HomeMy WebLinkAboutDriftwood Beach Club Mobile Homeowners Association, Inc. - 1988-09-26P,,e-b exi e,I o r mad- tom~ ,-b.-, ?:,�
REQUEST FOR
ACTION �° 30
RH 91-24
�F17
Date May 6, 1991
Submitted to: Honorable Mayor and City Council Members
Submitted by: Michael T. Uberuaga, Executive Director)
Prepared by: Barbara A. Kaiser, Deputy City Admin:strator/Economic Develop a DiAector:
Subject: DRIFTWOOD BUYOUTS AND THE FAVORED NATIONS C
Consistent with Council Policy? N Yes [ ] New Policy or Exception
�� , K r F Ti�.-••
i
CJ <i S7�L,
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: JA
} "IF OA 4 11101*k$'t
The Driftwood Emergency Buyout program, authorized by City Council in January 1991
and expanded on April 15, 1991 allows staff to proceed with buyouts of Driftwood
mobile homes. The Agency is negotiating an Amended Driftwood Acquisition and
Relocation Agreement, wherein a "Favored Nations" concept is introduced. The
"Favored Nations" provision and Driftwood Residents to whom the provision will apply
needs to be defined. If the "Favored Nations" language is accepted, then the tenant may
benefit monetarily from a future bond issue and related costs may be deducted from this
amount.
1) Approve the "Favored Nations" language as stated in the "Declaration of Vacancy
and Receipt of Benefits," Alternative A. and approve that all Driftwood tenants, who
are defined in the "Resident" category in the Driftwood Acquisition and Relocation
Agreement and as determined by the May 15, 1997 date, receive the "Favored
Nations" benefit.
AWNW&M
Implementation of the 1989 Driftwood Mobilehome Acquisition and Relocation
Agreement has been delayed beyond the original scope of the program. The Agency is
currently negotiating an Amended Acquisition and Relocation Agreement with the
Driftwood Mobilehome Association. The Association must have 175 Driftwood tenants
In agreement with the Agency's proposal before ratification. The negotiations have
introduced a "Favored Nations" provision, which is included and underscored in the
Declaration of Vacancy and Receipt of Benefits forms, Alternatives A through D.
The negotiations of the Amended Acquisition and Relocation Agreement may result in
various payment schedules which will identify the "Favored Nations" award (it may be a
percentage of agreed value or a constant value) and what costs will be deducted from
the award. The intent of the "Favored Nations" provision is to provide to the
Emergency Buyout tenants the same benefit as to whatever is agreed upon in the
Amended Relocation Agreement.
f
Plo 5/05
RCA RH 91-24
May b, 1991
Page two
The current agreement defines the category of resident and nonresident by the
determination date of May 15, 1987. The "Favored Nations" status of current residents
who are also original residents is clear; however, the "Favored Nations" status of
original residents who are now non-residents, that is, moved out of Driftwood since the
signing of the 1988 agreement or have died, is unclear. Approximately thirty-three (33)
original residents have moved out of Driftwood since the signing of the agreement (five
of these are weekenders, three have died). Some of these secondary non-resident
tenants have maintained two households and did not rent out their unit. There are
approximately 20 original non-residents.
FUNDING SOURCE:
Not applicable. Funding; for the "Favored Nations" amount will only be available after
the Agency has been issued the bonds.
ALTERNATIVE ACTION:
1) Do not approve the "Favored Nations" language (see Alternative B.)
2) Approve that all current residents receive the "Favored Nations" consideration and
exclude all current non-residents (see Alternative Q.
3) Approve that all tenants regardless of residency receive the "Favored Nations"
consideration (see Alternative D).
ATTACHMENTS:
1) Declaration of Vacancy and Receipt of Benefits forms (Alternatives A through D).
I-iTU/BAK/CAR: jar
8913r
ALTERNATIVE A
DRIFTWOOD MOBILE HOME OWNER
DECUMATION OF VACANCY AND RECEIPT OF BENEFITS
I (We), ,
the undersigned owner(s) of the mobile home in Space
and tenant(s) of Driftwood Beach Club Mobile Home 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 Mobile Home Acquisition and
Relocation Agreement (the Agreement) except eligibility to
purchase or rent, housing accommodations as specified in
Section VIII (B), (1), (2) and (3) thereof. Notwithstanding
anything -herein to the n r
agreement is entered into which amends_thg 11Qj2ilgllgma
bcouisition and Relocation Agreement by increasing _thg Agreed
Value (as defined in the_Agreemen%1 of th,e mobile home,
Iemaining at Driftwood, Agency shall be obligated to pav to_
S Iler an amount: equal to the lUnn gum or -percentage by xhich
the Agreed Value was in r a
the „purchase �price (defined Q Agreement
hereundgrj less attorney's feesegdgggts. _This covenant... Shall
survive the close of escrow and DOES NOT APPLY TO NON-RESIDENT
OWNERS prior to May 15, 1987, as defined in the Agreement, nor
to increases in agreed value which result from the initiation
of eminent domain proceedings or subsequent annual
adjustments. The undersigned further warrant(s) and declare(s)
0
that he/she/they has/have vacated the above listed space and
hereby relinquish(es) any and all rights, title, interest to
possess or occupy the above listed space.
Mobile Home Owner:
1. Print Name:
Signature: Date:
1. Print Name:
Signature: Date:
Accepted and approved for payment of
balance of funds.
Huntington Beach Redevelopment Agency
By: Date:
Title
APPROVED AS TO FORM:
City Attorney
Agency Special Counsel
2
ALTERNATIVE NO._ B
DRIFTWOOD MOBILE HOME OWNER
DECLARATION OF VACANCY A2rD RECEIPT OF BENEFITS
I (we) , ,
the undersigned owner(s) of the mobile home in Space
and tenant(s) of Driftwood Beach Club Mobile dome 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 Mobile Home Acquisition and
Relocation Agreement (the Agreement) except eligibility to
purchase or rent, housing accommodations as specified in
Section VIII (B), (1), (2) and (3) thereof. Notklithstandina.
n thin herein to the contrary, in the event —that
agreement is entered into which amends -the -Mobile Home
Acquisition and Relocation Agreement by increasing —
the -Agreed -Value (ag defined in the Agreement) -of
remaining at Driftwood, Agency shall not be obligated to pay to
Seller any amount whatsoever by which the Agreed Value was
increased by such amendment. 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
- 1 -
rights, title, interest to possess or occupy the above listed
space.
Mobile Home Owner:
1. Print Name:
Signature: _
1. Print Name:
Signature: _
Accepted and approved for payment of
balance of funds.
Huntington Beach Redevelopment Agency
By:
Title
APPROVED AS TO FORM:
City Attorney
Agency Special Counsel
- 2 -
Date:
Date:
Date:
ALTERNATIVE NO.
DRIFTWOOD MOBILE HOME OWNER
DECLARATION OF VACANCY AND RECEIPT OF BENEFITS
FAVORED NATIONS CLAUSE
the undersigned owner(s) of the mobile home in Space
and tenant(s) of Driftwood Beach Club Mobile Home 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 Mobile Home Acquisition and
Relocation Agreement (the Agreement) except eligibility to
purchase or rent, housing accommodations as specified in
Section VIII (B), (1), (2) and (3) thereof. Notwithstanding
Anything herein to the contrary, in the event that a subseguent
agreement is entered into which amends the Mobile Home
Acquisition and Relocation Agreement by increasing the Agreed
Value (as defined in the Agreement„) of the mobile homes
remaining at Driftwood, Agency shall be obligated to pay,,
Seller an amount equal to the lump sum or percentage by which
the Agreed Value was increased by such amendment, applied to
the purchase Price (defined in the Agreement) paid Seller
hereunder, less attorney's fees and costs. This covenant shall
survive the close of escrow and DOES NOT APPLY TO NON-RESIDENT
OWNERS nor to increases in agreed value which result from the
initiation of eminent domain proceedings or subsequent annual
adjustments. The undersigned further warrant(s) and declare(s)
- 1 -
that he/she/they has/have vacated the above listed space and
hereby relinquish(es) any and all rights, title, interest to
possess or occupy the above listed space.
Mobile Home Owner:
1. Print Name:
Signature: Date:
1. Print Name:
Signature:
Accepted and approved for payment of
balance of funds.
Huntington Beach Redevelopment Agency
By:
Title
APPROVED AS TO FORM:
City Attorney
Agency Special Counsel
2 -
Date:
Date:
ALTERNATIVE NO. b
DRIFTWOOD MOBILE HOME OWNER
DECLARATION OF VACANCY AUD RECEIPT OF BENEFITS
I (we),
the undersigned owner(s) of the mobile home in Space
and tenant(s) of Driftwood Beach Club Mobile Home 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 Mobile Home Acquisition and
Relocation Agreement (the Agreement) except eligibility to
purchase or rent, housing accommodations as specified in
Section VIII (B), (I), (2) and (3) thereof. Notwithstanding_
v
agreement is entered into which amends the =ile Hgma_
Acquisition and Relocation _& eerl�at by increasing the Aq ++
Value (as defined in the Agreement) of the mobile homes
Seller an amount equal to the lump -sum or RCXcent_ag a by which
the Agreed Value was increased by -such ame-ndment, p2plied to
the purchase price tdgfined in the, Agreemena Paid Seller
hereunder, less attorneylp Jee2 and costs, :[hig Cnven=t,
applies to all owners and shall survive the close of escrow,
but does not apply to increases in agreed value which result
from the initiation of eminent domain proceedings or subsequent
annual adjustments. The undersigned further warrant(s) and
- 1 -
declare(s) that he/she/they has/have vacated the above listed
space and hereby relinquish(es) any and all rights, title,
interest to possess or occupy the above -listed space.
Mobile Home Owner:
1. Print Name:
Signature:
1. Print Name:
Date:
Signature: Date:
Accepted and approved for payment of
balance of funds.
Huntington Beach Redevelopment Agency
By:
Title
APPROVED AS TO FORM:
City Attorney
Agency Special Counsel
2
Date:
&JA COCA 3a
APPROVED BY CITY CO
UEST FOR CITY COUNCIL
LOPMENT AGENCY ACT16
RH91-19
Dote
April 15, 1991
Submitted to: Honorable Mayor/Chairman & City Council/Redevelopment Agency Members
Submitted by: Michael T. Uberuaga, City Administrator/Chief Executive Off
Prepared by. Barbara A. Kaiser, Deputy City Administrator/Economic Developmentu,..�
AUTHORIZATION TO PURCHASE ADDITIONAL MOBILEHOMES AT
Subject: DRIFTWOOD MOBILEHOME PARK UNDER AN EMERGENCY BUYOUT
PROGRAM/MAIN-PIER REDEVELOPMENT PROJECT AREA
Consistent with Council Policy? pQ Yes [ } New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE:
The Driftwood Mobilehome Acquisition and Relocation Agreement provides mobilehome
owners the opportunity to sell their mobilehomes to the Agency at an "agreed value,"
described within the Relocation Agreement. The Driftwood Emergency Buyout Program,
authorized by the City Council in January of 1991, needs an appropriation of funds and
authorization to continue additional buyouts for Driftwood tenants in emergency situations.
13:1401MUTUNoat •
1) Authorize staff to expand the Driftwood Emergency Buyout program from 14
acquisitions to an additional 20 acquisitions for a total of 34. The program would
include making offers to Driftwood Mobilehome owners at the agreed value for each
purchase, opening escrow accounts, and expending funds from Redevelopment Agency
resources to be reimbursed upon issuance of project bonds.
2) Approve a transfer of $1,275,000 to the Main --Pier Redevelopment Project fund from
1988/89 Tax Allocation Bond proceeds, and appropriate $1,275,000 from the Main -Pier
Redevelopment Project fund to the Driftwood Buyout Capital Project Account
(E-TM-ED-801-3-96-00).
implementation of the 1989 Driftwood Mobilehome Acquisition and Relocation Agreement
has been delayed beyond the original scope of the program. The Agreement provided
residents with choices in relocation benefits. These included the option of moving to a
n--wly developed Ocean View Estates or selling the mobilehome to the Agency for an
agreed value. There are 198 privately -owned mobilehomes remaining in the Park,
fourteen of which are in escrow under the Driftwood Emergency Program authorized by
the City Council in January of 1991.
Under the 1989 Disposition and Development Agreement for the Waterfront project,
Robert L. Mayer provided funding for the initial phase of buyouts through a reimbursement
program, payable by the Agency to the developer from future tax increment and transient
occupancy tax revenues generated by the Waterfront project. This funding reimbursement
program no longer has cast available to continue the buyout program.
The Agency has proposed a bond issue, netting $31.5 million to fund the Buyout Program
and for various public improvements associated with Waterfront's commercial
development of Phases 2 & 3, and residential development. After the Bond Issue is
approved by the City Council as part of the approvals for the Waterfront project and sold,
funds will be available for the complete Buyout Program. No date for this sale has been
set, as yet.
There were 34 tenants who were certified by the Immediate Buyout Committee in
February, 1991. The Driftwood Emergency Buyout program could only fund 14 of these
tenants. Continuing with the limited Buyout Program will allow staff to make 20
additional offers on mobilehomes at agreed value for previously certified emergency
tenants. Funds of $1.275,000 will allow the purchase of approximately 20 additional
coaches following the procedure outlined in the Relocation Agreement.
Proceeding with buyouts at this time has two major advantages: 1) tenants in emergency
situations will be able to receive relief and, 2) buyouts at this time may lower future costs
for the Agency.
These additional emergency buyout tenants will be eligible for the "favored nations"
provision as stipulated at the conclusion of the Driftwood re -negotiations. This means
that eligible tenants will receive an additional amount calculated by a percentage of their
agreed value (offer price). Funding for the "favored nations" amount will only be available
after the Agency has issued the Bonds.
I11t.'I
Tax Allocation Bonds were issued in 1988/89 for fcur redevelopment project areas.
$3.275 million of the proceeds are reserved to be used for redevelopment purposes. Staff
recommends allocating $1,275,000 of the total $3.275 million for the Buyout Program.
The Agency will be reimbursed from the Bonds to be issued in conjunction with
development of the Waterfront project. The Agency remains at risk for these funds if
Waterfront Project does not proceed.
A1.TERNAIM ACTION:
Do not authorize staff to expand the Buyout Program for Driftwood Nlobilehome Owners
at this time.
ATTAINMENTS:
1) Fiscal Impact Statement
MMBAK/CR:Is
9808r
Ji CITY OF HUNTINGTON BEACH
-�� INTER -DEPARTMENT COMMUNICATION
MVNi1NG10% MACH
Michael T. Uberuaga Robert J. Franz
To City Administrator From Deputy City Administrator
REQUEST FOR APPROPRIATION April 3, 1991
Subject TO PURCHASE 20 COACHES AT THE Date
DRIFTWOOD MOBILE HOME PARK
As requested under the authority of Resolution 4832, a Fiscal Impact Statement has been
prepared and submitted relative to the proposed purchase of approximately 20 coaches,
pursuant to the procedure outlined in the Relocation Agreement. Anticipations are that
an appropriation of $1.275,000 would be adequate for this limited buyout program.
An affirmative response by the City Council would reduce the balance of the City's
currently reserved Tax Allocation Bond Proceeds from $3,275,000 to $2,000,0001
Robert JI Frariz
Deputy City Admini rator
RJF:jar
8809r
t a &V a r m u.r+xfcrr 4
REQUEST FOR -CITY COUNCILS-�G�o���.�� r
REDEVELOPMENT AGENCY ACTION ED 90-42
Die January 7, 1991
Submitted to: Honorable Mayor/Chairman & City Council/Redevelopment Agency Members
Submitted by; Michael T. Uberuaga, City Administrator/Chief Executive Officer `Af J '
Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development'"
Subject: AUTHORIZATION TO PURCHASE MOBILE HOMES AT DRIFTWOOD MOBILE
HOME PARK, MAIN -PIER REDEVELOPMENT PROJECT
Consistent with Council Policy? M Yes t i New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, AlternativpA 9emyA ` CUt1Nt:t'.1.
The Driftwood Mobilehome Acquisition and Relocation Agreement provides mobile home
owners the opportunity to sell their mobile homes to the Agency at an "agreed value",
described within the Relocation Agreement. There are currently 200 mobile home
owners remaining in the park. A significant number of mobile home owners have
expressed strong interest in the buyout program. Contingent upon the approval of a
bond issue for the Waterfront project, funds would be available to initiate the buyout
program.
lax
el U11 9, e
1) Authorize staff to proceed with a buyout program for the Driftwood Mobilehome
owners. The program would include making offers at the agreed value for each
purchase, opening escrow accounts and expending funds from Redevelopment
Agency resources to be reimbursed upon issuance of project bonds.
2) Approve a transfer of $1,125,000 to the ?lain -Pier Redevelopment Project from
Tax Allocation Bond Proceeds 1989/89 (currently reserved in the General Fund for
Redevelopment Agency purposes) and appropriate $1,125,000 for the Driftwood
buyout program.
ANALYSIS:
Implementation of the 1988 Driftwood Mobilehome Acquisition and Relocation
Agreement has been delayed beyond the original scope of the program. The Agreement
provided residents with choices in relocation benefits. These included the option of
moving to a newly developed OceanView Estates or selling the mobilehome to the
Agency for an agreed upon value.
Under the 1988 Disposition and Development Agreement for the Waterfront project,
Robert L. Mayer provided funding for the initial phase of buyouts through a
reimbursement program, payable by the Agency to the developer from future tax
increment and transient occupancy tax revenues generated by the Waterfront Project.
This funding reimbursement program no longer has cash available to continue the buyout
program.
Pl0 4/84
RCA/RAA ED 90-42
January 7, 1991
Page Two
The Agency has proposed a bond issue netting $.31.5 million to fund the buyout program,
the construction of a new mobile home park for relocatees, and for various public
Improvements associated with Waterfront's commercial development of phases 2 and 3
and residential development. After the bond issue is approved by City Council as part
of the approvals for the Waterfront Project and sold, funds will be available for the
complete buyout program. Commencement of a limited buyout program now will allow
staff to make offers on some mobile home roaches at agreed value for emergency
situations. Funds of $1,125,000 will allow the purchase of approximately 16 coaches
following the procedure outlined in the Relocation Agreement.
Immediate buyouts by the Agency has several advantages in that it allows those waiting
for the past two years to sell their coaches and lowers future costs for the Agency,
since buyouts are less expensive than relocation.
The original Relocation Agreement offered the "agreed value" to mobilehome owners.
The 1990-1991 agreed value is based upon individual appraisals. The current average
agreed value is $70,000. Staff recommends offering the agreed value at this time to
allow the maximum number of coaches to be purchased. However, those selling at this
time would be provided with a "favored nations" clause wich would provide for
additional payments if later buyouts are completed at a value greater than agreed value.
DING SOUR
Tax Allocation Bonds were issued in 1988/89 for four redevelopment areas. $4.4 million
of the proceeds are reserved in the General Fund to be used for redevelopment
purposes. Staff recommends allocating $1,I25,000 of the total $4.4 million for the
buyout program. The Agency will be reimbursed from the bonds to be issued in
conjunction with development of the Waterfront project. The Agency remains at risk
for these funds if Waterfront does not proceed.
ALTERNATCVE ACTION:
Do not authorize staff to implement the buyout program for Driftwood mobilehome
owners at this time.
1. Fiscal Impact Statement
MTU/BAK/CAR:jar
8101r
JJ CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
HVNTINGTUM BEACH
To MICHAEL T. UBERUAGA From ROBERT J. FRANZ
City Administrator Deputy City Administrator
Subject REQUEST FOR APPROPRIATION Date DECEMBER 27. 1990
TO PURCHASE 16 COACHES AT THE
DRIFTWOOD MOBILE HOME PARK
FIS 90-50
As requested under the authority of Resolution 4832, a Fiscal Impact Statement
has been prepared and submitted relative to the proposed purchase of
approximately 16 coaches. pursuant to the procedure outlined in the Relocation
Agreement. Anticipations are that an appropriation of $1,125,000 would be
adequate for this limited buyout program.
An affirmative response by the City Council would reduce the balance of the
City's currently reserved Tax Allocation Bond Proceeds from $4.4 million to
$3,275.000. /?
ROBERT J. FRA Z k
Deputy City A ministrator
RJF:skd
WPADSERT:58
�REQUEST������.-�PMENT ,,,aENCY ACTION
1910 ED 90-30
fl Date November 5, 1990
CI Y C _SK
Honorable Chairman and Redevelopment Agency Members
Submitted to: Michael T. Uberuaga, Chief Executive Officer�`C��
Submitted by: Barbara A. Kaiser, Deputy City Administrator/Economic Developmen�
Prepared by: APPROPRIATION OF REDEVELOPMENT FUNDS FOR DRIFTWOOD PHASE I
MOBILE HOME RELOCATION AND RENOVATION/MAIN-PIER
Subject: _ REDEVELOPMENT PROJECT AREA
Consistent with Council Policy? Yes j ] New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE:
The City's expenditure to date for the Ocean View Estates (Driftwood) Phase I
Relocation Project is $2,706,779.78 out of a $3.2 million budget allocated for the a
project. An appropriation of $55,000 is needed for FY 1990/91 in order to continue
implementation of the Agency's obligation under the previously approved ReIocatiorP1 .,
r, r, -� to
Agreement. � r .��
-cnrn
RECOMMENDATION: q Q a
Approve the appropriation of $55,000 to the Driftwood relocation (Ocean View Estafu, I)=
account. o 71
ANALYST :
Ocean View Estates I is the location where the Driftwood Phase I residents have been
relocated. The $55,000 should be appropriated in order to complete outstanding work
orders for individual mobile homes within Ocean View Estates Mobile Home Park,
purchase furnishings for the clubhouse, and other minor improvements to the Park. The
estimated cost to finish these projects is $55,000. The Relocation Agreement requires
the Robert Mayer Corporation to advance $3.2 million dollars to the Agency to
complete this work. To date, $2,706,779.78 has been expended by the Agency from this
fund. These expenditures will be reimbursed to the Robert Mayer Corporation from tax
increment dollars generated from the project.
FUNDING SOURCE:
1990/91 Main -Pier Redevelopment Fund balance.
ALTERNATIVE ACTIONS:
1. Do not approve the appropriation, and stop all further improvements at Ocean View
Estates I.
ATTACHMENTS: 1
1. Fiscal Impact Statement.
2. Driftwood Phase 1 Relocation Expenditure Report.
NITU/BAK/CR:sar
7842r
P1011185
DRIFTWOOD PITASE I
EXPENDITURE REPORT
OCTOBER 3, 1990
FY 87-88
FY 88-82
YF 99-90
FYI TOTALS
Buyouts —
$ 495,484.83
--
— $ 495,484.83
Purchase of New
Mobile Homes --
646,595.81
—
— 646,595.81
Design &
Construction —
691,355.S0
$ 186,560.10
102,297.15 980,212.75
Graner Oil --
111,224.89
33,170.09
-- 144,394.96
Relocation OVE—I
& Park Improvements $ 5,387.64
331,962..Q6
95,369.52
7,372.21 440,091.43
TOTALS $ 5,397.64
$ 2,276,623.08
$ 31S,099.70
$ 109,669.36 2.706, 79.71
7846r
f
J�
IIUKTINGTOM IEACM
CITY OF HUNTIPIGTON BEACH
INTER -DEPARTMENT COMMUNICATION
To MICHAEL T. UBERUAGA From
City Administrator
Subject REQUEST FOR APPROPRIATION Date
TO FUND DRIFTWOOD MOBILEHOME
RELOCATION/RENOVATION
FIS 90-39
ROBERT J. FRANZ
Deputy City Administrator
OCTOBER 17, 1990
As requested under the authority of Resolution 4832, a Fiscal Im. pact Statement has been
prepared and submitted relative to the proposed appropriation of 1990/91 Redevelopment
Funds to complete outstanding contracts within the Ocean View Estates Mobilehome Park.
Anticipations are that an appropriation of $55,000 would be adequate for this purpose.
An affirmative response by the City Council would reduce the unaudited, undesignated
balance of the Main Pier Redevelopment Project Area Capital Improvement Fund to
$5,770,436. _
ROBE:RT J. FRANZ
Deputy City Administrator
RJF:sd
5454j
CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION ,
To City Administrator
Subject
60-Day Notice Date:
of Termination of Tenancy
(Driftwood Mobilehome Park)
From ly
Connie Brockway
City Clerk
Date
November 2, 1990'
I have transmitted to Dan Brennan, Real Property, the original of the two
communications --(I) 60-Day Notice of Termination of Tenancy, and (2) 3-Day
Notice to Homeowner to Pay Rent Or Vacate Tenancy in Mobilehome Park.
I have also sent copies to Barbara Kaiser, Redevelopment, in the event the
Department is involved.
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NIFLSI:N a GLOVER
ATTORNEYS AT L11ti
1600EPST FLORIDA,
S1JR E211
LIEW.T. CA 92341
(7),i) 6S2.9007
` MEWED
ttTT 6LERX
CITT OF
A U 67 1 N C TNJ F :_ Cfl.rAaLlF.
hbv 2 815 [.i1 '90
60—DAY NOTICE OF TERMINATION OF TENANCY
To: City of Huntington Beach
2000 Main St.
Huntington Beach, CA 92648
You are hereby notified that you must remove from and
deliver to the Mountain View Mobilehome Park possession of
the mobilehome premises described below, at the end of a
sixty-day period, beginning on November 1, 1990 or the day
you are served with this notice, and terminating on January
1, 1991 or Eixty days from the date you are served with this
notice. The premises to be vacated are Space 3 of the
Mountain View Mobilehome Park, 485 Idyllwild Dr., San
Jacinto, CA 92383. A coach obtained by you from Harry and
Bette Stone, of the Driftwood Mobilehome park, and placed
with Performance Mobile Home, is on this space.
The termination of your tenancy is demanded for the
following reason: you have not paid the rent on this space
for the month of October, 1990, and have not paid the
utilities on this space for the month of September, 1990.
Dated; October 25, 1990
SHERRY K. SALLS
NIELSEN & GLOVER
Attorneys for Landlord/Owner
MOUNTAIN VIEW MOBILEHOME PARK
. �w
i RECEIVED
CITY CLERK
CITY OF
HUNTINCTC'Y F. IMf- CALIF.
Nov 2 8 is fill '90
3-DAY NOTICE TO HOMEOWNER TO PAY RENT OR VACATE TENANCY
IN MOBILEHOME PARR
To: City of Huntington Beach
2000 Main St.
Huntington Beach, CA 92648
You are hereby notified and required to pay the rent in the sum
of $ 275.00 for the month of October, 1990, utilities in the sum
of $ 62.90 for the month of Septemter, 1990, and a late charge in
the amount of $ 25.00 for the month of October, 1990, for a total
of $ 362.90, which is due to the undersigned for your occupancy
of the premises located at Space 21* of the Mountain View
Mobilehome Park, 485 Idyllwild Dr., San Jacinto, CA 92383, and
which amount has been unpaid for a period of twenty-five days
from its due date, or to quit and vacate the premises within 3
days after the service of this notice on you under the penalty of
the laws of the State of California.
Dated: October 25, 1990
SHERRY K.-SALLS
NIELSEN & GLOVER
Attorneys for Landlord/Owner
MOUNTAIN VIEW MOBILEHOME PARK
* A coach obtained by you from Mary Shelton and Robert Hodge, of
the Driftwood Mobilehome park, and placed with Performance Mobile
Home, is on this space.
Ile
'REQUEST E-R-EDEVELOPMENT' aENCY ACTION
APPROVED BY CITY CO UNCI--
19 _
Date February 6. 1989
GI'I' CLI:R
Honorable Chairman and Redevelopment Agency Members
Submitted to:
Paul Cook, City Administrato
Submitted by:
Douglas N. La Belle, Deputy City Administrator/Econom'
Prepared by: Development
Subject: APPOINTMENT FOR IMMEDIATE BUY—OUT COMMITTEE
Consistent with Council Policy? X Yes [ ] New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE•
The Driftwood Mobilehome Acquisition and Relocation Agreement
stipulates that the Redevelopment Agency shall appont two members to
serve on the Immediate Buy-out Committee . Transmitted for your
approval is the appointment of Mr. Jim Townsend and Mr. Ralph
Caruthers as recommended by Council liaisons.
RECOMMENDATION•
x
Approve the appointment of these individuals. rya X
cam,.•
ANALYSIS • M 4 -<
00
Pursuant 'to the Driftwood Mobilehome Acquisition and Relocation' jq
Agreement, a buy-out option is provided to residents who are
interested in an immediate purchase of their coach but are loctgeif
in an area of the Park affected by later phases of constructic4p arTd
therefore, not immediately eligible for relocation benefits. Within
the limits of a 3.2 million dollar fund allocated primarily to cover
relocation benefits for Phase I residents, the offer to purchase
will be extended to any Driftwood coach owner requesting an
immediate buy-out. If the requests for immediate buy-out exceed the
funds allocated, than a committee comprised of two Driftwood
Association members, one resident elected by tenants who are not
Association members, and two members appointed by the Agency will
establish criteria and determine eligibility for immediate buy-out.
Submitted for your approval is the appointment of Mr. Jim Townsend
and Mr. Ralph Caruthers.
FUNDING SOURCE:
Not applicable.
ALTERNATIVE ACTIONS:
Do not approve these appointments.
DLB:SRH:ss
P10/1/85
(1934d) %`
REQUE54T FOR CITY COUNCI ACTION
Date December 5, 1988
Submitted to: Honorable Mayor and City Council
Submitted by: Paul Cook, City Administrator��
Prepared by:• w Douglas La Belle, Dep. City Administrator/Economic D
Subject: ti APPROPRIATION OF FUNDS FOR RELOCATION PIFTWOOD
RESIDENTS
Consistent witfi Council Policy? Yes I ] New Policy or Except on 'rY
Statement of Issue, Recommendation, Analysis, Funding Source,
TATEMENT OF I
Attachments:
The appropriation of 3.2 million dollars is requested to implement
the relocation of Driftwood Mobilehome Park residents displaced by
the first phase of the Waterfront project.
IRECOMMENDAT-100.
Approve the appropriation of $3,200,000 in the Capital Improvement
Budget of the Main Pier Redevelopment Project Area in an account
titled "Driftwood Relocation Project".
ANALYSIS
Phase I of the Waterfront project will displace twenty-nine coach
owners now residing in the Driftwood Mobilehome Park. The Driftwood
Mobilehome Acquisition and Relocation Agreement stipulates that 3.2
million dollars will be allocated to relocate the twenty-nine
residents designated as Phase I and Phase I Optional. The
expenditure priorities outlined in the Relocation Agreement include
the offer to purchase at in -park value, the development and
construction costs for the expansion of Ocean View Estates,
relocation of tenants to Ocean view Estates, relocation to another
space in the park or relocation to another mobilehome park. After
fulfilling relocation obligations to the first phase residents, the
Agreement stipulates that the Agency shall allocate the remainder of
the 3.2 million dollars for an immediate buy-out of residents
impacted by a later construction phase but requesting immediate
receipt of benefits.
Attached is a breakdown of the estimated costs for this project.
The Agreement requires the Agency to accomplish most of these tasks
in the current fiscal year. The developer is financing all of these
initial costs by way of an advance of funds as the expenditures
occur. An appropriation is required for the Agency to expend the
advanced funds in fulfillment of the Agency's committments under the
agreement.
Plo 5M
ING SOURCE:
The 3.2 million dollars will be advanced by the developer.
Repayment to the developer will be through an allocation of 38.5% of
the tax increment and 50% of the Transient Occupancy Tax revenues
generated by the project in future years as specified in the
recently approved agreement.
LTERNATIVEACTION:
Do not approve appropriation of funds.
ATTACHMENT:
1. Driftwood Mobilehome Park Relocation Costs - Phase I
DLD:SRH:gbm
RCA - 12/5/88 -2- (1551d)
i
DRIFTWOOD MOBILEHOME PARR P.ELOCATION COSTS - PHASE I
OPTIONS
• Buy-out at appraised value
10 coaches, average value $60,288
• Relocation within Park
1 family (includes purchase of relocation coach)
. Construction of Ocean View Estates
24 pads constructed at a cost of $25,000 per pad
Purchase of new mobilehomes
15 coaches at a purchase price of $35,000.
Relocation of existing coach to Ocean View Estates
1 coach
Land acquisition costs
TOTAL
COSTS
$ 602,880
$ 77,900
$ 600,000
$ 525,000
(1679d)
REQUE, r FOR CITY COUNCk, ACTION
Submitted to: Honorable Mayor and City Coi
Submitted by: Paul Cook, City Administratc
Prepared by: Douglas N. La Belle, Dep. C:
Subject: DRIFTWOOD MOBILEHOME PARK ACQUISITION AND RELOCATION
AGREEMENT AND MASTER LEASE AGREEMENT BETWEEN THE CITY
OF HUNTINGTON BEACH AND DRIFTWOOD HOMEOWNER'S
ASSOCIATION FOR OCEAN VIEW ESTATES
Consistent with Council Policy? X Yes [ ] New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE•
Transmitted for City Council/Redevelopment Agency consideration is a
revised Master Lease Agreement between the City of Huntington Beach
and Driftwood Homeowner's Association for Ocean View Estates. This
document is an attachment of the Driftwood Mobilehome Park
Acquisition and Relocation Agreement which was approved by Council
on August 15, 1988 subject to review by the City Attorney as to
form. The Relocation Agreement now presented includes minor
revisions concerning deadline dates for Phase I residents.
RECOMMENDATION:
Approve the Master Lease Agreement and minor changes in the
Acquisition and Relocation Agreement.
ANALYSIS•
On August 15, 1988, the City Council/Redevelopment Agency approved
the Driftwood Mobilehome Park Acquisition and Relocation
Agreement. The Acquisition and Relocation Agreement outlines
relocation options offered to the residents of the Driftwood
Mobilehome Park, displaced due to the conversion of the Park. One
of the options offered is relocation to a mobilehome park to be
constructed by the Agency. The proposed location for the new park
is at the site of Ocean View Estates, an existing mobilehome park at
Ellis and Goldenwest. The Relocation Agreement stipulates that the
Agency shall lease Ocean View Estates to the Driftwood Beach Club
Mobilehomeowners Association. The Agreement further established
November 15, 1988, as the deadline for implementation of relocation'
options for Phase I coach owners including construction of
mobilehome pads at Ocean View Estates and closing of escrow for the
sale of affected mobilehomes. The Agreement has been revised to
show March 15, 1989 as the deadline date.
No 5/85
The lease agreement states that the term of the lease shall run for
twenty-five years, beginning when the last mobilehome space
constructed in the Park is available for occupancy. The lease
further stipulates that Ocean View Estates is a temporary mobilehome
park, constructed for tenants displaced from Driftwood Mobilehome
Park and Pacific Trailer Park and extends no rights beyond the
twenty-five year period. The Association (the lessee) shall have
the right to operate and manage Ocean View Estates as a mobilehome
park and approve or disapprove prospective tenants except tenants
relocated from Driftwood or Pacific Trailer Park. The Association
:hall notify the Agency of any vacancy at Ocean View Estates and
shall consider subsequent applicants referred by the Agency in the
same manner as it would any other sublease applicant. The lease
agreement also states that relocation benefits will not be offered
to Ocean View Estates tenants at the end of the twenty-five year
term.
The base rent that the Association shall pay to the Agency will be
calculated at ten percent of the original construction cost of the
park including pools, buildings, club house, common areas, roads,
infrastructure and design and construction of new mobilehome spaces
(not to exceed a total cost of $25,000 per space). The base rent
will increase annually not more than 6% or less than 3% based upon
cost of living increases reflected through the Consumer Price
Index. The Association shall calculate rent to tenants based upon
cost of operation including the base rent to the Agency and
incorporating some reasonable reserves.
The Lease Agreement states that the Agency will assume the rights
and obligations of the City concerning the rental agreement with the
twelve coach owners already residing at Ocean View Estates. The
existing residents may negotiate a new sublease with the Association
or maintain their existing lease in which case the Agency will
become a subtenant to the Association with respect to these
residents.
ill all I KeNTONEX45A
The developer will advance $4.5 million to the Agency as needed for
relocation costs. This cost will be repaid with 38.5% of the
property tax increment and 50% of the transient occupancy tax
revenues generated by the Waterfront project.
Do not approve the Mobilehome Acquisition and Relocation Agreement.
1. Mobilehome Acquisition and Relocation Agreement
2. Master lease between the City of Huntington Beach and Driftwood
Homeowners Association for Ocean View Estates.
3. 33433 Report
DLB:SRH:sds
1268d
tf"T r4AZ- H A4
i x 1► L
a
T
44ERWiOME ACQUISITION AND RE.U.)CATION AGREEMENT
LEHOME ACQUISITION AND RELOCATION AGREEMENT
(_"Agreementrl "YY entered into this &7tday of ,
1988 by and among the REDEVELOPMENT- AGENCY OV THE CITY OF
HUNTINGTON BEACH ("Agency"), RLM PROPERTIES, LTD., a California
Limited Partnership ("RLM"), DRIFTWOOD BEACH CLUB 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 and
incorporated herein by reference ("Site").
B. In 1963 the City entered into a lease ("Master Lease")
with the original Master Tenant, of which RLM is a successor in
interest, for. .the development and use of the Site as a Mobilehome
Park, golf course, clubhouse, pool, hotel, restaurant and gas
station. Under the provisions of this Master Lease the term
expires in the year 2013.
C. RLM contends that the Mobilehome Park, clubhouse and
pool are separate from the other operations described above. The
Association contends that the golf course and clubhouse are part
of the Mobilehome Park.
D. For purposes of reference within this Agreement, the
Mobilehome Park, golf course, clubhouse and pool. will be referred
to as the "Park."
E.: In 1978 RLM became the Master Lessee and presently
operates the Site in substantLal compliance with the original
author i-zed use.
F. In 1983," the City and RLM modified the Master Tease to
provide that RLM, as Tenant, was authorized to develop and
maintain the Site in accordance with its highest and best lawful
use.
G. RLM subleases spaces ("Space Leases") within the Park to
the Tenants on which spaces Tenants have located individually
owned mobilehomes ("Mobilehomes"). A list of the Tenants, their
membersbip in the Association, and the location of each within the
Park is set forth in Exhibit B attached hereto and incorporated
me
I
L.J
herein by reference.
�..,; F Y N A L,
H. The Association is authorized, by its members, tc
negotiate a reso.lution'of their disputes regarding the use of the
Sites ihowever, 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 hereinafter 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 Agency.
J. RLM has proposed to the
Master Lease and a redevelopment of
hereto and incorporated herein
proposed phasing schedule of the
hereinafter to "Conversion Phases"
designation as shown on Exhibit C.
Agency a renegotiation of the
the Site. Exhibit C, attached
by reference, indicates the
redevelopment. All references
shall he with reference to the
K. The redevelopment of the Site as proposed by RLM would
ultimately require a complete demolition of the. existing improve-
ments on the Site, 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. Once these notices were given to the Tenants and
others, the tenants have been unable to sell their Mobilehomes
and/or refinance same.
2. Prospective buyers have been unwilling to buy
because RLM has required proposed Eiuyers to waive relocation
rights and benefits, as. ,well as acknowledge that the Site will
cease ,being used as a mobilehome park anti golf course during the
year 1990.
3. Despite these actions, those persons who have been
willing to buy have been unable to finance the purchase, as
Lenders will not lend money using the Mobilehomes as collateral
in light of the announced intent by RI,M to change 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
_ -2-
;• � � I� I N h L
,`. pre*ently developed until the year 201 .
' 4
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
understate, federal and local law;
2. That all notices that have thus far been required
have been properly served upon the Teni.itts;
3. That RLM has thus far complied with all laws
concerning the change of use and propc.ses to comply with all
state, federal and local laws in order w 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
6. That the inflated value of the Mobilehomes in the
Park deprives-RLM of its property rights as a lessee.
N. Agency would like the Site redeveloped as proposed and
the Tenants compensated for the resulting dislocation as provided
for herein.
D. RLM, the Agency, as successor in interest of the City,
the Association, 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
pursud'ht to which, subject to the terms and conditions set forth
therein and herein, the Agency 'would convey certain Land to RLM
and Ground Lease (modifying and extending the existing Master
Lease) other Land .to RLM all for purposes of development thereon
in accordance with the ❑DA 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 Site as follows:
l L!
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 executing this
Agreement the following:
A. It will immediately cause appraisals to be made, at
its expense, of the Tenants' Mobilehomes on the Site according to
the method described in Section TV below to determine the
"Appraised Value" of the Mobilehomes; and
B. 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. Provides 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 this Agreement.
C. The obligations of the Agency under this Agreement
shall inure to the benefit of RLM, the Association and the
Tenants, their successors or assigns. The Agency shall adhere to
the Conversion Phasing schedule and shall 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 to proceed with
adds-tional construction.
t (b) To those_ Tenants Yspecifical.ly affected by
the next. scheduled development the Agency shall serve a one
hundred eighty (180) day Notice to Vacate their Mobilehome space.
In the event Tenants fail to vacate within the one hundred eighty
(180) day period the Agency shall also serve the Tenants with a
:sixty (60) day Notice to Terminate.Tenancy.
required,
accomplish
the Site
2. Implementing and enforcing, by legal action if
any and all terms of this Agreement necessary to
this Agreement.
3. Taking any and all actions
and implement the phasing schedule
..q_
necessary to clear
to allow RLM to
A L
,develop the Site including, but not limLted to:
(a) using its best efforts to acquire the
necessary possessory rights to Ocean View Estates I, as herein-
after defined, to enable it to provide for the occupancy at that
location by those Tenants affected by' -Conversion Phase A of the
redevelopment, however, the possessory rights -to Ocean View
Estates I shall be acquired before any construction at the Site
may commence; and
(b) Clearing the property, constructing mobile -
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 II to enable
it to provide for the occupancy of those areas by the Tenants as
provided for herein; and
(ii) clear the property, construct mobile -
home spaces, and otherwise improve Ocean View Estates i and Ocean
View Estates II sufficiently to accommodate up to one hundred
forty-five (145) spaces for Tenants electing to be moved to Ocean
View Estates I and Ocean View Estates II.
(d) In the event the Agency fails to acquire
the possessory rights to Ocean View Estates I and II through good
faith negotiations, the Agency will duly schedule, notice, and
hold a public hearing at which it will consider the adoption of
resolutions of necessity to authorize acquisition by eminent
domain of the possessory rights of ocean View Estates I and II not
then owned by the Agency. F'ollnwing such public hearing, the
hgency will exercise its discretion in determining whether or not
to adopt the resolutions of necessity and to proceed with eminent
domaip._ In this regard, the Agency unnertakes no ohligation to
exercise powers of eminent domain with respect •to Ocean View
Estatee I or II, or the leasehold interests, or any interests
therein.
77. RLM OPLIQATIONS
R1.M hereby agrees, on behalf of itself, its successors and
.'signs, as to TE-nants executing this Agreement, that:
A. 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
P I N A L
benefits being given them as set fortn in this Agreement; and
2. Provides for ,a phasing schedule that is
consistent with that contained in Exhibit C hereto, and that the
scheduled levels of development ' cnnt:ained therein will not be
acce Lerated unless additional benefits &re paid to the Tenants as
expressly provided for in -this Agreement.
B. RLM shall notify Agency, in writing, of its
intention to begin construction of any Post Conversion Phase A
development two hundred forty (240) drys prior to the scheduled
date of construction on the particular phase identified. Said
notice shall identify 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. Benefits 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 obligations contained
herein in order to be entitled to the benefits; 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,
including the facts that the present.lease for the Site expires in
the year 2013 and that the use -of .the Site may be changed at that
time -if •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 as RLM and Agency
this Agreement,. all requirements
shall thereby be deemed satisfied;
• �Wj P I N A i
satisfy their obligations under
of state, federal and local law
and
G, To the extent provided in Section XI1 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 OP MOBILEHOMES
A. Selection of Ap2raisers. Within fifteen (15) days
from the date hereoft t e Agency and the Association shall each
separately designate -a membet
OF Real Esftte saccessor
-Society -of--Real Estate -Appraisers cir any atice"ser shei; not the;I.-
-be-- in -emi-tem ee, a disinterested real estate appraiser having
appropriate qualifications) to appraise the Mobilehomes as set
forth immediately below. All appraisers selected pursuant to the
provisions hereof .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 and improvements
similar to the Mobilehomes on the Site.
B. Appraisal Criteria for Determination of "Appraised
Value". As used herein, the Appraise Value" of the Mohilehomes
s Fabe 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
Orange County in --place mobilehome housing inflation to the date of
appraisal as determined by the appraisers.
In determining the "Appraised value," the appraisers
shall base their determinations on comparable sales in the Park
during -.the twelve (12) month period prior to Novemher 1, 19B6.
' 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 319 2013 with all amenities= but, shall not
consider the effect moving a Mobilehome would have on its value,
-the effect of any change of use of the Park, including, but not
limited to, that proposed by RLM, or the value of the Mobilehome
under, any local ordinances or codes. -
All Space Leases shall be cansidered.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 be 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. Aa raisal Process and Appraised Value. The two
(2) appraisers so appointed shal , indepen ent y o 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) appraisers 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 set forth hereinabove, and if they are unable_ to
agree on a third appraiser, either the Agency or Association, by
giving 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 fies not acted in any capacity for either -party. Within thirty
(30) jay$ 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. The original appraisers' determinations as to the
value of the Mobilehome 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-
bility -of the Agency.
F I N A L
D. Alternate Valuation: Once the Appraised Value of a
Mobilehome is established by the appraisal method, the Appraised
Value may be adjusted to a higher value equal to either:
y
1.- That which Tenant would be entitled to receive
under the provisions of Article 927._ of the Huntington Beach
Municipal Ordinancel 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 1, 1986, to the extent that the amount does not exceed
the Appraised Value plus ten percent (10%), 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
Mobilehome 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. Determination of Agreed Value of Mobilehomes. The
Appraised Value• or each Mobilehome a be a33ustea accor ing 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
318 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
Agr p_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 follows:
1. Immediate Buyout Tenants; A limited number of
Tenants who apply regardiess at their lo5ation within the Park,
because of their individual circumstances, will be qualified as an
Immediate Buyout Tenant.
E 1 ! A L _
t
' 2. Phase. I Tenants: 11'.:nants who own Mobilehomes
.located within the area Zesignated Conversion Phase A on Exhibit C
shall be Phase I Tenants.
. 3. Phase I-0 tional: Tenants who own Mobilehomes
located within the area designated Conversion Phase B-Optional on
Exhibit C shall be Phase I -Optional Tenants.
4. Phase II Tenants: All other Tenants of the
Park not specifically referenced e shall be Phase II Tenants.
5, Non -Resident Tenants: Tenants who own Mobile -
homes in the Park, regardless of t eir .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 andnot Tenants as referenced herein, except that
a person who was a non -owner resident on May 15, 1987 shall be
entitled to the Tenant's rights and benefits hereunder if that
Resident had an option to buy the Hobilehome 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.
Any 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 :renrint 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 shalf be the contro ing factor for determining the
Tenants' classifications hereunder.
B. 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
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upon the individual Tenant's _classii .ation and the options the
Tenant selects. Tenants shall be obls.lated to select the benefits
which they desire under this Agreemeto. and notify the Agency and
the' Buyout • Committee, as the, case - ay . be,, of their selection
within the time periods specified ht.ein. The entitlements by
Tenant classification are as follows:'-
1 . Immediate_Buyout'Tec,.ints
(a) Pur ose of Classifications: It is the
mutual desire of the parties hereto to i enti y and provide for
those Tenants who (because of personal circumstances, financial
need or a particular impact the pri•jecc's phasing plan may have
upon them) find it necessary or advi..ab+e to receive the financial
benefits of the Relocation Assistance elan, to which they may be
entitled, in advance of the phasing sch.gdule 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 Million Two Hun re'cT —Thousand Dollars ($3 200 n00)
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:
(1) pay Buyout Tenants located in
Conversion 'Phase A and Phase B-Optional who elect to.sell their
Mobilehomes as coon as possible= then.
(fi) -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 I and Phase I -Optional
Tenants who elect to be relocated to Ocean View Estates I before
commeAcement of construction of Conversion Phase A;
( i i i ) Pay. the _'costs to move eligible
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
(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 Immediate
Buyout who are certified by the Buyout Committee.
(d) Buyout Committee to Determine Cualifica-
tion: All applications for certification as an Immediate Buyout
Tenant shall be submitted to and the issue of qualification
determined by. the Buyout Committee. This Committee shall be
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 Mobilehome. Any application received by the Committee
after that date shall be deemed to be unqualified. The Committee,
however, may consider and rule upon a later 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 -Optional
Tenents who timely apply for certification as Immediate Buyout
Tenants shall be immediately qualified and certified.
(iii) The Committee shall determine as
qualified or not qualified all Phase II and Non -Resident Tenants
who apply within forty-five (45) days of the last Tenant in the
Perk being notified of his/her Appraised Value.
(f) pualification 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 priorty
expenditures listed above, there will be'no qualification criteria
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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.
(g) Application by Tenant: Any Tenant desirous
of immediate sale of h s or her Mo•obi e�iome 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 Immeaiate 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) Acquisition Escrow: Within fifteen (15)
days of receipt of the written - .nor- ice of certification by the
Agency, it shall establish an escrow for 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 II and Non -Resident
Tenants: the Appraised Value less five percent (5%).
(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 Mobilehome to the Agency and Agency shall pay
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F I N A L
k to escrow the entire purchase price and any additional amounts
necessary to pay all escrow costs.
(ii) Upon close, escrow shall:
( as ) par 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 demo iton 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
thtse Tenants have been relocated to Ocean View Estates I as the
TenKrts shall elect.
2. Phase I Tenants
Within_ thirty (30) days after Tenant's receipt
of the Notice of the Appraised Value of the Tenant's Mobilehome,
the Tenant shall select, in writing, one of the following
options:
(a) Option 1-Immediate Buyout/Offer to Sell
All Phase I Tenants who apply for certifi-
cation as an Immediate Buyout Tenant shall be certified and
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' •entitled to have their Mobilehomes purchased by the Agency as
• provided in Section V, Paragraph D.1.'above.
(b) 'Option__2--Relocation within Park
(i) Exercise .of One Time Option: Tenant
shall have the option, subject to availability of space, to be
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 former
Mobilehome is located. Up to this time, the Tenant may revoke
this Option and elect Option-1 Immediate Buyout for Phase I
Tenants.
(ii) Purchase of Relocation Mobilehome:
The Tenant shall select the Mobilehome to which relocation is
desirdd and enter into a purchase agreement with the owner provid-
ing for the close of escrow before scheduled commencement of
construction. The Agency shall pay all escrow costs and that
portion of the purchase price, up to the whole• thereof, that the
Agency would have been obligated to pay if the selling Tenant were
selling direct?y to the Agency for the Agreed Value. In the event
the purchase price of the relocation Mobilehome is less than the
Agreed Value of the Buyer's Mobilehome, the Agency shall pay the
difference to the Buying Tenant as provided in paragraph (iv)
below. If the price paid for the relocation Mobilehome is more
than the Agreed Value of the Buyer's Mobilehome, the Buying Tenant
shall pay the difference.
(iii) Costs of Relocation: Agency shall
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 move, cash for his/her .original Mobilehome at the
Agreed Value.
(v) Right to Purchase, Costs and Rents
for Tenant at Pelocation 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 Tenant is being moved from the Agency for an initial
monthly rental of the Mobilehome equal to one -twelfth (1/12) of
nine -percent (9%) of the Agency's purchase price for same plus
. •► �) F I N h Y.
space rent equal to one-half (1/2) or 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 of 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 be 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
no further relocation 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 lI Tenant benefits except further in -park relocation.
(c) Option 3-Relocation to Ocean View Estates I
Al2 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 t is the
area specifically marked as such on Exhibit F-2 and includes, but
is not limited to, the existing mobilehome park located in the
City northeast of the intersection of Ellis Avenue and Goldenwest
Street, presently known as Ocean View Estates.
(ii) Qualification as Relocatable M3bile-
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 I, the Agency, in its sole discretion, shall
determine if a Mobilehome is relocatable to Ocean View Estates I.
The Agency shall, within five (5) days thereafter, give the Tenant
written notice of its determination. The notice shall state
whether or not the Mobilehome is relocatable and,••i€ it is, the
AgeVy's estimate of the relocation costs as described in subpara-
graph (c)(iv) below.
(iii) Election's Determined by Mobilehome
Condition: ❑epending 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) years old, a• single -wide or has been determined to
be not 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 I; 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 I, and in such event, the Agency shall pay to the
Tenant Five Thousand dollars ($50000) in addition to the reloca-
tion costs as described in subparagraph (c)(iv) below.
(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)
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 I, 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 required to pay the additional 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 all 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 159
11989 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 (100%) abatement of
his/her space rent for the first twenty-four (24) months of
his/her residency at Ocean View Estates I. If, by that date,
Ocean View Estates II has not been completed, the rent shall
thereafter be set at the same rate as those tenants who resided
t r prior to the date of this Agreement. Upon completion of
Oa PII, the rental rate shall be set by the
Assoc a'Ci�
,SFP U 81988 -17-
DCPARTMENT OF
Cor"MVK'ITY DEVELOPMENT
PLANNING DIVI,,-.10-Pi
(vii) Space Selection 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 deemed to have elected to sell
their Mobilehomes at the earliest possible time at the then exist-
ing Agreed Value.
(e) Notwithstanding the above, the implementa-
tion of any of these Options shall occur prior to March 15, 1989.
3. Phase I-0 tional
Phase I -Opt ion= Tenant shall select, in writing, within
thirty (30) days after receipt by the Tenant of written Notice of
Appraised Value:
(a) All Phase I Options: Phase I -Optional Ten-
ants shall have the right to Telect,any benefit available to Phase
I Tenants; or
(b) Option 4-Ri ht to Remain: Within the same
thirty (30) day period, Phase 1- ional 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 conditions:
(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 (50%) 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.
I".
V
VJ
L
(iii): _Right to Phase II 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 small, in addition to those benefits
specified above be entitled to the same benefits and Options
bestowed upon Phase II Tenants, -
(c) Selection BX Default: Those Tenants fail-
ing to provide the Agency %ijth written notice of their elections
contained hereint 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 11 Tenants
Phase II Tenants shall, within thirty (30) days of receipt of
Notice of Appraised Value of their Mobilhomes, select, in writing,
one of the following relocation benefit Options:
(a) Option Z-Immediate Buyout Cases: Any
Phase II Tenant may apply to the Buyout Committee for certifica--
tion.as an Immediate Buyout Tenant as provided in Section v para-
graph B.i. above.
(b) Option ion. 2-Limited Right to Remain: Any
Phase II Tenant may elect to continue to occupy his 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 otl January 1, 1988 (the initial rent). This
rate shall be increased annually from the date of this Agreement
by.six percent (6%). Upon commencemest Cat 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
construction and -this new rate shall "be increased by six percent
(6%) per annum. -
( i i ) Revival of Opt ion to Sel 1: - 11pon
commencement of any construction after the completion of the
second construction area, those Phase 11 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) next below.
(c) Option 3-Right to Sell Mobilehome:
Any Phase II Tenant may elect to sell his/her mobilehome as
follows:
(i) Offer to Purchase: Prior to one
F 1 0 it b
.hundred eighty (180) days'before the =.cheduled commencement of any
Post Conversion Phase A construction, the Agency shall offer to
purchase for the Agreed Value the 14obilehomes of the then remain-
ing Tenants.
(1i) Acceptance or Rejection of Offer:
If the Tenant's space falls within the area designated as the next
construction phase, 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 (30) 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
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 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 seventy-
five percent (751) of the remaining sale proceeds and deliver to
Tenant an acknowledgement 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
eclaration of Vacancy and Receipt of Benefits in the form 'of
Exhibit E attached hereto; and
(3) deliver all transfer docu-
vents to the Agency.
(cc) Tenant shall vacate the premises
within fourteen (14) days after receipt of the payment of seventy-
five percent (73%) of the. net sale Proceeds at which time the
balance due shall he'paid and any holdover after that date will be
unlawful.
(d) Oetion_4-Right to Relocate Within Park:
L
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F I td A L
(i) After receipt of a'one hundred eighty
(18D) day notice 'from the Agency of ,its intention to proceed with
any Post Conversion Phase A construction, any Phaseill Tenant, who
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 thfs Agreement. This Option is
averilable and may be exercised, in writing, by all Phase II
Tenants for sixty (60) days after receipt by the Tenant of Notice
from the Agency of its intention to proceed with any Post
Conversion Phase A construction. After that date this Option
expires.
(ii) Phase II Tenants will be relocated
within the Park 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 cr decreases in the rents will be
determined in the same manner as any other Phase 71 Tenants
remaining in the Park.
(iv) Phase II Tenants choosing this option
will not be entitled 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 VIII 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) D tion 5-Relocation to Ocean View Estates
II: All Phase II Tenants shall have the option, sub3ect to their
t mimi ely 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
�.�. -21- ��
F I N A L
�.Wi . -- - —
known as Ocean View Estates. ' This urea 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 Tenants within the Park, and others who qualify, the
Option to be relocated to Ocean View Estates tI when it is
completed.
(iii) Completion of Ocean View Estates
II: The Agency shall be under no obligation to develop Ocean view
Estates II, 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 Park unless:
(aa) right to possess all real
property for the period of twenty-five (25) years required for
Ocean View Estates II 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, lake, golf course,
clubhouse and the mobilehome park; or
(2) the mobilehome park is
fully developed and the remaining portions of the new site is at
least fully designed, but only partially completed, with the
balance of the construction guaranteed by a completion bond in
favor of the Association and the Agency as their respective
interest may appear. .
(iv) Cost of Felocation: The Agency will
pay for the costa of relocating each Mobilehome and all add-ons,
including, but not limited to, relocation of the Mobilehome,
packing, moving, and unpacking of. all contents, all set up and
hook up charges at Ocean View Estates II, and all replacemetist
and/or refurbishment inside*and out to put the Mobilehome anti all
add-ons into a condition on -site at Ocean View Estates IT at least
equivalent to that it enjoyed at the Park.
M Space Availability: The Agency shall
make available at Ocean View Estates I and Ocean View Estates II
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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) Qualification for relocation to
Ocean View Estates II will first be granted to those Tenants who
apply in writing, for this relocation at the time the Tenant
executes this Agreement. If the nssmher of these applications
exceeds the number 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 number 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 (30) days after
receipt of written notice from the Agency of its intent to proceed
with the construction of any Post Conversion Phase A, will next he
qualified for this relocation benefit. If the number of these
applicants exceeds the number of remaining spaces, selection among
this third group will he determined by lot.
(dd) 3f more then one hunched forty-
five (145) Tenants elect to be relocated to Ocean View Estates T
and -Ocean View Estates I1, then the Tenants electing this Option
5, bL%t.who are not selected, may elect ta:
- (1) Sell their Hobilehome to
the Agency for the Agreed Value as other Phase Ii Tenants electing
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
about to he commenced, tkien they may resnain in the Park and
receive the same benefits as Phase iI Tenants electing Option
2-Limited Right to Remain; or
(3) Select one of the other
Relocation Assistance Benefits as defined in Section VIII hereof;
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or
(4) Select mobilehome park
spare -within a seventy-five (75) mile radius of the City and be
entitled to the same benefits affora d Phase I Tenants under
Section V. B.2.(c), except that these T,:nants will not be entitled
to relocation within the Park, Ocean View Estates I or Ocean View
Estates 11 locations. If no space is available within the City
for this purpose, 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,
(vii) Space Selection: Specific space
assignments within Ocean View Estates .I1 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 occupied by the Tenant at the
Park.
(viii) Qualification as Relocatable Mobile -
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 II, the Agency, in its sole discretion, Ehall
determine if a Mobilehome is relocatable to Ocean View Estates II.
The Agency shall, within five (5) days thereafter, give the 'tenant
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 Determined by Mobilehome
Condition: Depending upon the relocatability 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 been determined to
be n(;;r- relocatable, then the Tenant sh er11 be entitled to have a
new mobilehome purchased in the Tenant's name by the Agency and
located at Ocean View Estates il,; 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 II, and in such event, the Agency shall pay to the
Tenant Wave Thousand dollars ($5,400) 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 mobi 1 ehome, then the Tenant may, within thirty ( 30 )
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days after receipt by the Tenant of Lt.-. 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 shail.,cause-the old Mobilehome to
be Y&moved 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 II, 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 required to pay the additional costs attributable to the
upgrade.
(x) In the event that Tenant does not
notify the Agency, in writing, of his/her selection of this Option
within the allowed time frame, the Tenant will he 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.
S. Non -Resident Tenants
Each Non -Resident Tenant shall sell his/her
Mobilehome to the Agency and the Agency shall buy same under the
following terms and conditions:
(a) O tion 1-Immediate Bu out Cases: Any Non -
Resident Tenant may, -wit in thirty (30) days of the date of
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_tification as an immediate
BuyoLTt- case.
' (b) Option 2,-Sale
(i) Offer to Purchase: up to one hundred
eighty.(180) days before the scheduled commencement of any Post
Conversion Phase A construction,, 'the Agency shall offer to pur-
chase the Mobilehomes of the then remaining Non -Resident Tenants
for the Agreed Value. If the Agency determines that the removal
of any Mobilehome 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
P Y N A L
M
within
same.
sixty (60) days after receipt of the offer accept or reject
-� (ii) Escrow and Payment for Mobilehome:
Within thirty (30) days after receipt of acceptance of its offer
to purchase, the Agency shall open Ah 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
selling Tenant shall execute and deliver
necessary to transfer free, marketable
Mobilehome to the Agency, and the Agency
entire purchase price and any additional
all escrow costs.
close of escrow, the
to escrow all documents
and clear title to the
shall pay to escrow the
amounts necessary to pay
(bb) Upon close escrow shall:
(1) pay all liens and encum-
brances against the Mobilehome; and
(2) pay to the Tenant 1001 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 Agency.
(cc) All Non -Resident Tenants who
sell their Mobilehomes, either under the Immediate Buyout provi-
sion or this paragraph, shall, in addition to other obligations
they may have herein, at close of escrow, deliver to the Agency
the Mobilehome free of any occupants.
(c) Option 3-Limited-Right `to Remain and Rents
Due: If the Mobilehome owned -by- the Non -Resident Tenant is not
located -within the next scheduled development phase, then the
Non -Resident Tenant may elect to regain in the space. In that
event, the rental rate for the space shall continue to be the same
with annual increases determined in the same manner as other
Tenants who remain 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.
(d) Responsibility for Subtenants: It shall
be the. responsibility of the Non -Resident Tenant to deliver his
or her Mobilehome to the Agency free of occupants, and any compen-
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'sation to.which the Tenant's sublesseals) may be entitled, if at
all, shall be paid one-half•(1/2) by 6e Non -Resident. Tenant up to
a total paid by the Non -Resident Tenant of One Thousand Dollars
($1,00'0) and the remaining sum paid by the Agency. The Agency
shall indemnify and hold the Tenant harmless from any other claim
for relocation benefits made by such occupants.
(e) Non -Availability of Options; Except for
the right and duty to sell for the Agreed Value as specified
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 the Tenant for purposes of this Agreement and
entitled to the benefits herein contained. There shall, however,
be only one benefit package offered for each•space.
VIII. OTHER RELOCATION BENEFITS
A. Moving 'of Mobilehome: All Tenants shall, in the
alternative to any other benetits specified herein, have the right
to have their Mobilehome relocated anywhere within the United
States at Agency's expense. rrhe cost: of this relocation shall not
exceed fifty percent (50%) of the- Agreed Value. if the actual
cost -of relocation is less than fifty percent (50%) of the Agreed
Values -then the difference shall be paid to the Tenant by the
Agency.' If the cost is greater, then the Teant shall bear the
excess -expense.
B. Discount and Low Cost tlousinq: All Tenants shall he
offered, if reasonably avax a e, t e addi 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, reside in the premises
for a two (2) year period and not sell or otherwise transfer the
ownership interest therein for that period,- unless Tenant pays to
the developer the amount previously discounted from the Fair
Market Value. RUM shall give each eligible Tenant written notice
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F I 11 A L
of the scheduled completion and availability of these units no
less than six (C) months before such date. Within thirty (30)
days thereafter, Tenant must contact RLM, in writing, indicating
the Tenant's interest therein. This offer thereafter terminates
as to those Tenants who do not respond. -Those who have indicated
an interest must open an escrow for the purchase of the condo-
minium within thirty (30) days of the date the units are First
available for occupancy.
2. For a period of cne (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 (10) percent provided a written application to
rent is given RLM 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 or housing similar thereto when available. This
offer shall expire one year after the Option is first made avail-
able to the Tenants.
C. EarlX Relocation Benefits: The parties anticipate
that the entire redevelopment wi occur in the manner and/or on
the time schedule as stated in Exhibit C previously referenced.
if, however, -the Agency desires to accelerate the redevelopment of
the Site, and as 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. This benefit will
be the payment by the Agency of an additional amount to the Tenant
equal to four percent (0) of the Agreed Value for each year, or
part thereof, that such Tenant is required to vacate his/her space
in the Park in advance of the projected crates. This sum shall be
paid at the time of payment of any other sums due hereunder or at
the time of relocation, whichever first occurs.
D. Payment of, Existing Secured Financial Obligations.
In the event a Tenant elects to relocate -his/her Mobilehome during
the term of this Agreement, either to Ocean View Estates I or TI,
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 payable, in**full, then the Agency shall pay that
entire obligation and provide the Tenant with secured financing
for the same amount, under the same terms, at the new location of
the same or different mobilehome. The amount so financed shall
not exceed those sums eligible as defined in Section T . D.
above.
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' IX. TERMINATION OF SPACE AVAILAIsILITY 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 Estates II. It is further under-
stood that Ocean View Estates I and II will be a mobilehome park
constructed solely for the purpose of providing temporary mobile -
home housing for certain Tenants displaced by the redevelopment of
Driftwood Beach Club Mobilehome 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-five (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 II
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.
B. Tenant hereby represents that he/she has no expecta-
tions as to the "in .place value" or "in park value" of mobilehomes
which are to be located in Ocean View Estates I and II other than
the Agreed Value as established by the provisions of this Agree-
rr.ent.
C. Tenant hereby represents that he/she has not retied
upon any belief or representation that the value of the mobile -
homes in Ocean View Estates I and II will inflate or decline prior
to the termination of his/her possessory rights thereto.
D. It is mutually agreed that this Agreement shall act
as and shall be considered as the eighteen (18) month Notice of
Change of Use of Ocean View Estates I and It 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 View Estates .I
and I.will 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 notice 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 View Estates
II is first opened for occupancy.
.� -29-
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F I N A L
G.. It is further agreed that the construction and
maintenance of Ocean View Estates I -and II are part of a Reloca-
tion Assistance Plan. and Reiocatioi, Agreement that have been
.prepared and negotiated pursuant to a Conversion Impact Report on
the Park and 'Article 927 of the H untinyton Beach Municipal Code.
Tenant- agrees that 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
11 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, to 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
naive any and all right to receive any relocation benefit wfien
Ocean View Estates I and II close except those specifically
enumerated herein.
I. Tenants, on behalf of themselves and each of 'their
heirs, executors, administrators, successors and assigns hereby
waive any and all right to object to the closure of Ocean View
Estates I and I1 after the termination date and agree to vacate
the space immediately upon receipt of a written sixty (60) clay
tlotice of Termination of Tenancy.
J. Tenants agree to give notice to subsequent
purchasers of their mobilehomes at Ocean View Estates I and IT of
this status and the requirements placed upon the buyers under this
Agreement. Said notice shall conform substantiaSly to the notice
attached hereto marked Exhibit G.
X. PAYMENT OF UTILITY COSTS
It shall be the Tenant's obliga_tion to pay all utility
chards attributable to his/her Mobilehome for so long as it is
owned or occupied by the Tenant or a Renter while at the present
Site .or by the Tenant after relocation --to Ocean View Estates I or
XI. .
XI. FREE ALIENABILITY OF MOBILF.110MES AND VALUE GUARANTEE
A. Sale 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
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x H A L
Mobilehomes within the Park may attemp4 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 period 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 Agreed 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 open market for ninety (90) days and immediately upon
the close of escrow, if the Tenants receive less than the Agreed
Value (before paying any liens) the Agency shall pay the differ-
ence to Tenants, but if the Tenants receive more than the Agreed
Value, Tenants shall retain all sale proceeds. In the event more
than ten (10) qualified Tenants offer to sell their Mobilehomes to
the Agency on each 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 shall
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 amount 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 under the following conditions and/or circumstances;
(a) Buyers must agree, in writing, to accept
the benefits which _the selling Tenants would have been entitled to
under this Agreement, and no more; and
(b) Buyers inust comply with all reasonable
prerequisites, rules and regulations maintained by RLM for the
management of the Park.
B. Sale Fit Ocean View Estates I and II:
1. Right of Resale and Price Guarantee: Any Tenant
who relocates to Ocean View Estates I or II, and after the second
year following occupancy, is unable to sell the Mobilehoine 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 Mobilehome at the Agreed
Value and pay all costs occasioned by the sale; or
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I ?: 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
liens-), 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
R.1.(b) of this Section.
C. Certificate of Tenant Benefits and Rights:
Upon receipt of proper notice of any election of
benefits 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 prospective buyer or a lending institution by Agency
and/or RLM promptly upon written request of the Tenant.
XII. WAIVER OF RIGHTS AND ASSUMPTION OF OBLIGATIONS
A. Tenants' Waiver of Rights. 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 following 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-fornia Civil Code Section 798 et seq.); California Government
Code Sections 65863.7 and 66427.4; California Health and Safety
Code -Sections 33411-33417; California' Government Code Section
7260 '(et seq.) and Section 6000 (et seg.); 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 financial 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, the Association, for itself alone, and not on
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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 atiorns. in the event the Site
is redeveloped under any pan approve -Fy the Agency prior to the
year 2013, the Tenants do hereby agree to:
1. Vacate the spaces being occupied by the Tenants
upon, being given at least one hundred eighty (180) days written
notice by the Agency 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 being occupied by the Tenants is
necessary for the 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 the Conversion Phase portion of Exhibit C, except as
provided for herein.
2. Notify the Agency of the relocation benefit
Option under which they elect to receive relocation benefits 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. PAYMENT OF COSTS AND EXPENSES TO ASSOCIATION
Upon execution of this Agreement, RLM shall pay to the
Association a sum up to One Hundred Seventy-five Thousand Dollars
(S175,000) for reimbursement of all costs and expenses including
attorney's fees incurred by 'it, and its predecessors 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 RIM. This additional
sum shall not exceed Twenty-five 'thousand Dollars ($25,0n0).
XIV. ASSOCIATION TO 13E.MASTER TENANT AT OCEAN VIEW
ESTATES I AND II�'
Upon commencement 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, 1ple` and golf course areas
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MW
contained herein. The terms of that -tease are indicated in that
certain Lease Agreement between the' -Agency and the Association
which is attached hereto, marked Exhibit 11 and incorporated
herein.
XV. AVAILABILITY OF BENEFITS UNDER THIS AGREEMENT
Tenants shall be required to execute this Agreement within
thirty (30) days after receipt of a copy of this Agreement and
Notice of its approval by RLM, the Association, the City and the
Agency. In the event that any Tenant fails to execute this
Agreement within that time period, or sooner, it shall he presumed
that the Tenants who so refuse to sign are refusing the benefits
herein, and those Tenants shall only be entitled to the minimum
benefits allowed under Article 927 of the Huntington Beach
Municipal Code.
XVI.
MISCELLANEOUS PROVISIONS
A. Waiver. The waiver of any term, covenant or condi-
tion herein conta—f e� shall not be deemed to be a waiver of such
term, covenant or condition to any subsequent breach of the same
or any other term, covenant or condition herein contained.
B. Marginal headings_. The Marginal headings and
titles of this Agreement are not a part of this Agreement and
shall have no effect upon construction or interpretation of any
part hereof.
C. Time. Time is of the essence of this Agreement and
each and all ofitsprovisions in which performance is a factor.
D. Successors and Assiqns. The covenants and condi-
tions herein contained apply to ana bind the heirs, successors,
executors, administrators and assigns of the parties hereto.
E. Prior Agreements. . This Agreement contains all of
the Agreements ot the parties hereto with respect to any matter
convelyed or mentioned in this Agreement, and no prior agreements
or understanding pertaining to any such matters shall be effective
for any purpose. No provision of this Agreement may be amended or
added to except by an agreement, in writing, signed by the parties
or their respective successors in interest.
F. Partial Invalidity. Any provisions of this
Agreement which` shall prove 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. Choice of Law. This Agreement shall be governed by
the laws of the State of California.
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1 F I N A L
H. Attorneys Fees. In ifie event of any action or
proceeding broui9-Ft by any party against another party to this
Agreement, the prevailing party shall be entitled to recover
reasonable attorneys fees, including costs of appeal.
I., Notices. All notice, and demands which may or are
to. he required or permitted to be given by a party on another,
shall be in writing. All notices and demands shall be sent 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 parties.
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
F I N A L
K. 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 witness_ whereof, the parties have executed this Agreement
as of this day of `�;,�,��,� 1988.
REDEVELOPMENT GFNC OF THE APPROVE TO FORM:
CITY- OF HUNTI� ' TON EAC
By
By ��ti Agency Counsel
v�
RLM P 0 ERTIES, LTD., a California ATTEST:
Limited Partnership
Clerk
By
DRIFTWOOD BEACH CLUB MOBILE
HOMEOWNERS ASSOCIATION, INC., a
California Non -Profit Corporation
By
INDIVIDUAL TENANT SIGNATURE PAGE ATTACHED
-36-
• P I N A L
INDIVIDUAL TENANTS SIGNATURE PAGE
�I/We, the undersigned,
'(Please Print Your Name(s)-
owner(s) of the mobilehome located on Space , of
(Fill in Number)
the Driftwood Beach Club Mobilehome Park, do hereby agree to the
terms and conditions of the MOBILEHOME ACQUISITION AND RELOCATION
AGREEMENT 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
Date
r -
Signature
Signature
-37-
.�
- --- ---------------- ----•------------------�-------------------------;
------------------------ - "ti
•r I / tI �
I I •� '� �tI11II111�` 1 /
lost$ �1 t" ..
:. • + + ■1 • • . 1+ ■ ■ ► +r 1, + + I �1 �I Yt 1�� �Y r 1} Y 1
ffe c . —1 lU�s��1, i , L Ili •]�1 ��` /� ��� h� 1
r.
Im
w
�j
�..... V r
SITE BOUNDARY
21462 Pacific Coast Highway
Huntington Beach, Ca. 92648
} EXHIBIT A
SPACE
-----
M/M
--------
I
Mr. & Mrs.
2.
Ms.
O
Ms.
A
Mr. &
Mrs.
5
Ms.
Mr. &
Mrs.
V
Mr. &
Mrs.
LSD
Ms.
Mrs.
9�
Mr. &
Mrs.
10
Mr. &
Mrs.
G
Mr.
Ms.
12
Ms.
Mr..
Mr. &
Mrs.
15
Mr.
Mr. &
Mrs.
19
Ms.
18
Mr. &
Mrs.
19
Ms.
20
Ms.
2
Mr. &
Mrs.
22
Mr. &
Mrs.
23
Ms.
24
Mr. &
Mrs.
25
Mr.
2S
Mr..
27
Mr. &
Mrs.
28
Mr. &
Yrs.
V
FIRST
George
Dorothy
Willa Vee
Dennis
Marian
Donald
Paul
Geraldine Marie
Claude
11.B.
Edward Roger
John Richard
Lois Ione
Bonnie
Richard
Charles
Albert
William
Fern Ethel
Frank
Elizabeth
Susan
Aniello
Dan
Carol
David
Donald
otis
Willis
William
-.I-
LAST
Corbari
Pinkham
Winthers
Shea
Phillips
Cosby
Beck
Floret (Trustees
Williams
Watson
Fountain
Cooper
Earl
Figgins
Upton
Castrop
Behar
Shatto
Gordon
Cutrone
Rosenhauer
Ziegler
DiCrisci
Gleason
Bell
Markley
Mullen
Werb
Anderson
-.Shannon
EXHIBIT 8
SPACE ?:f M FIRST IAST P I I.
----------------- -------------------- .
x9 Hr. & Mrs. Everton Crormett
Ms. Mary Bradbury
31 Mr. Ray Dolan
Mrs. Margerie ca s - fiaward
3� Mr. & Mrs. Joseph Anderson
34 Mrs. June Steinmetz
35 HE. Marilyn McCabe
36 Mr. & Mrs. Samuel b Francis Beatty
37 Mr. & Mrs. Alan & Barbara Le
38 vs. Betty Smith
Ms. Helen Snider
Mr. Robert Berkner
4o Mr. John Heirs
41 Mr. & Mrs. William Essick
Mr.' & Mrs. Read Whittemore
43 Ms. Vera Wadleigh
44 Mr. Gerald Jordan
45 Mr. & Mrs. James ]tall
Mr. & Mrs. William Dowell
Mr. & Mrs. Albert Crawford
48 Ms. Patricia Fells
Ms. Gladys Berry
o Mr. Gary Gascon
5 Mrs. Robert Bryden
Estate of Robert Bryden
5 X.S. Xeldee Perry
53 Ms, Jeanne Howell
54 fdx. David Weisbart
55 Ms. Bernice Stoddard
56 far. & Mrs. Robert - ruder
-2-
.- ��-� ••.+ram+-••r w.• • •
. SPACE X/M FIRST
------------ ----------------
57 Mr. & Mrs. Dwaine
8 Mr. Leroy
59 Ms. Audrey
6Q Mr. Ralph
6� Mr. & Mrs. Richard
b2 Mr. & Mrs. Roberto
63 Mr. Douglas
Ms. Jan
64 Mr. Gary
65 Mr. & Mrs. Mark
66 Mr. P.
0 Mr. & Mrs. Richard
68 Ms. Dorothy
69 Mr. & Mrs. Mortimer
70 MS.' Joan
71 Mr. Dale
Mr. & Mrs. Billie & Alonzo
72 Ms. Myrtle
73
74 Ms. Ruth
Ms. Trudy
75 Mr. & Mrs. Art
76 Ms. Kirsten
77 Ms. Dorothy
78 Mr. & Mrs. Harold
aMs. Betty
80 Ms. Nancy..
8 Mr. & Mrs. Dan
82 Mr. & Mrs. William
63 Mr. & Mrs. H.W.
84 Mr. & Mrs. Robert
-3-
nuux � -�t uuwc owners
r
LAST F
--------------------
Stephenson
Davis
Bridges
Provow
Jones
Russo
Bailey
wood
Brooks
Hartl
Walker
Miller
Barker
Shea
Allan
Carter
Carter
Stubkjaer
RLM Properties, Ltd.
Harrison
Harrison
Petersen
Wilson
Fowler
Fratus
Yates
Stover
Keeney
Radovich
McClain
- Mascorro
I ?7 A L
- __-ti r.,..i. ro- K MOD' a tiome owners.
SPACE M/K � � FIRST LAST �
rt rD85
-----------i-..------------ w-------------------
Mr. David H. Friedemann
Mr. Richard C. Stratton 1I
s5 Mr. Charles i,amberson
87 Ms. Maria. Mitchell
88 Hs. Anna Bashforth
Ms. Maria Sanders
89 Ms. Mary Perry
90 Ms. Yvetta Sheneman
91 Mr. & Mrs. Harry Mood
9� Mrs. Georgie Pulliam
93 Ms. June Johnson
94 Mr. & Mrs. Stephan hall
95 Mr. & Mrs. Earl Wallace
96 Mr. I Mrs. Beverly Roll
97 Mr. Frank Chambers
98 Mr. & Mrs. Jerry Shaw
9�3 V..r. John Fleming
Ms. Ann Marie Fleming
0� Mr. & Mrs. Robert Conger
101 Ms. Wilma Bloodhart
102 Ms. Diddy Bauman
203 RIB Properties, Ltd.
144 Mr. & Mrs. Don Ray
Z05 fir. & Mrs. Alan Leahy
105 Mr. Don Curry
107 Mr. & Mrs. Arthur Bray
108 Mr. & Mrs. Leonard Barker
0 Mr. Dean Painter
110 Mr. & Mrs. John Chung
ill Mr. & Mrs. Jerrold Kreps
i12 Mr. J. McNeil
-a-
I N A L
_ __ _»...._ ..�.,4.• �,iuo rioplieliume ! :,k }fobNome Owners
SPACE MjM FIRST LAST F I N A L
r---w--- --- w-------------------------------
-113 Mrs. Katherine Groszkruger
Mr. Fred Groszkruger
114 Ms. Ann Hammond
115 Ms. Maxine ball
116 Mr. & Mrs. Michael Sweeney
i17 Mrs. Harold Derrick
Estate of Harold Derrick
118 Mr. & Mrs. Wayne ]iann
119 Mr. & Mrs. John Hamann
12 Mr. & Mrs. Vernon Pettey
200 Mr. Gary fleck
20 Ms. Eleanor Comer
204 Mr. & Mrs. James Parmeter
05 Mr. Sabina Cici
Estate ❑f Mrs. Sabino Ciei
208 ms. Loretta Luce
210 Ms. Margaret Pickett
212 Ms. Marilyn McCabe
214 Mr. & Mrs. Richard Welsch
216 Ms. Linda Earle
218 Mr. & Mrs. Roger Stadlman
220 Mr. & Mrs. Robert Kent
222 Mr. & Mrs. Ivan Schoenthal
224 Mr. R.W. "Bill" schoepf
226 Ms. Bonnie Ahrens
228 Ms. Esther Teele
230 Mr. & Mrs. Patrick Butters
Ms. Marie Noppenhafer
232 Mr. & Mrs. Hurst Gentry
234 Ms. Esther Stamp
236 ks. Jan _ Benkin
Ms. Barbara Benkin
-5-
.._ _..........A .,«..c' %-iUb Mooiienome ra:k Mobi' come owners
' SPACE M/P. FIRST LAST p I N A L
----------------------------------------------------.. -
238 Ms. Margaret Ann Tarr
Mr. William B. Tarr
240 Mr. & Mrs. Ronald Macrory
242 Mr. Kerry Levan
Ms. Carol Levan
244 Hs. Janet Lee .
24b Ms. Emily May Munson
248 Mr. Robert Brilhart
250 Mr. & Mrs. Robert Stutler
252 Mr. Scott Bryant
254 Mr. William Baldwin
256 Mr. & Mrs. Carlo peMarco
258 Mr. & Mrs. Randy Blanford
60 Ms. Betty Richardson
62 Ms. Mildred 3ohnson
254 Ms. Joanna Rhynsburger
266 Ms. Patricia Kolsky
268 Mr. Mark Riehm
270 Mr. & Mrs. Penrod Rideout
272 Estate of Maragaret Smith
Ms. Margaret Smith c/o P. tiorris
274 Mr. & Mrs. James nuke
276 Ms. Carol Montoya
Margarita Montoya
128D
Mr. & Mrs. George Sotier
)Jr. & Mrs.' G. Alexander
282 Mr. & Yrs. Ralph Stone
284 Ms. Sarah Schafer
286 F.S. Louise Evanstad
288 Ms. Hilary Sween
290 Mr. Wesley - Badger
Ms. Marie Pedro
- 6-
Driftwood Beat -it Club Mobilehome P, i. Mobile Home Owners
SPACE M/M FIRST LAST F I N
------------------------------- --------------------
301 Ms. Evelyn Claude
30 Ms. Varole Cattilini
Estate of Ruth Converse
303 Mr. Steve Fagnant
304 Mr. & Mrs.
305 Ms.
306 Mr. & Mrs.
307
308 Mr. & Mrs.
309 Ms.
310 Ms.
311 Ms.
312 Mr. & Mrs.
313
314 Mr. & Mrs.
315 Ms.
316 Ms.
Ms.
3 77 Mr. & Mrs.
1320
Ms.
Mr. & Mrs.
Mr. & Mrs.
321 Mr. & Mrs.
322 Mr.
Ms.
323 Ms.
Mrs.
324 Mr. & Mrs.
325 Ms.
Mr.
Robert
Shelton
Ingrid
Gaddis
Stanley
Parker
RL.M Properties, Ltd.
Reed
Blattman
Rose Perez
Marguerite Stipe
Eleanor Corella
Ted Hendrix
RLM Properties, Ltd.
Phillip Carlin
Patricia Falkenstein
Ellen
Josephine
William
Grace
Harold
Bill
George
Robert
Mazie
Rebecca
Roscoe
Estate .of
Peter
Barbara
Donald
326 Mr. & Mrs. Dale
Hanley
Moore
Franke
Brooks
Jones
Humphries
Fadar
Boardman
Kroesch
Bolton
Marinovich
Roscoe Marinovich
Pence
Dittrick
Kolosjnik
- Wilson
A L
-7-
Driftwood Beat,.. Club Mobilehome I -k Mobiie Home Owners
SPACE
M/M
FIRST
LAST F I N A L
327
Mr.
Dan
Brennan
328
Estate of
Moses Simon
Mrs.
Moses
Simon
329
Estate of
John Hubbard
Ms.
Mary
Dawson
401
Mr.
&
Mrs.
Michael
Stuhl
402
Mr.
Edward
Hoag
Ms.
Virginia Lynn
Singer
403
Mr.
Ben
Zuazua,
404
Mr.
&
Mrs.
Wayne
Combs
405
Mr.
Richard
Russell
406
Ms.
Frances
Tobar
407
Mr.
&
Mrs.
James
Blough
408
Mr.
&
Mrs.
Phillip
Battaglia
409
Mr.
&
Mrs.
Clyde
Frishholtz
410
Mr.
&
Mrs.
Henry
Anderson
411
Ms.
Annie
Ferguson
Ms.
Sara
Ferguson
C4121
Ms.
Kay
Fogel
413
Community Disposal
Mr.
&
Mrs.
Russell
Otting
414
Estate of
Robert Webb
Mrs.
Robert
Webb
415
Mr.
&
Mrs.
Sherman
Thompson
416
Mr.
Edward
Sine
417
Mr.
&
Mrs.
Douglas
Webb
418
Ms.
Ruth
Waller
419
Mr.
&
Mrs.
Ross
Dodge
420
Mr.
&
Mrs.
Floyd
Curnett
42
Mr.
&
Mrs.
Richard
Bluel
422
Ms.
Dorothy
Clement
423
Ms.
Eleanor
- Thompson
0f10
Driftwood Be�.,i Club Mobilehome I= .rk Moe home Owners
•
- SPACE
Y./Y.FIRST
LAST F x -N A L
- -----
4Z4
----------
Mr.
&
Mrs.
----------------
Kenneth
--------------------
Sidwell
4Z5
Mr.
&
Mrs.
Paul
Feeger
425
Mr.
&
Mrs.
Fredrick
O'Keefe
427
Ms.
Elizabeth
Stowell
428
Mr.
&-Mrs..
Ted
Turrell
4 99
Mr.
&
Mrs.
Eldon
Van Rtta
C 430
Ms.
Barbara
McIver
431
Mr.
&
Mrs.
Robert
Junginger
432
Mr.
&
Mrs.
van
Killian
43
Mr.
&
Mrs.
Richard
Lynch
434
Mr.
6
Mrs.
Theodore
Tennies
435
Ms.
Evelyn
Gorman
436
Mr.
&
Mrs.
George
Elms .
437
Xr.
Lee
Saroni
438
Ms.
Ida
Stoico
439
Y.r.
&Mrs.
Robert
Rederer
440
Ms.
Letitia
Matlock
Ms.
Ruth
Sawyer
44
Ms.
Claudine
11offman
442
Ms.
Teri
Guy
443
Mr.
&
Mrs.
Willard
Gnagy
444
Mr.
&
Mrs.
John
Busta
NOTE: Space numbers of Association members are circled.
-9-
;onversion
C
NOTE:
— --
--
--
z
---
—
A
-------------------- --
-
_
_
0
CONVERSION PHASE C
Park Estimated
ame Numbers =otal Count DAte of Closure
11--19
5b--120 .
200-204
258-290
401 95 5/1990
EXHIBIT C-2
----------------------------
-------------------------
-----------------------------------------
i-�-.�,..
i�
� F
I
tJ
A
i.
,•
-
0
c
/ CONVERSION PHASE A & B
/Conversion Park Estimated
/ _Phase 5pace_Ngmhers Zo_tal ou of Cloure
A 306-315
i 321-329 ; 19 11 /15/1988
B—Optional 301--305 Optional with
316--320 10 Phase A
t DCF l= C-1
-----------------------------------------
M
CONVERSION
Park
Spa ers Total Count
Estimated
Date of -Closure
D 1-10
402-444 53 5/1993
EXHIBIT C-3
.____._
---4..�-----. -- �.
..------------ - - - - ---------------------------,
f
E 2065256 62 5/1994
EXHIBIT C-4
rc
5
Q
C
260
240% CONCEPTUAL ADJUSTMENT TO'"APPRAISED VALUE"
TO DETERMINE "AGREED VALUE"
220 0
a 200"
in 180ee
1�
Q 140 S�'� �r
0 ��� tzs G.P�r�r 1� �
Z 120 a � 1 r �5000000 t
w r ��
2 iw�"ar ASSUMES C.P.I. D%/YEAR
a
*APPRAISED VALUE"
w AT DRIFTWOOD ` % 20% OF
iE3 e , 1 "APPRAISED VALUED
F-
,% AT DRIFTWOOD
20:-t--_....--_._._--_.-----------.—_..,.._.._------_
I►0
n -,—�------�--r -- t IH
0 1 2 3 4 6 6 7 3 9 10 11 12. 13 14 15 16 17 18 19 20 21 22 23 24 25
YEAR
GRAPH IS AN ILLUSTRATION OF THE CONCEPT ONLY. SEE THE AGREEMENT FOR DEFINITION
OF TERMS AND FORMULA ON FOLLOWING PAGE FOR THE METHOD OF CALCULATION.
GRAPiI ASSUME:$ PARK SPACE RCNUT ADJUSTMU TS EQUAL TO C.P.I.
F I tl A L
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 V0 is the
"Appraised Value" per Section IT of the
Agreement.
Cn W: Change in the Consumer Price Index from the
previous year, calculated as follows:
(CPIn - CPIn_1)/CPIs-1
Exatrple: (1.4 - 1.35)/1.35 .. .0370
Rn F Change in the mobile home park space rent
from the previous year, calculated as
follows:
(Rents - 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 throyab 13 •
Vn " Vn-1 + (Vn-1 x Cn) + (Vr.-1 x (Cn - Rn) ]
Example:
$50,OD0 + ($50,000 x .037) + ($50,000 X (.037 - .0256))
$50,000 + $1,850 + $570 - $52,420
For n _- 14 through 25:
Vn - ([(Vn-1 - S)/12] x (25 - n)) + S
Example assuming year 15 with V14 - $75,000
and S - $10,00D:
([($75,000 - $10,000)/123 x (25 - 15)) + $10,000
(($65,000/123 x 10) + $10,000
$54,167 + $10*000 - $64,167
Exhibit D-2
DECLARATION OF VAChNCY
AND
RECEIPT OF BENEFITS
undersigned owner s of the Mo i e ome in Space and
Tenant(s) of Driftwood Beach Club Mobilehome Par ereby
acknowledges) 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.
0
EXHIBIT "E"
,h � _ �— tr,,, __, _ter. � , � ,'. ,M ' y . '. ; .r ... -, .�. I • _
•
��.i�ZAti::�Jlwi.CS•ri1�'7�.�w�'fc�ilf.. _�, '�„�r�i.�'ii1. '�
. * �� � * •ram.,.
.• _f•¢� � � ���-•� �r •Sat ,_'�• 1
1 J �,:e.+� •'4. � ail
Hsi
all :ILA ,
all + �,�,•
4*4
+#a,♦ jai • 1 rt 1^`�M �r •� ��� ' �Iti '� ,
�.. :I .JJ.r1 rJ •� �,
vo
+rPEDESTRIAN
CDXF� F)-
1
ove
�' r '.I J✓ J r r r J .J
GBeST PARKING
l i
xti �J =CLUS eUE_/gECREA`iiONA1 AREA
719; .Sq. It. ClWbhouse�'
I r e415x5a1I
LEGEND
• ��, .�5p.fl�.` (
•TRASH ENCLOSURE
Office 1•...,.. +. r
..,�~'_.:a`
LAUNDRY FACILITIES
`.�\.`��. ']�A�,•' `-�
*SECURITY GATE
�.5'� •' f A !
1 E-sTArES 1
�'gF�?'BLIf
�� • aIp
..�` R WASH
:'..J
4 oveQ !
�s�Ar�v�E•.�
•,� i� v'r � 1I �. .• rI
+NOTE•
�-' 1',: •
�'�� .. ,,, ,;
r P I GNI C to Rl A '.�
30' TYPICAL. ROAD
w f•*-
p 4 F" 6J NC ER O D M''r ,1 4
• PEDESTRIAN CORRIDOR -
Jti1 r...1Z�0 SO. FT.
f D. V. .•-r;•
15' MINIMUM
..��:. ;t _ �A
-*MINIMUM LOT SIZE 45'x 15'
r . • ~ ' ' ' ' ' �r J1
• R.V./TRAILER PARKING TO BE
�i = •' 1 "'+ `�•�.
PROVIDED IN THE IMMEDIATE
- 5U LY-MILLE`LAKE
AREA.
PARKING
COMMUNITY PROGRAM
FLCEXHIBIT •t F-*,Z,
OCEAN VIEW ESTATES r:
CITY OF HIINTINGTON BEACH
P I N x L
OCEAN VIEW ESTATES MOBILEH61E PARK AMEUTTIES
* 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
i * Picnic Area including:
- 1250 square foot conference room
- 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 tot to enhance
neighborhood aesthetics.
* Provision of guest parking at convenient locations.
All-Mobilehome spaces shall be improved with driveways
f rom :street to far end of coach, mi nimuin 65' x 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 Mobil.ehome Park and 5' inside of wall (added
to minimum tot dimensions); All 25' to he Inncdscaped 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 Robms with Washers and pryers
* Security Gates
* Access to adjoining Public Golf Course, Park and Take
* RV parking 120 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
N A _
•• ADDENDUM TO EXHI i IT 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,
i
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
F-- 2 .
10
11
F I N A L
NOTICE TO BUYER OF MOBILEHOME
Ocean View Estates I and II are, as combined, a temporary
Mobilehome Park designed to provide temporary housing assistance
to displaced Tenants of mobilehome 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) r
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
Date
Selling Tenant
Receipt acknowledged and the terms
Accepted.
EXHIBIT "G"
Buying Tenant
0
OCEEN VIEW ESTATES I XKD II MASTER LEASE
(to be supplied at a later date)
iEXHIBIT "ii"
MASTER LEASE AGREEMENT BETWEEN THE REDEVELOPMENT
AGENCY OF HUNTINGTON BEACH AND DRIFTWOOD BEACH CLUB
MOBILE HOMEOWNERS ASSOCIATION FOR OCEAN VIEW ESTATES
This Lease, dated for reference purposes only, A"ttrst
1988, is made by and between the Redevelopment Agency of the
City of Huntington Beach (herein called "LESSOR" or "AGENCY")
and Driftwood Beach Club Mobile Homeowners Association, Inc., a
California Non -Profit Corporation (herein called "LESSEE" or
"ASSOCIATION").
RECITALS
A. The City of Huntington Beach is the owner of certain
real property located at the corner of Beach Boulevard and
Pacific Coast Highway in the City of Huntington Beach . Said
real property is leased to RLM Properties, Ltd., a California
Limited Partnership (herein called "RLM"). RLM owns and
operates a mobile horse park on a portion of said real property
known as Driftwood Beach Club Mobile Home Park (herein called
"DBC").
B. RLM desires to redevelop said real property with said
redevelopment requiring the relocation of the mobilehome
tenants at DBC.
C. AGENCY, ASSOCIATION and RLM have entered into a
Mobilehome Acquisition and Relocation Agreement (herein called
the "RAP") which, among other things, requires the AGENCY, as a
condition precedent to the commencement of the second phase of
the above -referenced redevelopment, to develop, construct,
build and improve that real property located northeast of the
intersection of Goldenwest Boulevard and Ellis Avenue in the
City of Huntington Beach, California. This development, if
constructed, will contain a mobilehome park, golf course, lake,
shooting range and public park areas, and is depicted on the
Site Plan marked Exhibit "A" hereto and incorporated herein.
This entire area shall be referenced herein as the "Site."
D. The mobilehome park within Exhibit A shall contain 165
mobilehome spaces, or less, a number that shall be agreed upon
by the ASSOCIATION or its assignee, and the AGENCY.
E. For purposes of this Master Lease Agreement, the
mobilehome park as shown on Exhibit "A" shall be known as Ocean
View Estates (herein called "OVE" or the "Premises.").
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F. The LESSEE desires to hire that certain real property
known as OVE to which the AGENCY has the right to possession,
or has agreed to acquire, and the AGENCY desires to let such
real property to LESSEE. _
ETA THEREFORE, in consideration of the covenants and
promises herein contained, the parties do hereby agree as
follows:
SECTION 1. CONDITIONS -PRECEDENT TO THE LEASE.
1.1 Alterations and Improvements. LESSOR shall make
alterations and improvements to the Site in substantial
conformity with the Site Plan. These alterations and
improvements shall be hereinafter referred to as the
"Improvement Plans," specific provisions of which shall be
approved by the LESSOR and LESSEE.
1.2 New Corporate Assignee. The AGENCY has required, and
the ASSOCIATION has agreed, that all benefits and obligations
of the ASSOCIATION existing by virtue of this Lease Agreement
are to be assigned, transferred and conveyed by the Driftwood -
Beach Club Mobile Homeowners Association, Inc. to a California
nonprofit mutual benefit corporation which will be formed
specifically and solely for the purpose of accepting assignment
of said lease rights from LESSEE. The parties hereto agree
that assumption of these Lease obligations and acceptance of
its benefits by the new corporation shall forever release the
ASSOCIATION from these Lease obligations. The new corporate
assignee shall limit its shareholders or membership to
subtenants of OVE.
2.1 Premises. LESSOR hereby leases to LESSEE, and LESSEE
leases from LESSOR for the term, at the rental, and upon all of
the conditions set forth herein, real property situated in the
County of Orange, State of California, heretofore described as
OVE, including rights to the Common Areas as hereinafter
specified (collectively the "Premises").
2.2 General Premises Description. The Premises which will
be subject to this Lease Agreement is further described as
follows:
(a) The mobilehome spaces which are presently in
existence at OVE, and any and all spaces which are to be
constructed at OVE pursuant to the RAP, and
(b) The pool, clubhouse and any and all structures to
be constructed and maintained for the benefit of the subtenants
of OVE, and
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(c) Any and all roads, driveways, loading and
unloading areas, trash areas, sidewalks, walkways, within park
landscaped areas and parking areas which are necessary for the
ingress or egress to OVE, which primarily serve the tenants of
OVE, and
(d) The Common Areas within the Premises ("Common
Areas") which exclusively serve or are exclusively used by
subtenants at OVE.
2.3 Common Areas - Lessee's Rights. LESSOR hereby grants
the LESSEE, for the benefit of LESSEE and its sublessees,
employees, suppliers, shippers, customers and invitees, during
the term of this Lease, the exclusive right to use the Common
Areas as they exist from time to time, subject to any rights,
powers and privileges reserved by LESSOR under the terms hereof.
2.4 Common Areas - Rules and Regulations. LESSEE, or such
other person(s) as LESSEE may appoint, shall have the exclusive
control, management and maintenance of the Common Areas, and
shall have the right, from time to time, to establish, modify,
amend and enforce reasonable rules and regulations with respect
thereto. LESSEE agrees to abide by and conform to all laws and
ordinances relating to the use of the Common Areas and to cause
its sublessees, employees, suppliers, shippers, customers and
invitees to so abide and conform.
2.5 Common Areas -- Changes. LESSOR shall have the right,
with LESSEE's reasonable approval, from time to time, to:
(a) Make changes to the Common Areas, and
(b) Close temporarily any of the Common Areas for
maintenance purposes of sewage or utilities as long as
reasonable access to OVE remains available to subtenants, and
(c) Use the Common Areas while engaged in making
additional improvements, repairs or alterations to OVE or any
portion thereof.
2.6 Vehicle Parking. LESSEE shall be entitled to parking
spaces, reserved and unreserved, on those portions of the
Common Areas designated by LESSOR for parking. LESSOR shall at
all times provide the parking facilities required by applicable
law, and in no event shall the number of parking spaces that
Lessee is entitled to be reduced.
SECTION 3. TERM -OF LEASE.-
3.1 Commencement and Duration. The term of this Lease
shall be for a period of twenty-five (25) years commencing on
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the date that the last mobilehome space to be constructed at
OVE is available for occupancy. LESSOR shall notify LESSEE of
the date that the last mobilehome space to be constructed at
OVE is available for occupancy; said date shall be deemed to be
the commencement date of the twenty-five (25) year lease term.
3.2 Agreed Termination. It is understood that as
specifically set forth in Article IX of the RAP, OVE shall be a
mobilehome park constructed solely for the purpose of providing
temporary mobilehome housing for certain parties displaced by
the redevelopment of DBC and the adjoining areas. The LESSOR,
as the provider of the property upon which OVE will be
constructed, transfers no rights to occupy said property beyond
that twenty-five (25) year period. LESSEE shall provide
written notice to every subtenant that occupies a mobilehome
space in OVE of the fact that this master lease will only last
for twenty-five (25) years and shall specify the commencement
and termination dates of this master lease in such notice.
SECTION 4. RENT.
4.1 Base Rent. Commencing one hundred fifty (150) days
after the date that the last space to be constructed is
available for occupancy, LESSEE shall pay to LESSOR, as "Base
Rent" for OVE, without any offset or deduction, except as may
be otherwise expressly provided in this Lease, ten percent
(10%) per year return on the LESSOR's original construction
cost for the existing mobilehome park at OVE plus construction
costs to complete and expand the existing mobilehome park at
OVE to its ultimate design. The total cost shall include the
design and construction of new mobilehome spaces, pools,
buildings, club house, common areas, infra structures and
roads. For purposes hereof, the cost of construction shall not
exceed a figure equal to the total number of mobilehome spaces
constructed times Twenty -Five Thousand Dollars ($25,000). The
Base Rent shall be paid by the twentieth (20th) day of each
month in a sum equal to the annual rent divided by twelve (12).
4.2 Rent Adjustments. The Base Rent described in Section
4.1 of this Lease shall be increased (and in no event
decreased) on each anniversary of the commencement date of this
Lease to reflect the increase in the cost of living. The cost
of living adjustment to the monthly base rent shall be
calculated on each anniversary of the commencement date (the
"Adjustment Date") in the manner and pursuant to the following
formula:
A
R - W x P
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In such formula "R" represents the monthly base rent
to be paid during succeeding twelve (12) month period for which
monthly base rent is being computed under such formula; "W"
represents the monthly base rent paid by LESSEE during the -
initial twelve (12) months following the commencement date; "A"
represents the Consumer Price Index (the "CPI") for all Urban
Consumers, all item, most recently published and released two
months prior to the Adjustment Date then being computed for the
Los Angeles -Long Beach -Anaheim Metropolitan Area as reported by
the United States Department of Labor, Bureau of Labor
Statistics based upon the establishment of one hundred as the
index for the year 1982-84; "P" represents the CPI released two
months prior to the commencement date of the Lease.
If the CPI which is used or published for any relevant
time as provided in this Lease is based upon the establishment
of 100 as the price index for a year or group of years other
than 1982-84, the CPI to be substituted for "A" in the above
formula shall be computed by converting the index as then
issued or published to the basis of 100 as the price index for
1982-84. In the event that no such index is issued or
published for the period for which such rent is being adjusted
and computed hereunder or that said Bureau should cease to
publish said index figure, then any similar index published by
any other branch or department of the United State Government
shall be used and if none is so published, then another index
generally recognized as authoritive shall be substituted by
agreement. In any event, the base used by any index shall be
reconciled to the 1982-84 index.
Notwithstanding anything to the contrary above stated, in
no event shall the monthly base rent be increased on any
Adjustment Date by less than three percent (3%) or more than
six percent (6%) over the monthly base rent payable immediately
prior to such Adjustment Date.
4.3 Pro Rata Rent. Rent for any period during the term
hereof which is less than one month shall be a pro rata portion
of the Base Rent.
4.4 Rental Payment. Rent shall be payable to LESSOR at
the address stated herein, or to such other persons or at such
other places as LESSOR may designate in writing.
4.5 Rent Credits. At the time of execution of this Lease
Agreement LESSOR had previously assumed various individual
rental agreement obligations with existing occupants
(hereinafter "Special Tenants") at OVE. The LESSOR intends to
honor those obligations or modify same during the term of this
Lease. Accordingly, the LESSEE will determine rental rates for
these Special Tenant spaces in the same manner it does for all
other spaces and deduct from the monthly rent LESSEE pays to
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IN
LESSOR the monthly charges for these Special Tenants. Any
financial obligations the Special Tenant may owe for occupying
the Premises shall be paid to LESSOR.
4.6 Net Lease. It is the intent of the parties hereto
that the rent provided herein shall be absolutely net to LESSOR
and that LESSEE shall pay all costs, charges and expenses of
every kind and nature against the Premises which may arise or
become due during the term hereof and which, except for
execution and delivery hereof, would or could have been payable
by LESSOR. Such costs, charges and expenses shall include but
shall not be linited to "real property tax" (as defined in
Section 8 below) and the following:
(1) Repair and maintenance of the Common Areas,
including parking areas, loading and unloading areas, trash
areas, roadways, sidewalks, walkways, parkways, driveways,
landscaped areas, striping, bumpers, irrigation systems, Common
Area lighting facilities and fences and gates which are within
the OVE premises;
(2) Trash disposal services;
(3) Subtenant directories;
(4) Fire detection systems including sprinkler
system maintenance and repair; and
(5) Security services, if provided.
(6) The cost of all water, gas, heat, light,
power, telephone and other utilities and services provided to
the Premises, together with any taxes thereon.
(7) The cost, if any, to administrate the
operation of OVE.
4.7 Existing OVE Tenants. Lessor and Lessee hereby
recognize and acknowledge that twelve mobile homes currently
exist on the Premises, each of which are subject to a RENTAL
.AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND LESSEE FOR
SPACE IN HUNTINGTON BEACH MOBILEHO:E PARK ("Rental Agreement"),
a copy of which has been provided to the Lessee. The term of
each such Rental Agreement is a life estate. It is hereby
agreed that the Lessor will assune the rights and obligations
of the City of Huntington Beach under the Rental Agreements
and, thereafter, seek to renegotiate the Rental Agreements so
as to require that each such tenant enter into a sublease with
the Association consistent with all the subleases including
without limitation rental and terms. In the event that any
tenant refuses to enter into a sublease with the Association,
the Agency shall then become a member of the Association and
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shall be the subtenant of the Association with respect to any
such mobilehomes. If one or more of such tenants refuse to
enter into a sublease with the Association then the Association
hereby agrees that its rules and regulations as to those
tenants will not be inconsistent with the Rental Agreement.
SECTION 5. M.
5.1 Use. The Premises at OVE shall be used and occupied
only as a mobilehome park. No other use shall be made of the
Premises without the express written consent of LESSOR, which
consent may be granted or withheld in LESSOR's sole and
absolute discretion.
5.2 Compliance With Law.
(a) LESSOR warrants to LESSEE that as of the date
that the Lease term commences neither the Premises nor the use
thereof as provided for in Section 5.1 above violates any
covenant or restriction of record, or any applicable building
code, zoning or other regulation or ordinance in effect on such
Lease term commencement date. In the event it is determined
that this warranty has been violated, then it shall be the
obligation of the LESSOR, after written notice from LESSEE and
at LESSOR's sole cost and expense, to rectify any such
violation within a reasonable time.
(b) Subject to paragraph (a) above, LESSEE shall, at
LESSEE's expense, promptly comply with all applicable statutes,
ordinances, rules, regulations, orders, covenants and
restrictions of record, and requirements of any fire insurance
underwriters or rating bureaus, now in effect or which may
hereafter come into effect, whether or not they reflect a
change in policy from that now existing, during the term or any
part of the term hereof, relating in any manner to the Premises
and the occupation and use by LESSEE of the Premises and of the
Common Areas. LESSEE shall not use nor permit the use of the
Premises or the Common Areas in any manner that will tend to
create waste or a nuisance.
5.3 Condition of Premises.
(a) LESSOR shall deliver the Premises to LESSEE clean
and free of debris and with the improvements specified in
Section 1.1 completed on the Lease commencement date, and
LESSOR warrants to LESSEE that the construction of the
mobilehome spaces, the streets, sewage, utilities, fencing and
the building structure, roofing, plumbing, electrical,
lighting, air conditioning (if any) and heating at OVE shall be
in good operating condition on the Lease commencement date. In
the event that it is determined that this warranty has been
violated, then it shall be the obligation of LESSOR, after
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k..O;
receipt of written notice from LESSEE setting forth, with
specificity, the nature of the violation, to promptly, at
LESSOR's sole cost, rectify such violation.
(b) Except as otherwise provided in this Lease,
LESSEE hereby accepts the Premises in their condition existing
as of the Lease commencement date, or the date that LESSEE
takes possession of the Premises, whichever is earlier, subject
to all applicable municipal, county and state laws, zoning
ordinances and regulations governing and regulating the use of
this real property, as a mobileho_e park, and accepts this
Lease subject to any restrictions on that use as they may be
disclosed herein on any exhibits attached hereto.
SECTION 6. MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON
AREA -SERVICES.
6.1 LESSEE's Obligations. Subject to the provisions of
paragraphs 5 (Use) and 6.2 (LESSEE's Obligations), and except
for damage caused by any negligent or intentional act or
omission of LESSOR, LESSOR's employees, suppliers, shippers,
customers or invitees, in which event LESSOR shall repair the
damage, LESSEE, at LESSEE's expense, shall keep in good
condition, and repair, reasonable wear and tear excepted, the
foundations, exterior walls, structural condition of interior
bearing walls and roof of any building on the Premises, as well
as the mobilehome spaces, parking lots, walkways, driveways,
landscaping, fences, signs and utility installations of the
Common Areas, and all other improvements on the Premises.
LESSEE shall be obligated to paint the exterior and interior
surface of walls, and shall be required to maintain, repair or
replace windows, doors and/or plate glass of structures on the
Premises. In the case of latent defects, LESSEE shall have no
obligation to make the repairs, and shall give to LESSOR a
reasonable time to correct same after receipt of written notice
from LESSEE of the need for such repairs. LESSEE expressly
waives the benefits of any statute now or hereafter in effect
which would otherwise afford LESSEE the right to make repairs
at LESSOR's expense or to terminate this Lease because of any
alleged LESSOR's failure to keep the Premises in good order,
.condition and repair.
6.2 LESSEE's Further Obligations.
(a) In addition to the provisions of paragraphs 5
(Use) and 6.1 (LESSEE's Obligations), LESSEE at LESSEE's
expense, shall also keep in reasonably good order, condition
and repair the Premises and every part thereof including,
without limiting the generality of the foregoing, the Common
Areas , all plumbing, heating, ventilating and air conditioning
systems, electrical and lighting facilities and equipment
within the Premises, fixtures, exterior and interior walls,
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ceilings, windows, doors, plate glass, and skylights located
within the Premises.
(b) If LESSEE fails to perform LESSEE's obligations
under this paragraph 6.2 or under any other paragraph of this
Lease, LESSOR may enter upon the Premises after ten (10) days
prior written notice to LESSEE (except in the case of
emergency, in which no notice shall be required), perform such
obligations on LESSEE's behalf and put the Premises in good
order, condition and repair, and the cost thereof, together
with interest thereon at the maximum rate then allowable by
law, shall be due and payable as additional rent to LESSOR
together with LESSEE's next Base Rent installment.
(c) On the last day of the term hereof, or on any
sooner termination, LESSEE shall Surrender the Premises to
LESSOR in the same condition as received, ordinary wear and
tear excepted, clean and free of debris. Any damage or
deterioration of the Premises shall not be deemed ordinary by
the installation or removal of LESSEE's trade fixtures,
alterations, furnishings and equipment. Notwithstanding
anything to the contrary otherwise stated in this Lease, LESSEE
shall leave any air lines, power panel, electrical distribution
systems, lighting fixtures, space heaters, air conditioning,
plumbing and fencing on the Premises in operating condition.
7.1 Liability Insurance LESSEE. LESSEE shall, at LESSEE's
expense, obtain and keep in force during the term of this Lease
a policy of Combined Single Limit Bodily Injury and Property
Damage Insurance insuring LESSEE and LESSOR against any
liability arising out of the use, occupancy or maintenance of
the Premises. Such insurance shall be in an amount not less
than Five Hundred Thousand Dollars ($500,000) per occurrence.
The policy shall insure performance by LESSEE of the indemnity
provisions of this paragraph 7.1.
7.2 Liability Insurance LESSEE. LESSEE shall obtain and
keep in force during the term of this Lease a policy of General
.Liability insurance consistent with City of Huntington Beach
Resolution No. 5835 insuring against any liability arising out
of the ownership, use, occupancy or maintenance of the Premises.
7.3 Property Insurance. LESSEE shall obtain and keep in
force during the term of this Lease a policy or policies of
insurance covering loss or damage to the Premises, including
LESSEE's personal property, fixtures, equipment or tenant
improvement, in an amount equal to the full replacement cost
thereof, as the same may exist from time to time, providing
protection against all perils included within the
classification of fire, extended cover age, vandalism,
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malicious mischief, flood (in the event same is required by a
lender having a lien on the Premises), special extended perils
("all risk," as such term is used in the insurance industry),
plate glass insurance and such other insurance as LESSOR
reasonably deems advisable.
7.4 Deposit of Insurance Policy. LESSEE shall within
thirty (30) days after commencement of this Lease term, and
promptly thereafter when any such policy is replaced,
rewritten, or renewed, deliver to LESSOR a true and correct
copy of each insurance policy required by this Section 7, or a
certificate for said insurance executed by the insurance
company or companies or their authorized agent including such
policy or policies.
7.5. Notice of Modification or Cancellation. Each
insurance policy required by this Section shall contain a
provision that it cannot be modified or cancelled for any
reason unless thirty (30) days prior written notice thereof is
given to LESSOR in the manner required by this Lease for
service of notices on LESSOR by LESSEE.
7.6 Indemnity. LESSEE shall indemnify and hold harmless
LESSOR from and against any and all claims arising from
LESSEE's use of the Premises, or from the conduct of LESSEE's
business or from any activity, work or things done, permitted
or suffered by LESSEE in or about the Premises or elsewhere,
and shall further indemnify and hold harmless LESSOR from and
against any and all claims arising from any breach or default
in the performance of any obligation on LESSEE's part to be
performed under the terms of this Lease, or arising from any
act or omission of LESSEE, or any of LESSEE's agents,
contractors or employees, and from and against all costs,
attorney's fees, expenses and liabilities incurred in the
defense of any such claim or any action or proceeding brought
thereon; and in case any action or proceeding be brought
against LESSOR by reason of any such claim, LESSEE, upon notice
from LE$SOR, shall defend the sage at LESSEE's expense by
counsel reasonably satisfactory to LESSOR and LESSOR shall
cooperate with LESSEE in such defense. LESSEE, as a material
.part of the consideration to LESSOR, hereby assumes all risk of
damage to property of LESSEE or injury to persons, in, upon or
about the Premises arising from any cause, and LESSEE hereby
waives all claims in respect thereof against LESSOR.
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8.1 Payment of Property Tax. LESSEE shall pay or cause to
be paid prior to delinquency all real property tax applicable
to the Premises and not merely on the assessed value of its
leasehold interest during the term of this Lease.
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8.2 Definition of "Real Property Tax." As used herein, the
term "real property tax" shall include any form of real estate
tax or assessment, general, special, ordinary or extraordinary,
and any license fee, commercial rental tax, improvement bonds
or bonds, levy or tax (other than inheritance, personal income
or estate taxes) imposed on the Premises by any authority
having the direct or indirect power to tax, including any city,
county, state or federal government, or any school,
agricultural, sanitary, fire, street, drainage or other
improvement district thereof, as against any legal or equitable
interest of LESSOR in the Premises or in any portion thereof,
as against LESSOR's right to rent or other income therefrom,
and as against LESSOR's business of leasing the Premises. The
term "real property tax" shall also include any tax, fee, levy,
assessment or charge (i) in substitution of, partially or
totally, any tax, fee, levy, assessment or charge hereinabove
included within the definition of "real property tax," or (ii)
the nature of which was herein before included within the
definition of "real property tax," or (iii) which is imposed by
reason of this transaction, any modifications or changes
hereto, or any transfers hereof.
SECTION 9. ASSIGNMENT AND SUBLETTING.
9.1 LESSEE's Right to Sublet. LESSEE shall have the
right to sublet the individual mobilehome spaces without
LESSOR's consent so long as such subleases comply with Section
14 hereof and the rent charged by LESSEE pursuant to such
subleases is reasonably related to LESSEE's cost of operating
the Premises, including, a pro rata share of (i) the Lease
Payments hereunder, (ii) improvements, maintenance and
operation (iii) reasonable reserves, and (iv) reasonable
compensation to association officers, directors and employees
and any management company; however, LESSEE shall not have the
right to assign, transfer, mortgage or otherwise transfer or
encumber all or any part of LESSEE's interest in the Lease or
in the Premises in any other manner.
9.2 Except as specified in paragraph 1.2, no assignment
shall release LESSEE of LESSEE's obligations hereunder or alter
the primary liability of LESSEE to pay the Base Rent and to
perform all other obligations to be performed by LESSEE
hereunder.
SECTION 10. DEFAULT; REMEDIES.
10.1 Default. The occurrence of any one or more of the
following events shall constitute a material default of this
Lease by LESSEE:
(a) After one hundred and eighty (180) days from
commencement of this Lease Term the failure by LESSEE to make
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any payment of rent or any other payment required to be made by
LESSEE hereunder, as and when due, where such failure shall
continue for a period of fifteen (15) days after written notice
thereof from LESSOR to LESSEE.
(b) Except as otherwise provided in this Lease, the
failure by LESSEE to observe or perform any of the covenants,
conditions or provisions of this Lease to be observed or
performed by LESSEE where such failure shall continue for a
period of thirty (30) days after written notice thereof from
LESSOR to LESSEE; provided, however, that if the nature of
LESSEE'S noncompliance is such that more than thirty (30) days
are reasonably required for its cure, then LESSEE shall not be
deemed to be in default if LESSEE commenced such cure within
said thirty (30) day period and thereafter diligently
prosecutes such cure to completion.
(c) The abandonment by LESSEE of the Premises or a
substantial portion thereof;
(d) The issuance of any writ, attachment order or
levy against LESSEE which is not cured within sixty (60) days,
whereby the Premises or any portion thereof shall be taken or
occupied or attempted to be taken or occupied by someone other
than LESSEE;
(e) The filing, at any time after the date of the
execution and prior to the expiration of this Lease, against
LESSEE in any court pursuant to any statute, either of the
United States or of the state, of a petition in bankruptcy or
insolvency, or for reorganization, or for the appointment of a
receiver or trustee of the Premises, which petition is not
dismissed or discharged within sixty (60) days after the filing
thereof; or
(f) The filing by LESSEE of a voluntary petition in
bankruptcy or insolvency, or for reorganization, or for the
appointment of a receiver or trustee for the Premises, or the
making of an assignment for the benefit of creditors or for the
relief of debtors.
10.2 Remedies. Upon the occurrence of any one or more of
the events of default specified in Section 11.1 above, LESSOR
shall have the right at any time thereafter to cancel and
terminate this Lease and reenter and take possession of the
Premises, or any part thereof in the name of the whole, and
repossess the same, and expel (forcibly, if necessary) LESSEE
and those claiming through or under LESSEE, without prejudice
to any remedies which LESSOR might otherwise have for arrears
of rent or for a prior breach of the provisions of this Lease.
Upon any such entry by LESSOR, this Lease shall terminate.
Upon such termination, LESSOR shall be entitled to recover from
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LESSEE such sums as are provided under California Civil Code
Section 1951.2 (or any similar applicable statute or rule of
law), the provisions of which are hereby incorporated herein
and made a part hereof as if herein set forth verbatim.
Additionally, upon any such termination, LESSOR shall be
entitled to recover from LESSEE all costs incurred in
collecting amounts due from LESSEE under this Lease (including
attorneys' fees, cost of litigation and the like), including
all reasonable cost incurred by Landlord in attempting to relet
the Premises including advertisements and brokerage
commission.
Should LESSOR fail to make the election to terminate the
Lease provided for in the preceding paragraph, this Lease shall
continue in full force and effect. During the period LESSEE is
in default, LESSOR may enter the Premises and relet them, or
any part of the:, to third parties for LESSEE's account.
LESSEE shall be liable immediately to LESSOR for all costs
LESSOR incurs in reletting the Premises, including, without
limitation, brokers' commissions, expenses of remodeling the
Premises required by the reletting, and like costs. Reletting
can be for a period shorter or longer than the remainder of the
term hereof. Tenant shall pay to LESSOR the rent due under
this Lease on the dates the rent is due, less the rent Landlord
receives from any reletting. No act by LESSOR allowed by this
paragraph shall terminate this Lease unless LESSOR notifies
LESSEE that LESSOR elects to terminate this Lease. After
LESSEE's default and for as long as LESSOR DOES NOT TERMINATE
LESSEE's right to possession of the Premises, if LESSEE obtains
LESSOR's consent, LESSEE shall have the right to assign or
sublet its interest in this Lease, but LESSEE shall not be
released from liability.
10.3 Default by LESSOR. LESSOR shall not be in default
unless LESSOR fails to perform obligations required of the
LESSOR within a reasonable time, but in no event later than
thirty (30) days after written notice by LESSEE to LESSOR,
specifying wherein LESSOR has failed to perform such
obligation; provided, however, that if the nature of LESSOR's
obligation is such that more than thirty (30) days are required
for performance then LESSOR shall not be in default if LESSOR
commences performance within such thirty (30) day period and
thereafter diligently prosecutes the same to completion.
10.4 Remedies for LESSEE. In the event of a default by
LESSOR, LESSEE may abate its rent due to recover any damages
suffered as a result of the default.
SECTION 11. CONDEMNATION.
If the Premises or any porticn thereof are taken under the
power of eminent domain by the State of California or the
9/7/88
1106n/2460/12 -13-
United States of America, or sold under the threat of the
exercise of said power (all of which are herein called
"condemnation"), this Lease shall terminate as to the part so
taken as of the date the condemning authority takes title -or
possession, whichever first occurs. If more than ten percent
(10%) of the area of the Premises, or more than twenty-five
percent (25%) of that portion of the Common Areas designated as
parking for the Premises, is taken by such.condemnation, LESSEE
may at LESSEE's option, to be exercised in writing only within
twenty (20) days after LESSOR shall have given LESSEE written
notice of such taking (or in the absence of'such notice, within
twenty (20) days after the condemning authority shall have
taken possession), terminate this Lease as of the date the
condemning authority takes such possession. If LESSEE does not
terminate this Lease in accordance with the foregoing, this
Lease shall remain in full force and effect as to the portion
of the Premises remaining, except that the rent shall be
reduced in the proportion that the area of the Premises taken
bears to the total area of the Premises. No reduction of rent
shall occur if the only area taken is that which does not have
the Premises located thereon. Any award for the taking of all
or any part of the Premises under the power of eminent domain
or any payment made under threat of the exercise of such power
shall be the property of the parties as their interest exists
at the time of the condemnation. In the event that this Lease
is not terminated by reason of such condemnation, LESSOR shall
to the extent of severance damages received by LESSOR in
connection with such condemnation repair any damage to the
Premises caused by such condemnation except to the extent that
LESSEE has been reimbursed thereof by the condemning
authority. LESSEE shall pay any amount in excess of such
severance damages paid to LESSOR required to complete such
repair to the extent of severance damages received by LESSEE.
SECTION 12. OWNERSHIP OF IMPROVEMENTS AT TERMINATION.
Any and all buildings and improvements placed or erected on
said Premises before or during the term of this Lease, except
the mobilehomes and the appurtenances thereto, shall be
considered part of the real property of the Premises and on
expiration or sooner termination of this Lease shall remain on
the Premises and become the property of LESSOR.
SECTION 13. 'MANAGEMNT AND.
13.1 Rights to Sublease and Management. LESSEE shall
operate and manage OVE as a mobilehome park, and as such shall
have the right, subject to the terms and provisions of the RAP,
to:
9/7/8S
1106n/2460/12 -14-
(a) sublease spaces to tenants; and,
(b) approve or disapprove prospective tenants; and,
(c) approve or disapprove subsequent purchases of
mobilehomes within OVE; and
(c) set rental rates for its subtenants; and,
(e) charge its tenants a pro rata share of the
Common Area maintenance. charges; and,
(f) collect rents, cocm:on area maintenance and
utility charges from its tenants; and,
(g) otherwise manage the Premises and charge the
tenants.
Notwithstanding anything herein to the contrary, the
Association shall not have the right to approve or disapprove
the initial tenants being relocated from Driftwood and Pacific
Trailer Park pursuant to the RAP.
13.2 Notice of Space Availability. LESSEE shall notify
LESSOR of any vacant space at OVE and shall consider any
sublease applicants referred by the LESSOR in the same manner
as it would any other sublease applicants.
13.3 Compliance with Laws. The LESSEE shall comply with
all State, Federal and Local laws in the management and
operation of OVE, including but not limited to, the Mobilehome
Residency Law (Civil Code Section 798 et. seq.) and all laws
prohibiting discrimination.
13.4 Sublease Rules and Regulations. LESSEE shall require
all tenants, their successors and assignors to execute and
agree to a sublease which contains provisions which requires
the tenants to:
(a) maintain the spaces in a clean, attractive, and
Yell kept condition; and,
(b) comply with all State, Federal and Local laws;
and,
(c) refrain from interfering with the quiet
enjoyment by other tenants of their mobilehome.
13.5 Lease Acknowledgements. Each sublease shall contain
provisions whereby each tenant agrees:
9/7/88
1106n/2460/12 -15-
(a) that he/she has no right to possess or own the
property upon.which OVE shall be located except as a tenant of
a mobilehome park and that said right shall cease automatically
twenty-five (25) years after the Lease commencement date.
(b) that he/she has no expectation as to the
"in -place value" or "in -park value" of mobilehomes which are to
be located at OVE other than the Agreed Value as established by
the provisions of the RAP.
(c) that the sublease shall act as and shall be
considered as the eighteen (18) month and six (6) month Notice
of Change of Use of OVE as required by State, Federal and Local
law, which is to take place twenty-five (25) years after
commencement of this Lease term. On the termination date, OVE
will convert to use as a public park.
(d) on behalf of themselves, their successors and
assigns, to abide by and be subject to all of the terms and
provisions of Article IX of the RAP, and to waive any right
they might have to additional notices of the Change of Use of
OVE at termination of this Lease.
(e) that the construction and maintenance of OVE are
part of a Relocation Assistance Plan and Relocation Agreement
have been prepared and negotiated pursuant to a Conversion
Impact Report on DBC and Article 927 of the Huntington Beach
Municipal Code. Tenant agrees that the Conversion Impact
Report, Relocation Assistance Plan and Relocation Agreement
also apply to the conversion of OVE to public use which will
take place twenty-five (25) years after commencement of this
Lease term. Tenants, on behalf of themselves, their successors
and assignors shall thereby waive any and all right, now and in
the future, to demand or require additional Conversion Impact
Reports and/or Relocation Assistance Plans as to OVE.
(f) on behalf of themselves, their successors and
assignors, to waive any and all right to object to the closure
of OVE after the termination date and agree to vacate the space
immediately upon receipt of a written sixty (60) day Notice of
Termination of Tenancy.
(g) in the event this Lease terminates, he/she shall
continue to occupy the particular space for the balance of the
term of the particular sublease, under the same terms and
conditions of such sublease, and will attorn to'LESSOR, its
successors and assigns, to the same extent and with the same
force as if LESSOR were the sublessor under such sublease.
13.6 Sublease Enforcement. LESSEE shall, at its own
expense, strictly enforce all terms and conditions of the
sublease. Failure to so enforce the terms may be considered to
be material breach of this Lease Agreement.
9/7/88
1106n/2460/12 -16-
13.7 Warning Regarding Future Relocation Benefits. All
subleases shall contain the following language:
•
raltal • • •U52) a tell *3 166wo 90MMM• •
The subleased Premises are within a redevelopment project
area, however the Sublessee, if displaced at the end of the
term would not be entitled to Relocation Benefits pursuant to
Government Code Section 7262 et seq by virtue of the fact that
the Premises have heretofore been or will be acquired and are
being held by Sublessor expressly for redevelopment purposes.
Sublessee hereby acknowledges that no benefits are available
and expressly waives any claim to Relocation Benefits pursuant
to Civil Code Section 3513.
) Initial
SECTION 14. TERMINATION QF-LESSOR-5-TENANCY AS A
SUBLESSEE.
Upon termination of any tenancy between LESSOR and an
existing occupant at OVE, the LESSORS status as a sublessee of
that space shall also terminate and LESSOR shall cause the
mobilehome located thereon to be removed and shall not enter
into a new tenancy with a third party for the space. The
LESSOR's obligation to LESSEE for payment of rent and other
charges relating to said mobilehome space shall terminate
thirty (30) days after the existing mobilehome has been removed.
SECTION 15. BROKER'S FEE.
All parties certify that no brokerage fee is due as a
result of this Lease.
SECTION 16. SEVERABILITY9
The invalidity of any provision of this Lease, as
determined by a court of competent jurisdiction, shall in no
way affect the validity of any other provision hereof.
SECTION 17. INTEREST ON PAST -DUE MIGATIONS.
Except as expressly herein provided, any amount due to
LESSOR not paid when due shall bear interest at the maximum
rate then allowable by law from the date due. Payment of such
interest shall not excuse or cure any default by LESSEE under
this Lease; provided, however, that interest shall not be
payable on late charges incurred by LESSEE nor on any amounts
upon which late charges are paid by LESSEE.
9/7/88
1106n/2460/12 -17-
SECTION 18. TINE OF ESSENCE.
Time is of the essence with respect to the obligations to
be performed under this Lease.
This Lease and the RAP contain all agreements of the
parties with respect to any matter mentioned herein. Except
for the provisions of the RAP, no prior or contemporaneous
agreement or understanding pertaining to any such matter shall
be effective. In the event the PAP and this Lease have
inconsistent provisions pertaining to the same matter, the
provisions of the RAP shall prevail. This Lease may be
modified in writing only, signed by the parties in interest at
the time of the modification.
SECTION 20. NOTICES,.
Any notice required or permitted to be given hereunder
shall be in writing and may be given by personal delivery or by
certified mail, and if given personally or by mail, shall be
deemed sufficiently given addressed to LESSEE or to LESSOR at
the address noted below the signature of the respective
parties, as the case may be. Either party may by notice to the
other, specify a different address for notice purposes. A copy
of all notices required or permitted to be given to LESSOR
hereunder shall be concurrently transmitted to such party or
parties at such addresses as LESSOR may from time to time
hereafter designate by notice to LESSEE.
SECTION 21. RECORDING.
Either LESSOR or LESSEE shall, upon request of the other
execute, acknowledge and deliver to the other a "short form
memorandum of this Lease for recording purposes.
SECTION 22. HOLDING OVER.
If LESSEE, with LESSOR's consent, remains in possession of
the Premises or any part thereof after the expiration of the
term hereof, such occupancy shall be a tenancy from month to
month upon all the provisions of this Lease pertaining to the
obligations of LESSEE.
SECTION 23. C=ATIVE REMEDIES.
No remedy or election hereunder shall be deemed exclusive
but shall, wherever possible, be cumulative with all other
remedies at law or in equity.
9/7/88
1106n/2460/12 -18-
SECTION 24. W.
Subject to any provisions hereof restricting assignment or
subletting by LESSEE and subject to the provisions of Section
10, this Lease shall bind the parties, their personal
representatives, successors and assigns. This Lease shall be
governed by the laws of the State of California any any
litigation concerning this
Lease between the parties hereto shall be initiated in Orange
County.
• mil• ; � • ,��% � � : • �
25.1 Subordination. This Lease, at LESSOR's option,
may be subordinate to any mortgage, deed of trust, or any other
hypothecation or security now or hereafter placed upon the
Premises and to any and all advances made on the security
thereof and to all renewals, modifications, consolidations,
replacements and extensions thereof.
25.2 Attornment. LESSEE agrees to execute any
documents required to effectuate an attornment, subordination
or to make this Lease prior to the lien of any mortgage deed of
trust or ground lease, as the case may be. LESSEE's failure to
execute such documents within ten (10) days after written
demand shall constitute a material default by LESSEE hereunder
without further notice to LESSEE or, at LESSOR's option, LESSOR
shall execute such. documents on behalf of LESSEE as LESSEE's
attorney -in -fact. LESSEE does hereby make, constitute and
irrevocably appoint LESSOR as LESSEE's attorney -in -fact and in
LESSEE's name, place and stead, to execute such documents in
accordance with this paragraph 25.2.
SECTION 26. ATTORNEY'S FEES.
If either party brings an action to enforce terms hereof or
declare rights hereunder, the prevailing party in any such
action, on trial or appeal, shall be entitled to his reasonable
attorney's fees to be paid by the losing party as fixed by the
court.
SECTION 27. ELEL SSOR-S ACCESS.
LESSOR and LESSOR's agents shall have the right to enter
the Premises at reasonable times for the purpose of inspecting
the same, showing the same to prospective purchasers, lenders,
or lessees, and making such alterations, repairs, improvements
or additions to the Premises as LESSOR may deem necessary or
desirable.
9/7/88
1106n/2460/12 -19-
SECTION 28. CONSENTS.
Wherever in this Lease the consent of one party is required
to an act of the other party, such consent shall not be -
unreasonably withheld or delayed.
SECTION 29. OUIET POSSESSI -.
Upon LESSEE paying the rent for the Premises and observing
and performing all of the covenants, conditions and provisions
on LESSEE's part to be observed and performed hereunder, LESSEE
shall have quiet possession of the Premises for the entire term
hereof subject to all of the provisions of this Lease. The
individuals executing this Lease on behalf of LESSOR and LESSEE
represent and warrant to LESSOR and LESSEE that they are fully
authorized and legally capable of executing this Lease on
behalf of LESSOR and LESSEE.
SECTION 30. EASEMENTS.
LESSOR reserves to itself the right, from time to time, to
grant such easements, rights and dedications that LESSOR deems
necessary or desirable, and to cause the recordation of parcel
maps and restrictions, so long as such easements, rights,
dedications, maps and restrictions do not unreasonably
interfere with the use of the Premises by LESSEE. LESSEE shall
sign any of the aforementioned documents upon request of LESSOR
and failure to do so shall constitute a material default of
this Lease by LESSEE without the need for further notice to
LESSEE.
SECTION 31. AUTHORITY.
Each individual executing this Lease.on behalf of such
entity represents and warrants that he or she is duly
authorized to execute and deliver this Lease on behalf of said
entity.
In the event that LESSEE or LESSEE'S successor or assign
are unable to carry out any of its duties and obligations or
enforce its rights under this master lease or any sublease
LESSEE may have with subtenants who are subleasing mobilehome
space in OVE, LESSOR shall have the right to appoint a receiver
of LESSOR'S own choosing to take over and perform LESSEE'S
duties and obligations and enforce LESSEE'S rights under this
master lease or any sublease. Situations wherein LESSEE shall
be considered as unwilling or unable to carry out its duties or
obligations or enforce its rights include, but are not limited
to, situations wherein it is determined that LESSEE is not a
viable legal entity; LESSEE becomes insolvent; a bankruptcy
9/7/88
1106n/2960/12 -20-
petition is filed by or against LESSEE; LESSEE makes a general
assignment for the benefit of creditors; LESSEE fails or is
unable to form a governing board with power to make binding
decisions on behalf of LESSEE; the governing board of LESSEE
becomes stalemated and unable or unwilling to make decisions on
behalf of LESSEE. LESSOR shall give LESSEE thirty (30) days
prior written notice of the fact that LESSOR deems LESSEE to be
unwilling or unable to carry out its duties or obligations or
enforce its rights as specified in this paragraph and that
LESSOR intends to appoint a receiver to take over LESSEE'S
position. LESSEE shall have thirty (30) days to take
corrective action and provide evidence satisfactory to LESSOR
that such correcctive action has taken place. In the event
that LESSEE does not take corrective action or provide
satisfactory evidence thereof to LESSOR within said thirty (30)
days, LESSOR may appoint a receiver to take over LESSEE'S
position in regard to this master lease or any sublease LESSEE
may have with subtenants who are subleasing mobilehome spaces
in OVE. Such receiver shall remain in place for as long as
LESSEE is unwilling or unable to carry out its duties or
obligations or enforce its rights as specified herein. LESSEE
does hereby make, constitute and irrevocably appoint LESSOR as
LESSEE'S attorney -in -fact and in LESSEE'S name, place and stead
to appoint a receiver to take over LESSEE'S position in the
event LESSEE is unwilling or unable to carry out its duties or
obligations or enforce its rights as specified herein.
e!�W� ooe�
Attest Secretary
APPROVED AS TO FORM:
4-"
*Agency Counsel
Specialgency nsel
9/7/88
1106n/2460/12
LESSEE
President
LESSOR
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
-21-
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OCEAN VIEW ESTATES
MY OF HUNTINGTON BEACH
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LEGEND
♦TRASH ENCLOSURE
*LAUNDRY FACILITIES
*SECURITY GATE
NOTE:
30' TYPICAL. ROAD
• PEDESTRIAN CORRIDOR -
15' MINIMUM
*MINIMUM LOT SIZE 45X75'
• R.V./TRAILER PARKING TO BE
PROVIDED IN THE IMMEDIATE
AREA. _
EXHIBIT fA
rrl
4-7TACHR E-Ar' 3
K., vserMarstonAsso6atesInc.
Richard L. Botti 500 South Grand Avenue, Suite 1480
Calvin E. Hollis, II Los Ange:es, California 90071
213/622-8095 Fax 2131622-�204
SAN DIEGO 619/942.0380
Heinz A. Schilling
SAN FRANCISCO 4!5i398-3050
Timothy C. Kelly
A. Jerry Keyser
Kate Earle Funk
Robert J. Wetmore
Michael Conlon
Denise E. Conley
August 22, 1988
Mr. Douglas La Belle
Deputy City Administrator
City of Huntington Beach
2000 Main Street
Huntington Beach, California 92648
Dear Mr. La Belle:
RECEIN/T D
AUG 2 3 1988
DE"ANDAEN1 ;,,
_QflMMUNITY DEV9LOPMENT
As a part of the Summary Report prepared for the Waterfront
commercial/residential project pursuant to Section 33433 of the
California Health and Safety Code, KMA determined the net costs to
the Huntington Beach Redevelopment Agency associated with relocat-
ing the Driftwood Mobilehome Park residents. This analysis con-
sidered the costs to be incurred to develop a new mobilehome park,
as well as the relocation benefits to be provided to the Driftwood
residents. These costs were offset by the rental income to be gen-
erated to the Agency from the new mobilehome park. VThe net costs
were estimated at $7.7 million, in present value terms.,
The assumption used to estimate the rental income from the new
mobilehome park was that the Agency would receive rents of $350 per
space per month in the first year of operation, escalating at 6%
per annum thereafter. The vacancy allowance was set at 3%, and the
operating expenses were estimated at 35% of gross income. Subse-
quently, the Agency agreed to fix the rents in the first year at
$208 per space per month. These rents would then escalate at 6%
annually. However, the spaces would be master leased to the
mobilehome association on a triple net basis. Thus, the Agency
will not incur operating expenses, nor will there be any loss of
income to the Agency dale to vacant spaces.
KMA prepared a revised cash flow analysis based on the alteration
in the achievable rent level. This cash flow projection is
presented_ in Table 1.--While the cost estimates remain the same,
the renal income generated by the project is substantially
decreased. However, given the fact that the Agency will incur no
Real Estate Predeveloornent P: Evaluation Services
Mr. Douglas La Belle
August 22, 1988
Page 2
operating expenses or losses due to vacancies, the net income gen-
erated is actually slightly higher than originally projected.
Thus, the net costs are reduced to $7.6 million, a reduction of
$100,000.
According to the terms of the Waterfront project DDA, the developer
must loan the Agency $4.5 million of these costs. This leaves $3.1
million to be funded from other redevelopment project area
resources.
Please do not hesitate to call if you require -additional informa-
tion.
Yours very truly,
KEYSER MARSTON ASSOCIATES, INC.
!�Y
Kathleen H . Head
KHH:lp
88346.HTB
14066.0006
Keyse: MarstonAssociatesInr.
lAElt !
Ya1lIFRoA1 ComditIAL/RES)DENT] At rl011C1
MCI nuA11E trod h it ;l aAiloii COSTS
' !
In1N11HGi0H ICACH, CALLFORNIA
TEAS 1
TEAS 2
TEAS 3
TEAR 6
TEAS 5
WEAR 6
TEAR 7
TEAR I
TEAR 9
TEAS 10 TEAT 11
1989
1990
1991
1992
1993
1994
1995
1996
1997
1"1 1999
COSTS(1) '-'
--
--
-------
----�.-...._..-....-.�.�......_-------------------------------»
..---------
COST OF APP11134
11D0,000
NE1 IUT-OUT COSTS
PHASE 1 6 1 01110NAL
13S,000
ADDITIONAL FOR Si0
5,000
PHASE 11
118D01000
t1,2"AO
ADDITIONAL FOR SFI
201000
15,000
RELOCATIOW 10 OCEAN VIEW
PHASE I I OPIIONAL
7S,D00
,
CASH PAYMENT
SS,000
PURCHASE NEW CDACHES
160,000
PHASE 11
511,ON
CASH PATNEHT
380,DYO
PURCHASE NEW COBS
I,OOO,CDO
RELOCATION 10 OWN MRi
PHASE I I OfflONA!
25,000
,
PHASE 11
200.000
RELOCATION WITHIN PARK
PHASE tt 1I,000
i
MDILLENOME REFURIISHINC
15,000
TENANI SURIESSEE COMPENSAINN
PHASE 1 I OP1IDKA1
1,000
PRASE 11
SD,DOO
ASSOCIL1I01 RENUISEM UT
200,000
OCEAW VIEW 1EYELDPMENT COSTS
NOM EHOKE HEEYELOPKIN1
3,125,000
GOLF COURSE KVELOPMEIII
126,000
rill DEYELO►MEW1
I,707,OD0
TOTAL COSTS
I611271000
t8,9/31000
t0
s0
t0
t0
t0
t0
t0
10
i .`
INCOME
OCEAN VIEW ESTATES
RUT 1NCK PDIENTIAL (2)
147,400
t21710D0
1406,700
1131,100
145919DO
1486,300
1513,400
t516,2DO
076,800
16111500 26+8,100
(IESS) AEAIENENIS (3)
67,100
/7,100
•
PLUS NE1 SALES PROCEEDS 141
7,396,ODO
PE1 INCOME
I
10
1169,600
1106,700
1431,103
1451,900
WOOD
1513,400
2514,200
IS16,600
18,D07,50D
NET A6fMtl COS11
11,327,000
t1,1IS,100
(1106,700)
(1431.1001
(1451,900)
(1186,300)
(013,400)
(1514,200)
(1576,100
(18.007,SD0)
17Y COSTS 1 It 17,570,000-