Loading...
HomeMy Public PortalAbout02) Purchase and Sale Agreement 5922 Primrose AvenueAGENDA ITEM 5.A. MANAGEMENT SERVICES DEPARTMENT DATE: July 1, 2013 MEMORANDUM TO: The Honorable City Council FROM: Jose E. Pulido, City Manager By: Greg Murphy, Assistant City Attorney Brian Haworth, Assistant to the City Manager SUBJECT: PURCHASE AND SALE AGREEMENT: 5922 PRIMROSE AVE. RECOMMENDATION: The City Council (Council) is requested to: a) Approve the Purchase and Sale Agreement for 5922 Primrose Ave., a property located in Temple City, California; b) Approve a $1,500,000 appropriation from the Economic Development Fund Reserve to purchase the property; c) Approve a $25,000 appropriation from the Economic Development Fund Reserve to conduct an appraisal and environmental review required as part of the property purchase; and d) Authorize the City Manager to execute the Purchase and Sale Agreement and take all steps therein to complete the transaction. BACKGROUND: 1. On October 4, 2011, the City hired RBF Consulting to prepare a parking plan that addresses real and perceived parking shortages in the downtown area. 2. On June 5, 2012, the Council approved Ordinances 12-953 and 12-955 establishing an economic development fund which among other things, allows the City to acquire, dispose and remediate properties for economic development purposes (e.g., a public parking lot). City Council July 1, 2013 Page 2 of 4 3. On November 20, 2013, after numerous workshops involving the community and City commissions, the Council adopted the Comprehensive Downtown Parking Strategic Plan, a toolbox of recommended parking strategies for implementation over the short- and long-term. Of these recommendations, the acquisition of 5922 Primrose Ave. was identified as an opportunity site for future downtown parking supply, given its location adjacent to the Las Tunas corridor. 4. On May 13, 2013, the owner of 5922 Primrose Ave. solicited the City's interest to purchase the property; City staff had not previously contacted the owner regarding the potential for purchasing the property; 5. On May 21, 2013, the Council (in closed session) discussed the purchase of 5922 Primrose Ave., and directed the City Manager and City Attorney to initiate the property purchase and transaction process. 6. In June 2013, City representatives and the property owner negotiated terms and conditions for the property acquisition as contained in the Purchase and Sale Agreement, provided hereto as Attachment "A". Over the past year as opportunities have arisen, staff has been diligent in implementing recommendations of the Downtown Parking Strategic Plan. Initiatives to date include: • The restriping and removal of all -day parking provisions in the public lots south of Las Tunas between Primrose and Camellia avenues, which yielded 22 new stalls. Enactment of two-hour parking limits have also encouraged higher parking turnover rates; • A code amendment that reduces parking stall size standards from 20'x10' to 18'x9', bringing local regulations in line with industry best practice and allowing future downtown developments to maximize available parking space; • Completion of a $6.5 million, multi -modal funding application to the Los Angeles Metropolitan Transportation Agency which, if awarded, would allow a complete redesign of the Las Tunas corridor into a pedestrian -friendly destination that includes the reconfiguration of current street parking to yield an increase of 27 additional back -in parking stalls; and City Council July 1, 2013 Page 3 of 4 • Recent acquisition of the former mortuary site at 5800 Temple City Blvd., which is expected to help alleviate the City's downtown parking shortage by allowing at least 51 additional public parking stalls—which may potentially integrate with a larger development concept. Purchasing the Primrose property now, at a time when real estate prices are relatively low, presents a viable and timely opportunity to provide for more public parking in the near future. Furthermore, given the property is adjacent to a City - owned building and parking lot (Attachment "B"), purchasing it could allow the City to assemble the properties for a future public parking structure—a recommendation identified in the Downtown Parking Strategic Plan. Below are key terms of the proposed purchase, as identified in the attached Purchase and Sale Agreement. • A purchase price of $1,500,000, pending an appraisal that substantiates the price; • A $50,000 "good faith" deposit by the City to be applied to the total purchase price upon close of escrow, with a provision that the deposit be returned to the City should the appraisal price be lower than the purchase price, or environmental studies reveal potential liabilities to which the City is unwilling to become a party to; and • A 45 -day period for appraisal and environmental review services, with an additional 45 -day period to address any outstanding issues from the initial environmental review. Council's approval of the Purchase and Sale Agreement will allow escrow to open. During that time, the appraisal and environmental studies will be performed simultaneously, and if found satisfactory, the City could complete the property transaction as early as August 16 and no later than October 1, 2013. The purchase of 5922 Primrose Ave. provides the City with the ability in the future to assemble all of its adjacent properties for reuse as a public parking structure, a recommendation identified in the Downtown Parking Strategic Plan. Furthermore, use of the City's Economic Development Fund Reserve to fund the transaction allows the City the flexibility to develop the property for economic development purposes in the future, should parking conditions change and no longer warrant the need for a downtown parking structure. City Council July 1, 2013 Page 4 of 4 In June 2012 during adoption of the City Budget Reserve Policy, the Council approved an $8 million Economic Development Fund Reserve (ED Reserve) for activities pursuant to the City's Economic Development Ordinance. To date, the following expenditures have been made: Rosemead Boulevard Enhancement Project $1,000,000 5800 Temple City Blvd. $1,050,000 Furthermore, as part of the Fiscal Year (FY) 2013-14 City Budget, the Council appropriated ED Reserve monies for the following projects: General Plan Update $ 750,000 Las Tunas/Rosemead Specific Plan $ 650,000 Economic Development Strategy Implementation $ 25,000 Five -Year Strategic Plan $ 40,000 Given these projects, the June 30, 2014 ED Reserve balance is estimated at $4.485 million. Should the Council approve use of funds for the Primrose property purchase, the adjusted ED Reserve balance (at fiscal year-end) is projected at $2.96 million. A. Purchase and Sale Agreement B. Property Map and Primrose Property Profile JOINTAND -•INSTRUCTIONS Simonian Avedik & Aznive Trust 1117 Promontory Pl. West Covina, California 91791 Telephone: (626) 482-9776 Chicago Title Company Attn: Patricia Schlageck, Escrow Officer 700 S. Flower St., Suite 800 Los Angeles, California 90017 Telephone: (213) 488-4300 Fax: (213) 612-4110 ATTACHMENT A City of Temple City Attn: Jose Pulido 9701 Las Tunas Dr. Temple City, California 91780 Telephone: (626) 285-2171 Fax: (626) 285-8192 E-mail: jpulido@templecity.us Escrow No.: Opening Date: Closing Date: THIS AGREEMENT OF PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (the "Agreement") is dated , 2013, for reference, and is hereby entered into by and between the SIMONIAN AVEDIK & AZNIVE TRUST, a trust ("Seller"), and the CITY OF TEMPLE CITY, a California charter city ("Buyer"), as follows: A. Seller is the record owner of the Property, defined herein, the purchase and sale of which is the subject of this Agreement. B. Seller desires to sell the Property to Buyer, and Buyer desires to purchase the Property from Seller, upon the terms and conditions more particularly set forth in this Agreement. C. For good and valuable consideration, the receipt and adequacy of which are acknowledged, the parties agree as follows: RIV #4815-4321-3332 v1 _t_ Action. Shall mean any suit (whether legal, equitable, or declaratory in nature), proceeding or hearing (whether administrative or judicial), arbitration or mediation (whether voluntary, court-ordered, binding, or non-binding), or other alternative dispute resolution process, and the filing, recording, or service of any process, notice, claim, demand, lien, or other instrument which is a prerequisite or prelude to commencement of the Action. Buyer. Shall mean the City of Temple City, a California charter city and municipal corporation. Closing Date. Shall mean the actual date upon which the escrow closes. As provided herein, the Close of Escrow shall on or before the one hundred twentieth (120th) business day from and after the Opening of Escrow, unless extended by mutual agreement of the parties. Close of Escrow. Shall mean the consummation of the transaction contemplated in this Agreement by the exchange of the Purchase Price for the executed Deed, the payment of all fees and charges outstanding, conveyance of title to the Property to Buyer, and recording of the Grant Deed with the Recorder of the County of Los Angeles as provided for in this Agreement. Due Ditiaence Date. Shall mean the ninetieth (90th) business day from and after the Opening of Escrow by which time the Buyer shall have completed its due diligence as provided in Article III [Due Diligence] of this Agreement. Escrow Agent. Shall mean the agent designated by the parties to hold and administer the joint escrow required under this Agreement. The parties have nominated Chicago Title Company of Los Angeles, California, to act as Escrow Agent hereunder. Effective Date. Shall mean the date by which this Agreement has been approved and executed by both the Seller and by the Buyer. Hazardous Substances. Shall mean any and all of the following: (i) any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or for which liability arises for misuse, pursuant to the Comprehensive Environmental Response Compensation and Liability Act ("CERCLA"), 42 U.S.C. § 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq.; the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 6901, et seq.; the Toxic Substances Control Act, 15 U.S.C.S. § 2601, et seq.; the Clean Water Act, 33 U.S.C. § 1251, et seq.; the Insecticide, Fungicide, Rodenticide Act, 7 U.S.C. § 136, et seq.; the Superfund Amendments and Reauthorization Act, 42 U.S.C. § 6901, et seq.; the Clean Air Act, 42 U.S.C. § 7401, et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f, et seq.; the Solid Waste Disposal Act, 42 U.S.C. § 6901, et seq.; the Surface Mining Control and Reclamation Act, 30 U.S.C. § 1201, et seq.; the RIV #4815-4321-3332 vl -2 Emergency Planning and Community Right to Know Act, 42 U.S.C. § 11001, et seq.; the Occupational Safety and Health Act, 29 U.S.C. §§ 655 and 657; the Hazardous Waste Control Act, California Health and Safety Code ("H.&S.C.") § 25100, et seq.; the Hazardous Substance Account Act, H.&S.C. § 25330, et seq.; the California Safe Drinking Water and Toxic Enforcement Act, H.&S.C. § 25249.5, et seq.; the Underground Storage of Hazardous Substances, H.&S.C. § 25280, et seq.; the Carpenter -Presley -Tanner Hazardous Substance Account Act, H.&S.C. § 25300, et seq.; the Hazardous Waste Management Act, H.&S.C. § 25170.1, et seq.; the Hazardous Materials Response Plans and Inventory, H.&S.C. § 25001, et seq.; the Porter -Cologne Water Quality Control Act, Water Code § 13000, et seq., all as they may from time to time be amended; (ii) any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or for which liability for misuse arises pursuant to any other federal, state or local statute, law, ordinance, resolution, code, rule, regulation, order or decree due to its hazardous, toxic or dangerous nature; (iii) any petroleum, crude oil or any substance, product, waste, or other material of any nature whatsoever which contains gasoline, diesel fuel or other petroleum hydrocarbons other than petroleum and petroleum products contained within regularly operated motor vehicles; and (iv) polychlorinated biphenyls (PCB), radon gas, urea formaldehyde, asbestos, and lead. Phase I ESA. Shall mean a "Phase I Environmental Site Assessment" performed at the sole and absolute discretion of the Buyer and prepared in accordance with the standards set forth in ASTM Standard 1527-97 "Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process." Phase II ESA. Shall mean a "Phase II Environmental Site Assessment" performed at the sole and absolute discretion of the Buyer and prepared in accordance with the standards set forth in ASTM Standard E 1903-97 "Standard Guide for Environmental Site Assessments: Phase II Environmental Site Assessment Process." Preliminary Title Report. Shall mean a report describing the state of title of the Property, together with copies of all exceptions specified therein and a map plotting all easements specified therein. Property. Shall mean that parcel of real property located at 5922 Primrose Ave, in the City of Temple City, County of Los Angeles, State of California, consisting of approximately 0.2083 acres (9.073 square feet), commonly known as Assessor's Parcel Number 8587-014-021, as more particularly described in the legal description attached and incorporated herein by reference as Attachment "A". The Property includes all buildings, fixtures, structures and improvements appurtenant to the Property as well as all rights, easements, covenants, and servitudes benefiting the Property. Rlv #4815-4321-3332 v 1 -3- Property Conditions. Shall mean all of the existing physical and economic conditions affecting the Property and its use, including, but not limited to, the physical configuration of the Property, any trees, stumps, brush, or other vegetation on the Property, the condition of its soils, the presence or impact of any geologic or hydrologic features and faults, the nature of its lateral and subjacent support, the presence of Hazardous Substances, waste, garbage, rubbish, or refuse on, in, under, or adjacent to the Property, the location of the Property within any flood plain or high risk fire area, the location of public utilities and public improvements on, in, under, or over the Property, the presence, soundness, and habitability of any structures, fixtures, or improvements on or in the Property, the existence of any faults or defects (whether known or unknown, patent or latent), the economic and legal suitability of the Property for the intended use, all market conditions that may affect development and use of the Property, and all actions, orders, and judgments affecting the Property. Seller. Shall mean Simonian Avedik & Aznive Trust, a trust. NOW THEREFORE, for consideration, the value and adequacy of which is hereby acknowledged, the parties enter into this Agreement on the following terms and conditions and subject to the contingencies set forth herein: O.T91:3 4,01 1.1. Transaction. Buyer hereby agrees to purchase from Seller, and Seller agrees to sell to Buyer, the Property, upon the terms and conditions hereinafter set forth, and contingent upon satisfaction of the conditions of closing set forth in Article II of this Agreement. 1.2. Amount of Purchase Price. The purchase price for the Property shall be one million five hundred thousand dollars and no cents ($1,500,000.00) ("Purchase Price"). The Purchase Price to be paid by Buyer to Seller shall be full and complete compensation for, and all-inclusive of, Seller's title, rights, interest, and entitlements in the Property and any improvements located thereon. 2.1. Opening of Escrow. Within five (5) business days from and after the Effective Date of this Agreement, Seller and Buyer shall open an escrow with Escrow Agent for the consummation of the transaction contemplated under this Agreement. Upon the opening of the escrow, Buyer shall deposit the sum of fifty thousand dollars and no cents ($50,000.00, hereafter the "Deposit") therein. 2.2. Close of Escrow. Escrow shall close when all parties have completed their obligations to close under this Agreement and all conditions precedent to the close of escrow have been satisfied or waived by the benefited party (the "Close of Escrow"). The Close of Escrow shall occur on or before the one hundred and twentieth (120th) R1V #4815-4321-3332 v -4- day from and after the Opening of Escrow, unless an extension is mutually agreed upon by the parties. 2.3. Escrow Aqent. The Escrow Agent is hereby empowered to act under this Agreement, and upon indicating its acceptance of this Article II in writing, delivered to the Seller and the Buyer at the time escrow is opened, shall carry out its duties as Escrow Agent hereunder. 2.3.1. Duties of Escrow Agent. Escrow Agent is authorized to and shall carry out the following: (a) Pav Charges and Costs. Pay and charge the Seller and Buyer, respectively, for any fees, charges, and costs payable under this Agreement. Pay any monetary encumbrances, delinquent property taxes and assessments, and prorated current property taxes and assessments against the Property from the Purchase Price. Before such payments are made, Escrow Agent shall notify the Seller and Buyer of the fees, charges, and costs necessary to clear title and close the escrow and calculate the amount to be paid and each party's proportionate share. (b) Disbursements and Deliveries. Make disbursements of the purchase price, or other funds to the appropriate parties and deliver the Grant Deed and other documents to the parties entitled thereto when the conditions of this escrow have been fulfilled by the Seller and the Buyer. (c) Document Preparation and Recording. Record the Grant Deed, and prepare and record or file, as appropriate, any other documents, statements, or instruments delivered through this escrow, or that are necessary to consummate the transaction or proper to vest title to the Property in Buyer. 2.3.2. Liability of Escrow Agent. The liability of Escrow Agent under this Agreement is limited to performance of the obligations imposed under Article of this Agreement. 2.4. Supplemental or Amended Escrow Instructions. Seller and Buyer shall promptly prepare, execute and deliver to the Escrow Agent such additional escrow instructions consistent with the terms and conditions of this Agreement as shall be reasonably necessary. 2.5. Deposits into Escrow. Seller and Buyer each shall, by 12:00 noon on the last business day prior to the Close of Escrow, make all payments, perform all acts, and deliver to the Escrow Agent all documents (appropriately executed and acknowledged) necessary for the conveyance from Seller to Buyer of title to the Property as provided in the Agreement. The following provisions shall apply: 2.5.1. Payment of Escrow Fees and Closing Costs. Buyer and Seller shall split all of the escrow fees and closing costs necessary for escrow to close. After notification by Escrow Agent of the amount thereof, and by no later than 12:00 noon on the last business day preceding the Close of Escrow, Buyer and Seller shall RN #4815-4321-3332 vi -5- pay into escrow by cash, check or warrant, wire transfer, or other form of readily available funds, the applicable escrow fees and closing costs. Responsibility for payment of the following costs and fees shall be apportioned as follows: (a) Leaal Fees. The parties shall each bear the costs and fees of their respective legal counsel. (b) Brokers' Fees. The parties agree that neither party has retained a broker or sales agent who is entitled to a commission on this sale. In any event, Buyer shall not be responsible for paying any commission to, or allocating any portion of the Purchase Price to, any broker or sales agent of Seller, if Seller retains a broker or sales agent. (c) Recordina Cost. Seller and Buyer shall each pay fifty percent (50%) of the fees or charges, if any, required for recording the Grant Deed and documents, instruments, or statements with the Recorder for the County of Los Angeles or the California Secretary of State, as the case may be. (d) Documentary Transfer Tax. The parties contemplate that the recording of the Grant Deed is exempt from the payment of Documentary Transfer Tax under California Revenue and Taxation Code § 11922. Notwithstanding the foregoing, in the event the Recorder refuses to record the Grant Deed without payment of such tax, then Seller shall pay the amount required. (e) Title Insurance. Buyer shall pay the cost of the CLTA policy of title insurance to be delivered to Buyer. Buyer shall pay the additional cost of any special endorsement to the CLTA policy or the additional cost of an ALTA policy of title insurance desired by Buyer. (f) Property Taxes. Seller shall pay all delinquent property taxes, special taxes, and special assessments, if any, against the Property, and shall pay all current property taxes, special taxes, and special assessments against the Property prorated to the date of the Closing. (g) Other Fees and Costs. In the event that it is necessary to incur any other fee, cost, or charge in order to consummate the transaction, then the parties shall apportion and pay such fee, cost, or charge according to accepted custom and practice in the industry, or, failing any accepted custom and practice, then by mutual agreement of the parties. 2.5.2. Payment of Purchase Price. Buyer shall pay the Purchase Price (less the amount already placed into escrow via the Deposit), into escrow by cash, check, warrant, wire transfer, or other form of readily available funds, by no later than 12:00 noon on the last business day preceding the Close of Escrow. 2.5.3. Grant Deed. Seller shall convey marketable title to the Property, free and clear of encumbrances, to Buyer by grant deed ("Grant Deed") at the Close of Escrow. The Grant Deed shall be the same in all material respects as the form RIV #4515-4321-3332 vi -6- attached hereto and incorporated herein by reference as Attachment "B." Seller shall, on or before 12:00 noon on the day preceding the Close of Escrow, deposit with Escrow Agent the executed and appropriately notarized Grant Deed suitable for recording, together with such other documents, statements, and instruments as may be necessary in order for the Escrow Agent to comply with this Agreement. Escrow Agent will cause the Grant Deed to be recorded when the Title Company can issue the Title Policy in the form described in Section 2.8.1 and when the Escrow Agent holds for the account of Seller the items described above to be delivered to Seller through Escrow, less costs, expenses and disbursements chargeable to Seller pursuant to the terms hereof. 2.5.4. Escrow Account. All funds received in escrow shall be deposited by Escrow Agent in an interest-bearing general escrow account or accounts with any state or national bank doing business in the State of California. 2.6. Communications. All communications and notices between the parties and the Escrow Agent shall be directed to the addresses and in the manner established in Section 6.14 of this Agreement. 2.7. Cancellation of Escrow. Time is of the essence of this Agreement. If escrow fails to close as provided above, escrow shall be cancelled automatically without further action by Escrow Agent or any party, and Escrow Agent is instructed to return all funds and documents then in escrow to the respective depositor of the same with Escrow Agent. 2.8. uver's Conditions of Closinq. Buyer's obligation to purchase the Property and close escrow is expressly conditioned upon the satisfaction or written waiver by Buyer, in whole or in part, of each of the following conditions precedent: 2.8.1. 'Title Policy. A title company of Buyer's selection issuing a CLIA or ALTA policy of title insurance, and any special endorsements thereto as may be required by Buyer, insuring title to the Property vested in Buyer. Buyer has nominated First American Title Company to act in this capacity ("Title Company"). 2.8.2. Approve Condition of Title. Buyer approving, in writing, the Condition of Title as provided in Section 3.1 [Condition of Title] of this Agreement on or before the date provided. 2.8.3. Approve Property Conditions. Buyer approving, in writing, the Property Conditions as provided in Section 3.2 [Property Conditions] of this Agreement on or before the date provided. 2.8.4. Approve Appraised Value of Property. Buyer approving the appraised value of the Property as provided in section 3.3 [Appraisal] of this Agreement on or before the date provided. 2.8.5. Delivery of Instruments. Seller having deposited into escrow the executed, duly notarized, and recordable Grant Deed, and any other documents, RIV #4815-4321-3332 vl -7 instruments, or statements requiring Seller's execution, in the time required under this Agreement. 2.8.6. Possession. Seller shall be in a position to convey the Property free of any possession or right of possession of any person or entity as of the Close of Escrow. Nothing in this section or otherwise in this Agreement creates, or shall be deemed to create, any right or tenancy in such persons with regard to the Property or compensation not otherwise provided under California law. 2.9. Seller's Conditions of Closino. Seller's obligation to sell the Property and close the transaction are expressly conditioned upon the satisfaction or written waiver, in whole or in part, by Seller of each of the following conditions precedent: 2.9.1. Purchase Price. Buyer shall have deposited into escrow the Deposit the Purchase Price within the time provided in this Agreement. 2.9.2. Buyer's Obligations. Buyer shall have completed in a timely fashion all of its obligations which are to be completed prior to the Closing as provided in this Agreement. 3.1.1. Preliminary Title Report. Within five (5) business days from and after the Opening of Escrow, Seller shall obtain the Preliminary Title Report for the Property, at its sole cost and expense, and deliver same to Buyer for review. Within ten (10) business days from and after the Opening of Escrow, Buyer shall notify Seller in writing ("Buyer's Title Notice") of Buyer's approval of all matters contained in the Preliminary Title Report or of any objections Buyer may have to title exceptions or other title matters ("Disapproved Exceptions") disclosed in the Preliminary Title Report. 3.1.2. Disapproved Exceptions. Seller shall remove and discharge or otherwise satisfy all mortgages, deeds of trust, judgment liens, mechanic's liens, or other monetary liens against the Property as of the Due Diligence Date. In the event Buyer has specified any non -monetary liens as Disapproved Exceptions in the Buyer's Title Notice, then Seller shall, within five (5) business days of the date of said Notice, commence removal of the Disapproved Exceptions. If Seller is reasonably unable to remove the Disapproved Exceptions on or before the Due Diligence Date or the non - monetary Disapproved Exceptions on or before the Close of Escrow, Seller shall immediately notify Buyer, and Buyer shall, at its sole option, either (i) elect to cancel escrow and terminate the Agreement without penalty to Buyer and with return of the Deposit to Buyer; or (ii) waive its disapproval of the exception(s) and accept title to the Property subject to the Disapproved Exception(s). RIV #4815-4321-3772 v1 -8- 3.2.1. "AS IS" Condition. Except for those representations, warranties, and covenants made by the Seller to the Buyer in Article IV [Representations, Warranties & Covenants] of this Agreement, Buyer agrees that it is purchasing the Property in an "AS IS" condition as of the Close of Escrow. Buyer agrees that as of the Close of Escrow, it will have completed its own independent investigation of the Property Conditions and either accepted or disapproved of the Property Conditions. 3.2.2. Investigation of Property Conditions. Within five (5) business days from and after the Opening of Escrow, Seller shall deliver to Buyer true, correct, and complete copies of all reports, studies, or other documents concerning the Property Conditions including, but not limited to, all applicable information relating to Hazardous Substances on, in, or under the Property and any current leases, contracts, licenses, profits, permits, or other documents which affect title, possession, or use of the Property, which Seller has in its possession, custody, or control, along with any other information in Seller's possession or control reasonably requested by Buyer regarding the Property. Buyer shall undertake and complete its own independent investigation of the Property Conditions on or before the Due Diligence Date. On or before the Due Diligence Date, Buyer shall notify Seller in writing ("Buyer's Property Condition Notice") of Seller's approval or disapproval, in Buyer's sole and absolute discretion, of the Property Conditions. As part of the Buyer's Property Condition Notice, Buyer may, at its sole cost and expense and in its sole and absolute discretion, elect to obtain a Phase I ESA, Phase II ESA, or other such environmental studies, reports, or investigations as it deems necessary and the Close of Escrow shall be extended by mutual agreement of the parties, which agreement shall not be unreasonably withheld, to allow time to perform such investigations. In the event Buyer has specifically disapproved any Property Conditions, Buyer's Property Condition Notice shall include either a request that Seller immediately commence actions to remedy and correct the disapproved Property Conditions or that Buyer elects to cancel the escrow and terminate the Agreement. In the event that Buyer has requested Seller to remedy and correct the disapproved Property Conditions, Seller shall either: (i) promptly commence curative action in the event the condition can be fully remedied or corrected on or before the Close of Escrow; or (ii) notify Buyer that it is not feasible to remedy or correct the condition by the Close of Escrow. In the event that Seller has been unable to remedy or correct the disapproved Property Conditions by Close of Escrow, or Seller has notified Buyer of the unfeasibility of remedying or correcting the condition, then Buyer may, at its sole election, either waive its objection to the condition and take the property subject to same, or cancel the escrow and terminate the Agreement without penalty to Buyer and with the Deposit returned to Buyer. 3.2.3. Right of Entry. Subject to the conditions hereafter stated, Seller grants to Buyer and its employees, agents, and consultants, a right to enter upon any portion of the Property for the purpose of conducting engineering surveys, soil tests, investigations, a Phase I ESA, a Phase 11 ESA, or other studies reasonably necessary to evaluate the Property Conditions, which studies, surveys, investigations, and tests RIV #4815-4121-3332 v1 -9- shall be done at Buyer's sole cost and expense and its sole and absolute discretion. Buyer shall indemnify, defend, and hold Seller harmless from and against any claims, injuries, or damages arising out of or in connection with the entry and work performed in this Section. 3.3. Appraisal. After the opening of the escrow, Buyer shall commission at its sole cost an appraisal to be performed of the Property ("Appraisal"). The Appraisal shall be completed and the results thereof made known to the Seller no later than the Due Diligence Date. If the Appraisal concludes that the appraised value of the Property is less than ninety per cent (90%) of the Purchase Price as set forth in Section 1.2 [Amount of Purchase Price] then Buyer may in its sole discretion and no later than the Due Diligence Date elect to cancel the escrow and terminate the Agreement or negotiate a reduction in the Purchase Price with Seller. No reduction will be effective without written mutual consent of the parties. Upon election to cancel escrow or upon failure to reach a reduction in the Purchase Price, Buyer may terminate the Agreement without penalty to Buyer and with the Deposit returned to Buyer. ARTICLE IV REPRESENTATIONS, WARRANTIES COVENANTS 4.1. Limitation. Except for the express representations, warranties, and covenants made by the parties as provided in this Article IV, neither party has made any representation, warranty, or covenant to the other party, either express or implied, and neither party has relied upon any statement made by the other party not expressly recited in this Agreement. 4.2. Seller's Representations and Indemnities. Seller hereby makes the following representations, warranties, and covenants to Buyer, each of which, to the best of Seller's knowledge, is true as of the Effective Date of this Agreement and will be true in all respects as of the Close of Escrow: 4.2.1. Title. Seller will convey marketable title to the Property to Buyer at the Close of Escrow and Seller shall take no action that will encumber or impair title and shall suffer no encumbrance or impairment of title from the Opening of Escrow to the Close of Escrow. 4.2.2. Authority of Seller. Seller has the unimpeded power and authority to execute, deliver and perform Seller's obligations under this Agreement and the documents executed and delivered by Seller pursuant hereto. 4.2.3. No Violations. Seller has received no notice and/or has no knowledge that any governmental authority or any employee or agent thereof considers the present operation, use, condition or ownership of the Property to violate or have violated any ordinance, rule, law, regulation or order of any government or agency, body or subdivision thereof, or that any investigation has been commenced or is contemplated respecting such possible violations, or that any physical or environmental condition of the Property requires any assessment, clean-up or remedial work. RN #4815-4321-3332 V1 -10 4.2.4. No Actions. There is no pending or threatened Action which would affect or concern the Property. 4.2.5. No Environmental Remediation. Seller, or each or them, have received no written notice from any third parties, prior owners of the Property, or any federal, state or local governmental agency, indicating that any Hazardous Substances, remedial or clean-up work or other environmental assessment or investigation work is or will be required on the Property, or for any Hazardous Substances migrating to or from the Property. 4.2.6. No Agreements or Claims Affecting the Property. There are no contracts, leases, claims or rights affecting the Property and no agreements entered into by or under Seller which shall survive the Close of Escrow that would adversely affect Buyer's rights with respect to the Property, except as heretofore disclosed in writing by Seller to Buyer. 4.2.7. Property Free of Possession. As of the Close of Escrow, Seller shall be able to convey the Property free of any possession or right of possession or use by any person except Buyer. 4.2.8. No Encroachments. There are no encroachments onto the Property by buildings or improvements on any adjoining property, nor do any buildings or improvements on the Property encroach on other properties. 4.2.9. Indemnification. Seller agrees to indemnify Buyer, its elected and appointed officials, officers, agents and employees, and each of them, and agrees to protect, defend and hold Buyer, its elected and appointed officials, officers, agents and employees, and each of them, harmless from and against all claims, losses, liabilities, damages, suits, judgments, costs and expenses, including without limitation, attorneys' fees and expenses, to the fullest extent permitted by applicable law, arising out of or relating to (i) Seller's ownership of the Property, (ii) the conduct of any business, or any activity, work or things done, suffered or permitted, in, on or about the Property during Seller's ownership of the Property, (iii) the use, storage, disposal or release of any Hazardous Substances in, on or about the Property by Seller, or (iv) the breach of any representation or warranty of Seller contained in this Agreement. Buyer agrees to indemnify Seller and agrees to protect, defend and hold Seller harmless from and against all claims, losses, liabilities, damages, suits, judgments, costs and expenses, including without limitation, attorneys' fees and expenses, to the fullest extent permitted by applicable law, arising out of or relating to (i) Buyer's ownership of the Property or (ii) the conduct of any business, or any activity, work or things done, suffered or permitted, in or about the Property during Buyer's ownership of the Property. The provisions of this Section 4.2.9 shall survive the Close of Escrow or any termination of this Agreement. 4.3. Buver's Representations etc. Buyer expressly makes the following representations, warranties, and covenants: RIV 44915-4321-3332 0 _11- 4.3.1. Authority. Buyer, and the agent or representative acting on behalf of Buyer, has authority to undertake the actions and to make the promises, agreements, and commitments set forth in this Agreement. 4.3.2. Contracts. There are no legal impediments, contracts or other agreements that would prohibit Buyer from entering into this Agreement. 5.1. Non -liability of Buver's Officials and Employees. No elected or appointed official, consultant, attorney, or employee of the Buyer or Seller shall be personally liable to any successor or assign, or any person claiming under or through them, in the event of any default or breach by the Buyer or for any amount which may become due to Seller, or to its successor, or on any obligations arising under this Agreement. 5.2. No Conflict of Interest. No officer or employee of the Seller or Buyer shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership, or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Seller acknowledges and agrees that this Agreement and its terms and conditions have been the subject of negotiation between the parties and that the Purchase Price is fair and just compensation for all of Seller's interests in the Property and for any claims which Seller may have relating to loss of business goodwill, relocation benefits, severance damages and fixtures and equipment, and Seller hereby waives and releases any and all such claims. This waiver includes, but is not limited to, claims for just compensation for the property interests acquired, claims for severance or other damage, bonus value relating to any leasehold interest, additional loss of business goodwill, additional claims for relocation benefits, additional claims for improvements pertaining to realty and any and all other claims that Seller may have, whether or not specifically mentioned here, relating directly or indirectly to the acquisition by Buyer of the Property. Additionally, Seller, and its successors and assigns, shall be deemed to have knowingly and voluntarily waived the right to seek, and to have released Buyer and any and all of Buyer's employees, agents, officials, officers, servants, representatives, contractors, attorneys and assigns from any rights conferred upon Seller pursuant to Code of Civil Procedure sections 1245.245, 1263.025 and 1263.615, any rights to enforce any obligation placed upon Buyer pursuant to Code of Civil Procedure sections 1245.245, 1263.025 and 1263.615. Seller, on behalf of itself and its agents, representatives, principals, predecessors, successors, assigns, administrators, executors, heirs, and beneficiaries, hereby releases Buyer from any and all obligations, liabilities, claims, costs, expenses, demands, debts, controversies, damages, causes of action, including without limitations those relating to just RN#4915-43^_1-3332 V1 _t compensation, whether known or unknown, which any of them now have, have ever had, or might hereafter have by reason of any matters or things waived or released herein or arising out of or in any way relating to the Property; provided, however, that the foregoing release does not apply to any of the Buyer's obligations under this Agreement. By initialing below, Seller acknowledges that it has read and understands, and hereby expressly waives, the benefits of California Civil Code Section 1542 which provides: Section 1542. A general release does not ♦ ♦O Wwwomwill ♦ ' -a s'♦�♦ Seller's Initials: 5.4. ADDlicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 5.5. Attornev's Fees. In the event either party commences an Action against the other party which arises out of a default of, breach of, failure to perform, or that is otherwise related to, this Agreement, then the Prevailing Party (as defined herein) in the Action shall be entitled to recover its Litigation Expenses (as defined herein) from the other party in addition to whatever relief to which the prevailing party may be entitled. For purposes of this section, "Litigation Expenses" includes all Costs and Expenses, to the extent such are reasonable in amount, that are actually and necessarily incurred in good faith by the Prevailing Party directly related to the Action. For the purposes of this section, "Prevailing Party" shall have the meaning ascribed in § 1032(a)(4) of the California Code of Civil Procedure. 5.6. Recitals and Definitions. The Recitals and Definitions set forth at the beginning of this Agreement are a substantive and integral part of this Agreement and are incorporated by reference in the Operative Provisions portion of this Agreement. 5.7. Severabilitv. Each provision, term, condition, covenant, and/or restriction, in whole and in part, in this Agreement shall be considered severable. In the event any provision, term, condition, covenant, and/or restriction, in whole and/or in part, in this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant, and/or restriction, of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 5.6. Amendments to Agreement. Each Party agrees to consider reasonable requests for amendments to this Agreement which may be made by the other party. Any amendments to this Agreement must be in writing and signed by the appropriate authorities of the Buyer and Seller. 5.9. Administration. After approval of the Agreement by the City Council of the City of Temple City, the Agreement shall be administered and executed by the City RIV #4815-3321-3332 v1 -13- Manager and/or his or her designee. The City Manager shall have the authority to issue interpretations and to make minor amendments to this Agreement, including extensions of time, on behalf of the Buyer so long as such actions do not cause a substantial and material change to the Agreement or make a commitment of additional City funds. All other changes, modifications, and amendments shall require the prior approval of the City Council of the City of Temple City. 5.10. Notices. Formal notices, demands and communications between the parties shall be given in writing and personally served or dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of the parties, as designated in this Agreement, or taxed to the fax number listed herein followed by dispatch as above described. Such written notices, demands, and communications may be sent in the same manner to such other addresses as either party may from time to time designate by mail as provided in this section. Any such notice shall be deemed to have been received upon the date personal service is effected, if given by personal service, or upon the expiration of two (2) business days after mailing, if given by certified mail, return receipt requested, postage prepaid. Notices shall be directed to the persons and places noted at the beginning of this Agreement. 5.11. Counterpart Originals. This Agreement may be executed in duplicate originals, each of which is deemed to be an original. Signatures on following page. RN #4815-4321-3332 vt -14- IN WITNESS WHEREOF, the Seller and Buyer have executed this Agreement on the date and year first -above written. Avedik "Vick" Simonian, Sole Trustee Jose Pulido, City Manager ATTEST: Peggy Kuo, City Clerk APPROVED AS TO FORM: Eric S. Vail, City Attorney RN #4815.4321-3332 V1 -15- ATTACHMENT "A" LEGAL DESCRIPTION OF PROPERTY THE NORTHERLY 3 FEET OF LOT 249 AND ALL OF LOT 250 OF TRACT NO. 6561, AS PER MAP RECORDED IN BOOK 72, PAGES 34 AND 35 OF MAPS, IN THE OFFICE OF THE LOS ANGELES COUNTY RECORDER. RIV #4815-4321-3331 v1 _1_ Recording Requested by: and after recordation mail to: City of Temple City 9701 Las Tunas Dr. Temple City, California 91780 Attn: City Manager ATTACHMENT "B" GRANT DEED GRANT DEED THIS GRANT DEED IS RECORDED AT THE REQUEST AND FOR THE BENEFIT OF THE CITY OF TEMPLE CITY AND IS EXEMPT FROM THE PAYMENT OF A RECORDING FEE PURSUANT TO GOVERNMENT CODE §§ 6103 AND 27383 AND FROM THE PAYMENT OF A DOCUMENTARY TRANSFER TAX PURSUANT TO REVENUE AND TAXATION CODE § 11922. THE CITY OF TEMPLE CITY BY: Jose Pulido ITS: City Manager DATED: FOR VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, SIMONIAN AVEDIK & AZNIVE TRUST, a trust (the "Grantor"), hereby grants to CITY OF TEMPLE CITY, a California charter city (the "Grantee"), the real property legally described in the document attached hereto as Exhibit A, and incorporated herein by this reference. IN WITNESS WHEREOF, the Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers thereunto duly authorized, this day of , 2013. Grantor Avedik "Vick"Simonian, Sole Trustee Simonian Avedik & Aznive Trust Rry #4915-4321-3332 v 1 -1- This is to certify that the interest in real property conveyed by grant deed dated , 2013 from SIMONiAN AVEDIK & AZNIVE TRUST, a trust, to the CITY OF TEMPLE CITY, a California charter city, is hereby accepted by the undersigned officer on behalf of the City of Temple City pursuant to the authority conferred by Resolution No. adopted on by the City Council, and the grantee hereby consents to recordation thereof by its duly authorized officer. Dated: 2013 By: Jose Pulido, City Manager, City of Temple City By: Peggy Kuo, City Clerk RIV 49815-9321-3332 v1 -2- ATTACHMENT B FASTWeb Page I of 1 5922 Primrose Ave Temple City CA 91780 Property Information Owner(s) Simonian Avedik & Aznive Trust Property 5922 Primrose Ave Temple City, CA 91780 Mailing Addr 1117 Promontory PI West Covina, CA 91791 Property Profile Parcel# 8587-014-021 Map Coord 38-B2; 596-J3 Census Tract 4319.00 County Los Angeles Owner Phone Legal TRACT # 6561 N 3 FT OF LOT 249 AND ALL OF LOT 250. $/Sq. Ft. $38.50 Lot Number 250 $107,000.00 Tract Number 6561 Prior Sale Amt. Block Loan Type Subdivision 6561 Doc Type Characteristics Xfer Date 12/21/1978 Prior Doc No. Seller Use Apartment Year Built 1942 Sq. Feet 2779 Zoning TCR4YY Lot Size 2083 / 9073 # of units $147,796.00 Bedrooms 4 Bathrooms 5 Fireplace #Rooms 2012/9285 Quality Average Heating Heated Pool/Spa N Air N Style 50% Stories 1 Improvements Parking Garage Flood Gross Area 2779 Garage Area 820 Basement Area Attributes Other Property Sale Information Sale Date $/Sq. Ft. $38.50 2nd Mtg. Sale Price $107,000.00 1st Loan Prior Sale Amt. Doc No. Loan Type Prior Sale Dt. Doc Type Deed (reg) Xfer Date 12/21/1978 Prior Doc No. Seller Lender Prior Doc Type *$/Sq. Ft. is a calculation of Sales Price divided by Sq. Feet Tax Information Imp Value $147,796.00 Exemption Land Value $147,156.00 Tax Year/Area 2012/9285 Total Value $294,952.00 Tax Value $294,952.00 Tax Amount $4,593.80 Improved 50% Information compiled from various sources and is deemed reliable but not guaranteed https:Hfwprodweb l . firstam.coin/FastWeb/FASTOrderlPropertyLookUp.asp?ID=O&UID=... 6/27/2013