose, object to,
or otherwise provide negative comment upon the
Developer's application to ABC for a liquor license or i
licenses in connection with such uses .
I
ATTACHMENT No. 3
Page 17 of 20
O8/03/88 ,
41
-`G C c'- —rt1�i:�—C
REQUEST FOR CITY COUNCIUREDEVELOPMENT AGENCY `��/�j
ACTION
Date: J U N E 6,_1994
Submitted to: CHAIRPERSON AND MEMBERS OF THE REDEVELOPMENT
AGENCY; MAYOR AND MEMBERS OF THE CITY COUNCIL
Submitted by: GAIL HUTTON, Agency Counsel APPROVED dED BY CITY COUiCii.
Prepared by: SAIL HUTTON, Agency Counsel g5/
19
Subject: JULIE FORD SETTLEMENT AGREEMEN %
.� c- c1.
Consistent with Council Policy? [X I Yes [ ] New Policy or Exception
QFOV
Statement of Issue Recommendation Analysis, Funding Source Alternative Actions Attachments
Statement of Issue: Whether to approve a settlement agreement in the
amount of$68,000 in the Julie Ford matter.
Recommendation: (1) Approval of the attached agreement and
authorization for the Executive Director to execute on behalf of the Agency and
City; (2) Appropriate sufficient funds to pay purchase price and close escrow.
Analysis: In closed session on May 2, 1994, the Redevelopment Agency
authorized settlement of the above captioned matter by payment of$68,000 in
exchange for tenant's right, title and interest to the mobile home located at
Ocean View Estates 1. Julie Ford will waive any and all claims against the
Agency and City and the Agency and City will waive its claims for "debits and
credits" owed the City/Agency.
Funding Source: Redevelopment Agency Account # TM-ED-801-3-9600
Altemative Actions: Do not approve settlement and face possible
litigation.
Attachments- Settlement Agreement between Julie Ford and the
Redevelopment Agency of the City of Huntington Beach
1
OFFICE OF
CITY ATTORNEY
4
tier
2000 MAIN STREET
HUNTINGTON BEACH
CALIFORNIA 9264%
GAIL HUTTON TELEvr1oN6
City Attorney VIA FAX AND U.S. MAIL FAA 7U
May 25, 1994
John Vozenilek, Esq.
21062 Brookhurst, Suite 202
Huntington Beach, CA 92646
Re: JULIE FORD Matter
Dear John:
This will confirm my recent telephone conversation with you concerning the above
captioned matter. I advised you that the CounciVAgency members had authorized the
purchase price of$68,000 for your client's mobile home located at Ocean View Estates
in full settlement of our respective claims.
l also advised you that due to our Charter requirements, it would be necessary to
prepare a contract outlining the terms and conditions of our settlement agreement.
Such contract will then be presented on the consent calendar at the next meeting.
Unfortunately, the deadline for the meeting of May 16, 1994, was April 29th, which is
the week prior to the closed session in which they authorized settlement. The next
available meeting is June 6th and the meadline is May 25th.
Accordingly, enclosed is a draft of the agreement that I believe covers our deal points.
Kindly review and let me know what your comments are at your earliest convenience.
Meanwhile, I'll submit the draft agreement to meet the deadline, with the understanding
that it is subject to some modification and the addition of the escrow iinstructions.
Your cooperation is appreciated.
Very truly yours,
(Dictated but not read)
ARTHUR DELALOZA
Deputy City Attorney
P.S. I'm on "jury duty" and apologize for the delay.
�tCnJk10r�5�4
SETTLEMENT AGREEMENT AND
MUTUAL RELEASE OF CLAIMS
This Settlement Agreement and Mutual Release of Claims (the"Release") is
entered into by and between JULIE C. FORD ("FORD")for herself-and for any and all
of her heirs, executors, agents, administrators, attorneys, assigns,-spouses, successors
and representatives on the one hand, and the CITY OF HUNTINGTON BEACH AND
ITS REDEVELOPMENT AGENCY (including any and all of their respective, common
and/or affiliated officers, agents, attomeys, successors, assigns, employees, servants
or representatives) on the other hand (collectively the "CITY").
RECITALS
1. This Release is made as a good faith compromise between the parties for
the complete and final settlement of their claims and differences described below.
2. A. FORD was a tenant at Pacific Trailer Park at the time the
City/Agency extended certain Acquisition and Relocation Agreement
("ARA") benefits to Pacific Trailer Park residents who were displaced due
to the Waterfront Hilton Hotel project.
B. The Agency purchased a new mobile home for FORD and
relocated her to Ocean View Estates I as a�consequence thereof.
C. FORD wishes to sell her mobile home to the Agency at the "agreed
value" as that term is defined in the "ARA", and claims the Agency must
purchase such home at the agreed value.
D. The Agency claims that FORD is indebted to the Agency because
of certain "upgrades" received by FORD when the new mobile home was
delivered at Ocean View Estates I ("OVE I").
3. The parties wish to avoid the risk and expense of litigation and to reach a
full and final compromise of all claims mentioned above relating to FORD and the
CITY
TERMS OF SETTLEMENT
In consideration of the mutual covenants set forth herein, the parties agree as
follows-.
A. Payment to Ford.
1
5n«asetvo5n5J94
Within sixty (60) days of the execution of this Settlement and Release, the
CITY will pay to FORD the sum of $68,000, constituting full payment for any and all
claims made or to be made by FORD against the CITY and as full payment for the sale
of FORD's new mobile home to the CITY.
B. Escrow.
1. Opening of Escrow.
If not already opened upon execution of this Settlement and
Release, within ten (10) days thereafter the parties will open an escrow with any
acceptable escrow company for the purpose of (1) transferring title in FORD's original
Pacific Trailer Park mobile home to CITY's named transferee, (2) payment in full of all
existing encumbrances thereon from the $68,000 purchase price hereinabove
mentioned, and (3) transferring all FORD's right, title and interest in the mobile home
FORD presently lives in to CITY. FORD agrees to participate in good faith in closing
this escrow as quickly as possible. The CITY agrees to bear all costs of escrow and
both parties agree to execute the escrow instructions attached hereto as Exhibit "A".
2. Underlying Indebtedness on the Old Mobile Home To Be
Paid.
FORD agrees that it is solely her duty to contact the holder of any
secured interest in her old Pacific Trailer Park coach and arrange a payoff and release
of collateral.
3. Title Documents.
Within thirty (30) days of the execution of this Settlement and
Release, Ford will deliver to escrow any and all documents required in order to grant
title to the mobile home she lives in now at OVE I to the CITY. The title documents
must be properly executed to release her interest in the coach.
C. Repairs.
FORD agrees that any repairs to her new coach at Ocean View Estates I
that were required to be done by the CITY have been completed, or settled by way of
payment by the CITY to FORD and no other claims presently exist against the CITY.
D. Mutual Releases.
Except for the obligations and rights conferred by this Settlement and
Release, the parties hereby release each other from any and all claims, demands,
2
Sfimd"—V05125t'34
i
costs, liabilities, damages and causes of action of every nature, whether in law or in
equity, known or unknown or suspected or unsuspected, which in any way arise out of,
relate to or are connected with the ARA or the acquisition of FORD's mobile home at
OVE 1.
Each party also expressly waives and relinquishes any and all sights
against the other which they may have under Civil Code § 1542, which provides:
"A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS WHICH THE CREDITOR DOES NOT KNOW
OR EXPECT TO EXIST IN HIS FAVOR AT THE TIME
OF EXECUTING THIS RELEASE, WHICH IF KNOWN
BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR."
E. Prior Agreements Null and Void.
Except as otherwise expressly stated herein, this Settlement and Release
supersedes and renders null and void any and all prior agreements, whether oral or
written, between the parties concerning the issues mentioned herein. Moreover, this
Settlement and Release shall constitute the only valid, binding and enforceable
agreement between them with respect to the matters described herein.
This Settlement and Release shall not be extended, modified, altered or
otherwise changed except in a writing executed by all parties hereto, which expressly
states that it is an amendment of this Settlement and Release.
F. No Admission of Liability.
This Settlement and Release is a compromise and settlement of disputed
claims and is not intended as, and shall not constitute or be construed as, an admission
of the truth or accuracy of any allegations by or against the CITY.
G. Representation of Comprehension of Documents.
In entering into this Settlement and Release, the parties represent that
they have relied on the legal advice of their attorneys, who are the attorneys of their
choice, and that the terms of this Settlement and Release have been completely read
and explained to them by their respective attorneys, and that those terms are fully
understood and voluntarily accepted by the parties.
H. Governing Law.
3
sn«cs,Mvbsrz:�a
The laws of the State of California shall govern this Settlement and
Release in all respects, including but not limited to, matters of construction, validity,
enforcement and interpretation.
I. Successors in Interest.
This Settlement and Release shall be binding upon, and inure to the
benefit of, the parties and their respective successors, heirs and/or assigns, as
applicable.
I Non-Assignment.
The parties represent and warrant that there has been no assignment or
other transfer of any claim, action, demand, right or cause of action, or any other
interest which they may have, or may have had, at any time whatsoever against each
other.
K Authority to Execute Agreement.
The parties represent and warrant that each person whose signature
appears below has been duly authorized and has full authority to execute this
Agreement on behalf of the entity for whom such signature is indicated. Further, FORD
agrees that Michael T. Uberuaga, City Administrator, may execute this Settlement and
Release on behalf of the Redevelopment Agency of the City of Huntington Beach.
L. Number of Pages.
This Settlement and Release consists of five (5) pages, including
signature pages.
4
crt«dsed'OWsrsa
The undersigned have read this Settlement and Release and fully
understand its terms:
Dated:
JULIE C. FORD
Dated: THE CITY OF HUNTINGTON BEACH
and THE REDEVELOPMENT AGENCY
of THE CITY OF HUNTINGTON BEACH
By:
MICHAEL T. UBERUAGA
City Administrator
APPROVED AS TO FORM:
Dated: THE LAW OFFICES OF JOHN VOZENILEK
By: _
JOH N VOZEN ILEK
Attorney for JULIE C. FORD
Dated: CITY OF HUNTINGTON BEACH
City Attorneys Office
By:
WHUTTON
ttomey
y
5
SKOM 1U0512S19A
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
muNWoCTON KACH
6gPoo
CONFIDENTIALstela-.. -
To: HONORABLE MAYOR AND MEMBERS OF THE CITY
COUNCIL/REDEVELOPMENT AGENCY
From: GAIL HUTTON, City Attorney
Date: April 20, 1994
Subject: REQUEST FOR SETTLEMENT AUTHORITY AND
APPROPRIATION OF FUNDS -JULIE FORD MATTER
BACKGROUND:
In 1988 the Council/Agency approved an Acquisition and Relocation Agreement
("ARA") with the Driftwood Mobile Homeowners Association.
Such agreement promised that the Agency would, among other things, buy new
"comparable" mobile homes for certain tenants who relocated to Ocean View
Estates I COVE l"). The "ARA" also provided that if tenants wanted "upgrades", the
tenants would pay for such "upgrades".
Additionally, the "ARA" promised to guarantee a certain "agreed value" of new and
old coaches so that the tenant could sell to the Agency for the guaranteed value if
the tenant could not sell on the open market.
In 1989 the Agency granted similar benefits to certain tenants from Pacific Trailer
Park (see attached action of March 30, 1989).
After the tenants relocated to OVE I, the Driftwood tenants claimed that the Agency
owed them money because the new homes purchased were not"comparable".
Their attorney, Mr. Thomas Wells, has claimed the amount we owe is about$20,000
to $40,000.
The City Attorney's office requested an audit to establish a defense and found that,
in fact, the tenants had received more than $100,000 in "upgrades"for which no
payment was made by the tenants. The cross-claims of the city and tenants are
referred to as "debits and credits".
The parties agreed to an arbitration of the "debits and credits" and such arbitration
was started last year and ultimately led to settlement discussions which are still in
process. (Mr. Wells unfortunately suffered a heart attack and is now recovering.)
u /201964
Mayor and Council/Agency -Settlement Authority
April 19, 1994, Page 2
Julie Forms Claim: Julie Ford, a former Pacific Trailer Park resident wants to invoke the
1989 grant of benefits by the City Council/Agency (attached) to force us to buy her coach.
During our audit, she was found to have owed approximately $10,000 for upgrades. After
advising her attorney, Mr. John Vozenilek, he stated that Ms. Ford wished to sell her new
coach to the Agency under the guaranteed "agreed value" concept without credit for the
upgrades. He also threatened litigation.
The agreed value under the "ARA" increases each year and would be $77,500 if it is found
that the "ARA" applies to Pacific Trailer Park residents in all respects. There is a 50%
chance that it will apply in all respects.
If the "ARA"does not apply in all respects, the agreed value would be $70,702.
We therefore offered to buy at$65,500, subject to your approval, which resulted from the
following calculations:
Agreectvalue $70,5001 $77,7023
OR
50% of$10,000 5,000 5,000
"upgrades"2
$65,500 $77,702
The City Administrator has authorized up to $70,500 to settle this matter.
Mr. Vozenilek has counter-offered at $68,000.
RMmmendation: Authorize 8 000 to buy mobile home, bring back settlement o ev-u
agreement on regular agenda to appropriate fun s. ��� .
;1�?ak� c6-CA
GAIL HUTTON
City Attorney
c: Michael Uberuaga
Barbara Kaiser, Director of Economic Development
Agreed value is most conservative value and resolving all inferences and
evidence in our favor.
2The upgrades were discounted because, when they were "authorized" by
Redevelopment staff, the tenants were not advised that the tenant would be
required to pay.
311ighest possible agreed value if entire "ARA" is deemed to apply to
Pacific Trailer Park residents.
s�semr�oarzol9a
REQUEST_FC_ REDEVELOPMENTOGENCY ACTION
APPROVED BY CITY COUNCI--
,� f`7 RH 89-27
19�..
Z .7 - DateMaFGh cr n c 1999
,
CITY CLERK
J
Submitted to: Honorable Chairman and Redevelopment Agency Members
Submitted by: Paul Cook, Executive Director Y.0 • J' `
Prepared by: Douglas La Belle, Deputy City Administrator/Economic Development
Subject: RELOCATION BENEFITS FOR PACIFIC TRAILER PARK RESIDENTS
DISPLACED BY THE EXTENSION OF WALNUT AVENUE
Consistent with Council Policy? I I Yes ( I New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE:
The residents of Pacific Trailer Park who will be displaced by the extension of Walnut
Avenue have previously been extended the option to relocate to Ocean View Estates
Mobilehome Park. This communication proposes to extend associated benefits provided to
Driftwood Phase I mobilehome park residents who choose to relocate to Ocean View
Estates.
RECOMMENDATION:
Approve additional relocation benefits for Pacific Trailer Park residents.
ANALYSIS:
On August 15, 1988, an Acquisition and Relocation Agreement was approved for the
Driftwood Mobilehome Park residents displaced as a result of the Waterfront project. An
option extended to these residents pursuant to the Relocation Agreement, includes
relocation to a mobilehome park to be constructed by the city. Associated benefits for
the first phase residents choosing this option included purchase of a new coach if the
existing mobilehome is nineteen years or older, abatement of rent for two years,
reimbursement for moving costs, and a guarantee of the agree agreea value trans erred to
Ocean View Estates Jif the coach owner is unable to sell the coach or the agreed value on
!he open market, t e Agency will fund the i erence .
Although homeowners at Pacific Trailer Park are being displaced under different
conditions (the extension of Walnut Avenue, as opposed to the conversion of a mobilehome
park), and therefore covered by state relocation guidelines, residents from both parks are
being affected by the Waterfront project and subsequently are requesting comparable
benefits. The option to relocate to Ocean View Estates will be offered as an alternative
to a buyout at in-place value. Cost to the Agency for either of these relocation options is
comparable.
i
Pl nl1/RS
JOHN VOZF.NII-EK
ATTORNEY AT I.AW
21082 BROOKHURST
OCT LF lu sl Ah `33 SUITE80i;
If UNTINGTON DRACII.CA 9264A
i:t EIVE0
CITY tTTQRNEY 714 B8S1418
CITY OF
i�11NTltt,".? _y g€4C14 FAX Na(71419es108S
October 21, 1993
STEPHEN M. MCNAMARA ART DELALOZA
19100 Von Karman CITY OF HUNTINGTON BEACH
Suite 800 P.O. Box 190
Irvine, CA 92715 Huntington Beach, CA 92648
RE: Julie Ford - Redevelopment Mobile Home relocation.
Gentlemen;
In my last phone conversation with Mr. McNamara, he
indicated that the City may have some interest in the
"buy out" proposal contained our most .recent letter to him.
He indicated that the City required a formal, written offer
of such proposal. After discussing this matter with my
Client, I was authorized to make the following proposal.
My Client will turn possession of the new coach she is
presently occupying over to the City of Huntington Beach,
upon payment of $70,500.00 which is the appraised value of
her old coach.
In my discussion with Mr. McNamara, he told me that for
the City to agree to this arrangement, Ms. Ford will have to
market the new coach for 90 days. There is one major problem
with this request, i.e. Ms. Ford does not have title to the
coach and I am certain that no real estate broker will want
to take a listing from Ms. Ford on a coach that she does not
own. Any potential Buyer will have to approve of the around
lease which does not exist. If the City accepts my Client's
proposal in principal, I will ask for guidance on the type of
marketing necessary to meet the City's requirement.
In closing, I am again repeating the request that my
office be provided with a complete list of "upgrades_'_f .�..._._
which_ the City is cl iming—reYmbursement from Ms. Ford, along
with all docu entat3ori'sho�►�ng that the City is either -- ------.
entitled to reimbursement from her or that she agreed to
same. If the City agrees to the buy-out proposal in this
letter, the question of "upgrades" will obviously become
irrelevant.
-1-
Please notify me at your earliest convenience,
whether or not the City is going to accept this proposal and
if so, what the time frame will be for completion of same.
My Client is very frustrated by her dealings with the City
and has instructed me to proceed with litigation based on the
Settlement Agreement if we are not able to reach agreement
in the immediate future.
cerly,
,r
JO VOZENILEK
JV/sb
s
-2-
FO
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
HUNTINGTON 8EACH jyr
�y
CONFIDENTIAL
To: MICHAEL UBERUAGA, City Administrator
GALL HUTTON, City Attorney
BARBARA KAISER, Director of Economic Development
From: ARTHUR DELALOZA, Deputy City Attorney
Date: April 5, 1994
Subject: JULIE FORD MALONEY PROPOSED SETTLEMENT
Julie Ford moved from Pacific Trailer Park to O.V.E. 1 to make way for the Hilton
development.
On March 20, 1989, the Agency expressly approved additional relocation
benefits for Pacific Trailer Park residents including, "a guarantee of the agreed
value transferred to Ocean View Estates (if the coach owner is unable to sell the
coach for the agreed value on the open market, the Agency will fund the
difference.)"
The original agreed value for the subject coach was $70,500.
We contend that Ms. Ford owes the Agency $10,000 for "upgrades". However,
such upgrades were never the subject of an invoice or a demand to payl• The
records reflect that redevelopment officials had "approved" the upgrades and-it is
questionable whether a court would require the tenant to pay for such upgrades
since the tenant was not invoiced nor told who would pay the added expense.
1The Ford Maloney upgrades only materialized on August 9, 1993 as part
of an attempt to defend the "debit & credit" problems as to Driftwood tenants
who were represented by Tom Wells! Such Driftwood upgrades were reported
to you as being in excess of$100.000 and are still being arbitrated/settled with
Mr. Wells, who recently had a heart attack and is recovering.
JULIE FORD MALONEY PROPOSED SETTLEMENT 04105194Page 2
1 learned from Carol Runzel that Mr. Uberuaga was willing to reduce the "agreed
value" in similar situations involving the Driftwood debits and credits. I advised
Julie Ford's attorney, John Vozenilek, that we may be willing to settle the dispute
on that basis.
Please note thafthe "agreed value" under the Acquisition and Relocation
Agreement had an escalator clause which coincidentally increased the value by
about $10,000.
Thus, _the escalator clause applies to Pacific Trailer Park residents, Ms. Ford's
coach would now have an agreed value of$80,500.
If we reduce such "agreed value" by our $10,000 claim as suggested by Mr.
Uberuaga, then we may have the basis for a settlement. Meanwhile, Mr.
Vozenilek has taken the position that the agreed value is $70,500 but wants us
to waive our$10,000 claim.
His client has put the coach on the market for $70,500 per the terms of our "buy
out" commitment under the Acquisition and Relocation Agreement and hopes to
force us to buy either directly from his client or make up the difference if sold to a
third party.
There are two problems with his approach:
1) The Agency action cited above only requires the Agency to "fund the
difference" if the owner can't sell for"agreed value on the open market".
($70,500?)
2) As a practical matter, the coach is not marketable because the titles were
not tendered by Performance Mobile Homes due to bankruptcy of Mr.
Feeney; and, there is no long term lease to buy into.2
2The title problem is being handled by way of a statement of facts and/or bonds
and the lease problem is being resolved with Tom Wells through negotiations.
' JULIE FORD MALONEY PROPOSED SETTLEMENT • 04/05194Page 3
The agreement to buy at $70,500 would probably not require Agency action
since the March 20, 1989 Agency action seems to approve of the "guarantee".
The waiver of the $10,000 claim by the City is probably within the City
Administrators authority to settle City claims.
RECOMMENDATION: Offer to buy out at $65,500.
ALTERNATIVE: Tenant could sell for $1,000 to get City to "fund the
difference" of guaranteed agreed value.
I request a meeting on this matter this week, if possible, and will ask Ms. Hutton's
secretary to clear with your respective offices.
ARTHUR DELALOZA
Deputy City Attorney
'• I-
F
"le CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
MUN71Nc70N MACH
To: BARBARA KAISER, Director of Economic Development
From: GAIL HUTTON, City Attorney
Date: April 29, 1994
Subject: JULIE FORD MATTER
This is in response to your questions of April 26, 1994:
1. Does buyout at agreed value for OVE I apply to life estate tenants? Is
Julie Ford a life estate tenant?
ANSWER: A so-called "life estate tenant" Is one of the original
twelve tenants relocated to OVE I from a park other than Pacific
Trailer Park or Driftwood.
The buyout at agreed value is found in the Acquisition and
Relocation Agreement(ARA) with Driftwood and some aspects of the
ARA were purportedly granted to Pacific Trailer Park residents.
We have located no documents which extend the buyout provisions
to so-called "life estate tenants" as defined above.
If you are aware of any evidence on that issue, please forward to us
immediately.
2. (A) Is Julie Ford an original tenant of OVE I?
ANSWER: "Ford/Maloney" appears to be the name on the original
certificate of origin by the manufacturer.
All the records supplied by your office indicate that Julie Ford is the
same Ford/Maloney on the original documents. Thus, the answer is
yes. If you know of any information to the contrary, please advise.
51adurr,QnxAord2104rze154
Julie Ford - 4129/94 - 2
(B) Does buyout at agreed,value apply to future tenants at OVE I, such
as beneficiaries?
ANSWER: The ARA extends to "heirs", see page 34, XVI(D) which
provides:
"Successors and Assigns. The covenants and conditions
herein contained apply to a-nd bind the heirs, successors,
executors, administrators and assigns of the parties hereto."
(C) When does obligation to buyout at agreed value cease?
ANSWER: The agreement states at page 31 that certain rights
begin "after the second year following occupancy." There is no
termination date in that section of the agreement
3. Has Julie Ford provided evidence to us that she marketed her coach on
the open market for 90 days, as required by the ("ARA") agreement?
ANSWER: No 90-day provision has expressly been provided to Ms.
Ford since she was a Pacific Trailer Park relocatee.
Such 90-day provision works to our detriment, however, because we
have a duty to pay the difference, for example, if sold for$10,000.
Moreover, since we have no lease agreement in place and no titles
have yet been transferred, the obligation to attempt to sell for 90
days would probably be viewed by a court, as unnecessary. "The
Court does not require the doing of a useless act." No third party
would purchase where title cannot pass --except at fire sale price.
Nevertheless, attorney Vozenelic has represented and would
probably produce a declaration, under penalty of perjury, that the
home was on the market for 90 days. He states he has a picture.
4. Who [sic] are we buying the coach from if Julie Ford does not have title?
ANSWER: Julie Ford, as a relocatee from Pacific Trailer Park, was
given possession of a new coach by the Redevelopment Agency in
1989 and a promise of title.
513euff*KrXAOra204n3r34
Julie Ford - 4/29/94 - Page 3
We have not yet provided title because the broker failed to issue a
"Dealer Report of Sale" and "went out of business" according to
state authorities. We are working with Tiffany Escrow and Sharon
Dumont of State of California Department of Housing to secure titles.
Meanwhile, Ms. Ford probably has a legitimate claim in her demand
that we supply her with a title and buy the coach for $77,000+ in light
of the attached report from your office.
.The $68,000 accomplishes five things.
1) Eliminates a potential winning plaintiff at $77,000 and
attorney's fees,. for a forced buy out;
2 Reimburses the Agency for Ms. Ford's upgrades. We view the
Agency claim as compromised, since we never billed Ms. Ford
between 1989 and 1993 and "there is no written evidence that
the tenant had knowledge that the replacement mobile home
was $9,195 over their replacement allotment . . . " (see Carol
Runzel memo of August 9, 1993, attached);
3) Does not set a legal precedent, which could prejudice the
Agency, on the exact nature of the "buy out" requirement
granted to Pacific Trailer Park residents;
4) Avoids sale of the coach on the 'open market" for a mere
token, forcing the Agency to pay the difference, for which the
Agency receives nothing; and
5) The Agency will get possession of the coach and title when it
is granted by the state.
` GAIL HUTTON
City Attomey
c: Michael Uberuaga, City Administrator
51ad Umemonord2lUnR 9M4
REQUEST FOR CITY COUNCIL/
REDEVELOPMENT AGENCY ACTION
Date: August 1, 1994
Submitted to: `Redevelopment Agency Chairperson and Board Members
Sudmitted by: T GAIL HUTTON, City Attorney
Prepared by: XGAIL HUTTON, City Attorney
Subject: JONES vs. REDEVELOPMENT AGENCY
O.C.S.C. Case No. 62 30 62
COURT SUPERVISED DEBITS & CREDITS SETTLEMENT
AGREEMENT WITH OVE I MOBILE HOME TENANTS
Consistent with Council Policy? (X) Yes [ ] New Policy or Exception
Statement of Issue_ Recommendation, Analysis_ Funding Source, Alterntalive Actions.Attachments l�
Statement of Issue: Whether to approve settlement agreement with Ocean
View I tenants. Agency claims monies are owed by tenants; tenants have made
claims against Agency alleging defective homes.
Recommendation: Approve Settlement Agreement.
Analysis: This Agreement was previously approved in closed session and is
a matter of record with the court. Involved are credits and payments in the sum
of Sixty Thousand Dollars ($60,000) to the Agency from the tenants and no costs
to the Agency.
Funding Source: NIA
Alternative Actions: Breach Settlement Agreement and face lawsuit.
Attachments: Settlement Agreement
SETTLEMENT AGREEMENT AND
MUTUAL RELEASE OF CLAIMS
This Settlement Agreement and Mutual Release of Claims (the "Release")
is entered into by and between HAROLD T. JONES and all other plaintiffs listed
on Exhibit "A" attached hereto and incorporated herein by this reference
("PLAINTIFFS") for themselves and for any and all of their heirs, executors,
agents, administrators, attorneys, assigns, spouses, successors and
representatives on the one hand, and the CITY OF HUNTINGTON BEACH AND
ITS REDEVELOPMENT AGENCY (including any and all of their respective,
common and/or affiliated officers, agents, attorneys, successors, assigns,
employees, servants or representatives) on the other hand (collectively the
"CITY").
RECITALS
1. This Release is made as a good faith compromise between the
parties for the complete and final settlement of their claims and differences
described below.
2. A. PLAINTIFFS were tenants at Driftwood Mobile Home Park at
the time the City/Agency extended certain Acquisition and
Relocation Agreement ("ARA") benefits to such residents
who were displaced due to the Waterfront Hilton project.
B. The Agency purchased new mobile homes for plaintiffs and
relocated them to Ocean View Estates I as a consequence
thereof.
C. The Agency claims that PLAINTIFFS are indebted to the
Agency because of certain "upgrades" received by
PLAINTIFFS when the new mobile homes were delivered at
Ocean View Estates I ("OVE 1").
D. PLAINTIFFS claim that the Agency is indebted to them
because the homes were not comparable to their old homes.
All PLAINTIFFS' claims are listed in Exhibit "A" previously
mentioned hereinabove.
E. The parties have previously settled a separate dispute
involving the issue of entitlements regarding "wheels and
axles" which agreement shall not be disturbed by this
Settlement and Mutual Release.
• 1 4F
5rones settlement agreemenV7/20/94
V
3. The parties wish to avoid the risk and expense of litigation and to
reach a full and final compromise of all claims mentioned above relating to
PLAINTIFFS and the CITY.
TERMS OF SETTLEMENT
In consideration of the mutual covenants set forth herein, the parties
agree as follows:
A. Payment and Credits by PLAINTIFFS
Within sixty (60) days of the execution of this Settlement and
Release, the PLAINTIFFS will pay to CITY cash in the sum of Eight Thousand
Six Hundred and Six Dollars ($8,606) and give credits [Fifty-one Thousand,
Three Hundred Ninety-Four ($51,394)] in the total sum of$60,000, constituting
full payment and credit for any and all claims made or to be made by
PLAINTIFFS against the CITY and CITY against PLAINTIFFS, all as more
particularly set forth in Exhibit "B", a copy of which is attached hereto and
incorporated herein by this reference.
B. Opening of Escrow
If not already opened upon execution of this Settlement and
Release, within thirty (30) days thereafter the parties will open an escrow with
any acceptable escrow company for the purpose of completing the transfer of
any ownership interest still retained by the PLAINTIFFS in their old coaches and
at no additional expense to the PLAINTIFFS transfer to the PLAINTIFFS title to
the new coaches based on the ARA and other applicable agreements between
the parties.
C. Mutual Releases
Except for the obligations and rights conferred by this Settlement
and Release, the parties hereby release each other from any and all claims,
demands, costs, liabilities, damages and causes of action of every nature,
whether in law or in equity, known or unknown or suspected or unsuspected,
which in any way arise out of, relate to or are connected with debits and credits
issues between the parties relating to the ARA.
Each party also expressly waives and relinquishes any and all
rights against the other which they may have under Civil Code § 1542, which
provides:
2
5liones settlement agreementf7f20194 �/
°A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR EXPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THIS
RELEASE, WHICH IF KNOWN BY HIM MUST
HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.
D. Prior A reements Null and Void
This Settlement and Release does not change any of the parties
rights as stated in the "ARA" except as to matters expressly stated herein. This
Settlement and Release supersedes and renders null and void any and all prior
agreements, whether oral or written, between the parties concerning the issues
mentioned herein. Moreover, this Settlement and Release shall constitute the
only valid, binding and enforceable agreement between them with respect to
the matters described herein.
E. Modifications
This Settlement and Release shall not be extended, modified,
altered or otherwise changed except in a writing executed by all parties hereto,
which expressly states that it is an amendment of this Settlement and Release.
F. No Admission of Liability
This Settlement and Release is a compromise and settlement of
disputed claims and is not intended as, and shall not constitute or be construed
as, an admission of the truth or accuracy of any allegations by or against the
CITY.
G. Representation of Comprehension of Documents
In entering into this Settlement and Release, the parties represent
that they have relied on the legal advice of their attorneys, who are the
attorneys of their choice, and that the terms of this Settlement and Release
have been completely read and explained to them by their respective attorneys,
and that those terms are fully understood and voluntarily accepted by the
parties.
.a
•
3
51jones settlement egreement/720194
•
H. Goveming Law
The laws of the State of California shall govern this Settlement and
Release in all respects, including but not limited to, matters of construction,
validity, enforcement and interpretation.
I. Successors in Interest
This Settlement and Release shall be binding upon, and inure to
the benefit of, the parties and their respective successors, heirs and/or assigns,
as applicable.
J. Non-Assignment
The parties represent and warrant that there has been no
assignment or other transfer of any claim, action, demand, right or cause of
action, or any other interest which they may have, or may have had, at any time
whatsoever against each other.
K. Authority to Execute Agreement
The parties represent and warrant that each person whose
signature appears below has been duly authorized and has full authority to
execute this Agreement on behalf of the entity for whom such signature is
indicated. Further, PLAINTIFFS agree that Michael T. Uberuaga, City
Administrator, may execute this Settlement and Release on behalf of the
Redevelopment Agency of the City of Huntington Beach.
L. Number of Pages
i
This Settlement and Release consists of eight (8) pages, including
signature pages.
4
5/Jones settlement agreement/7/20/94
1
The undersigned have read this Settlement and Release and fully
understand its terms:
Dated: THE CITY OF HUNTINGTON BEACH
and THE REDEVELOPMENT AGENCY
OF THE CITY OF HUNTINGTON
BEACH
By:
Michael T. Uberuaga
City Administrator
Dated: 7 Z fl—1¢ CITY OF HUNTINGTON BEACH
City Attomey's Office
By:
Gail Hutton D� 7 ?-a _ f
7%Zd-f/City Attomey
'NOTE: Signature page of PLAINTIFFS to be supplied by PLAINTIFFS'
attomey
fA
v1 5
51}ones settlement agreement/N20194
,-_GNATURE PAGE OF PLAINTIFF,
N E SPACE
STAN 7
CLAUDE, EVELYN 36
GADDIS, INGRID 30
HENDRIX, TED & B4TY 22
FALKENSTEIN, PATRJCIA 40
KROESCH, MAZIE 41
CARLIN, PHIL 3
MARINOVICH, MARY 18
STIPE, MARGE 28
FADER, MR. & MRS. , 43
SHELTON, MARY 1 29
JONES, HAROLD & N4 44;
DT"'mRICK, KOLISHNiCK
SlriuN, PAT 38
BROOKS, GRACE 34
DELLSITE, JOHN & 35
^.ARaL�
FRANKE, WM 33
APPROVED ,AS �Q FORM
tftOXKSWELLS, ESQ
07-�n-44 02 5,uPM Fu5
EXHIBITS K AND "B" TO FOLLOW
s
5/hones settlement agreement/7/20/94