HomeMy WebLinkAboutAGREEMENT FOR ACQUISITION OF PROPERTY AT 7752 ALHAMBRA AVENU Council/Agency Meeting Held: O
Deferred/Continued to:
Approved ❑ Conditional) pproved ❑ 2!��Ierk/signatVeDenied
Council Meeting Date: 5/7/07 Department ID Number: ED 07-12
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: PENELOPE CULBRETH-GRAFT, DPA CITY ADM INISTRATOP[,.
PREPARED BY: STAN LEY SMALEWITZ, DIRECTOR O�F_EEC NOMIC DEVELOPMENT
-`O `S
+ a ROBERT F. BEARDSLEY, PE, DIRECR OF P BLIC W®RK;2--
SUBJECT: APPROVE HEIL AVE. WIDENING IMPROVEMENT PROJECT LAND
PURCHASE (7752 Alhambra Avenue)
I[-stateme-ntof Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: An agreement in the amount of $685,000 along with escrow fees not
to exceed $8,000 with Craig W. Anderson for the purchase of his real property at 7752
Alhambra Avenue (APN 142-103-02) is submitted for approval (Attachment #1). Acquisition
of this property is necessary to complete improvements for the widening of Heil Avenue
between Beach Blvd. and Silver Lane.
Funding Source: Funds are budgeted in the Traffic Impact Fund, Street Widening, Land
Purchase, Account No. 20690001.81000.
Recommended Action: Motion to:
1. Approve the Agreement for Acquisition of Real Property (Escrow Instructions).
2. Authorize the Mayor to execute the agreement and other related necessary documents.
G Alternative Action(s): Do not approve the purchase agreement for 7752 Alhambra Avenue
and direct staff to renegotiate the acquisition terms with Craig W. Anderson.
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 517/07 DEPARTMENT ID NUMBER: ED 07-12
Analysis:
The Heil Avenue Widening Project (CC-1230) will construct the street improvements
necessary to widen the north side of Heil Avenue between Silver Lane and Beach Boulevard
to its full eighty foot secondary arterial street width. Currently, this segment of Heil Avenue
provides one through-lane in each direction, bike lanes, and a striped median. The widened
street section will provide one additional through-lane in each direction. This project includes
relocation of existing utility poles and the construction of new asphalt pavement, concrete
curb, gutter, sidewalk and street lights. An eight foot high wall will be constructed along the
proposed northerly right-of-way.
The subject property (APN 142-103-02) is one of several parcels that may be required for
this project, some of which may only require partial acquisitions. At such time as the
remaining real property offers are accepted, those agreements will be submitted to City
Council for approval. The amount of all offers to purchase made by the City for this project
will be consistent with real estate market values as described in appraisal reports provided by
Netzer and Associates. Real estate values are currently stable in the area and the price of
$685,000 is representative of today's market value.
Award of the project construction contract is estimated for June 2008 with construction
scheduled to begin shortly thereafter. A map showing the subject property is attached as
Attachment 2.
Strategic Plan Goal: C-1 Improve transportation by providing an additional through-lane in
each direction.
Environmental Status: Not applicable to property purchase.
Attachment Us :
NumberCity Clerk's
Page • Description
1. Agreement for Acquisition of Real Property (Escrow Instructions)
between the City of Huntington Beach and Craig W. Anderson for the
real property located at 7752 Alhambra Avenue.
2. Site Map.
-2- 4/23/2007 10:08 AM
ATTACHMENT # 1
f
APN: 142-103-02
TITLE REPORT NO: 53813887-M10
PROJECT: HEILAVENUE WIDENING PROJECT
AGREEMENT FOR ACQUISITION OF REAL PROPERTY
(ESCROW INSTRUCTIONS)
THIS AGREEMENT is entered into thisT!day of , 2007 by and between the City
of Huntington Beach, a Municipal Corporation (hereinafter called"City")and Craig W.Anderson, a
married man as his sole and separate property(hereinafter called "Seller")for acquisition by City of
certain real property hereinafter set forth.
IT IS HEREBY MUTUALLYAGREED BETWEEN THE PARTIES AS FOLLOWS:
1. AGREEMENT TO SELLAND PURCHASE. Seller agrees to sell to City, and City agrees to
purchase from Seller, upon the terms and for the consideration set forth in this agreement, all that
certain real property(hereinafter called"Property")situated in the City of Huntington Beach, County
of Orange, State of California, and legally described as follows:
SEE EXHIBIT"A"ATTACHED HERETO
AND BY THIS REFERENCE MADE A PART HEREOF
2. PURCHASE PRICE. The total purchase price, payable in cash through escrow,shall be the
sum of
Six Hundred Eighty-Five Thousand Dollars
($685,000.00)
3. CONVEYANCE OF TITLE. Seller agrees to convey by Grant Deed to the City marketable
fee simple title to the Property free and clear of all recorded and unrecorded liens, encumbrances,
assessments, easements, leases, and taxes EXCEPT:
A. Taxes: 2006-2007
B. Quasi-public utility, public alley, public street easements, and rights of way of record
(except rights in any such items conveyed under this Agreement).
C. Items numbered NONE of the above numbered title report issued by Chicago Title
Company dated May 27, 2005.
4. TITLE INSURANCE POLICY. Escrow Agent shall, following recording of deed to City,
provide City with CLTA Standard Coverage Policy of Title Insurance in the amount of$685,000.00
issued by Chicago Title Company showing the title to the property vested in City of Huntington
Beach, subject only to the exceptions set forth in Paragraph 3 and the printed exceptions and
stipulations in said policy.Authority agrees to pay the premium charged therefore.
5. ESCROW. City agrees to open an escrow in accordance with this Agreement at an escrow
company of City's choice.This Agreement constitutes the joint escrow instructions of City and Seller,
and Escrow Agent to whom these instructions are delivered is hereby empowered to act under this
Agreement. The parties hereto agree to do all acts necessary to close this escrow in the shortest
possible time.
Seller shall execute and hand a deed to Escrow Agent, concurrently with this Agreement. As soon
as possible after opening of escrow, City will deposit an executed Certificate of Acceptance, with
Page 1 of 6
Escrow Agent. City agrees to deposit the purchase price upon demand of Escrow Agent. City and
Seller agree to deposit with Escrow Agent any additional instruments as may be necessary to
complete this transaction.
Insurance policies for fire or casualty are not to be transferred, and Seller may cancel his own
policies after close of escrow.
All funds received in this escrow shall be deposited with other escrow funds in a general escrow
account(s) and may be transferred to any other such escrow trust account in any State or National
Bank doing business in the State of California. All disbursements shall be made by check from such
account.
ESCROW AGENT IS AUTHORIZEDAND IS INSTRUCTED TO COMPLY WITH THE FOLLOWING
TAXADJUSTMENT PROCEDURE:
A. Pay and charge Seller for any unpaid delinquent taxes and/or penalties and interest
thereon, and for any delinquent or non-delinquent assessments or bonds against the
property;
B. In the event this escrow closes between July 1 and November 1, and current tax
information is not available from title insurer, Escrow Agent is instructed to withhold
from Seller's proceeds an amount equal to 120%of the prorated amount due based
upon the previous fiscal year's second half tax bill. At such time that the tax
information is available, Escrow Agent shall pay to the County Tax Collector for
Seller's prorated portion of taxes and shall refund any difference to the Seller. In the
event the amount withheld is not sufficient to pay Seller's prorated portion of taxes
due, the Seller herein agrees to immediately pay the difference;
C. From the date that tax information is available, up to and including June 30th,
Seller's current taxes, if unpaid, shall be prorated to date of close of escrow on the
basis of a 365 day year in accordance with Tax Collector's proration requirements,
together with penalties and interest, if said current taxes are unpaid after December
10 and/or April 10. At close of escrow, Escrow Agent shall pay to the County Tax
Collector for Seller's prorata portion of taxes;
D. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not
be prorated between the City and Seller, but Seller shall have the sole right, after
close of escrow, to apply to the County Tax Collector of said county for refund. This
refund would apply to the period after City's acquisition, pursuant to Revenue and
Taxation Code Section 5096.7.
ESCROW AGENT IS AUTHORIZED TO,AND SHALL:
E. Pay and charge Seller, upon Seller's written approval, for any amount necessary to
place title in the condition necessary to satisfy Paragraph 3 of this Agreement,
excluding any penalty for prepayment to any Iienholder in compliance with Code of
Civil Procedure Section 1265.240;
F. Pay and charge City for any escrow fees, charges, and costs payable under
Paragraph 6 of this Agreement;
Page 2 of 6
G. Disburse funds and deliver deed when conditions of this escrow have been fulfilled
by City and Seller.
The term"close of escrow", if and where written in these instructions, shall mean the date necessary
instruments of conveyance are recorded in the office of the County Recorder. Recordation of
instruments delivered through this escrow is authorized if necessary or proper in the issuance of
said policy of title insurance.
All time limits within which any matter herein specified is to be performed may be extended by
mutual agreement of the parties hereto. Any amendment of, or supplement to,any instructions must
be in writing.
TIME IS OF THE ESSENCE IN THESE INSTRUCTIONSAND ESCROW IS TO CLOSEAS SOON
AS POSSIBLE. If(except for deposit of money by the City, which shall be made by the City upon
demand of Escrow Agent before close of escrow) this escrow is not in condition to close within 60
days from date of these instructions, any party who then shall have fully complied with his
instructions may, in writing, demand the return of his money or property; but if none have complied
no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have
mailed copies of such demand to all other parties at the respective addresses shown in these
escrow instructions, and if any objections are raised within said five(5)day period, Escrow Agent is
authorized to hold all papers and documents until instructed by a court of competent jurisdiction or
mutual instructions. If no demands are made, proceed with closing of this escrow as soon as
possible.
Responsibility for Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4,
5, 6, 8, 9 and 17 to its liability under any policy of title insurance issued in regard to this transaction.
6. ESCROW FEES, CHARGES AND COSTS. City agrees to pay all City's and Seller's usual
fees, charges, and costs which arise in this escrow.
7. PERMISSION TO ENTER ON PREMISES. Seller hereby grants to City, or its authorized
agents, permission to enter upon the Property at all reasonable times prior to close of escrow for the
purpose of making necessary or appropriate inspections.
8. COUNTERPARTS. This agreement may be executed in counterparts, each of which so
executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all
such counterparts together shall constitute one and the same instrument.
9. CLOSING STATEMENT. Seller instructs Escrow Agent to release a copy of Seller's
statement to City and to Overland, Pacific&Cutler, Inc., 10 Hughes, Suite A-207, Irvine, California
92618; purpose being to ascertain if any reimbursements are due Seller.
10. LOSS OR DAMAGE TO IMPROVEMENTS. Loss or damage to the real property or any
improvements thereon, by fire or other casualty, occurring prior to the recordation of the Deed shall
be at the risk of Seller. In the event that loss or damage to the real property or any improvements
thereon, by fire or other casualty, occurs prior to the recordation of the Deed, City may elect to
require that the Seller pay the City the proceeds of any insurance which may become payable to
Seller by reason thereof, or to permit such proceeds to be used for the restoration of the damage
done, or to reduce the total price by an amount equal to the diminution in value of said property by
reason of such loss or damage or the amount of insurance payable to Seller, whichever is greater.
Page 3 of 6
11. ACQUISITION IN LIEU OF CONDEMNATION. Seller and City acknowledge that this
transaction is a negotiated settlement in lieu of condemnation. Seller acknowledges that the sums
received from City under this Agreement constitute full payment of all just compensation in eminent
domain (including, but not limited to, compensation for the fair market value of the real property
taken, severance damages, improvements to the realty, furniture, fixtures, equipment, the value of
any leasehold interest, loss of inventory, loss of business goodwill, court costs, litigation expenses
and any interest which might be due on such matters). Seller acknowledges that the amounts paid
under this Agreement constitute the total amount due Seller, and that no further payments are due,
owing or payable. Seller waives any other claims it might have for further payment or further
compensation, and also waives any and all claims to any money on deposit in said action and
further waives all attorney's fees, costs, disbursements, and expenses incurred in connection
therewith.
12. POSSESSION OF REAL PROPERTY AND DISPOSITION OF SELLER'S FURNITURE.
Actual and legal possession of real property shall be given to City upon the recording of Seller's
deed.All Seller's furniture and furnishings shall remain the property of Seller and Seller shall have
the right at any time to remove or otherwise dispose of all or any portion of same, provided that all
tenants occupying the premises at the time Seller's deed is recorded shall be entitled to continue to
use the furniture and furnishings then being used by them until they vacate each of their respective
apartments or living spaces, and provided that within ten (10) days after notice from City that the
premises have been vacated, Seller will remove or otherwise dispose of all such furniture and
furnishings. All furniture and furnishings remaining on the premises after ten(10)days shall become
the property of the City and City may dispose of same without liability as it alone sees fit. City shall
not be liable for any loss of or damage to said furniture or furnishings, regardless of when such loss
or damage occurs.
13. WARRANTIES, REPRESENTATIONS, AND COVENANTS OF SELLER. Seller hereby
warrants, represents, and/or covenants to City that:
A. To the best of Seller's knowledge, there are no actions, suits, material claims, legal
proceedings, or any other proceedings affecting the property or any portion thereof,
at law, or in equity before any court or governmental agency, domestic or foreign.
B. To the best of Seller's knowledge, there are no encroachments onto the property by
improvements on any adjoining property, nor do any buildings or improvements
encroach on other properties.
C. Until the closing, Seller shall maintain the property in good condition and state of
repair and maintenance, and shall perform all of its obligations under any service
contracts or other contracts affecting the property.
D. Until the closing, Seller shall not do anything which would impair Seller's title to any
of the property.
E. All utilities including gas, electricity, water, sewage, and telephone, are available to
the property, and to the best of Seller's knowledge, all such items are in good
working order.
F. To the best of Seller's knowledge, neither the execution of this Agreement nor the
performance of the obligations herein will conflict with, or breach any of the
Page 4 of 6
provisions of any bond, note, evidence of indebtedness, contract, lease, or other
agreement or instrument to which Seller's property may be bound.
G. Until the closing, Seller shall, upon learning of any fact or condition which would
cause any of the warranties and representations in these, Warranties,
Representations, and Covenants of Seller Section not to be true as of closing,
immediately give written notice of such fact or condition to City.
14. HAZARDOUS WASTE. Neither Seller nor, to the best of Seller's knowledge, any previous
owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or
disposed of any hazardous waste,toxic substances, or related materials("Hazardous Materials")on,
under, in, or about the Property, or transported any Hazardous Materials to or from the Property.
Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or
disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous
Materials to or from, the Property. The term "Hazardous Material" shall mean any substance,
material, or waste which is or becomes regulated by any local governmental authority, the State of
California, or the United States Government, including, but not limited to, any material or substance
which is (i)defined as a"hazardous waste", "extremely hazardous waste", or"restricted hazardous
waste"under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California
Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as
"hazardous substance"under Section 25316 of the California Health and Safety Code, Division 20,
Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a
"hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the
California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release
Response Plans and Inventory), (iv)defined as a"hazardous substance"under Section 25281 of the
California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous
Substances), (v)petroleum, (vi) asbestos, (vii) polychlorinated byphenyls, (viii) listed underArticle 9
or defined as"hazardous"or"extremely hazardous"pursuant to Article 11 of Title 22 of the California
Administrative Code, Division 4, Chapter 20, (ix)designated as a"hazardous substances"pursuant
to Section 311 of the Clean Water Act, (33 U.S.C. S1317), (x) defined as a "hazardous waste"
pursuant to Section 1004 of the Resource Conservation and RecoveryAct,42 U.S.C. S6901 et seg.
(42 U.S.C. S6903) or (xi) defined as a "hazardous substances" pursuant to Section 101 of the
Comprehensive Environmental Response, Compensation, as amended by Liability Act,42. U.S.C.
S9601 et seq. (42 U.S.C. S9601).
15. COMPLIANCE WITH ENVIRONMENTAL LAWS. To the best of Seller's knowledge the
Property complies with all applicable laws and governmental regulations including,without limitation,
all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste,
waste disposal, and other environmental matters, including, but not limited to, the Clean Water,
Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery
and Comprehensive Environmental Response Compensation and Liability Acts, and the California
Environment Quality Act, and the rules, regulations, and ordinances of the city within which the
subject property is located,the California Department of Health Services,the Regional Water Quality
Control Board,the State Water Resources Control Board,the Environmental Protection Agency, and
all applicable federal, state, and local agencies and bureaus.
16. INDEMNITY. Seller agrees to indemnify, defend and hold City harmless from and against
any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive
damage, or expense (including, without limitation, attorneys'fees), resulting from, arising out of, or
based upon (i) the presence, release, use, generation, discharge, storage, or disposal of any
Hazardous Material on, under, in or about, or the transportation of any such materials to or from,the
Property, or(ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation,
Page 5 of 6
permit,judgment, or license relating to the use, generation, release,discharge,storage, disposal,or
transportation of Hazardous Materials on, under, in,or about,to or from,the Property.This indemnity
shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or
expense arising from or out of any claim, action, suit or proceeding for personal injury (including
sickness, disease, or death, tangible or intangible property damage, compensation for lost wages,
business income, profits or other economic loss, damage to the natural resource or the
environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the
environment). This indemnity extends only to liability created prior to or up to the date this escrow
shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow.
17. CONTINGENCY. It is understood and agreed between the parties hereto that the
completion of this transaction, and the escrow created hereby, is contingent upon the specific
acceptance and approval of the City herein. The execution of these documents and the delivery of
same to Escrow Agent constitutes said acceptance and approval.
The terms and conditions, covenants, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns and successors of the parties hereto.
This Agreement contains the entire agreement between both parties; neither party relies upon any
warranty or representation not contained in this Agreement. .
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set
forth hereinabove.
MAILING ADDRESS OF SELLER SELLER
7752 Alhambra Avenue '- r
Huntington Beach, CA W-
Cr ig W.Anderson
MAILING ADDRESS OF CITY CITY
2000 Main Street City of Huntington Beach, a Municipal Corporation
Huntington Beach, CA 92648
Approved:
Mayo
May 09, 2007
Date
Approved As to Form:
Ci y Attorney
tit
April 18, 2007
Date
Page 6 of 6
Exhibit .
LEGAL DESCRIPTION
THE EAST 50 FEET OF LOT 1, IN BLOCK C OF TRACT 522, IN THE CITY OF HUNTINGTON
BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP THEREOF
RECORDED IN BOOK 19, PAGE 49 MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE
COUNTY.
END OF LEGAL DESCRIPTION
ATTACHMENT #2
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7752 Alhambra STREET NAMES ti
Avenue CITY BOUNDARY _,
Map produced by information contained in the City of ISOBATHS
Huntington Beach Information Services Department
Geographic Information System.Information warranted for r_.
City use only.Huntington Beach does not guarantee its HARBOR •�.
completeness or accuracy.
Map Produced on 4/5/2007
BUILDINGS
PARKS
w.E r-1
s PARCELS
0 112 224 \
PIER
One inch equals 112 feet �z .
RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development Department
SUBJECT: Approve Heil Ave. Widening Improvement Project Land
Purchase (7752 Alhambra Avenue)
COUNCIL MEETING DATE: May 7, 2007
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Tract Map, Location Map and/or other Exhibits Attached
Not Applicable ❑
Contract/Agreement (w/exhibits if applicable) Attached
(Signed in full by the City Attorney) Not Applicable ❑
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the CityAttomey) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Applicable
Bonds (If applicable) Attached ❑
Not Applicable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee Report (if applicable) Attached ❑
Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
IENPL ANATIOM FOR HISSNG ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff ( ) WP
Deputy City Administrator (Initial)
City Administrator (initial)
( ) )
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
RCA Author: Krause(ext. 1529)