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SR-414-002 (17) ./ - e e eejRA-L fW' 1 4 1965 t/!t/I"OOv C/ED:HD:AS:wp Redevelopment Agency MeetIng 5/14/85 Santa MonIca, CalIfornia TO: Chairperson and Redevelopment Agency PROM: Redevelopment Agency Staff SUBJECT: Reconlmenda tlon to Author 1 ze the Execu tl ve DIrector to NegotI ate and Execute Agreements to Purchase SItes for Affordable HOUSIng Programs of the Redevelopment Agency INTRODUCTION ThIS report transmIts InformatIon and reconm~ndatlons concernIng an overall strategy for the acqUIsItIon of land for several Re- development Agency-funded hOUSIng programs, Including the Ocean Park FIfty-FIve UnIt Replacement HOUSIng project, the AlternatIve LIvIng tor the AgIng SenIor Congregate development, and the CIty- wIde HOUSIng AcqUISItIon and RehabIlItation Program. The report recommends that the Redevelopment Agency authorIze the ExecutIve DIrector to negotIate and execute agreements to assIgn proper- tIes IdentIfIed for purchase by the Agency to the AlternatIve LIvIng for the AgIng SenIor Congregate Housing Development, and to ComnlUnlty CorporatIon of Santa MonIca for a CItYWIde HOUSIng AcqUlsltlon and RehabIlitatIon Program development. The report also recommends that the Redevelopment Agency authorIze the Ex- ecutIve DIrector to negotiate and execute agreements to purchase additIonal SItes for the development of fIfty-five affordable housing unl ts as part of the completIon of the Ocean Park Re- development ProJect. ~ t/RA-2- t't\'f \. 4 ,~ - 1 - , f e e BACKGROUND In Fiscal Year 1984-85 the Redevelopment Agency allocated sub- stantial funds to support affordable housIng development under the followIng programs: Ocean Park 55 UnIts AlternatIve LIVIng for the AgIng CItYWIde HousIng AcqUIsItIon and RehabIlitatIon Program $3,51313,131313 $ 31313,131313 $1,148,996 The Ocean Park 55 unl t pr:o)ect requlr:ed that the Agency locate and purchase propertIes for the developnlent of affordable unl ts I n the Ocean Park area, as part Ial replacement of the apprmo- mately seven hundred hOUSIng units demolIshed In the 19613'5 by the redevelopment project. The AlternatIve LIVIng for the AgIng proJect also needed a Sl te for the development of si x uni t S to house twelve senIors In a congregate setting. FInally, the Clty- wIde HOUSIng AcqUISItIon and RehabIlItation Program (CHARP), WhICh was desIgned to make loans to non-profIt entItles such as Corrmlunlty CorporatIon of Santa MonIca for: the acqUISItIon, rehabIlItatIon and/or development of affordable hOUSIng, also would Involve the acqUISItIon of rental unIts or vacant land for rehabIlItatIon or development proJects. At the begInnIng of the year the acqUISItIon of SItes for the Ocean Park 55 unl ts was the hI ghest pr ior I ty for the Agency I S hOUSIng efforts. In October, 1984, Community CorporatIon began identIfYIng SItes that were avaIlable for purchase at reasonable prIces in the Ocean Park area. In order to ensure that the tlme- lines establIshed In the Alternate Plan were met and that the - 2 - J f' e e least expenSIve propertIes were purchased, all of the sItes lo- cated by Conmlunity CorporatIon were targeted for use In the Ocean Park 55 unIt housIng proJect. Between November, 1984 and March, 1985 the Redevelopment Agency authorized the purchase of SIX lots for the development of these fifty-fIve units. ThIS Incremental approach to site acquIsitIon has been very suc- cessful In provIdIng the Ocean Park fifty-five unit project with affordable Sl tes. In addl tion, several other si tes have recently been IdentifIed In Ocean Park as approprIate for development. In revIewing possIble uses for these new sItes and the best use of the SIX Sl tes already purchased, 1 t has become clear that a "reconflguratlon" of all parcels to the three Redevelopment Agen- cy proj ects outlIned above would best meet the needs of each proJect. The following table outlInes the sItes eIther purchased or lden- tIfied and proposes the assignment of each sIte to the most ap- proprIate proJect: LocatIon UnIts Proposed Use SItes InItially Purchased for OF 55 SItes Proposed: 2323 4th 6 ALA SenIors 2405-137 4th 113 CHARP Move-Ons 6th & Ashland 8 OP 55 UnIts 31J05 H~ghland 10 OP 55 UnIts 518-20 PIer 15 OP 55 UnIts 220'7 6th 6 OP 55 Units 504 Ashland 6 OP 55 UnIts 642 Marine 4 OP 55 UnIts 2400' 5th 6 OP 55 Units As IndIcated In this table, In revIeWIng the best possIble uses of these sites It appears that two of the sites purchased for the - 3 - l e e Ocean Park 55 unl ts would he well SUI ted for the other hous 1 ng pro] ects, and that other su I table Sl tes are avaIl able for the development of the Ocean Park 55 units. As noted, the strategy for maXlntizlng the use of these sl.tes In- volves three factors: (1) AssIgn the sIte at 2323 4th Street to AlternatIve LIvIng for the AgIng for development of SIX units; (2) AssIgn the site at 24135-137 4th Street to CommunIty Corpora- tion of Santa Monica for development of a ten unit "move-on" and rehabl.lltatlon project; (3) Purchase three sItes for the develop- ment of sixteen unIts, and in selectIng these sItes create the optIon of developIng a portIon of the Ocean Park 55 unIts as a cooperatIve by clusterIng sites for the development of approxi- mately forty unl ts 1 n the Ashland/PIer/Mar I ne/6th Street area. Each of these actIons l.S descrIbed In the followIng sectIons. (1) Use of 2323 4th Street for SenIor Congregate Housin9 ProJect At the same tIme that Community Corporation has been looking for propertIes for the Ocean Park fifty-flve units project, It has been workIng wIth another non-profIt group, AlternatIve LIVIng for the AgIng, on the development of a six-unIt congregate lIVIng project for senIors 10 Santa MonIca. The Redevelopment Agency allocated $300,000 In redevelopment funds In thIS fIscal year to support the land acqUIsitIon and development costs of this proj- ect. The CalifornIa Department of Housing and CommunIty Develop- ment (HCD) has awarded an addl tlonal $120,131313 from the Rental HOUSIng ConstructIon Program to the CI ty for thIS project. ALA and CommunIty CorporatIon have looked at numerous sites In Santa - 4 - l e e MonIca and have had di ff lcul ty fIndIng one that 1 s affordable WI th In the proJect's modest budget, and access I hle to servl ces, buses and shopplng for senIors. The AlternatIve LIvIng for the AgIng projects are targeted to senIors who need a more supportive enVIronment than is offered In the maJority of housIng developments. For these senIors, the prOXImIty of the 2323 4th Street sIte to buses and to convenIence shoppIng could be a great advantage. Therefore, It IS recommended that the Agency approve an aSSIgnment of the 2323 4th Stret site to AlternatIve LIving for the Aging. The purchase price of $173,131313 WIll be taken from the Redevelopment Agency funds of $31313,131313 allocated for thIS project, and the funds already expen- ded to acqu 1 re th1 s 51 te WIll be returned to the Ocean Park 55 unIt proJect account. The Redevelopment Agency has entered Into escrow to purchase this site, and has depOSIted $17,31313 as "earnest money". The escrow is scheduled to close on June 8, 1985. In order to enable Alter- native LiVIng for the Aging to purchase the property the Re- development Agency wi II execute an aSSIgnment of the Purchase Agreement, and WIll release funds as a deferred loan to Alterna- tive LIVIng for the Aging. A Pronllssory Note and Deed of Trust for the amount needed to purchase the land and cover predevelop- ment expenses WIll be prepared by the Agency staff for execution by the borrower. The terms of these documents, ensurIng that the funds are used to support a long-term affordable hOUSIng project - 5 - e e for Santa MonIca elder ly res ldents, wIll be subml t ted to the Agency for approval at the meetIng of May 28, 1985. The CalIfornia Department of HousIng and CommunIty Development's allocatIon of $120,000 in Rental Housing ConstructIon Program funds WIll be up for reVIew before theIr loan commIttee In June for authorIzation to carryover the funds to the 1985-86 fiscal year. The Department has Indicated that control of a sui table site, and development of prelImInary plans wIll be requIred by early June In order to show that the CIty and ALA have made prog- ress towards starting constructIon in a tImely manner. ,(2) Use of 2405-0'7 4th Street for Move-On HousIn<] If the purchase of sUItable alternative sites for the development of the Ocean Park. 55 unl ts IS approved, COIIIIlLunl ty CorporatIon has requested author i za t Ion to submi t an applIcation for CI tywlde HOUSIng AcqUISItIon and RehabIlitatIon Program funds for a loan to move ten unIts currently owned by Santa MonIca HospItal to the 2405-07 4th Street SIte, and rehabilItate them for low and moder- a te Income occupancy. These unl ts WIll be prov lded to CommunI ty CorporatIon at no cost by the hospItal, WhICh WIll also provIde fInanCIal support to the proJect. ThIS proJect would represent ten units of the approxImately thIrty targeted for removal by the hOSpI tal. The hospI tal has receIved a removal perna t from the Rent Control Board, WhICh only reqUIres that 15% of the replace- ment unIts be deSIgnated as affordable hOUSIng. By leveraging CHARP funds and additIonal support from the hospital, Community CorporatIon can develop all of the unIts at affordable rents. - 6 - . e e SInce these units are "move-ons" It is often dIfficult to find a SIte that fIts the orIgInal bUIldIng to be moved. Con~unlty Cor- poration has found the 2405-07 4th Street SIte to fIt the foot- prInt of thIS ten unIt bUIldIng, and to have the amenities and sIte location char acter i st ICS necessary to the success ful development of thIS project. Therefore, I t IS recommended that the Agency approve the assIgnment of thIS 51 te for purchase by CommunIty CorporatIon for development of ten move-on hOUSIng unIts. The Redevelopment Agency has also entered Into escrow to purchase thIS property, and has depOSIted $29,000 as "earnest money". This escrow is> scheduled to close on June 8, 1985. In order to assIgn thi s 51 te to CommunI ty CorporatIon for development wi th a CI ty- WIde HOUSIng AcqUISItion and RehabilItation Program loan, Com- munIty CorporatIon WIll execute a standard CHARP PromIssory Note and Deed of Trust, and the purcha se pr Ice of $290,000 wi 11 be taken from the CHARP loan account, and the funds already depOSIted Into escrow WIll be returned to the Ocean Park 55 unIts account. The CHARP Program GUIdel ines approved by the CI ty Counc 11 and Redevelopment Agency on December 13, 1983, requl.l:e that the Re- development Agency reVIew and approve each loan applicatIon prIor to dIsbursement of funds. In order to prepare a final loan ap- plIcatIon the borrower must have obtaIned fIrnl fInancing from a pr I va te lendIng instl tution. Al though CommunI ty CorporatIon has not been able to submIt an applIcation for fIrm fInancIng to a - 7 - e e lender as yet, because It does not have site control, It IS an- ti c Ipa ted that a loan wIll be avaIlable through the Bank of AmerIca under the CalIfornIa HousIng FInance Agency Mul tifanLlly RehabIlItatIon Bond Program. An applIcation detaIlIng the other areas normally revIewed by the Agency, IncludIng the affordable rents and development costs, wIll be submItted for approval at the meetIng on May 28, 1985, WIth a request that the Redevelop- ment Agency approve a loan for site acquIsItIon only, In order to meet the June 8, 1985 escrow closIng deadlIne. (3) AcquIsition of AddrtIonal SItes for the Ocean Park 55 UnIts Several alternatIve sItes have been IdentIfied that would be both sUItable for the development of the Ocean Park 55 units, and that would allow the Redevelopment Agency to develop a portIon of these unIts as a cooperatIve, rather than as rental unIts. One of these Sl tes is located on 5th Street near Holl ister; the other two are located In the Ashland/PIer/MarIne/6th Street area. The advantages of purchasIng these sites are dIscussed below. (A) 2400 5th Street Community Corporation has located a lot at 2400 5th Street that IS suitable for the development of affordable hOUSIng, and avaIl- able for purchase at reasonable terms. The lot has 6,000 square feet, IS zoned R-3 and can accommodate SIX unl ts, therefore replacing the six unIts at 2323 4th Street prevIously assIgned to the Ocean Park 55 project. The lot IS Improved wi th a sIngle- famIly house that was fornlerly occupIed by the late owner. The removal of the house WIll not reqUIre any approvals by the Rent - 8 - e e Control Board. The SIte IS close to buses, schools, IS across the street from Los Amigos Park, and near serVIces for familIes and elderly resIdents. The site is Ideal for family, or mIxed famIly and elderly hOUSIng, because of the prOXImIty to a park and the protectIon from the trafflc on 4th Street. Communl. ty CorporatIon has entered Into an agreement W1 th the seller that establ1shes a fIrm prIce and terms (Exh1blt "All). ConmlUn I ty CorporatIon or I ts ass 19nee may purchase the proper ty for $142,0'00 or $23.66 per square foot. SInce the Agency may develop the same number of unIts on thIS SIte as It could on the 2323 4th Street SIte, this represents a savings of approxImately $31,000 to the Ocean Park 55 un1ts proJect. Therefore, staff will submIt a recommendatIon to the Agency requestIng approval of the purchase of the 2400 5th Street SIte. (B) Purchase of 504 Ashland and 642 MarIne The purchase of two lots I n the Ash land/P ler/Mar ine/6th Street area also would he advantageous to the successful development of the Ocean Park 55 units and would replace those un1ts prevIously assigned to the project at 2405-07 4th Street. For some tIme, 1 nterested communI ty member s have suggested that 1 t would be desIrable to facilItate the development of some or all of the Ocean Park fIfty-fIve units as a lImIted-equity cooperatIve. A cooperative has the advantage of providIng part1cipants wIth responsIbIlIty and control over the management of the develop- ment. As owners of the cooperatIve rather than renters, the reSI- dents may have a greater stake In the neighborhood, would have - 9 - e e greater control over theIr llvlng environment, and would enJoy the additIonal financIal advantages of horneownershlp. In order to have an effectIvely managed and financIally vIable cooperatlve, particularly on scattered sites, It IS necessary to have a minImum of approxImately forty unIts. If the proJect IS smaller, there may not be enough resIdents who are wIllIng and able to handle the management and oversIght of the cooperatIve. Three of the sItes already purchased by the Agency are located In the Ashland/Pler/Marine/6th Street area, and will accomodate thIrty-three uni ts. Communi ty CorporatIon has also located two other sites In thIS area that may be developed wIth an addItIonal ten un I ts. Thl s would br ing the total un I ts that could be In- cluded In the cooperatIve to forty-three. CommunI ty CorporatIon has entered Into purchase agreements WI th the owner s of 50'4 Ashl and and 642 Mar lne. The Ashl and lot has 6,000 square feet, 1 S zoned R-3 and can accomodate approx una tely SIX unIts. The purchase prIce IS $153,0'00', or $25.50 per square foot. The MarIne lot has 5,000' square feet, IS zoned R-2 and can accon~odate approxlmately fIve units. The purchase prIce is $120,0'00, or $24.00 per square foot. The acqul Sl t Ion of these lots, in exchange for the 240'5-07 4th Street property WIll result In a savIngs of $17,900 to the Ocean Park fifty-fIve units proJect. Both lots are Improved WIth slngle-famlly seller-occupied houses. No rent control removal perml ts are requI red pr ior to develop- ment. The SItes are close to buses, schools and serVIces. A map - 10' - e e of the sItes IS attached as ExhIbIt "B". CopIes of the Purchase Agreements and a letter of assIgnment front CommunIty CorporatIon are attached as ExhIbits "e" and "D". Inl tlal dI SCUSSlons wIh area resIdents have shown that some of them are very supportl ve of the development of a coopera tl ve proJect and of the acquisItIon of the addItIonal sItes necessary to that development; others are concerned about addItIonal development of any type In the neIghborhood, or addItIonal CIty- supported affordable hOUSIng In the neighborhood. Letters have been maIled to the neighbors of all of the lots that could be Included In the cooperatIve, explaInIng the proposed development and requestIng that the neIghbors contact staff or attend thIS Agency meetIng to express any concerns or Interest In this development. CopIes of thIS letter are attached as ExhibIt "E". FINANCIAL / BUDGETARY IMPACT Funds for the AlternatIve LIvIng for the AgIng project have been approprIated In the FY 1984-85 budget as Accounts 16-72~-264-l26- 943 and 16-7210-264-731-943 ($300,000.00). Funds for the Cltywlde HOUSIng AcqUISItion and RehabIlItatIon Program have been appro- priated in the FY 1984-85 budget as Accounts 18-720-264-128-942, 18-720-264-129-942 and 16-720-264-91010-942 ($1,128,996.00). Funds for SIte acqUISItIon In preparatlon for the development of the Ocean Park fIfty-five unIts proJect have been appropriated In the PY1984-85 budget as Account 18-720'-263-535-905 ($2, 269 r 988.00) . - 11 - e e As described In thIS report and summarIzed In Table "111 In Ex- hIbit nFl!, funds wIll be transferred from the ALA and CHARP ac- counts to reImburse the Ocean Park FIfty-FIve Units account for costs already Incurred In the purchase of the 2323 and 240'5-137 4th Street Lots. No addItIonal budgetary action IS requIred. RECOMMENDATIONS It IS recommended that the Redevelopment Agency authorIze the ExecutIve DIrector to: 1. Negotla te and execute the necessary documents to assign the Purchase Agreement on the 2323 4th Street property to Alternative LIVIng for the Aging, and reimburse AlternatIve Livlng for the AgIng for up to $10,130'13 In predevelopment archItectural and en- gineerIng fees for development of a senIor congregate hOUSIng project as descrIbed in thIS report; and 2. NegotIate and execute the necessary documents to assign the Purchase Agreement on the 240'5-07 4th Street property to Conmmni- ty CorporatIon of Santa Monica for development as described In this report; and 3. NegotIate and execute an assIgnment of the Purchase Agreement to purchase the property at 241313 5th Street for development of six of the Ocean Park fIfty-five unIts; and 4. NegotIate and execute an aSSIgnment of the Purchase Agreements to purchase the propertIes at 5134 Ashland and 642 MarIne for the development of ten of the Ocean Park fl fty-fi ve uni ts, In order - 12 - to develop cooperatIve. e e forty-three of these fIfty-five unIts as Prepared by: Ann SewIll, Housing Program Manager Department of CommunI ty and Econonllc Development Exhibits: "A" - 2400 5th Street Purchase Agreement "B" - Map of SItes "C" - Purchase Agreements "0" - Letter of Assignment "E" - Letters to Neighbors "F" - Table: Budget Transfers - 13 - a e EX.T IIA" COlVIMu~ITY CORPOR....~ TION OF SANTA MO~ICA ""- Aprl.l 5, 1985 John Jalili Cl.ty Manager Clty of Santa Monlca 1685 Maln Street Santa Monlca, CA 90401 Re: Property at 2400 5th Street Dear Mr. Jalili, Pursuant to a contract w1.th the City of Santa Monica, Corporation (d.b.a. C.C. Propert1.es) has entered into a escrow to acqulre the above referenced property for use Clty of Santa Monlca Redevelopment Agencyls replacement program. Communl. ty purchase 1.n the housl.ng Accordlng the terms of these purchase escrows, Communlty Corporatlon has the absolute rlght to assl.gn the escrow to the City of Santa Monlca, the Redevelopment Agency of the CIty of Santa Monica, or any person, flrm, corporatlon or other entlty, and any such asslgnee shall be entltled to all rlghts and powers of the Purchaser. Upon notlflcatlon by the Clty of Santa Monlca, Communlty Corporation wlll assign thlS escrow to the City Redevelopment Agency or any other assignee deslgnated by the Clty. Slncerely, ~F ,;,/\" _~/?C2- ~ , ar;u~~ Exe~_ve Dl.rector 2219 MAIN STREET. SA~TA MO~ICA. CALIFOR~IA 90405 (2131392-3083 e -e ~ ~ivc( (;//k tNl () 1J7'~~fU,,). AMENDMENT TO PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS This is an amendment ("Amendmfnt") to the PURCHASE AGREEMENT ("Agreement") made on the29t'7day of March. 1985 by and between NEAL THOMAS WIENER, an l.ndJ.vidual ("Seller") and COMMUNITY CORPORATION OF S~TA MONICA, a Callfornia Corporation ("Buyer") and/or aSSlgnee. The Agreement together wJ.th thl.s Amendment, when accepted by Seller, shall const1tute the purchase Agreement between the parties and Joint escrow instruct10ns to the holder named here1n. 1. Property That certaln property commonly known as 2400 5th Street, Santa Monica, CalifornJ.a. The Real property, lncludJ.ng 6,000 square feet of land zoned R-3, and includJ.ng one houslng unit, together with all improvements, easements, rlghts of way, privileges, appurtenances, and other rlghts perta1nlng thereto, and other fixtures of personal property owned by Seller and located on and used 1n connect1on wJ.th the Real Property (collectively, all of the foregolng are referred to as the "Property"). The exact legal description of the Property 1S to be prov1ded 1n escrow. Seller agrees to sell to Buyer and Buyer agrees to buy from Seller the Property for the purchase pr1ce and on the terms and cond1tlons hereln conta1ned. 2. Condlt1on Precedent to Sellerts OblJ.gatlon Buyer and Seller acknowledge that Seller has entered into an agreement (the tlSeller Contract") with the Estate of Esther Anne Higgs (the tlEstate") to acquire the Property for a purchase prlce of $140,000600 (the "Contract Prlceto). Pursuant to the Californla Probate Code, the Seller Contract lS subject to final approval by the Probate Court (the "Courttt), and such Seller Contract may be termJ.nated if, as a result of the Court approval. there is a quallfled overbJ.d" (the "Overbid"). Buyer and Seller agree that: (a) If the Court accepts an overbid from anyone other than Buyer or Seller (or thelr respective agents)# this Agreement shall automatically terminate, and nelther Buyer nor Seller shall have any addltional or further rights pursuant hereto. (b) If the Court accepts an Overbld from Buyer (or its agent), Buyer agrees to pay Seller, at the closing of its acquls1tlon of the Property from the Estate, the sum of $1#000.00 as a finderls fee. - 1 - e e (c) If the Court accepts an Overbid from Seller, Buyer shall have the option to purchase the Property from Seller for the price approved by the Court, plus $2,000.00, plus reimbursement for Seller's costs as more particularly described here1n below. Sald option shall be exerclsed by buyer within 5 days after the Court approval of Seller's Overb1d. If Buyer does not exercise its option in accordance w1th the foregoing deadline, said opt1on shall lapse and this Agreement shall terminate and be of no further force or effect. (d) Flnally, if the Seller Bld to Purchase is approved by the Court, Seller's contingency as descrlbed ln thlS paragraph 15 automatically satisfied, and Buyer and Seller shall proceed to the closing of the transaction described in this Agreement in accordance wlth the terms and cond1tions hereof. 3. Purchase Price The purchase prlce shall be One Hundred Forty-Two Thousand Dollars ($142,000.00) plus clos1ng costs as described in Sectlon 7. 4. Payment of Purchase Prlce Upon sat~sfactlon of all contlngenc~es set forth in paragraphs 2 and 10 hereof, Buyer shall depos1t the sum of $142,000 (the "Cash Deposl t") lnto escrow, as more partlcularly descr ~bed below. Buyer shall pay the Cash Deposit into Escrow at least two days prlor to the Closlng Date, as hereafter defined. Escrow Holder 1S hereby authorized to use said Cash Deposlt to close the escrow between Seller and the Estate, provlded that (1) Seller has prev10usly depos1ted an executed grant deed w1th Escrow Holder, suff1clent to convey all of ltS interest in the Property to Buyer promptly after Buyer's acquis1tion of the Property from the Estate, and (11) Escrow Holder lS otherw1se ln a posltion to complete the conveyance of the Property to Buyer in accordance with the terms and conditions of this Agreement, immed1ately after Seller's acquisition of the Property from the Estate. - 2 - e 'e 5. Assignment Buyer shall have the absolute right to ass1gn th~s Agreement and all of its rights hereunder to the City of Santa Monica, the Redevelopment Agency of the City of Santa Monica, or any person, firm, corporation or other entity, 60 long as escrow shall close as prov~ded herein, and any such ass1gnee shall be entitled to all of the rights and powers of Buyer hereunder. On such assignment, the ass~gnee shall succeed to all of Buyerls rights and obligations under this Agreement and shall for all purposes of th~s Agreement be substituted as and be deemed to be the Buyer under this Agreement. In the event that the Agreement is assigned to any governmental entity the asslgnee shall assume all responsibil1ties as provided under the Uniform Relocation and Real Property Acqu~s1t1on Act, and/or the California Government Code, as applicable. 6. Escrow The sale shall be completed through th1s escrow to be opened at R. C. Escrow ("Escrow Holder"), wlth a copy of thlS Agreement executed by both Buyer and Seller. The "Closing Date" shall be selected by agreement among Buyer, Seller and the Estate, to be no later than Slxtty days from Aprl1 5th. 1985. This Agreement ~s hereby designated as escrow lnstructlons duly slgned by the Buyer and Seller. The Escrow Holder may requlre further wrltten instructions executed by both Buyer and Seller to clarlfy the dutles and responslbi11ties of the Escrow Holder. However, any such further instructions shall not modify or amend the provlsions of th1s Purchase Agreement. The openlng of escrow shall be estab11shed as the date escrow holder recveives the Purchase Agreement. Escrow holder shall place all escrow deposits (other than letters of cred1t) made by Buyer into an interest-bear1ng account acceptable to Buyer and Seller. All interest earned on money placed 1n escrow by Buyer shall be credited to Buyer upon the Close of Escrow, and all lnteTeSt earned on money placed 1n escrow by Seller shall be credlted to Seller upon the close of escrow, or 1f escrow fails to close, then as otherwlse provided herein. The escrow period shall commence upon receipt by Escrow Holder of a copy of this Agreement executed by both parties, with the Escrow Depos1t. On closing thlS escrow all payments except those described 1n Section 7 made by Buyer to Escrow Holder plus accrued interests hereon shall be cred1tied toward the Purchase Price. - 3 - e 'e 7. Title Seller shall dellver to Buyer good and marketable title to the property, free and clear of all mortgages, deeds of trust, liens and encumbrances (except the lien of current real property taxes not yet due and payable). Buyer1s title to the property shall be insured by a CLTA Polley of tltle insurance issued as of the Closlng Date, with a maximum liability in the amount of the Purchase Prlce showing title vested in Buyer, subject only to those exceptions to title approved by Buyer as provided herein below. Seller shall furnlsh, at Buyer's cost, a current CLTA title report, includ~ng true copies of all conditions, covenants and restrictions and other instruments and documents of record for Buyer's review and approval, WhlCh report shall be delivered to Buyer within ten (10) days of the opening of escrow. Buyer shall have f1fteen (15) days to approve the report or object thereto, ln wrlting, and, in the event that Buyer obJects to any matters contained in the title report, Seller shall have fifteen (15) days after notice rece1ved to cure the defect. If the defect cannot be cured withln such tlme, Buyer may elect to term1nate the Agreement, cancel the escrow and recover all amounts pald to Seller or depos1ted 1n escrow, or to accept such title as Seller can convey. Any oil and mineral r1ghts 1ncluding any oil and gas lease presently owned by Seller shall be transferred to Buyer at the close of escrow. Possession of the property shall be given to Buyer upon recordation of the grant deed. Escrow holder shall not be concerned as to such possession. 8. Clos1ng Costs In addition to the Purchase Pr1ce, Buyer agrees to pay the follo'W1ng costs: (a) Buyer shall re1~burse Seller for Seller's share of costs and expenses pursuant to the Seller Contract. Seller informs Buyer that, pursuant to the Seller Contract. the Estate 1S to pay for title insurance and one-half (1/2) of escrow fees and charges, and Seller is to pay one-half (1/2) of escrow fees and charges, record1ng fees, transfer taxes and exam1nat1on of title (specifically enumerate expenses). - 4 - It e (b) Buyer shall further pay the follow1ng expenses 1ncurred in connection with Seller's conveyance of the Property to Buyer: transfer taxes, recording fees, any escrow expenses 1n add~tlon to the escrow expenses described in paragraph (a) above, and the fees of the tltle insurance company, if any, to acquire the title policy described in paragraph 7. To the maX1mum extent allowed by the title company, Buyer shall receive credlt for the title insurance premlum pa1d by the Estate pursuant to the Seller Contract, and Buyer shall pay only the add1tional t1tle lnsurance premium, if any, required as a result of the simultaneous escrow descrlbed here1n. 9. Authorlzation Seller hereby agrees to execute any documents reasonably required by the Buyer consistent w1th the terms and purposes of this Agreement. All of the costs and expenses of procesSlng such applicat10ns shall be borne by and be the obliqation of Buyer, except as expressly provided for in th1S Agreement. This is a matter with WhlCh escrow is not to be concerned. 10. Conditlons Precedent to Buyer's Obligat1ons Buyer"s ob11gation to perform under th1s Agreement and close escrow lS subJect to the followlng condltlons precedent: A. Buyer's approval of the Preliminary Title Report withln 15 days of opening escrow. B. Recelpt by Buyer of an accurate legal descr1ption of the property to be furnlshed by Seller wlthin five (S) working days of the openlng of escrow. 11. Return of Funds in Escrow Account A. In the event that any of the cond1tions enumerated in Section 9 are not met for any reasons by the Clos~ng Date, then Buyer shall have the option 'to term1nate th1S escrow w~thout any liabil1ty on 1tS part. In that event, the Seller is not to be held respons1ble for any expenses or work performed by the Buyer and Escrow Holder 1S instructed to return any monies deposited to Buyer, less cancelation costs charged by Escrow Holder. B. If the Seller shall be in compliance w1th all its obl~gat1ons hereunder and shall tender the Deed, and all other 1nstruments requ1red by this Agreement in full compliance with its obligations hereunder and the Buyer shall fail or refuse to close title as requ1red by the terms of this Agreement, or if the Buyer otherwise defaults hereunder so that the Seller has the right to refuse to close escrow, then the Seller's sole remedy shall be to retain any escrow depos1t, w1th any interest earned - 5 - e e thereon. which amount is to be the best estimate by the parties of the damages Seller would suffer from such breach# it being agreed that Seller's damages are dlfficult if not impossible to ascertain. and thereupon neither party to this Agreement shall have any further rights, duties or obligations hereunder. //' ;?a: d~:9 / . ~ . ~ ~ Sellers. S1gnature(s) /? // ~ 'iY-~. M _ ~~t ~ I Buyer' Si ature{s} 12. Prorations Real estate taxes shall be prorated as of close of escrow based on latest available tax bl1l. 13. General Provls1ons A. All adjustments are to be made on a basis of a 30 day month. B. Recordatlon of any lnstruments dellvered through th1s escrow# If necessary or proper 1n the lssuance of the policy of tltle lnsurance called for. is authorlzed. C. No examlnation or insurance as to the amount of payment of real or personal property taxes is requlred unless the real property tax 1S payable on or before the date of the policy of tltle insurance. D. If any party to these instructions obtains a loan on the property 1nvolved during the pendency of thlS escrow, you are authorized to furnlsh the lender, or anyone operating on its behalf, any informatlon concernlng this escrow. including, but not l1ID1ted to, a certif1ed copy of the escrow 1nstruct1ons and any amendments thereto. E. Any amendment of or supplements to this Agreement lncluding extenSlon hereof must be made in writ1ng and executed by both the Buyer and the Seller. F. Each party agrees to indemnify and hold the other harmless from and against any and all losses, claims, damages. l1abilitles and expenses (including attorney's fees) incurred by such other party resulting from or arising out of any breach of a covenant. warranty or representation of the indemnifying party. - 6 - ~ , ~ . ifiJy. e e G. The Buyer may wa~ve compliance by the Seller in respect to any of the Seller's representations6 warranties6 and agreements set forth ~n this Agreement. H. This Agreement together with the attached purchase agreement contain all of the terms agreed upon between the parties with respect to the subject matter hereof. I. This Agreement may not be changed, modified or terminated, except by an instrument executed by the parties hereto who are or w11l be affected by the terms of such instrument. J. No waiver by either party of any failure or refusal by the other party to comply wlth its obligations shall be deemed a walver of any other or subsequent failure or refusal by the other party to so comply. K. Th1S Agreement shall inure to the benefit of and shall bind4 the heirs. executors, administrators~ successors and asslgns of the respective parties. L. Th1S Agreement may be executed in counterparts, each of which shall be deemed an original. M. Tlme is of the essence of th1S ~greern~~~_ , ~ny Cl~i~C sts not specif"cally desc~and allocated herei snall be app tioned betwe Buyer and Sel r accordlng to the u m prevail"n in Los Ang Californi , for similar _ types of_ reaLest te transac -- l J o. This Agreement shall be interpreted in accordance w1th the laws of the State of California. 18. Notices Notice to Seller may be effectively given by deliverlng or send10g the same, via United States certified or registered ma11 to: Neal T ~viener Ql00 W,lRhire Blvd #501 Rpvprlv H,11s CA 90212 or such other address as Seller may from time to time designate. - 7 - '" . e <e Not1ce to Buyer may be effectively given by de11ver1ng or sending the same, via Un1ted States cert1fied or registered rna11 to: Community Corporation of Santa Mon1ca 2219 Main Street Suite D Santa Monica, CA 90405 or such other address as Buyer may from time to t1me designate. The undersigned hereby approves and accepts the foregoing terms and condit1ons. S/!}11e : /- ~ /'., /r,'/ /~J{}/V-~ -5T #" ~-~ - Date Z~4~ I / ~-s-;pr; Date Date Date - 8 - ~. e . 11j{/l CH ~>-j ()t'J ::Ccn ::- Ul'V t>::o o '1J o trJ tr' o h:j o :0 l ~UULj C/) H ~ t'J (r.l '-:J c:: :0 () :r: :;.. [J) m o ~" \ UID~ ... a C ~ .x i '\j".! <:, ,Il' -ii '\ "" ..; , i f 1:1: MJ,CHADO- - ~ r-:.~ - --- ---1- I~J . -- I - C\TY Or s ~"~A'''' \. .0" =-'):, ~-::; ~ c-') e _EXHIBIT "c" COM~fUNITY CORPORA TIOX OF S~.-\.NT A MONICA May 3, 1985 John Jalili Clty Manager Clty of Santa Monica 1685 Maln Street Santa Monica, CA 90401 Re: Properties at 504 Ashland, 642 Marlne Dear Mr. Jall1i, Pursuant to a contract wlth the City of Santa Monlca, Communlty Corporatlon (d.b.a.-C.C. Propertles) has entered lnto purchase escrows to acqulre the above referenced propert~es for use in the C1ty of Santa Mon1ca Redevelopment Agency's replacement houslng program. Accordlng the terms of these purchase escrows, Communlty Corporatlon nas the absolute r1ght to asslgn these escrows to the Clty of Santa Monlca, the Redevelopment Agency of the Clty of Santa Monlca, or any person, flrm, corporatlon or other entlty, and any such aSSlgnee shall be entltled to all rlghts and powers of the Purchaser. Upon notlflcat1on by the Clty of Santa Monlca, Communlty Corporatlon wl1l asslgn these escrows to the Clty Redevelopment Agency or any other asslgnee deslgnated by the Clty. ]?;lere.lY.' ,;/A \. C1CJ!M / - /"/ ~ Gary ~~1~r } Execu~ve Dlrector I / ( 22~9 MAI~ STREET SA:STA ).lo:S1L~. CALIFORNIA 90405 (213) 392-3083 e c . ,J?).- v- Gv cppagree.OOl PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS THIS PURCHASE AGREEMENT AND ESCROW INSTRUCT10NS (MAgreement) is made ~h16 ~~___day of March ,1985 by and between - ~ -(.1.11C9~~~-~~ and c.C'.'Properties, a California Corporat.ion ("BuYer-) an41o~ ~~ ~-' :'~ assignee. THIS AGREEMENT ~s an offer to purchase real property for the purchase price and on the terms and conditions herein contained. ~~en accepted by Seller, it shall constitute the purchase Agreement between the parties and joint escrow instructions to the escrow holder named herein. .1. Froperty T).iot certaIn property cOIlUTlonly known as S04 AsJ11and ____~_~ Sa~ta Monlca. Callfornla. The Real Property. lnclud~ng_6.0QQ_ 5q~are feet of land zoned R-3, and ~ncludlng 1 hous~ng unIts, together *lth all Improvements. easements, r1ghts of way, pr~vIleges, appurtenances, and other r~ghts perta1n~ng thereto, and other fIxtures of personal property owned by Seller and located on and used ~n connect1on with the Real Property (collect~vely, all of the forego1ng are referred to as the "Property"). The exact legal descr~pt1on of the Property is to be prov~ded In escro~. Seller d~rees to sell to Buyer and Buyer agrees to buy from Seller ~he Property for the purchase price and on the terms and cond~tlons here1n conta~ned. 2. Purchase Pr1ce ';'r,e purchase 1be One Hu~dred Forty Thousand and I nQ.flDD_DQJJars..l). 0\000.00) 3. Fayment of P~rchase Price The sum of $5,000.00 paid to escrow upon acceptance of this offer, and the sum of $_135,000 cash upon the close of escrow. 1 e e ~~.A /~;/' ~~yer shall have the ab ute right to assign this Agreement and all of Its rlghts under to the Clty of Santa Monlca, the Fe~evelopment Age of the Clty of Santa Monlca, or any person, flrrr, corporatl or other entity, so long as escrow shall close as provided he eIn, and any such assignee shall be entitled to all of the r~ghts and powers of Buyer hereunder. On such asslgnment~ -the assignee shall succeed to all of Buyer's rights and obllgatlons under this Agreement and shall for all purposes of thlS Agreement be substituted as and be deemed to be the Buyer u~Ger ihlS Agreement. In the event that the Agreement is GS51~ned to any governmental entlty the aSSIgnee shall assume all respo~slbl11tles as provIded under the Uniform Relocatlon and Feal Property AcquIsltion Act, and/or the Callfornla Government Co3e. as applIcable. 0:;. ASSignment Escro..... T~e sale shall be completed through thl~ ~row to be opened at R.C. Escro'v; ("'Escro'v: Holder"), \lnth $sjg150.00 deposited D~' ~ ~yer 1 ntc escro..... (" Escro.... Deposl t").,' together WI th a copy of -~-~.~S hgreer:.ent. €H:'c,",~ed by bo't-h Buyer and Seller. The "Clos~n9 ~;G:'e" srJell bE establlshed nInety days from the date of the ol'e~ 2ng of escro...t. Escro..... shall close no late than th1s Clos1ng 0~~e provldec, however, that yer shall have the optlon to ~}:e~c escro~ for a perl~ n1nety days by an addltlo~al CE-.----.:;s 1 t lnto Escrow,: of S., 00.00 ("Extens1on Deposit"). I -:----:~ L.:.:::-eer:-en:. lS hereby aeslgnated as escro....' l.nstructIons duly E ~ :::,ed by the Buyer and Seller. The Escrow Holder lnay requl.re f~~:'~e~ ....rlt:.en l.nstructlons executed by both Buyer and Seller to ~:~i~fy the oot1es and responslb111t~es of the Escro..... Holder. "~f:-,,=r, any such further :lnst-ructIons shall not mod1fy or amend ~~e prOV:lS10ns of th1s Purchase Agreement. The openl.ng of escro~ ~~~l: be establlshec as the date escro..... holder receIves the ~~~c~jCse hgreewent. Escro..... holder shall place all escro..... deposlts :c:.her than letters of credIt) made by Buyer Into an lc:.eies:'-bearIng account acceptable to Buyer and Seller. All l'~:.e"es~ earnea shall be credIted to Buyer upon the Close of ~~~ro~. or If escro~ fa1ls to close, then as other~1se provided :jE re =---r~. ~" -;-,c ~~yer may. at hlS opt1on, cause this Escro~ to close ear11er ~ ~~vlDg Seller ten (10) days wrltten notice to depos1t a Grant Deed ~:~h Escro~ Holder. l~'€ escrow perlod shall commence upon receipt by Escrow Holder of a copy of thIS Agreement executed by both parties. with the Escro~ Deposlt. On closing th1S escro~ all payments made by Buyer ~o Escrow Holder plus accrued interests hereon shall be credited ~o~ard the Purcnase PrIce. 2 e e 6. T~tle ~ Seller shall dellver to Buyer good and marketable title to the property, free and clear of all mortgages, deeds of trust, liens and encumbrances (except the 11en of current real property taxes not yet due and payable). Seller shall furnish, at its cost, a current CLTA t1tle report, lncludlng true coples of all condltions, covenants and restrictlons and other instruments and docu~ent~ of record for Buyer's reVlew and approval, which report shall-be dellvered to Buyer w~th1n ten (10) days of the opening of escrow. Buyer shall have flfteen (IS) days to approve the report or obJect thereto, 1n wrlting, and, in the event that Buyer obJects to any matters contalned in the tItle report, Seller shall have flfteen (15) days after notlce rece1ved to cure the defect. If the defect cannot be cured wlth1n such t1me, Buyer may elect to termlr.ate the Agreement, cancel the escro~ and recover all amounts pald to Seller or deposlted In escrow, or to accept such title as Seller can convey. At Buyer's opt1on, Seller shall provlde an ALTA extended coverage tItle lnsurance policy for Buyer's lender(s} and Buyer wIth such ensorsements as may be regu1red, and 1n such event Buyer shall f2y the a~fference 1n premlum above the stanQaro CLTA POllCY. Tl~l€ Insurance 1S to be Issued by Equ1ty Tltle Company. ~ny 011 and ffilneral rlghts ~nclud1ng any 011 or gas lease presently o~~ed by Seller shall be transferred to Buyer at the close of escrow. PosseSSlon of the property shall be 91ven to Buyer upon reCOraatlon ~ the orant deed. Escro~ holder shall not be cOncerne6 as to ~ such possess~on. (. Englneer1ng. Effectlve lmmeolately, Seller authorlzes Buyer, and its ~Jthor1zed agents, to enter upon all of the property for the ~'~rp~se of maklng 5011 tests, englneerlng stucles and surveys. ~ :11 of which tests, studles and surveys shall be done at Buyer's €Apense, a~d Buyer shall hold Seller harmless from any and all clalffis arlslng out of such work and act1vity. 8. Authorlzatlon Seller hereby agrees to execute any documents reasonably required by the Buyer conslstent wIth the terms and purposes of this Agreement. All of the costs and expenses of processing such appllcatlons shall be borne by and be the obligat1on of Buyer, except as expressly provided for in this Agreement. This is a ~atter ~lth which escrow is not to be concerned. 3 '- e e 9. CondiLlons Precedent to Buyer's Obligations Fuyer's obllgatlon to perform under this Agreement and close escrow IS subJect to the followlng conditions precedent: ~~ A. Buyer's approval of the Prellmlnary Title Report ~ pursuant to Sectlon 6. B. Receipt by Buyer of an accurate legal descrlption of the , property to be furnished by Seller wlthln flve (5) work1ng days of ~- the openlng of escrow. C. Buyer's approval, ln ltS o~~ dlscretlon, of all so11 tests, englneerlng studles, and/or surveys obtalned or performed by Btiyer pursuant to SectIon 7 ~lthln flfteen (15}~~~days of tne openlng of escrow. L/ D. Recelpt by Buyer of any and all flr.anclng requlred by /'tcyer to acqulre, and/or operate the Property, at terms and l _~ CODcltlcns acceptable to"Buyer, wlthln (45)~ays of the ~ cpenlng of escrow. (~~ ~~3--' 10. Fe~urn of Funds 1n Escrow Account. -I ~. l~ the event that any of the cond1t1ons enumerated 1n 5eL~IO" 9 2re not met for any reasons by the ClosIng Date, then /~~er shall have the optlon to termlnate this escrow wlthout any ll2b~11ty on lts part. In that event, the Seller is not to be r,eja respons~ble for any expenses or work performed by the Buyer, and Escro~ holder lS 1nstructed to return the mOn1es depos1tea to BLyer. less cancellatlon costs cDarged by Escrow Holder. ~ E. if the Seller snall be lD compl1ance wlth all ltS c~llcatlon~ he~eu~6er and shall tender the Deed, and all other ... _~ 1 ~ strur.;e;-.t s ::-eqtJl red b) thl S Agreement 1r. full compll.ance \>11 th ~rII/q l~s cb:lcatl~ns nereuncer and the Buyer shall fall or refuse to (J~close tltle as re~ulred by the terms of thIs Agreenent, or if the ::;:,..-- ,-'yer other.....l se defaul ts hereunde~ so t'he.t the Seller has the rlght tc refuse tc close escro~. then the Seller's sole remedy s~all be to reta~n the entlre escro~ ceposlt, ~lth any ~nterest Ecrnec thereor., whlCh amount 15 to the best estlffiate by the paTtIes of the oaffiages Seller would Suffer fro~ such breach, it belng agreed that Seller's damages are dlfflcult If not lnposslble to ascertaln, and thereupon nelther party to thlS hgreement shall have any further rlghts, dutIes or obllgatlons hereunder. Seller's Slgnature{s) 4 e e 11. ProratIons Real estate taxes shall be prorated as of close of escrow based on latest avaIlable tax b111. Personal property taxes, If any, assessed agaInst the property as shown on latest real property tax blll shall be palo 1n full at close of escrow from Seller's account. 12. Escrow costs Escrow costs~ recordlng fees and transfer taxes shall be dlvlded accordlng to the usual practices 1n Los Angeles County, Callfornla. 13. General ProvlsIons: A. Any C0'7uI11 tr..ent r.ade l.n \orTl t1.ng to the Escroy," Holder by a bcnk, trust cOTopany~ lnSJrance conpany, or bU1.ld1.ng and loan or So\' l.r.g sand loar, aSSOCla tl on to dell ver 1 ts check or funds Into thIS escrow may, at the sole dlscretion of the Escro~ Holder, be ~r~c~ed as tr.e equIvalent of a oeposlt nereln of the a~ount trJe-reof. B. hl~ aCJust~ents are to be Gade on a basls of a 30 day ["":0::. t h . c. Recordat1on of any lDstru~ents delivered through thlS escro......, If necessary or proper 10 the l.SSuance of the POllCY of tItle lnsurance called for, 15 author1zed. D. Ko exarr~nGt~o~ or ~nsurance as to the amount of payment 0: real or personal prop~r~y taxes ~s requ1red unless the real ~':r::;.p~rt.y tay ~E p<'<ycclEO o~. or before the date of the polley of ~ :. t. 1 E Ins 'c. r a ~l c e . E. If any part.y t.o tnese l.nstructlons obtains a loan on the Fro~erty Involved durlng the pendency of thIS escro~, you are a~thorlzed to furnIsh the lender, or anyone operatlng on its te~,al:f, any 1nfornat.lon concernlng thlS escro~-. Includ~ng, but net. Ilffiltec to, a certIfIed copy of the escrow Instructions and a!lY CiJT'.endments thereto. F. Any a~endment of or supplements to this Agreement IncludIng extens1.on hereof must be made In wrIting and executed by bOLh the Buyer and the Seller. G. Each party agrees to indemnlfy and hold the other rar~less fro~ and agalnst any and all losses, clalms, damages, llablllt~es and expenses (lncludlng attorney's fees) incurred by such other party resultlng from or ariSIng out of any breach of a covenant, ~arranty or representatlon of the indemnlfying party. 5 "- e e H. The Buyer may walve compllance by the Seller 1n respect to any of the Seller's representatIons, ~arranties, and dgreements set forth In thlS Agree~ent. I I. ThlS Agreement contalns all of the terms agreed upon bet~een the partIes WIth respect to the subJect matter hereof. J. ThIS Agreement ffiay not be changed, modIfIed or term1nated, except by an Instrument eAecuted by the partles hereto who are or ~lll be affected by the ter~s of such Instrument. K. No walver by either party of any failure or refusal by the otner party to co~ply ~lth Its obllgatlons shall be deemed a ~alver of any other or subsequent fallure or refusal by the otner party to so comply. L. ThIS Agreement shall inure to the benefit of and shall blnd, the helrs, executors, admInistrators, successors and csslgns of the respectIve partIes. ~. ThIS Agreement rr.ay be executed in counterparts, each of w~lch shall be deemed an orIgInal. K. TI~e IS of the essence of thIS Agreement. o. hny closlng costs not specifIcally oescribed and allocatee hereIn shall be apportIoned bet~een Buyer and Seller accordIng to t~e custor prevaIlIng In Los Angeles, CalIforn1a, for Slffillor types of real Estate transactIon. P. ThIS A9ree~ent shall be lnterpreted In accordance ~~th the laws of the State of Callfornla. 1";' . \o;arrantIes h. Seller ~arrants that Seller has provldea Buyer ~lth all r,ot~ ticat .ons from the Department of BUl1dlns and Safe-::y, Real U-. Depar"'- "ent, or such other Clty r County or State authorl ty hc.vln~ ~u SdIctlOD, requIrlns any work to be done on or affectlng the ,t-Jroperty. Seller further ~larrants that In the event of any such notlce or notlces are recelved by Seller prIor to the close of escro~, sala notlces shall be submItted to Buyer for lts examlnatlon and wrItte~ approval WIthIn 15 worklng days of reC€lpt from Seller. ~seller ~r~ants that~roperty has be~cupled br~ seller, lnce--*"Jul~ 1984 ~~ -/ _ _ ~~ ~ .~/. ~ t ~^- ~ r----'r--f' J ~i"5I--<"-c.-. --, .5-04~~~-;- 15. Condltlon of Purchase of Improved Property '~SXle~agrees to malntain the property In its condit1on existing ~ ~ as 0 the date hereof, reasonable wear and tear excepted. U 6 '- e e ~ If Seller falls to delIver tItle as hereIn provIded, or If the l~provernents on said property are destroyed or damaged prIor to ~ra~sfer of tItle, Buyer shall have the optIon of termInatIng tOIs hgreernent and shall be released from all oblIgations ~ereunder WIthout lIabIlIty. a> Ko new leases or rental Agreements may be executed nor shall any eXIstIng lease or rental Agreements be terminated or modIfIed prIor to close of escrow WIthout wrItten approval of Buyer. ~~In the event that the property contains residential units, ~sel1er shall obtaIn and deliver to Buyer prIor to close of escrow a copy of ReSIdentIal BUIlding Record required per SectIon 9201- 920~ of the Santa MonIca MunlcIpal Code. fr. ~~e event that the property contains rental unIts, Seller ~a~l reoIster all of the units WIth the Santa Monica Rent ~~frol Beard and furnIsh eVIdence thereof before the close of e ckc~, ~lth the exceptIon of unIts occupIed by Seller or S '} er I S lrr....>r.ecla"t.e famIly. Close of escrow Iriay, at Buyer's cp lon, be delayed In receIpt of necessary Santa Mon1ca Rent . trcl 50ard approvals and permlts. Seller ~arrants rents do - ~ e>~eed the MaXImum Allo~able Rents as establ~shed by the -~~ ~o~Jca Rent Control Board. rv/'\.. -- '" & ~~lE~E acceptance hereof 15 SIgned by Seller and such acceptance eCHo-un.:;. cctec to Buyer by 5 p.m. . ('1AR.(JJ., I:=: if') t s- :985 t~lS offer shall be deemed revoked and the depOSIt shall be "e~Jrne~ to Buyer. If. Real Estate Corr~15slor. ~~_;E~ stall pay at ltS sole cost and expense, and lndemnlfy, '. :-:<y:. anc Y.olc. harrr.less Buyer from all broker's comrnlSS1ons and f~njer's fees. ThIS provlslon shall surVIve the close of escrow. 17. r~Ot.l ces !~O:':CEc tc the same, Seller may be effectIvely gIven by del~vering or sending via UnIted States certlfled or reoistered mail to: ~4~- /~ - wI ~Avl c q-(v /~J ~ J -.3 (> t t 1-11 ~r'- , J or such other address as Seller may from time to tlme deslgnate. Notlce to Buyer may be effectIvely 91ven by delivering or sendlng the same, VIa United States certifled or registered mall to: 7 e e c.c. PropertIes 2219 ~aln Street SUIte D Santa Monica, CA 90405 or such other address as Buyer may from tIme to time deSIgnate. The undersIgned hereby approves and accepts the foregoing terms and condItIons. Date Seller: Date Date 8 e _EXHIBIT liD" oppagree.002 PURCHhSE ~GREE~ENT k~D ESCRO~ INSTRUCTIONS THIS PURCHASE AGREEto'.Et-."T MD ESCRO\-" INSTRUCTIONS (.'h.greement) is made t.his nJ.nth day of Aorll .1985 by and bet",'een Lorraine_.E. l(elton and John-I-~ark Kelton , ("SellerW') ano C.C. Propert.leE. a Callforn18 Corporat.ion ("'BuyerW') and/or assignee. THIS AGREE~E~T l~ an offer t.o purchase real property for t.he purchase price ar-a on the terms ane concit.lons herein contained. ~~en accepted by Seller. it. shall constit.ut.e the purchase hgreement bet~een the partl€S and JOln1. escro~ instructions to the escro. holder named herein. 1. Property That cert.ain pr~perty cOffiIT\only known as 642 Marine Street, Santa Monica, Callfornla. The Real Property together ~ith all lmprove~ents, easements, rlghts of *ay, privl1eges, appurtenances, ana other rlgnts pertaln1ng thereto, and other f1~tures of personal property Owned by Seller and located on ano used ~n connect~on wlth the Real Property (collectively. all of the forego.l.ng are referred to as the "Property.') _ The exact legal rlescr1ption of the Property is to be provided in escr~'_ Seller agrees to sell to Buyer and Buyer agrees ~o buy from Seller the Property for the purchase price and on the terms and condltlons hereln contalnea. 2. Purchase Prlce The purchase prlce shall be One Hundred Twenty Thousand and nO/lOO Dollars ($120.000.00) 3. Payment of Purchase Price The sum of $10,000.00 pald to escrow upon acceptance of tbis offer. and the sum of $ 110,OOO.OOcash upon tbe close of escrow. 1 4. AS~>1gnment e e ~ Buyer shall have the absolute rlght to assign th15 Agreement and all of 1ts r1ghts hereunder to the City of Santa Mon1ca, the Redevelopment Agency of the C1ty of Santa Mon1ca, or any person, f1rm, corporatIon or other entIty, so long as escrow shall close as provided hereIn. No assIgnment shall be made wIthout the prIor wrItten approval of such aSSIgnment by Seller, . first had and obtained, said approval not to be unreasonably WIthheld. Any such aSSIgnee shall be entItled to all of the rIghts and powers of Buyer hereunder. On such aSSIgnment, the aSSIgnee shall succeed to all of Buyer's rIghts and oblIgatIons under thIS Agreement and shall for all purposes of thIS Agreement be substituted as and be deemed to be the Buyer under thIS Aareement. In the event that the Agreement is aSSIgned to any o;vernmental entIty the aSSIgnee shall assume all ~esponSlbllltles as prOVIded under the UnIform RelocatIon and Real Property Acqulsltlon Act, and/or the CalIfornIa Government Code, as applIcable. s. Escro\o'. The sale shall be"completed through this escrow to be opened at R.C. Escro"'" ("'Escro\o' Holder.'), with$lO,OOO.OO deposited by Buyer into escro",,- (" Escrm.... Deposit.'), t.ogether "d th a copy of this Agreement executeo by both Buyer and Seller.. The .'Closing Date" shall be established ninety days from the oate of the openlng of escrow. Escro~ shall close no late than this Closing Date provided, however, that Buyer shall have the option to extenc escro~ for a perloa of nlnety days by an additional oeposlt into Escro~ ofS10,OOO.OO ('~xtension Deposit~). ThlS Agreement is hereby oesignated as escro~ ~nstructions duly slgneo by the Buyer ana Seller. The Escro~ Bolder ~~y requlre further ~ritten instructions executed by both Buyer and Seller to clarify the duties and responsibilit1es of the Escro~ Boloer. However, any such further 1nstructions shall not modify or amend the provisions of this Purchase Agreement.. The opening of escrow shall be established as the date escrow holder receives the Purchase Agreement. Escrow holder shall place all escrow deposits (other than letters of credit) made by Buyer into an interest-b€aring account acceptable to Buyer and Seller. All interest earned shall be credited to Buyer upon ~he Close of Escro~, or if escro~ fails to close, then as otherwise provided here1n. The Buyer rr~y, at his option, cause th1s Escrow to close earlier by giving Seller ten (10) cays written notice to deposit a Grant Deed with Escrow Holder. The escrow period shall commence upon receipt by Escrow Bolder of a copy of this Agreement executed by both parties, ~ith the ~scrow Deposit. On closing this escrow all payments made by Buyer to Escrow Bolder plus accrued interests hereon shall be credited toward the Purchase Price. An executed copy of this Agreement shall be delivered to Escrow by Buyer wlthin fIve (5) days of rece1pt by Buyer of fully executed Ag!eement from Seller. 2 , ' e e 6. Title Seller shall deliver to Buyer good and marketable title to the property. free and clear of all mortgages. deeds of trust. liens and encumbrances (except the lien of current real property taxes not yet due and payable). Seller shall furnish. at its cost. a current CLTA title report. including true copies of all conditions, covenants and restrictions and other instruments and documents of record for Buyer's review and approval, which report shall be delivered to Buyer within ten (10) days of the opening of escrow. Buyer shall bave f~fteen (15) days to approve the report or object thereto. in writing, and. in the event tbat Buyer ObJects to any matters contained in the title report, Seller shall have fifteen (15) days after notice received to cure the defect. If the defect cannot be cured within such tiroe. Buyer may elect to terminate the Agreement, cancel the escrow and recover all amounts pa~d to Seller or deposited in escrow, or to accept such title as Seller can convey. At Buyer's option, Seller shall provlde an ALTA extended coverage title insurance policy for Buyer's lender(s) and Buyer with such endorsements as may be required. and in such event Buyer shall pay the d1fference in premium above the standard CLTA pol~cy. T1tle Insurance is to be 1ssued by Tlcor Title Company. Any oil and mineral rights including any oil or gas lease presently owned by Seller shall be transferred to Buyer at the close of escro'W. Possession of the property shall be given to Buyer upon recordation of the grant deed. Escrow holder shall not be concerned as to such possession. 7. Engineering. Effective immediately. Seller authorizes Buyer. and its authorized agents, to enter upon all of the property for the purpose of making soil tests. engineering studies and surveys. all of which tests, studies and surveys shall be done at Buyer's expense. and Buyer shall hold Seller harmless from any and ~ll claims arising out of such work and activity. 8. Aut.horiz.ation Seller hereby agrees to execute any documents reasonably required by the Buyer consistent with the terms and purposes of this Agreement. All of the costs and expenses of processing such applications shall be borne by and be the obligation of Buyer. except as expressly provided for in this Agreement. This is a ~tter with which escrow is Dot to be concerned. 3 P i e e 9. ConditIons Precedent to Buyer's Obligations Buyer's obligatlon to perform under this Agreement and close escrow is subJect to the follow~ng conditions precedent: A. Buyerts approval of the PrelIminary Title Report pursuant to Sectlon 6. B. Receipt by Buyer of an accurate legal description of the property to be furnishea by Seller ~ith~n five (5) ~orking days of the opening of escrow. c. Buyer's approval, in its O~~ discretion, of all sOlI tests, engIneerIng studies, and/or.surveys obtained or performed by Buyer pursuant to SectIon 7 within fIfteen (15) ~orking days of the opening of e5cro~. D. ReceIpt by Buyer of any and all finanCIng requlred by Buyer to acqUIre, and/or operate the Property, at terms and conditions acceptable to Buyer, ~ithin (45) working cays of the opening of escro~~ Buver's faIlure to set forth 1n wrItino and dellver to Seller ~lihln above stated per~od of tlme any-condItIon precedent not met shall be deemed a ~c1ver of sald condIt1on precedent. 10. heturn of Funds 1n Escro~ Account. A. In the event that any of the conditions enumerated 1n Sectlon 9 are not met for any reasons by the Closing Date. then Buyer shall have the optlon to terminate this escrow without any lIability on Its part. In that event. the Seller is not to be held responsible for any expenses or work performed by the Buyer, and Escro~ Holder 16 1nstructed to return the monies deposited to Buyer, les~ cancellation costs charged by Escrow Holder. B. If the Seller shall be in compliance with all its obligations hereunder and shall tender the Deed, and all other instruments required by this Agreement in full compliance with 1ts obligations hereunder and the Buyer shall fail or refuse to close title as required by the terms of this Agreement, or if the Buyer otherwise defaults bereunder 60 that the Seller has the right to refuse to close escrow, then the Seller's sole remedy sball be to retain the entire escrow deposit. wi~ any interest earned thereon, which amount is to the best estimate by the parties of the damaaes Seller would suffer from such breach, it being agreed that S;ller's damages are difficult if not impossible to ascertain. and thereupon neither party to this Agreement shall have any further rights, duties or obligations nereunder. Seller's Signature{s) Buyers' Signatures 4 ". . e e 11. Prorations Real estate taxes shall be prorated as of close of escrow based on latest available tax bill. Personal property taxes, if any, assessed agalnst the property as shown on latest real property tax bill shall be paid in full at close of escrow from Seller's account. 12. Escrow costs Escrow costs, recording fees and transfer taxes snaIl be divided according to the usual practices in Los Angeles County, California. 13. General Provislons; A. Any commitment made in writlng to the Escro~ Holder by a bank, trust company, insurance company, or building and loan or sav1ngs and loan association to deliver 1ts check or funds into this escrow may, at the sole dlscretion of the Escrow Holder, be treated as the equivalent of a depos1t herein of the amount -thereof. B. All adJustments are to be made on a basis of a 30 day month. c. Recordation of any instruments delivered through this escrow, if necessary or proper in the issuance of the policy of title insurance called for, is autnorized. D. No examination or insurance as to the amount of payment of real or personal property taxes is required unless the real property tax is payable on or before the date of the policy of title insurance. E. If any party to these instructions obtains a loan on the property involved during the pendency of this escrO~r you are authorized to furnish the lender, or anyone operating on its behalf, any information concerning this escrow, including, but not limited to, a certified copy of the escrow instructions and any amendments thereto. F. Any amendment of or supplements to this Agreement inCluding extension hereof must be made in writing and executed by both the Buyer and the Seller. G. Each party agrees to indemnify and hold the other barmless from and against any and all losses, claims. ortmages, liabilities and expenses (including attorney's fees) incurred by such other party resulting from or arising out of any breach of 8 covenant. warranty or representation of the indemnifying party. 5 , J e e H. The Buyer rr~y ~aive compliance by tne Seller in respect to any of the Seller's representatlons# warrantles. and agreements set forth in this Agreement. I. This Agreement contalns all of the terms agreed upon bet~een the parties ~ith respect to the subJect matter hereof. J. This Agreement may not be cnangea, modlfled or terminated, except by an lnstrurnent executed by the partles hereto who are or ~lll be affected by the terms of such instrument. K. ~o *alver by elther party of any fallure or refusal by the other party to comply with its obligatiops shall be deemed a ~aiver of any o~her or subsequent failure or refusal by the otner party ~o so co~ply. L. This hgreement shall lnure to the beneflt of and shall bind, the heirs, executors. administrators, successors and asslgns of the respective parties. M. Thls Agreement may be executed in counterparts, each of ~hich shall be deemed an origlnal. N. Time is of the essence of thlS Agreement. o. Any closing costs not specifically described and allocated hereln shall be Qpport~onea bet~een Buyer and Seller accoro~n9 to the custo~ prevaillng in Los Angeles, California, for slml1ar types of real estate transaction. P. ThlS Agreement shall be interpreted in accordance ~lth the la~s of the State of Cal1fornla. 14. Warrant~es A. Seller warrants that Seller has provlded Buyer with all notlflcatlons which Seller has received from the Department of BU11dlng and Safety, Health Department, or such other City, County, or State authority having Jurlsdlctlon, requiring any work to be done on or affectlng the property. Seller further warrants that 1n the event any such not~ce or notlces are recelved by Seller prlor to the close of escrow. said notlces shall be submitted to Buyer for its examinatlon and wrltten approval within 15 working days of receipt from Seller. B. Seller warrants that property was o~~er-occupled on July 1, 1984, Seller shall, prlor to May 7, 1985, provlde affldavlt to th~s effect to Santa Monlca Rent Control Board 10 such form requlred by the Board for purposes of automatlc slngle-famlly ow~er-occupied exempt1on. 15. Condition of Purchase of Improved Property Seller agrees to maintain the property in its condition existing a6 of the date hereof, reasonable wear and tear excepted. 6 1 ~ e e If Seller fails to deliver title as herein provided, or if the improvements on said property are destroyed or damaged prior to transfer of title, Buyer shall have the option of terminating th1s Agreement and shall be released from all obligations hereunder without liability. No new leases or rental Agreements may be executed nor shall any existing lease or rental Agreements be terminated or modified prior to close of escrow w1thout written approval of Buyer. In the event that the property contains residential units, Seller shall obtain and deliver to Buyer prior to close of escrow a copy of Residential Building Record required per Section 9201- 9204 of the Santa Monica Munic1pal Code. In the event that the property conta1ns rental units, Seller shall register all of the units with the Santa Monica Rent Control Board and furn1sh eV1dence thereof before the close of escrow, w1th the exception of units occupied by Seller or Seller's immediate family. Close of escrow may. at Buyer's option. be delayed in receipt of necessary Santa Monica Rent Control Board approvals and permits. Seller warrants rents do not exceed the Maximum Allo~able Rents as established by the Santa Monica Rent Control Board. Unless acceptance hereof is signed by Seller and such acceptance commun1cated to Buyer by 5 p.m. Aprll 16, . 1985 this offer shall be deemed revoked and the deposit shall be returned to Buyer. 16. Real Estate Commission Buyer agrees to pay any and all real estate commissions as agreed upon by Buyer and Jon Douglas Company as a commission for services endered in effecting the sale, payable upon close of and through escrow. Seller shall pay at its sole cost and expense, and indernni~, defend and hold harmless Buyer from all broker's commissions and f~nder's ~ees other than those referenced above. This provision shall survive the close of escrow. 17. Notices Notice to Seller may be effectively given by delivering or sending the same. via United States certified or registered mail to: Stanley Kelton P.O. Box 1075 Paramou~t, CA 90723 - 1075 ~... J tit e or such other address as Seller may from time to time designate. Notice to Buyer may be effectively given by delivering or sending the same, Vla United States certified or registered mail to: c.c. Properties 2219 Main Street Suite D Santa Monica, CA 90405 or such other address as Buyer may from time to time designate. The undersigned hereby approves and accepts the foregoing terms and conditions. Seller: Buyer: Date Date Date Date , . e EXHIIT II E II CITY OF SANTA MOIVICA DEPARTJ1ENT OF COJlJ-JUNITY AND ECONO;:UIC DEVELOPMENT CITY HALL, 1685 MAIN STREET, POBOX 2200 SANTA MONICA. CALIFORNIA 90401-2200 PHOSE (213) 458-8701 NOTICE May 1, 1985 Dear ReSIdent: ThIS letter IS to Inform area resIdents of a proposal before the CIty CouncIl, as the Redevelopment Agency, to purchase lots at 504 Ashland Avenue and 642 MarIne Street to construct affordable housIng. As you probably know, the Redevelopment Agency of the CI ty of Santa MonIca has been workIng on a redevelopment proJect In the Ocean Park area for a number of years. One of the condItIons of the compl et Ion of thIS proJect 1 s the devel opllien t of f I fty-f 1 ve unl ts of housIng El Ocean Park as partIal replacercLent for the more than seven hundred unI ts renioved fJ::'O'll t!"le redevelopmen t aJ::'ea. These fl fty-f Ive unl ts are to be developed as affordable hOUSIng for low and moderate-Income senIors and fa~llles. SInce October, 1984, the RedevelopnLent Agency has purchased SIX lots In Ocean Park for the development of these unl ts. Three of these lots 5l8-20 PIer Avenue, 3005 HIghland Avenue, and the corner of 6th Street and Ashland Avenue - are In your ImmedIate neighborhood. These lots WIll be developed wIth a total of thIrty-three unIts. For sOille tIme, communIty reSIdents have expressed an Interest In seeI ng a port Ion of the f I fty-f I ve unl ts developed as coopera- tIvely owned, rather than rental, hOUSIng. T01S type of develop- ment would be ot-med and managed by a corporatIon made up of the bUIlding occupants. A cooper~tlve has the advantage of provldlng particIpants WIth responsIbIlIty and control over the management of the development. As owners of the coopera tl ve ra ther than renters, reSIdents may have a greater stake In the success of the bUIldIng, and of the neIghborhood. The experIence of other cooperatIve developers has been that the mInImum Slze of a cooper a tl ve must be appro l{ lma tely for ty unI ts, and these unI ts must be located eIther on the same SIte, or WIthin close prOXImI- ty to each other. ThIS mInImum SIze IS necessary to ensure that there WIll be enough residents WIth the lnterest and SkIlls needed to successfully manage the operatIons of the cooperatIve. In examInIng the pOSSIbIlIty of developing some of the fifty-fIve unIts as a cooperatIve It appears that there are two addItional si tes avaIlable In the AShland/Pier/Marlne/6th Street area that could accommodate an add 1 tIonal ten un 1 ts. Th 1 S would br I ng the > . e .e . total units would allow cooperatIve, to be developed In this area to forty-three, for the poss Iblll ty of developIng the unl ts rather than as rental housIng. WhICh as a The CIty CouncIl, as the Redevelopment Agency, wIll be asked to approve the purchase of two SItes at 504 Ashland and 642 MarIne, for the development of a total of ten unl ts, at the meetIng on May 14, 1985, at 7:30 pm. In CouncIl Chambers, CIty Hall, 1685 MaIn Street. Your comments and questIons WIll be welcomed at thIS meetIng. If you have any comments or questIons prIor to thIS meetIng please do not hesItate to call the HousIng DiVISIon staff at 458- 8701. SIncerely, ~ ._~&JJ Ann Se.""lll HousIng DIVIsion Manager .... !II __... e - <=> ,...., "'" "'" * <-" <--, --< ~ = r-- g ~ - ~ = = ~ ". 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