TRANSPORTATION MANAGER EMPLOYMENT AGREEMENT
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written.
Dated: "Employee"
By:_
HESHAM ELSHAZLY
Dated: City of Arvin
By:
Name:
Title: MAYOR
APPROVED AS TO FORM:
For City:
By:
Name:
Title: CITY ATTORNEY
For Employee (if represented):
By:
Name:
Title:
TRANSPORTATION MANAGER EMPLOYMENT AGREEMENT
EXHIBIT "1"
EMPLOYMENT AGREEMENT
TRANSPORTATION MANAGER EMPLOYMENT AGREEMENT
MB APPRAISALS
RESTRICTED APPRAISAL REPORT
PROJECT
Multiple Vacant Parcels
Multiple Locations
Arvin, CA
CLIENT
City of Arvin
Ain. CA 93203
Date of Valuation
January 31, 2014
Date of Report
February 3, 2014
Prepared by
Michael Burger, MAI, RAV-AC
Michael Burger & Associates
4915 Calloway Dr., Ste. 101
Bakersfield, CA 93312
Appraisal File No.94-14
94-14 CITY OF ARVIN
Land Size Land Size
# Address APN # Zoning Sq.ft. Acres Value/Sq.ft. Value/Acre Value 1 Millux & Commanche 189-351-71 50.61 14,000 $ 708,540
Millard Commanche 189-351-90 R-1, R-3 52.77 14,000 738,780 925 Varsity Rd 190-020-14 R-1 PUD 3.66 24,000 $ 87,840
Varsity & Commanche 190-020-38 R-1 PUD 2.81 24,0005 67.40. c Bear Mountan & A 190-130-14 C-2 16,500 7.00 S 115,500
Bear Mountain & A 190-130-15 C-2 8,250 $ 7.00 $ 57,750
4th & A 190-130-20 R-2 8,750 $ 2.30 20,125
4th & A 190-130-21 R-2 26,250 2.00 $ 52,500
4th & A 190-130-22 R-2 8,750 2.30 20,125
10 Bear Mountain & A 190-130-27 C-2 8,250 7.00 57,750
11 144 1/2 Arvin Ave*** 190-141-10 C-2 5,625 $ 3.00 16,875 12 152 Arvin Ave*** 190-141-11 C-2 2,813 3.00 8,438
13 129 Arvin Ave** 190-142-13 C-2 3,125 $ 8.00 ... 25,000 14 129 Arvin Ave** 190-142-14 C-2 3,125 $ 8.00 25,000
15 129 Arvin Ave** 190-142-15 C-2 3,125 8.00 25,000
16 129 Arvin Ave** 190-142-16 C-2 3,125 $ 8.00 25,000
129 Arvin Ave** 190-142-17 C-2 3,125 $ 8.00 25,000
17 18 Jewett Square^ 190-240-03 R-3 PUD 157,252 3.61 $ 1.60 $ 251,603 19 Jewett Square 190-250-03 C-2 PUD 78,500 4.00 314,000 20 Jewett Square 190-250-04 C-2 PUD 87,121 4.00 348,484 21 Jewett Square 190-250-05 C-2 PUD 90,332 4.00 361,328 22 Jewett Square^ 190-260-06 R-3 PUD 246,985 5.67 1.40 $ 345,779 23 Jewett Square^ 190-260-08 R-3 PUD 62,291 1.43 $ 1.80 $ 112,124 24 Jewett Square* 190-270-01 C-2 PUD 9,640 2.50 $ 24,100 25 Jewett Square* 190-270-03 C-2 PUD 9,730 2.00 19,460
26 Jewett Square* 190-270-05 C-2 PUD 34,846 3.50 $ 121,961 27 Jewett Square* 190-270-06 C-2 PUD 175,369 2.00 350,738 28 1541 Bear Mountain 191-010-01 C-2 23,000 7.00 161,000 29 Sycamore & Walnut 192-070-06 A-2 118,919 2.73| 1.60 190,270 30 1035 Meyer St 192-110-10| R-1 8,415 2.25 18,934
31 816 Sycamore 192-110-16 R-1 6,900 2.25 15,525
$ 4,711,969
* All Roadway improvements are not inplace. Site area is net of Walnut and Fourth St. Appraiser estimated sizes for H's 24 & 25 ** These parcels are develoed to a parking lot. Improvements were installed in 2009 for $137,000 or $4.38/sq.ft. Value shown includes these site improvements
*** Improvements on site are property of Hall Ambulance, who leases the land All Roadway improvements are not in place. Value considers size net of right of way easements. * Subject Parta
Michael Burger & Associates
Real Estate Appraisal - Consultation
February 3, 2014
City of Arvin
200 Campus Dr.
Arvin, CA 93203
Re: FILE #94-14 Restricted Appraisal Report:
Multiple Vacant Parcels, Multiple Locations, Arvin, CA
Attention: Cecilia Vela, CMC
Ladies and Gentlemen:
In execution of this appraisal assignment, I inspected the properties referred to above on January 31, 2014, in order to determine market value of the fee simple estate in the surface rights as of this date. In this regard, reference should be made to the valuation summary spreadsheet included in the Appraisal Addenda for a list of the properties appraised as well as their As-Is Values.
This report conforms to FIRREA. No environmental site assessment was furnished.
For purposes of this appraisal, it is assumed no hazardous-toxic material contamination has occurred. Therefore, the cost of clean-up, encasement or removal and its effect on value, have not been considered.
The value conclusion is the result of a Restricted Appraisal Report, to which your attention is directed. As a matter of policy, we request that you bring to our attention any matters of concern, mistakes or erroneous assumptions we have made in this assignment.
Sincerely,
Michael C. Burger, MAI, RAN-AC
CA Lic.#AG003817 Exp.5-17-14
MCB:ru
FILE #94-14
OWNER OF RECORD City of Arvin
PROJECT Multiple Vacant Parcels
PROJECT LOCATION Multiple Locations
Arvin, CA
ASSESSORS PARCEL NO. See attached spreadsheet
MAP REFERENCE Thomas Guide, Kern Co.:2442/E5
CENSUS TRACT 11.01
TYPE OF APPRAISAL Restricted Appraisal Report
DATE OF INSPECTION January 31, 2014
EFFECTIVE DATE OF APPRAISAL January 31, 2014
INTEREST APPRAISED Fee Simple Estate
PURPOSE/INTENDED USE Determine market value for internal purposes.
VALUE OPINION See Attached Spreadsheet
SCOPE
This Restricted Appraisal Report is intended to comply with reporting requirements set forth in Standards Rule 2-2b of the Uniform Standards of Professional Appraisal analyses that were used in the appraisal process to develop the appraiser's opinion of Practice (USPAP). As such, it does not include discussions of the data, reasoning, and value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. All sale comparisons that were utilized in the valuation process are also retained in the appraiser's file. The rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without additional information in the appraiser's workfile. Due to the restricted nature of this report and abbreviated discussions, the report may not be understood properly without examining the appraiser's work file.
This appraisal was requested by Cecilia Vela, City of Arvin. Ms. Vela answered questions relative to property history.
The properties were inspected via drive-by inspections only on January 31, 2014, which is the effective date of this appraisal. It should be noted that APN's 190-141-10 and 11 contain building improvements. However, the parcels are affected by a ground lease and the improvements are the property of the tenant and are given no consideration.
Pursuant to the client's request, no consideration is given the leased fee estate and only Multiple Vacant Parcels 2
Multiple Locations
Arvin, CA
FILE #94-14
value of the underlying land is considered. Subsequent to inspection, further specifics relative to the site were investigated, to include flood hazard classification, utility availability, and zoning. Regional, area, and neighborhood trends are developed to support projections.
As part of this appraisal, a number of independent investigations and analyses have been conducted. Market data, including land sales, rentals and improved sales have been verified and analyzed for applicable comparable data in the area. Data sources include public records, assessor's records, buyers/sellers, real estate appraisers, and real estate agents.
The Cost, Income, and Sales Comparison Approaches were considered. As the properties consist of either vacant, or underlying land only, only the Sales Comparison Approach is applicable. The market data has been collected, confirmed, and analyzed.
Comparable sales were chosen for their similar highest and best uses as outlined within the report. All comparables were analyzed and compared to the subject property based on their similarities and dissimilarities, and are retained in the appraiser's file. These approaches were considered and judged in reaching a final estimate of value.
INTENDED USE
This appraisal report is intended to determine market value for internal purposes. It has been prepared for the exclusive benefit of City of Arvin and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized Appraisal Institute peer review committee. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer's written consent, does so at his own risk.
Inherent in the use of this restricted report format is the premise that the client, City of Arvin, is the only intended user of this appraisal. This report is not designed to be used or relied upon by anyone other than the client nor for any other function than that detailed herein. Reliance upon the information or conclusions indicated within the report by anyone other than the client or for any reason other than the indicated purpose is inappropriate and could be misunderstood. This appraisal is made subject to the definitions and assumptions and limiting conditions which are outlined in the Addenda to this report.
REASONABLE EXPOSURE TIME
Based on current market trends, interviews with real estate brokers and other professionals experienced in this property type, as well as my analysis of exposure times for comparable properties, reasonable exposure time is 6 months.
AREA ANALYSIS
The properties are all located within the community of Arvin. According to the U.S.
Census Bureau, the most recent demographics for the City of Arvin are summarized as follows:
Multiple Vacant Parcels 3
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Arvin, CA
FILE #94-14
Population Population by Sex/Age
Total Population 19,304 Male 10,033
Female 9,271
Housing Status Under 18 7,422
(In housing units unle it noted) 18 & over 11,882
4,476 20-24 1,739
Total
4,228 26.34 2,034
Occupied
Owner coupled 2,261 35 - 49 3,545
Population in owner-coupied 50 - 64 1,878
(number of indudes) 10,487 65 & over 996
Renter-occupied 1,967
Population In renter-ocoupled 8,468 Population by Ethnicity (number of individuals)
Hispanic or Latin 17,892
under old with individuals 3,024 Non Hispanic or Latin 1,412 Vacant 248
Vacant: for rent 100 Population by Race
Vacant: for sale 68 10.247
White
African American 192
Asian 155
Natioan Indian and Alaska 240
Nand Hawaiian and Paoltic
Other 7,855
Identified by to or more 809
PROPERTY HISTORY
According to public records, the parcels have all been under the ownership of the City of Arvin for an extended period. They have not been listed or marketed for sale in the last five years.
RESTRICTIONS
A preliminary title report was not available to the appraiser. No adverse easements or encroachments are evident, with confirmation by a current title report recommended.
TOXIC WASTE INFORMATION
An environmental site assessment has not been furnished or reviewed. For purposes of this appraisal, it is assumed no toxic-hazardous material contamination exists.
Therefore, the cost of clean-up and its effect on value have not been considered.
FLOOD ZONE F.E.M.A.Panel No.06029C2775E; Zone "AO," Special flood hazard areas subject to inundation by the 1% annual chance flood, flood depths of 1' to 3'; average depths determined. For areas of alluvial fan flooding, velocities also determined.
Utilities Street Improvements
Water Arvin Community Services Dist. Curb Concrete
Sewer Arvin Community Services Dist. Gutter Concrete
Gas The Gas Co. Sidewalk Concrete
Electricity So. Cal. Edison Paving Asphalt
4 FILE #94-14
HIGHEST AND BEST USE
APN's 190-141-10 and 11 contain building improvements relative to the operation of Hall Ambulance, the tenant. This conforms to zoning and the surrounding neighborhood. Remaining parcels are vacant and contain either agricultural, residential or commercial zoning, as shown on the enclosed valuation summary spreadsheet.
Development to uses allowed by zoning, upon demand, represents highest and best use of the parcels.
METHOD OF VALUATION
According to "The Dictionary of Real Estate Appraisal, Fourth Edition," published by the Appraisal Institute, the three approaches utilized in property valuation are defined as follows:
Cost Approach: A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, (or replacement for), the existing structure, including an entrepreneurial incentive, deducting depreciation from the total cost, and adding the estimated land value.
Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.
Income Capitalization Approach: A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. The conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment.
Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.
Sales Comparison Approach: A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of comparison. The sales omparison approach may be used to value improved properties, vacant land, or lan ein considered as though vacant; it is the most common and preferred method of lan valuation when an adequate supply of comparable sales are available.
As already discussed, only the Sales Comparison Approaches is utilized in valuing the subject parcels. In this regard, all sales are retained in the appraiser's file. Based on sales, the parcels are valued as follows:
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FILE #94-14
Land Land
Size Size Value/ Value/ Total
# Address APN # Zoning Sq.it. Acres Sq.Ft. Acre Value
1 Millux & Commanche 189-351-71 R-1 50.61 $14,000 $708,540 Millux & Commanche 189-351-90 R-1, R-3 52.77 $14,000 $738,780 3 925 Varsity Rd 190-020-14 R-1 PUD 3.66 $24,000 $87,840 4 Varsity & Commanche 190-020-38 R-1 PUD 2.81 $24,000 $67,440 5 Bear Mountain & A 190-130-14 C-2 16,500 $7.00 $115,500 6 Bear Mountain & A 190-130-15 C-2 8,250 $7.00 $57,750
4th & A 190-130-20 R-2 8,750 $2.30 $20,125
8 4th & A 190-130-21 R-2 26,250 $2.00 $52,500
9 4th & A 190-130-22 R-2 8,750 $2.30 $20,125
10 Bear Mountain & A 190-130-27 C-2 8,250 $7.00 $57,750 11 144 1/2 Arvin Ave*** 190-141-10 C-2 5,625 $3.00 $16,875 12 152 Arvin Ave*** 190-141-11 C-2 2,813 $3.00 $8,438
13 129 Arvin Ave** 190-142-13 C-2 3,125 $8.00 $25,000
14 129 Arvin Ave** 190-142-14 C-2 3,125 $8.00 $25,000
15 129 Arvin Ave** 190-142-15 C-2 3,125 $8.00 $25,000
16 129 Arvin Ave** 190-142-16 C-2 3,125 $8.00 $25,000
17 129 Arvin Ave** 190-142-17 C-2 3,125 $8.00 $25,000
18 Jewett Square^ 190-240-03 R-3 PUD 157,252 3.61 $1.60 $251,603 19 Jewett Square 190-250-03 C-2 PUD 78,500 $4.00 $314,000 20 Jewett Square 190-250-04 C-2 PUD 87,121 $4.00 $348,484 21 Jewett Square 190-250-05 C-2 PUD 90,332 $4.00 $361,328 22 Jewett Square^ 190-260-06 R-3 PUD 246,985 5.67 $1.40 $345,779 23 Jewett Square^ 190-260-08 R-3 PUD 62,291 1.43 $1.80 $112,124 24 Jewett Square* 190-270-01 C-2 PUD 9,640 $2.50 $24,100 25 Jewett Square* 190-270-03 C-2 PUD 9,730 $2.00 $19,460 26 Jewett Square* 190-270-05 C-2 PUD 34,846 $3.50 $121,961 27 Jewett Square* 190-270-06 C-2 PUD 175,369 $2.00 $350,738 28 1541 Bear Mountain 191-010-01 C-2 23,000 $7.00 $161,000 29 Sycamore & Walnut 192-070-06 A-2 118,919 2.73 $1.60 $190,270 30 1035 Meyer St 192-110-10 R-1 8,415 $2.25 $18,934
31 816 Sycamore 192-110-16 R-1 6,900 $2.25 $15,525
* All Roadway improvements are not in place. Site area is net of Walnut and Fourth St. Appraiser estimated sizes for #'s 24 & 25
** These parcels are developed to a parking lot. Improvements were installed in 2009 for $137,000 or $4.38/sq.ft. Value shown includes these site improvements *** Improvements on site are property of Hall Ambulance, who leases the land ^All Roadway improvements are not in place. Value considers size net of right of way easements.
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FILE #94-14
APPRAISAL DEFINITIONS
Market Value: According to Federal Reserve System 12 CFR, Parts 208 and 225, (Regulation H, Regulation Y; Docket No. R-0685) Appraisal Standards for Federally Related Transactions, Section 225.62 Definitions, [fl, market value is defined as follows:
and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. both parties are well informed or well advised, and acting in what they consider their own best interests;
3. a reasonable time is allowed for exposure in the open market;
4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
5. the price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."
Fee Simple Estate: According to The Dictionary of Real Estate Appraisal, Fourth Edition, published by the Appraisal Institute,
"Absolute ownership unencumbered by any other interest or estate, subject only the limitations imposed by the governmental powers of taxation eminent domain, police power, and escheat."
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ASSUMPTIONS AND LIMITING CONDITIONS
The report itself may contain limiting conditions, qualifications and disclaimers beyond those contained herein.
• This is a restricted appraisal report which is intended to comply with the reporting requirements set fort inder Standard Rule 2-2(b) of USPAP. As such, it does not include discussions of the data, reasoning, ar analyses that were used in the appraisal process to develop the appraiser's opinion of value. documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. information contained in this report is specific to the needs of the client and for the intended use stated in The date of value to which the conclusions and opinions expressed in this report apply, is set forth in th letter of transmittal. Further, the dollar amount of any value opinion rendered is based upon the purchasin power of the American dollar existing on that date.
3. The appraiser's assume no responsibility for economic or physical factors which may affect the opinions in this report which occur after the date of the letter transmitting this report.
4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.
5. The appraiser's reserve the right to make such adjustments to the analyses, opinions and conclusions set forth in this report as may be required by consideration of additional data or more reliable data that may become available.
6. No opinion as to title is rendered. Data related to ownership and legal description was obtained from Kern County Assessor's Office 2013-14 tax roll records and is considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements and restrictions, except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management, and available for its highest and best use.
7. The appraiser's assume no responsibility for hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for arranging for engineering studies that may be required to discover them.
8. The property is appraised assuming it to be in full compliance with all applicable federal, state, and local regulations and laws, unless otherwise stated
9. The property is appraised assuming that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated
10. The property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based, unless otherwise stated.
11. No engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area was taken from sources considered reliable and no encroachment of real property improvements is considered to exist.
12. No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials, except as is expressly stated.
13. Maps, plats and exhibits included in this part are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from this report.
14. No opinion is intended to be expressed for matters which require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers.
15. The distribution, if any, of the total valuation in this report between land and improvements applies only Multiple Vacant Parcels 8
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FILE #94-14
under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
16. That possession of this report, or a copy of it, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety.
7. Unless otherwise stated in this report, the existence of toxic or hazardous material, which may or may not be resent on the property, was not observed by the appraiser. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances, such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
18. Because no title policy was made available to the appraisers, they assume no responsibility for such items of record not disclosed by his customary investigation.
19. No detailed soil studies covering the subject property were available to the appraisers. Therefore, any premises as to soil qualities employed in this report are not conclusive but have been discussed with the client and considered consistent with information available to the appraiser.
20. The liability of Michael Burger & Associates, its employees and associates is limited to the client only and to the amount of the fee actually received. There is no accountability, obligation, or liability to any third party.
If the appraisal report is disseminated to anyone other than the client, the client shall make such party or parties aware of all limiting conditions and assumptions affecting the appraisal assignment. Michael Burger & Associates, Inc. is not responsible for any costs incurred to discover or correct any physical, financial, and/or legal deficiencies of any type present in the subject property. In the case of limited partnerships or syndication offerings or stock offerings in real estate, the client agrees that, in the event of a lawsuit brought y a lender, a partner or part owner in any form of ownership, a tenant or any other party, the client will holc Michael Burger & Associates, Inc. completely harmless in such action with respect to any and all awards of settlement of any type in such lawsuit.
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FILE #94-14
CERTIFICATION
I certify that, to the best of my knowledge and belief...
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limitin conditions, and are my personal, impartial and unbiased professional analyses, opinions, and conclusions
3. I have no present or prospective interest in the property that is the subject of this report, and no personal interest or bias with respect to the parties involved.
4. assiye me las with respect to the properly that is the subject of this report or the parties involved with the
5. My engagement in this assignment was not contingent upon developing or reporting predetermined results.
Conclusions are not subject to approval of a loan.
6. My compensation for completing this assignment is not contingent upon reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the intended use of this appraisal.
My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), adopted by the Appraisal Foundation, minimum appraisal standards mandated by Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), the Code of Ethics and the Standards of Professional Practice of
8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
9. I have made a personal observation of the property that is the subject of this report.
10. I have not performed a previous appraisal or performed professional services involving the subject property within the three years prior to the acceptance of this assignment.
11. Education Requirement of the Appraisal Institute for Associate Members. I am a Certified Genera
12. No one provided significant professional assistance to the person signing this report consent and approval of the undersigned.
Mudully
1/31/14
APPRAISER
Michael C. Burger, MAI, R/W-AC
#CAAG003817 - Exp.5-17-14
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ADDENDA
TABLE OF CONTENTS
Appraiser's Qualifications...... 1
Engagement Letter................. 2
Property Valuation Summary Sheet ….3
Aerial Photographs... 4
Kern County Assessor's Maps ...5
1 APPRAISER'S QUALIFICATIONS
Professional Qualifications of Michael C. Burger, MAI, R/W-AC Probate Referee of the County of Kern
Real Estate Appraisal and Consultation
4915 Calloway Dr., Ste. 101, Bakersfield, CA 93312
Phone: (661) 587-1010 FAX (661) 834-0748
E-Mail: [email protected] Web Site: www.bakersfieldappraisers.com consultation firm providing services in the San Joaquin Valley.
EDUCATION
Graduate, California Polytechnic State University, San Luis Obispo, CA, 1987 Major: Agricultural Management
Concentration: Real Estate Finance and Appraisal
Business Professional Courses
Business Professional Course, Aji Network: 1999-2001
Leadership, Innovation, Entrepreneurship and Power, Aji Network: 2001- Present Real Estate Courses Successfully Completed:
Rural Appraisal Cal Poly Basic Real Estate Appraisal: 12-87 Bakersfield College,
Real Estate Finance Cal Poly Advanced Real Estate Appraisal: 5-89 Bakersfield College,
Principle of Real Estate Cal Poly
Appraisal Institute Courses Successfully Completed (19-to 40-hour courses) Course 1A:1, Real Estate Principles 3-88 Standards of Professional Practice, Parts A & B 11-94 Course 1A:2, Basic Valuation Procedures 8-88 The Appraiser's Complete Review 1-96 Course 1B:A, Capitalization Theory & Tech., 6-89 Condemnation Appraising 10-98 Part A
Course 1B:A, Capitalization Theory & Tech., 2-91 Standards of Professional Practice, Part C 11-99 Part B
Course 2-1, Case Studies in Real Estate 9-91 Course 800, Separating Real & Personal 9-02 Valuation Property From Intangible Business Assets
Course 2-2, Report Writing & Valuation 6-92
Analysis
International Right Of Way Association Course Completed (19- To 40-Hour Courses) Course 401, The Appraisal of Partial 2-99 Course 502, Business Relocation 1-04 Acquisitions
Course 803, Eminent Domain Law Basic 5-99
Real Estate Appraisel Seminars Su Gestuly Comelete d The FHA and the Appraisal Process 9-99 Understanding Limited Appraisals - General
Appraising Complex Residential Properties 9-94 Appraisal of Nonconforming Uses 5-00 Non-Residential Demonstration Appraisal 4-95 Appraisal of Nursing Facilities 2-01 Report
O.R.E.A. Federal & State Laws & 10-97 Technology and the Appraisal Process 9-01 Regulations
Loss Prevention Program for Real Estate 10-97 National USPAP Update 8-03 Appraisers
Real Estate Appraiser Expert Witness 6-98 Appraising Manufactured Housing 11-04 Trends in the Hospitality Industry 8-98 Litigation Seminar 11-04 Valuation Considerations Regarding a Partial 8-98 Business Practices and Ethics 12-06 Acquisition
Valuation of Detrimental Conditions 3-99 Vineyard Valuation & Ag Symposium A Review of 1-4 Residential Form 7-99 Uniform Appraisal Dataset (UAD) Internet Sources for the California Appraiser 7-99
WORK EXPERIENCE
PROBATE REFEREE OF THE COUNTY OF KERN.. ...9-1-11 to Present MICHAEL BURGER & ASSOCIATES, REAL ESTATE APPRAISAL AND CONSULTATION .......7-97 to Present .... 6-87 to 7-97
Alpha Gamina 0, Vice resident Final eNa ona gris tral Fraternity, Ban uS SO, CA.. . 10-85 to 12-86 John K. Richardson, General Contractor, Sea Ranch, CA ...6-85 to 9-85 + 6-86 to 9-86
PROFESSIONAL CREDENTIALS
Scholarship 8-86 American Society of Farm Managers and Rural Appraisers
Certified General Appraiser, Real Estate Lic. # State of California AG003817
MAI, Member No. 11,093 Appraisal Institute
FHA Approved, Lender Selection Roster of Appraisers U.S. Department of Housing and Urban Development R/W-AC, Member No. 3314, 12/01/05 International Right of Way Ăssociation Appointed Probate Referee of the County of Kern (9-1-
State of California
PROPERTY TYPES VALUED
Assignments have included the valuation of apartment complexes, condominiums, PUD's, mobile homes, single family residences, affordable housing projects, bank branches, convenience stores, industrial parks, mini-storage complexes, motels/hotels, office buildings, restaurants, retail stores, shopping centers, and warehouse complexes Special purpose and agricultural properties include a boxing arena, race track, almond huller, churches, fruit & nut orchards, vineyards, medical health centers, mixed-use properties, rights-of-way, truck stops, Veteran's hospital, veterinary hospitals, open farm and rangeland, etc.
CLIENTS SERVED
Federally insured financial institutions, real estate companies, developers, insurance companies, attorneys, private investors, mortgage companies, relocation companies, governmental agencies, etc.
CIVIC, VOLUNTEER AND PROFESSIONAL AFFILIATIONS
1998 President Bakersfield Chapter Appraisal Institute
Director (Past) Alpha Gamma Rho Alumni Association
Director and Secretary (Past) Bakersfield Active 20/30 Club Class of 2000 Greater Bakersfield Chamber of Commerce - Leadership Bakersfield 2003 Director Bakersfield East Rotary Club
Treasurer Executives Association of Kern County
President Executives Association of Kern County
Additionally, Mr. Burger provided pro bono real estate appraisal and consulting services to the Bakersfield Police Activities League, Bakersfield Museum of Art, American National Red Cross, Habitat for Humanity, Salvation Army, and Kern Veteran's Memorial Foundation. He served on the Urban Decay Advisory Team of the City of Bakersfield Planning Department. He has had speaking engagements and was guest lecturer for the Advanced Real Estate Appraisal class at Bakersfield College, Agricultural Management Course 101 at Cal Poly State University, the Bakersfield Board of Realtors, Executive Association of Kern County, KERN 1410 Talk Radio, the Kern County Taxpayers Association, Kern Kiwanis, McKinzie Real Estate, and Watson Realty Corporation.
STATE OF CALIFORNIA
Business, Transportation & Housing Agency
OFFICE OF REAL ESTATE APPRAISERS
REAL ESTATE APPRAISER LICENSE
MICHAEL C. BURGER
has successfully met the requirements for a license as a general real estate appraiser in the State of California and is, therefore, entitled to use the title "Certified General Real Estate Appraiser":
This license has been issued in accordance with the provisions of the Real Estate Appraisers' Licensing and Certification Law.
OREA APPRAISER IDENTIFICATION NUMBER AG003817
Date Issued: May 18,2012
Date Expires: May 17, 2014
Diane Westphal
Deputy Director, OREA
Audit No. 139928
THIS DOCUMENT CONTAINS A TRUE WATERMARK - HOLD UP TO LIGHT TO SEE "CHAIN LIN 2 ENGAGEMENT LETTER
3 PROPERTY VALUATION SUMMARY SHEET
4 AERIAL PHOTOGRAPHS
Kern County
Kern County Online Mapping APN 191-010-01
Outme Stomper Sysion
Legend
Roads
N Arterlal
// Collector
/ Highway
¡i Local
N/ Romp
Unpaved
County of Kem
Assessment Parcels
20 f Scale: 1:3,614
This map is a user generaled static output from an Internel mapping sile and is for general othervise reliabil. THIS MAP 1S NOT TO BE USED FOR NAVIGATION.
Kern County APN'S 190-270-01, 03,
Online Magging System Kern County Online Mapping 05 & 06 Legend
Roads
NArtarial
// Collector
/ Highway
; Local
N Romp
Unpaved
П County of Korn
/ Assossmont Parcols
Scale: 1:2,215
2263729
Kern County®
One Mayiny System Kern County Online Mapping APN'S 190-250-03, 04 & 05 *
Legend
Roads
N AMortal
/ Collector
/ Highway
„i Local
N/ Ramp
Unpaved
• County of Kom
Assessment Parcels
Scale: 1:4,220
This map is a user generated stalic aulput from an intemel mapping site and is for general oference only. Data layers that appear on this map may or may not bi accurate. current. of therwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION Kern County 27
Onhoe Mapping System Kern County Online Mapping APN'S 190-130-14, 15 *
Legend
Roads
N Artarial
/ Collector
N Highway
Local
N Ramp
Unpaved
• County of Kem
• Assossment Parcols
Scale: 1:1,750
Map center: 6314371, 2263564
This map is a user generated static output from an Internet mapping sile and is for genera contanen chiv. on this map ma accurale, current, c
Kern County APN'S 190-141-10 & 11 and
Online Mapping Syatom Kern County Online Mapping 190-142-13 thru 17 Legend
Roads
N Arterlal
¡/ Collector
N Highway
Local
N Ramp
• County of Kom
• Assessment Parcols
Scale: 1:1.893
Map center 3692
This map is a user generated static output from an Internet mapping sile and is for general reference only. Jala layers that appear on this map may or may not be accurale, current, o atherwise reliable. HIS MAP IS NOT TO BE USED FOR NAVIGATION APN'S 190-020-14 & 38
Kern County"
Outo, Mapping Systeal Varsity Ave. between Commanche Dr. & Campus Dr. *
Legend
Roads
N Arterlal
/ Collactor
N Highway
/ Local
N Ramp
Unpaved
• County of Kern
• Assesament Parcels
Scale: 1:5,000
This map is a user generaled static output from an Internet mapping site and is for general eference only
Kern County
Onita Mappy System, NWC Sycamore Dr. & Walnut Dr. APN 192-070-06 *
Legend
Roads
NAntorial
/ Collector
N/ Highway
Local
N Ramp
Unpaved
• County of Kem
/ Assesamont Parcois
Scale: 1:1,000
This map is a user generated static output from an Intemet mapping site and Is for general aference only. Data layers thal appear on this map may or may not be accurale, curren, o herwise reliable. THIS MAP IS NOT TO BE USED FOR NAVÍGATION Kern County
Omanie Mapping Systeni SEC A St. & 4th Ave. APN'S 190-130-20, 21 & 22 *
Legend
Roads
NArtorial
/ Collector
/ Highway
i Local
N Remp
Unpaved
• County of Kem
• Assessmont Parcots
Scale: 1:1,000
Map center: 6316181, 2283801
This map is a user generated static output from an Internet mapping site and Is for general -Kern County & 16
Panty System NWC Sycamore Dr. & Meyer St. APN'S 192-110-10 *
Legend
Roads
N Artorlal
/ Collector
N/ Highway
' Local
N Ramp
Unpaved
П County of Kem
/ Asseasment Parcels
60 120 ft. Scale: 1:1,000
This map is a user generated static output from an Intemet mapping site and is for general reference only
Kern County
Unate Mapsia System NEC Commanche Dr. & Millux Rd. APN'S 189-351-71 & 90 Legend
Roads
/ Artorial
¡/ Collector
/ Highway
Local
N Ramp
Unpaved
• County of Kem
• Assessment Parcels
Scale: 1:8,945
This map is a user generated static output from an internet mapping site and Is for general eference only. Data layers that appear on this map may or may not be accurate, current, or therwise reliable. THIS MAP IS NOT TO BE USED FOR NAVÍGATION Kern County 190-240-03 & 190-260-06 08
Unline Mappung System Walnut St. & Fourth St. APN's
Legend
Roads
N Arterial
/ Collector
/ Highway
•i LOCO
N Ramp
Unpaved
• County of Kem
• Assossment Parcels
Scale: 1:4,588
This map is a user generated slatic oulput from an Internet mapping site and is for general ferenco only. Data lavers that appear on this map may or may not t hervise rollable. THIS MAP IS NOT TO BE USED FOR NAVÍGATIO
CITY OF ARVIN
Staff Report
Meeting Date: November 12, 2024
TO: Arvin City Council/Successor Agency to the Arvin Community Redevelopment Agency FROM: Jeff Jones City Manager / Finance Director
SUBJECT: Consideration and Acceptance of Resolution Approving a Purchase Sale Agreement between The Dissolved Arvin Community Redevelopment Agency (Successor Agency) and State Foods LLC or Assignee and Arvin Walnut Properties LLC (Purchaser) for the Purchase of APN 190-270-01, 190-270-03, 190-270-05, and 190- 270-06 (5.14 acres) located at Bear Mountain Blvd and North Walnut Street in the City of Arvin
BACKGROUND:
The Dissolved Arvin Community Redevelopment Agency owns certain property in the City of Arvin. A Long Range Property Management Plan (LRPM) was approved between the Department of Finance and the Successor Agency in 2014. The LRPM allows for the sale of properties should the SA declare the land as surplus and then upon approval by the State of California Housing and Community Development (HCD). All of the processes required under the LRPM and HCD have been completed.
The parcel is located at the northwest corner of Bear Mountain Blvd and North Walnut Street. APNs 190-270-01, 190-270-03, 190-270-05, and 190-270-06 are zoned C-2 and the total area of the parcels are 5.14 acres.
The properties were appraised in 2014 for a total of $516,199. The offer to purchase by State Foods LLC / Arvin Walnut Properties LLC is $1,032,398.
The PSA also provides the following conditions within the Purchase and Sale Agreement with respects to net purchase price.
1. Purchase Price and Earnest Money.
Purchase Price. The total purchase price for the Property (the "Purchase Price") is $1,032,398.00 all cash at close escrow.
b. Deposit. Within 15 days after the Opening Date, Developer will deposit with the Escrow Agent the sum of $10,000.00 within 5 business days after the Opening Date of Escrow bearing account. The Deposit will be increased by $20,000 once all land constituting the to be held as earnest money under this Agreement and placed in a federally insured, interest- Shopping Center Land (including the Private Parcels) are in escrow as per Paragraph 4 herein Developer at the Closing. below and the Deposit will be credited against the Purchase Price otherwise payable by i.
The Deposit shall be refunded to Developer in the event of SA default orif SA does not approve and execute the PSA or the failure for whatever reason of the SA to gain Kern Countywide Oversight Board ("Oversight Board") or other oversight agency approval of the PSA.
ii.
Notwithstanding the foregoing paragraph (i), should Developer exercise an option to extend Escrow pursuant to Paragraph 3(e) of this Agreement, and thereafter fail to consummate the purchase of the Property for any reason other than those specified in paragraph (i) above, the Deposit shall no longer be refunded and the SA shall be entitled to retain such amounts to compensate the SA for its inability to market and sell the Property to another party.
C
Balance of Purchase Price. On or before the Closing, Developer will deposit with Escrow Agent the balance of the Purchase Price (less all earnest or deposit money paid by Developer).
d.
Adjustments to the Purchase Price. If Developer is required pay more than the amount Developer has budgeted ($8.00/sf) to acquire the Private Parcels (refer to Paragraph 4a in the PSA agreement) the Purchase Price will be lowered by the same amount.
Additionally, the SA agrees to lower the Purchase Price by the cost to design, permit, and construct an onsite and/or offsite drainage retention system per FEMA standards (refer to Paragraph 4d in the ).
Additional Adjustments of the Purchase Price. During the escrow period Developer will be evaluating and determining the cost of developing the Shopping Center to determine its economic feasibility. In the event there are unknown costs such as the cost of removal of onsite underground pipelines or hazardous material, the purchase price shall be lowered by the same amount.
f
Onsite/Offsite Drainage Retention. The City of Arvin has indicated that Developer will be required to construct an onsite/offsite drainage retention system as per FEMA flood plain standards on the Site. The Parties agree that the Purchase Price that Developer will pay will be reduced by the reasonable cost to design, permit, and construct the drainage retention system required for the Site.
g Adjustments to Purchase Price and Prevailing Wages. Developer understands and agrees that should the Adjustments of the Purchase Price required pursuant to Subsections (e), (f) and (g) of this Section 1 cause the Purchase Price to be less than the appraised fair market price of ($516,259), Developer will be subject to prevailing wage requirements as the development will be considered a public work project pursuant to California Labor Code
STAFF RECOMMENDATION:
Staff recommends that the Dissolved Arvin Community Redevelopment Agency (Successor Agency) approve the Purchase and Sale Agreement to State Foods LLC or Assignee and Arvin Walnut Properties LIC.
Attachments:
Purchase and Sale Agreement
Property Appraisal
RESOLUTION NO. 2024-
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED ARVIN
COMMUNITY REDEVELOPMENT AGENCY, APPROVING A PURCHASE SALE AGREEMENT SELLING APNS 190-270-01, 190-270-03, 190-270-05, AND 190-270-06 TO
STATE FOODS OR ASSIGNEE AND ARVIN WALNUT PROPERTIES LLC WHEREAS, pursuant to Health and Safety Code Section34173(d), the City of Arvin is the successor agency to the Arvin Community Redevelopment Agency ("Successor Agency"); and WHEREAS, pursuant to Health and Safety Code Section 34173(g), the Successor Agency is now a separate legal entity from the City; and
WHEREAS, Health and Safety Code Section34191.5(b) requires the Successor Agency to prepare a Long Range Property Management Plan ("Property Management Plan") that addresses the disposition and use of the real properties of the former redevelopment agency; and WHEREAS, Health and Safety Code Section 34191.5(b) also requires the Successor Agency to submit the Property Management Plan to the Successor Agency's oversight board and the Department of Finance for approval no later than six months following the issuance to the Successor Agency of the Finding of Completion pursuant to Health and Safety Code Section 34179.7; and
WHEREAS, the Department of Finance issued the Successor Agency a Finding of Completion on April 26, 2013; and
WHEREAS, the Successor Agency approved a Property Management Plan that contains all the information required under Health and Safety Code Section 34191.5 on February 18, 2014 by way of Resolution No. 2014-03; and
WHEREAS, the Oversight Board of the Successor Agency approved the Property Management Plan on February 25, 2014 by way of Resolution No. AOB2014-02; and WHEREAS, the California Department of Finance reviewed the approved Property Management Plan and approved the Property Management Plan on March 17, 2014; and WHEREAS, parcels APN 190-270-01, 190-270-03, 190-270-05, and 190-270-06 were appraised for a total amount of $516,199 by Michael Burger and Associates on February 14, 2014, a copy of which is attached as Exhibit "A"; and
WHEREAS, on or about October 17, 2024, the Successor Agency received a proposal for the purchase of parcels APN 190-270-01, 190-270-03, 190-270-05, and 190-270-06 for the total amount of $1,032,398 from State Foods LLC and Arvin Walnut Properties LLC.; and WHEREAS, the purchase and sale agreement is subject to additional terms and conditions as referenced in the staff report and the purchase and sale agreement document; and
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE DISSOLVED ARVIN
COMMUNITY REDEVELOPMENT AGENCY, DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
Section 2. Approval of the sale of APNs 190-270-01, 190-270-03, 190-270-05, and 190- 270-06 to State Foods LLC and Arvin Walnut Properties LLC. The Successor Agency hereby approves sale of APNs 190-270-01, 190-270-03, 190-270-05, and 190-270-06 to State Foods LLC and Arvin Walnut Properties LLC., and the Purchase Sale Agreement regarding this sale in substantially the same the form as attached hereto as Exhibit "B." Section 3. Remittance of Proceeds from the sale. In accordance with the Long Range Property Management Plan, the Successor Agency hereby direct that all proceeds from the sale of APNs 190-270-01, 190-270-03, 190-270-05, and 190-270-06 be used to fulfill enforceable obligations.
Section 4. Execution and transmittal of the purchase sale agreement. The Executive Director of the Successor Agency is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the Long Range Property Management Plan and the sale of APNs 190-270-01, 190-270-03, 190-270-05, and 190-270-06 pursuant to that plan, including but not limited to submitting the Purchase Sale Agreement to the Successor Agency's oversight board for approval, and to the State of California Department of Finance.
Section 5. Effectiveness. This Resolution shall take effect immediately upon its adoption.
THEREBY CERTIFY that the foregoing resolution was passed and adopted by the Board of Directors of the Successor Agency to the dissolved Arvin Community Redevelopment Agency at a regular meeting thereof held on the 12'" day of November 2024 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST
JEFF JONES,
Secretary
SUCCESSOR AGENCY TO THE ARVIN
COMMUNITY REDEVELPMENT AGENCY
By:_
DANIEL BORRELI,
Chairman
APPROVED AS TO FORM:
By:
NATHAN HODGES,
Successor Agency Attorney
Hodges Law Group
→ Secretary of the Successor Agency to the Arvin
Community Redevelopment Agency of the City of Arvin, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the Board of Directors of the Successor Agency to the Arvin Community Redevelopment Agency on the date and by the vote indicated herein.
PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT ("PSA") is entered into this 1 7th day of October, 2024 ("Effective Date"), by and between the SUCCESSOR AGENCY TO THE ARVIN COMMUNITY REDEVELOPMENT AGENCY, a California Successor Agency created and existing pursuant to California Health and Safety Code Section 34170 et seq. ("SA"), and State Foods LLC (State Foods) or Assignee and Arvin Walnut Properties, LLC, a California limited liability company ("Developer"), on the terms and provisions set forth below. The Successor Agency and Developer are sometimes individually referred to herein as a "Party" and are sometimes collectively referred to herein as the "Parties."
RECITALS
A. The SA is the owner of approximately 5.14 acres of vacant land located at Bear Mountain Blvd. and N. Walnut Dr. in the City of Arvin, and identified as County Assessor Parcel Nos. 190-270-01, -03, -05, -06 (the "Site" or the "Property"). An accurate legal description of the Site is attached hereto and incorporated herein as Exhibit "A" will be provided during escrow by Developer.
B. On September 13, 2021, the SA issued a Notice of Government Surplus Property involving the Site.
C. Subsequently, the SA issued a Request for Proposal (RFP) for the Site. Developer submitted a proposal to the SA dated March 10, 2022, which was accepted by the SA.
D. SA and Developer entered into an Exclusive Negotiating Agreement (ENA) dated September 30, 2022. The ENA provided a period of 120 days (plus extensions if necessary) for the Parties to negotiate the terms and conditions and enter into a Purchase and Sale Agreement (PSA).
E. Upon execution of the ENA, Developer was required to deposit $10,000 for Reimbursement Funds with the SA which the Developer submitted to the SA on October 26, 2022.
F. Additionally, the ENA required the Developer to open escrow at Fidelity National Title, Newport Beach, CA and to deposit $10,000 into escrow. When Developer attempted to make the deposit, Developer was informed by the Escrow Agent specified in the ENA that Fidelity could only open escrows with a signed Purchase and Sale Agreement (PSA).
G. Developer informed the SA and Kosmont Real Estate Services (the brokerage firm representing the SA) of the situation and proposed that the Parties negotiate and execute a PSA now which proposal was accepted by the Developer and SA.
H. SA and Developer desire that Developer design, construct and operate the Proposed Project as depicted on Exhibit "B" which is the Site Plan for the shopping center (the "Proposed Project").
Purchase and Sale Agreement
APNs 190-270-01, -03, -05, -06
I. Developer intends to incur significant costs analyzing the Property and designing the roposed Project, and Successor Agency intends to incur significant costs in negotlatin nd preparing a development agreement (DA), or other agreements) effectin conveyance of ownership for the Property (each and collectively, a "Conveyance Instrument).
J. It is anticipated that during the term of this PSA, Successor Agency staff and consultants and attorneys of the Successor Agency will devote substantial time and effort in meeting with Developer and its representatives and consultants, reviewing proposals, plans and reports, negotiating and preparing agreements, obtaining consultant advice and reports, and to the extent necessary, furthering compliance with the California Environmental Quality Act ("CEQA").
K. Specific Developer Tasks are set forth on Exhibit C (1).
L. Specific Successor Agency Tasks are set forth on Exhibit C (2).
M. The purpose of this Agreement is: (i) to set forth the terms and conditions for the potential acquisition of the Site by the Developer; (ii) to evaluate the need for various environmental studies and regulatory approvals; (iii) to allow the parties to conceive and give substance and detail to a proposed commercial project for the Site; and (iv) negotiation of various agreements effecting conveyance of ownership of the Site.
Developer has proposed a shopping center anchored by State Foods Markets and additional tenants or users may include Starbucks Coffee, Jack in the Box, and Strata Credit Union ("Proposed Project").
N. FOR VALUABLE CONSIDERATION RECEIVED, SA agrees to sell, and Developer agrees to purchase the Site including any improvements (if any) and all rights, privileges, and easements appurtenant thereto in the City of Arvin, Kern County, CA, consisting of approximately 5.14 acres of land, as depicted on Exhibit "A-1" (the "Property" or the "Site"), on the following terms and conditions:
AGREEMENT
The Site (or the Property). The parcels that will constitute the shopping center land as shown on Exhibit C attached hereto shall include the City owned 5.14 acres and the Private Parcels referred to in Paragraph 4a herein below (collectively referred to as the "Shopping Center Land").
Purchase Price and Earnest Money.
a. Purchase Price. The total purchase price for the Property (the "Purchase Price") is $1,032,398.00 all cash at close escrow.
Deposit. Within 15 days after the Opening Date, Developer will deposit with the Escrow Agent the sum of $10,000.00 within 5 business days after the Opening Date of Escrow
Purchase and Sale Agreement
APNs 190-270-01, -03, -05, -06
§1720(b)(3).
3. Escrow Agent/Opening and Closing Dates.
Escrow Agent. This Agreement will be consummated through an escrow established with Fidelity National Title Insurance Company, Attn: Lisa Figgins ("Senior Escrow Agent"), 950 Hampshire Road, Westlake Village, CA 91361 Tel: 805-666-4054, Fax: 805-991- 1651, Email: [email protected].
b. Title Coordination. Brad Golden, Major Accounts Manager, Fidelity National Title Company, 1000 Town Center Drive, Suite 260, Oxnard, CA 93036, Phone: 805-218-8879, Email: [email protected].
C. Opening Date. This Agreement is effective, and escrow is opened on that date (the "Opening Date") when a fully executed electronic version of this Agreement in portable document format (pdf) is delivered to and accepted by Escrow Agent. Escrow Agent is instructed to insert the Opening Date and the escrow number of this transaction above Escrow Agent's signature where indicated below.
d. Closing Date. This transaction and escrow will close (the "Closing") on or before that date (the "Closing Date") that is 12 months after the Opening Date (as defined in Paragraph 1c).
Extensions. Developer shall have right to extend the Escrow Term for up to two ninety day (90) day periods by notifying the SA and Escrow in writing. f. Right to Terminate/Cure of Default. A Party may terminate this Agreement upon the failure of the other Party to cure after receipt of notice of such failure from the non- defaulting Party and continuance of such failure after thirty (30) days opportunity to cure. No Party shall have a right to specific performance of this Agreement. In the event of an uncured default by a Party, the sole remedy of the non-defaulting Party shall be to terminate this Agreement.
4. Developer's Contingencies. In addition to any other contingency or condition expressly set forth in this Agreement, Developer's obligation to consummate the purchase of the Property is conditioned and contingent upon satisfaction or waiver of the following contingencies during the Escrow Term.
a. Purchase of Private Properties. Before Developer is obligated to purchase the
5.14 acres owned by the SA, Developer must open escrow to purchase the privately owned property on Walnut Street known as APN 190-270-38 & 39 (Penaloza) and APN 190-270-36 & 37 (Reyna) (the "Private Properties") as shown on Exhibit A-1. Together, these properties constitute all the land within the Shopping Center shown on Exhibit C.
Commitment for Title Insurance. SA to provide a current commitment for a 2021-form ALTA extended coverage owner's policy of title insurance covering the Property,
Purchase and Sale Agreement
APNs 190-270-01, -03, -05, -06
accompanied by legible copies of all matters referred to therein (collectively, the "Commitment"). If Developer objects to any matters) disclosed in the Commitment or thereafter within 30 days after Developer's receipt of an amended Commitment disclosing new matters), Developer may either (i) cancel this Agreement by notice to SA, or (i) notify SA of Developer's objections, in which event SA agrees to use its best efforts to cure Developer's objections prior to the Closing. If Developer's objections are not cured to Developer's satisfaction, then at any time on or before the Closing, Developer may either cancel this Agreement or waive Developer's remaining objections by notice to SA. However, SA is obligated in any event to release all monetary liens and encumbrances against the Property not caused by Developer on or before the Closing at SA's expense, without the necessity of Developer's objection. SA may not cause any additional title exception to be imposed against the Property without Developer's prior written consent. Upon Developer's cancellation of this Agreement under this subparagraph, the Earnest Money will be promptly refunded to Developer.
Project Feasibility. Developer will investigate and will be satisfied with all matters relating to the feasibility and economic viability of developing the Shopping Center including the Property, which must be acceptable to Developer in its sole discretion, including, without limitation, condition of title, survey, and acceptability of the Title Commitment; utilities; physical and soils condition; no hazardous material in the soil; and completion of SA's Deliveries.
Governmental Approvals. Developer to obtain all entitlements, permits and approvals for the Shopping Center from all applicable authorities having jurisdiction, including, without limitation, governmental and quasi-governmental agencies, and utility providers, with conditions acceptable to Developer (collectively, "Governmental Approvals"). Governmental Approvals must be without conditions or restrictions (including the payment of assessments or the posting of security) that are unacceptable to Developer, in its sole discretion, and must be vested and not subject to appeal.
e. Survey. Developer will cause the Property to be surveyed by a licensed surveyor for the purpose of completing an ALTA survey of the Property, including topographical data. If completed, the Survey will form the basis for the legal description of the Property to be conveyed at the Closing. The cost of the Survey will be paid by Developer.
Environmental Requirements. Developer to approve in its sole discretion all environmental matters pertaining to the Property. Developer may undertake such additional studies, tests and assessments as Developer deems necessary, including, without limitation, a current Phase I Environmental Assessment Report for the Property (the "Environmental Assessment"). Developer understands and agrees that the Proposed Project will require a California Environmental Quality Act ("CEQA") Assessment be conducted. Developer further understands that this Agreement provides no commitments from the SA or the City of Arvin concerning the approval of the Proposed Project or any other potential project, nor limits the City of Arvin's authority to consider and impose alternatives and mitigation measures if such alternatives or measures are necessary based on the CEQA Assessment. g. Tentative Parcel Map. Developer, at Developer's expense shall prepare apply
Purchase and Sale Agreement
APNs 190-270-01, -03, -05, -06
with the City of Arvin for a Tentative Parcel Map or a Lot Line Adjustment. h. Recordation of Final Parcel Map. After Developer's acquisition of the Private Parcels, Developer will request from the City of Arvin a Final Parcel Map, which creates 4 parcels that will constitute the Shopping Center Land as shown on Exhibit D attached hereto.
1. Removal of Potential Oil Pipelines. Developer to remove any oil pipelines that may be beneath the surface of the Property at Developer's expense, which reasonable costs thereof will be credited against the purchase price that Developer is paying for the Property.
Development Agreement. Arvin Walnut Properties, LLC and State Foods Markets shall enter into a Separate Agreement with the City of Arvin wherein Developer shall agree to approve and execute a Development Agreement between themselves and the City of Arvin setting for their respective construction obligations as per plans approved by the Parties (Separate Agreement"). Developer understands and agrees that the Separate Agreement will require Developer to execute a Development Agreement with the City for the Shopping Center Property within one hundred fifty (150) days of the close of Escrow. The execution of the Separate Agreement shall be a condition precedent to the opening of Escrow. k. Declaration of Covenants, Conditions and Restrictions ("Declaration").
Arvin Walnut Properties, LLC and State Foods Markets will approve, execute, and record a Declaration against Parcels 1 through 4 of the Final Parcel Map. Developer and the other tenants or users in the shopping center will take title to Site subject to the Declaration.
1. Common Area Maintenance Agreement (CAM Agreement"). Arvin Walnut Properties, LLC and State Foods Markets will approve and execute a CAM Agreement and will record it against Parcels 1 through 4 of the Final Parcel Map. Developer will take title to Site subject to the CAM Agreement.
m. Property Information. If available, copies of such other materials and information that are pertinent to Developer's acquisition of the Property as Developer reasonably requests, including, without limitation, copies of annual real estate tax bills together with the most recent notice of increase in valuation received by SA; plats; architectural and engineering drawings, plans and specifications; grading and drainage plans; traffic studies; archeological studies; street improvement specifications; wetland information; floodplain information; and appraisals, reports and other studies ordered or performed by or at the direction of SA.
The contingencies contained in this Paragraph 4 are for the exclusive benefit of Developer, and Developer has the right to cancel this Agreement upon the failure of satisfaction of any such contingency during the escrow term by written notice to SA and Escrow Agent, whereupon all Earnest Money then on deposit will be promptly refunded to Developer. In the absence of such notice, such contingency is deemed waived by Developer.
5. Deed and Title Policy. At the Closing, SA will convey title to the Property to Developer by a Grant Deed in form and substance reasonably acceptable to Developer. As a condition to Developer's obligation to close escrow, Developer must be furnished with a 2021-form ALTA
Purchase and Sale Agreement
APNs 190-270-01, -03, -05, -06
extended coverage owner's policy of title insurance issued by Escrow Agent, in the full amount of the Purchase Price, effective as of the Closing insuring that Developer is vested with fee simple title to the Property, subject only to those matters in the Commitment approved by Developer. At the Closing, SA will pay the cost of a standard coverage owner's policy, and Developer is responsible for the incremental additional cost to obtain extended coverage.
6. Environmental Requirements. State and local environmental regulations (including, without limitation, the California Environmental Quality Act) may be applicable to the proposed development of the Site. The Parties agree to cooperate to investigate and gather information relevant to the Site and the environmental impact of its proposed development. Developer shall bear all costs and expenses of any and all title, environmental, physical, engineering, financial, and feasibility investigations, reports and analyses and other analyses or activities performed by or for Developer. During the Escrow Period, the SA shall deliver to Developer complete copies of all material non-privileged reports and other material non-privileged documents pertaining to the Site which are in SA's possession, at no cost to Developer other than the actual cost (if any) of duplicating such documents.
7. Costs and Expenses. All fees and expenses of engineers, architects, financial consultants, legal, planning and other consultants or contractors, retained by Developer for any evaluation, appraisal, planning or design relating to the Site or negotiation of a future agreement that may be undertaken by Developer during the Escrow Period, pursuant to or in reliance upon this Agreement or in Developer's discretion, regarding any matter relating to the subject matter of this Agreement, shall be at the sole cost and expense of Developer. No such activity shall be deemed to be undertaken for the benefit of, at the expense of, or in reliance upon SA.
8. Due Diligence. During the Escrow Period ("Due Diligence Period"), Developer will investigate and approve, in its sole discretion, the feasibility of acquiring, entitling and developing the Site as contemplated in the proposed Project plan by: (i) reviewing the exceptions, legal descriptions and other matters contained in the preliminary title report prepared by Title Company; (ii) conducting or reviewing such surveys, investigations, studies and inspections and making or reviewing such geologic, environmental and soils tests and other studies of the Property (as set forth in Attachment No. 2); (iii) an estimated budget for the on and off-site work for the shopping center; and (iv) reviewing all other applicable due diligence materials respecting the Site.
Unless Developer delivers written notice to the SA approving the Conveyance Instrument form and the feasibility of acquiring, entitling and developing the Property with the proposed Project (the "Due Diligence Approval") on or before the expiration of the Escrow Period, then the SA may terminate the PSA in its sole and absolute discretion by written notice to the Developer and any funds remaining in the Reimbursable Funds deposit and in the Good Faith Deposit, not including any non-refundable deposits released to the SA, shall be returned to Developer, and neither party shall have any further rights or obligations under this PSA.
9. Access to Site. During the term of this PSA, SA shall provide Developer reasonable access to all portions of the Site for the purpose of obtaining data and making surveys and tests necessary to evaluate the development potential of the Site and otherwise to conduct the land use due
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diligence relating to the Project as contemplated hereunder, including, without limitation, the right to make borings to investigate the soils and environmental condition of the Site.
10. Purchase and Sale Agreement Contingency. Close of escrow is contingent upon execution of this Purchase and Sale Agreement by the Successor Agency (as set forth in the ENA) which must first be approved by the Kern Countywide Oversight Board (the "OB") and, as may be required, the California Department of Finance (the "DOF"). If OB and DOF approval is not obtained, SA and Developer shall negotiate in good faith to modify the this Purchase and Sale Agreement after delivery of notice of disapproval to attempt to reach an agreement that will be satisfactory to SA, Developer, OB, and DOF.
11. Assignment. SA is entering into this Agreement on the basis of the particular experience, financial capacity, skills and capabilities of Developer. This Agreement is personal to Developer and is not assignable without the prior written consent of SA, which may be given, withheld, or conditioned in SA's sole and absolute discretion.
Developer's Indemnification of SA and/or City of Arvin. Developer shall indemnify, defend and hold harmless SA, and the elected and appointed officials, officers, agents and employees of SA (individually or collectively, an "Indemnified Party") against any and all losses arising out of any claim, demand or cause of action, or any action or other proceeding, whether meritorious or not, arising through Developer, Developer's contractors or employees and brought or asserted against any Indemnified Party that relates to or arises out of: (i) property damage or bodily injury or death of any person in connection with this Agreement; (ii) entry upon the Site by Developer, its contractors or employees; (iii) any inspection of the Site by Developer, its contractors or employees; or (iv) the preparation of any report or plans commissioned by Developer. Additionally, Developer shall indemnify and/or reimburse SA and/or the City for any costs SA or the City incurs for its participation, including but not limited to, responding to subpoenas or providing testimony for any claim, demand or cause of action, or any action or other proceeding, whether meritorious or not which is asserted against Developer, Developer's agents and assigns, and Developer's contractors or employees; provided, however, that no Indemnified Party shall be entitled to indemnification under this Section for any matter caused by such Indemnified Party's gross negligence or willful misconduct or for any matter arising from the discovery of any pre-existing condition upon the Site. In the event any action or proceeding is brought against an Indemnified Party by reason of a claim arising out of any loss for which Developer is obligated to indemnity, defend or hold harmless the Indemnified Party, and upon written notice from such Indemnified Party, Developer shall, at Developer's sole expense, answer and otherwise defend such action or proceeding. The provisions of this Section shall survive the expiration or termination of this Agreement.
13. Notices. Notices required hereunder shall be in writing and sent to the following addresses, or such other address as a Party may designate by written notice, and shall be deemed effective when: (i) personally delivered; (i) deposited in the U.S. Mail with postage prepaid, registered or certified and return receipt required; or (iii) sent by reputable overnight carrier that provides proof of delivery.
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Successor Agency:
City of Arvin Successor Agency
Attn: Jeff Jones, Executive Director
200 Campus Drive
Arvin, CA 93203
Developer:
Arvin Walnut Properties, LLC
c/o Ted Moore, E.F. Moore &
Company 226 W. Ojai Avenue;
Suite 101-537
Ojai, CA 92023
Email: [email protected]
State Foods Markets
Attention: Mike Alamsi,
President 237 Academy Avenue
Sanger, CA 93657
Email: [email protected]
With a copy to:
State Foods Markets
Mike Alamsi,
President 1216 Los
Cantos Drive
Arvin, CA 93203
14. Miscellaneous Provisions.
a. California Public Records Act. SA agrees, to the maximum extent permitted by the California Public Records Act (Government Code Section 6253 et seq.), the city of Arvin's Records Retention Schedule, Government Code Section 34090, or other applicable local, state or federal disclosure laws (collectively, "Public Disclosure Laws"), to keep confidential all proprietary financial and other information submitted by Developer to SA in connection with Developer's satisfaction of its obligations under this Agreement and any Conveyance Instrument (collectively, "Confidential Information"). Notwithstanding the preceding sentence, SA may disclose Confidential Information to its officials, employees, agents, attorneys and advisors, but only if and to the extent necessary to carry out the purpose for which the Confidential Information was disclosed consistent with the rights and obligations provided for hereunder and may disclose such information in response to a request for public records under the Public Disclosure Laws, as provided below.
Developer acknowledges that SA/City has not made any representations or
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warranties that any Confidential Information SA/City receives from Developer will be exempt from disclosure under any Public Disclosure Laws. In the event the City Attorney/Agency Counsel determines that the release of any Confidential Information is required by Public Disclosure Laws, or by order of a court of competent jurisdiction, SA/City shall, within five (5) business days of delivery of the request, notify Developer in writing of Successor Agency's/City's intention to release some, none or all of the Confidential Information so that Developer has the opportunity to evaluate whether to object to said disclosure and/or to otherwise take whatever steps it deems necessary or desirable to prevent disclosure, provided that SA/City shall not be liable for any damages, attorneys' fees and costs for any alleged failure to provide said notice. If the City Attorney/Agency Counsel, in his or her discretion, determines that only a portion of the requested Confidential Information is exempt from disclosure under the Public Disclosure Laws, City/SA may redact, delete or withhold such information from disclosure. However, the remaining portion of the Confidential Information that is not exempt from disclosure under the Public Disclosure Laws shall be disclosed
b. Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Kern County. Should any action be filed concerning this Agreement, said action shall be filed in the Kern County Superior Court. c. Exhibits and Recitals. All Exhibits and Recitals included herewith are incorporated into this Agreement by reference as if fully set forth herein. d. Modification. This Agreement may be amended or modified only by a written instrument signed by both Parties.
e. Severability. The invalidity of any portion of this Agreement shall not affect the validity of the remaining portions, which shall remain in full force and effect. f. No Third-Party Beneficiary. This Agreement is made and entered into for the sole protection and benefit of the Parties. No other person shall have any right of action based upon any provision of this Agreement.
g. Headings. The headings included in this Agreement are for convenient reference only and shall not affect the interpretation of this Agreement. h. Waiver. The failure of a Party to enforce any right hereunder will not constitute a waiver of any right or damages. No waiver, benefit, privilege, or service voluntarily given or performed will establish any contractual right by custom, estoppel, or otherwise.
Time. The Parties agree that time is of the essence with respect to performance of all obligations under this Agreement.
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j. Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the Site, and supersedes all prior negotiations, understandings or agreements as to the subject matter herein.
k. Execution. This Agreement may be executed in counterparts, which together shall compose a single instrument. A Party's signature transmitted by facsimile or electronic mail shall be valid and effective.
1. Brokerage Commissions: SA represents that it has engaged Kosmont Real Estate Services as its broker ("Broker") in connection with the potential sale of the Site and the transaction contemplated hereunder. Agency may approve modifications in brokerage services as agreed by and between the Parties and Broker.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers as of the date first appearing above.
Date: SUCCESSOR AGENCY TO THE ARVIN COMMUNITY
REDEVELOPMENT AGENCY
By:_
Jeffrey Jones
Successor Agency Manager
Date: 'ARVIN WALNUT PROPERTIES, LLC
By: _
Edwin F. (Ted) Moore
Managing Member
Date: STATE FOODS MARKET
By:
Ahmed Alamsi
Title: President
Approved as to Form:
HÖDGES LAW GROUP
By:
Nathan M. Hodges,
Attorney for Successor Agency
Escrow Agent Acceptance:
Received and accepted this day of 2024, which date is the "Opening Date" for purposes hereof, Escrow No.
Fidelity National Title Company
Lisa Figgins, Escrow Agent
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EXHIBIT A
DESCRIPTION OF PROPERTY
For APN/Parcel ID(s): 190-270-01-00, 190-270-03-00, 190-270-05-00 and 190-270-06-00
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF ARVIN, COUNTY OF KERN, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
PARCEL 190F PARCEL MAP 7214, IN THE CITY OF ARVIN, COUNTY OF KERN, STATE OF CALIFORNIA, AS PER MAP RECORDED MAY 28, 1985 IN BOOK 32, PAGES 17 AND 18 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPTING THEREFROM ALL OIL, GAS, OTHER HYDROCARBON SUBSTANCES AND MINERALS OF ANY KIND OR CHARACTER, IN ON, OR THEREUNDER, As RESERVED BY HUGH S.JEWETT, ET AL IN DEED RECORDED APRIL 2, 1979 IN BOOK 5186, PAGE 2022 OF OFFICIAL RECORDS.
ALL RIGHT TO THE USE OF THE SURFACE OF THE HEREINAFTER DESCRIBED LAND OR ANY OTHER PORTION THEREOF ABOVE A DEPTH OF 500 FEET FOR THE
PURPOSE OF DRILLING FOR OR DEVELOPING ALL MINERALS, OIL, GAS AND
OTHER HYDROCARBON SUBSTANCES WITHIN OR UNDERLYING SAID LAND,
PROVIDED, HOWEVER, THAT THE GRANTORS, THEIR HEIRS OR ASSIGNS SHALL
HAVE THE RIGHT TO DEVELOP SUCH SUBSTANCES BY SLANT DRILLING FROM LOCATIONS ON ADJACENT LANDS AT DEPTHS OF MORE THAN 500 FEET AND IN
SUCH MANNER AS NOT TO DISTURB THE SURFACE OF SAID LAND OR ANY
IMPROVEMENTS THEREON WERE QUITCLAIMED BY DEEDS RECORDED AUGUST 16, 1983 IN BOOK 5580, PAGE 102, OF OFFICIAL RECORDS.
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BEAR MOUNTAIN
PARCEL MAP 7214 PTN. SW1/4 SEC. 23 T.31S. R.29E
191/
PIQ
SR-223
-wY
PIO
Ord
Exhibit A-1
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EXHIBIT B
PROPOSED PROJECT
GUED 4TH STREE
LARD STREET STREET
WALNUT
BEAR MOUNTAIN BLVD
ARVIN TOWN CENTER
PROPOSED PLAN
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EXHIBIT C(1)
SPECIFIC DEVELOPER TASKS
To be Completed during the Escrow Period
1. Within sixty (60) days after execution of the PSA, Developer shall deliver to Successor Agency for Successor Agency staff review and approval, an organizational chart of the proposed Developer entity proposed to be a party to the Conveyance Instrument.
2. Within sixty (60) days after execution of the PSA, Developer shall submit a preliminary Site Plan. The parties anticipate that the Site Plan & Development Program will be further refined during the term of this PSA, as part of the Conveyance Instrument negotiations, which is herein defined as specifying the conceptual framework to guide the overall then prepare the preliminary design plan of the Project, including building elevations and design themes, as reasonably required by Successor Agency/City, sufficient, to the extent feasible and practicable, to allow Successor Agency/City to evaluate architectural design and similar issues as part of the Project's land use entitlement process.
3. Within (45) days after the execution of the PSA, Developer shall deliver to the Successor Agency a disclosure of the Developer's principals, partners, joint ventures, and consultants that will be materially involved in the acquisition and development of the Property.
4. Within ninety (90) days after execution of the PSA, Developer shall submit a preliminary proforma showing the following preliminary information: an operating income and expense estimate, an estimated budget for development and construction of the Project, estimated pricing ranges, projected range of Project value at completion, and relevant market validation (e.g., benchmark cap rates) shall be provided to Agency/City. Said proforma should also show the preliminary estimated economic benefits to Agency/City for at least a ten (10) year period after completion of the Project with respect to the payment reasonably available during the term of the PSA and shall reflect the parties' understanding that such information is preliminary in nature.
5. Within one hundred twenty (120) days after the execution of the PSA, Developer shall deliver to the Successor Agency for Successor Agency staff review and approval, a preliminary financing plan (including preliminary deal structure, development entities, financing sources and methods, interest letters from specific construction lenders) or mezzanine equity providers) (as may be available)), financial statements, operating or partnership agreements and/or other information, for the purpose of documenting, to
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Successor Agency's/City's reasonable satisfaction, including an updated financing plan before the parties approve the Conveyance Instrument, evidence of Developer's financial capacity to proceed with the contemplated transaction.
6. Within one hundred twenty (120) days after execution of the PSA, Developer shall obtain and review a Phase I environmental (hazmat) report for the Property, and if recommended by the Phase I, Developer shall promptly obtain a Phase II report subject to entering into a reasonable right of entry agreement with the Successor Agency. Developer shall promptly deliver copies to the Successor Agency when delivered.
7. Prior to the expiration of the Escrow Period, Developer shall submit to the Successor Agency a schedule of development setting forth the proposed timetable for the commencement, substantial completion, and final completion of the Project (the "Development Schedule").
8. City/Successor Agency reserves the right to and may reasonably request any additional documentation, including additional reports, studies, analyses, and other information, from Developer in order to negotiate the Conveyance Instrument as contemplated hereunder. Upon receiving such a request, Developer shall provide such additional documentation to City/Successor Agency pursuant to a mutually agreed upon deadline.
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EXHIBIT C(2)
SPECIFIC SUCCESSOR AGENCY TASKS
To be completed during the Escrow Period
1. Within thirty (30) days after the execution of the PSA, Successor Agency shall provide to Developer copies of all currently existing plans, studies, and other written information regarding the Property in its possession, to the extent not previously delivered to Developer and to the extent material to the Project and not subject to any attorney-client or attorney work product privilege or other privilege.
2. Successor Agency/City shall use good faith efforts to prepare and process any required CEQA Documents as soon as reasonably possible after submission by Developer of a complete development application and payment of applicable fees/deposits.
Within Sixty (60) days after the execution of the PSA, Successor Agency shall provide initial draft of the Conveyance Instrument to Developer and shall thereafter revise it to the extent reasonably permitted by the negotiations.
4. Successor Agency shall obtain and review a preliminary title report for the Property from a title company selected by the Successor Agency.
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EXHIBIT D
COVENANT DISCLOSING AFFORDABLE HOUSING RESTRICTION
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Arvin
Address
City State Zip
Attn: City Manager
No fee for recording pursuant to (Space above for Recorder's Use) Government Code Section 27383
AFFORDABLE HOUSING DECLARATION OF RESTRICTIVE COVENANTS (Restrictive Covenant Required by the Surplus Lands Act, Government Code Section 54233)
This Affordable Housing Declaration of Restrictive Covenants (the "Declaration" or "Restrictive Covenant") is made by the City of Arvin as Successor Agency to the Arvin Community Redevelopment Agency, a California Public Agency ("SA") and with reference to the following facts:
RECITALS
A. SA is the owner of an approximately acre parcel of real property located at , Arvin, California, identified as Kern County Assessor's Parcel No. _ and more particularly described by the legal description that is attached hereto and incorporated herein by this reference as Exhibit A, which together with all rights, privileges, easements and appurtenances thereto, including, without limitation, all mineral and water rights, all permanent improvements and SA's personal property, fixtures, furniture and/or furnishings located thereon at close of escrow, are hereinafter collectively referred to as the "Property." The Property is located in the City of Arvin, and all entitlements for use will be granted by the City of Arvin.
B. On 20, the Board of Directors of the SA ("Board") adopted Resolution No. declaring the Property as surplus.
C. On , SA provided the Notice of Availability of surplus property required by the Surplus Land Act (the "Act" (Government Code section 54222 et seq.)) to the entities specified therein. SA received timely notice expressing interest in purchasing the Property from an entity required by the Act to receive notice. The SA complied fully with the Act
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D. On SA staff notified the Department of Housing and Community Development (HCD) of SA's compliance with the Act as required by Government Code section 54230.5.
E. HCD's 30-day period to comment on SA's compliance with the Act process has expired comment regarding the form of the restrictive covenant being received from HCD, thus allowing SA to proceed with this RFP process.
F. The SA's Board, by at least a two-thirds vote of all of its members, adopted on Resolution No. declaring the SA's intention to sell the the SAy the "Roperty, in leinent shine of are guests and procedures for sale by Property (the G. Section 54233 of the Act requires that if the SA does not agree to price and terms with an entity to which notice and an opportunity to purchase or lease are given and disposes of the Property to an entity that uses the Property for ten or more residential units, the SA shall record a covenant or restriction against the Property prior to approval of any land use entitlements that requires that not less than fifteen (15) percent of any residential units be Affordable Units. This Covenant is intended to comply with the requirements of Section 54233 and to implement the policies and programs of the City of Arvin's adopted Housing Element of the General Plan.
TERMS
NOW, THEREFORE, SA hereby declares that the Property is, and shall be, held, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to the following Restrictive Covenants, all of which are declared and agreed to be in furtherance of the Surplus Land Act. These restrictions shall run with the land and shall be binding on and inure to the benefit of all parties having or acquiring any right, title or interest in the Property or any part thereof, are for the benefit of the Property and shall be binding on and inure to the benefit of the successors in interest of such parties unless otherwise set for the hereinafter.
The foregoing recitals are hereby incorporated by reference and made part of this Declaration.
ARTICLE 1 DEFINITIONS AND EXHIBITS
Section 1.1 Definitions. In addition to those terms defined in the Recitals, the terms listed here have the following meanings in this Agreement:
a. "Affordable Ownership Price" means a sales price that includes a reasonable down payment and results in a Monthly Housing Payment during the first calendar year of a household's occupancy that (i) for Low Income Households, is equal to or less than one- twelfth (1/12) of thirty percent (30%) of seventy percent (70%) of Area Median Income, as adjusted for Assumed Household Size; and (i) for Very Low Income Households, is equal to or less than one-twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of
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Area Median Income, as adjusted for Assumed Household Size, as calculated consistent with Health & Safety Code Section 50052.5.
b. "Affordable Rent" means monthly Rent that (i) for Low Income Households, is equal to or less than one-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of Area Median Income, as adjusted for Assumed Household Size; and (ii) for Very Low Income Households, is equal to or less than one-twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of Area Median Income, as adjusted for Assumed Household Size, as calculated consistent with Health & Safety Code Section 50053. If a tenant receives Section 8 housing assistance payments, the "Affordable Rent" requirement shall apply to the portion of such amount paid by the tenant.
c. "Affordable Price" means either Affordable Ownership Price or Affordable Rent. d. "Area Median Income" means the median income applicable to Kern County, adjusted for actual household size, as published annually by the California Department of Housing and Community Development in Title 25, Section 6932 of the California Code of Regulations (or successor provision) pursuant to California Health and Safety Code Section 50093(c). e. "Assumed Household Size" means one person in a studio dwelling unit, two persons in a one-bedroom dwelling unit, three persons in a two-bedroom dwelling unit, and one additional person for each additional bedroom thereafter. f. "Developer" means a party who purchases the Property and constructs Residential Homes thereon, and any successor, heir, or assign of the Developer, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by the SA.
g. "Eligible Household' means a household that is a Low-Income Household or a Very Low- Income Household.
h. "Low Income Household' means a household whose annual household income does not exceed the low-income limits applicable to Kern County as published annually pursuant to Title 25, Section 6932, of the California Code of Regulations (or its successor provision) by the California Department of Housing and Community Development. i. "Monthly Housing Payment" includes monthly payment of mortgage interest and principal, property taxes, mortgage insurance, homeowner's insurance, homeowners' association dues, assessments paid by homeowners, and a reasonable allowance for utilities (excluding telephone service and cable television).
j. "Rent" means the total of monthly payments required to be paid by a tenant for the following: use and occupancy of an Affordable Unit and associated facilities, including parking; any separately charged fees or service charges assessed by Developer and required to be paid by the tenant other than security deposits; utilities paid by the tenant, if any, which may include garbage collection, sewer, water, electricity, gas and other heating,
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cooking and refrigeration fuel, excluding telephone service or cable television; and any other interest, taxes, fees or charges paid by the tenant in connection with the use of the Affordable Unit or associated facilities and assessed by a public or private entity other than Developer.
k. "Term" is the period of time beginning on the date that a permanent certificate of occupancy is issued for all of the Affordable Units and ending fifty-five (55) years following that date for rental housing or forty-five (45) years for ownership housing. "Very Low-Income Household" means a household whose annual household income does not exceed the very low-income limits applicable to Kern County as published annually pursuant to Title 25, Section 6932, of the California Code of Regulations (or its successor provision) by the California Department of Housing and Community Development.
Section 1.2 Exhibits. The following Exhibit is attached and incorporated into this Restrictive Covenant:
a. Exhibit A Legal Description of the Property
ARTICLE 2
AFFORDABILITY AND OCCUPANCY COVENANTS
Section 2.1 Affordable Housing Requirements.
a. Affordable Units. If 10 or more dwelling units are developed on the Property, not less than fifteen percent (15%) of the total residential units developed on the Property shall be sold or rented at an Affordable Price to Eligible Households. The Affordable Units shall be used only as residences for the Term of this Agreement. Rental units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in-interest who continues the violation by any of the entities described in subdivisions (a) to (1), inclusive, of Section 54222.5 of the California Government Code.
b. Satisfaction of Affordable Housing Requirements. The affordable housing requirements contained in this Restrictive Covenant shall be satisfied with respect to the Property when:
(a) the Developer constructs, or causes to be constructed, and completes the construction of the Affordable Units meeting the requirements of this Agreement; and (b) for the Term of this Agreement, Developer sells or rents all Affordable Units to Eligible Households at an Affordable Ownership Price or Affordable Rent, as applicable, in compliance Section
2.1(a) above.
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c. Recordation of Restrictive Covenant. Concurrently with close of escrow on sale of the Property to the Developer, or prior to receipt of any entitlement for use from the City of Arvin, whichever occurs first, this Declaration shall be duly executed by the SA and recorded against the Property in the Official Records of the County of Kern, consistent with the requirements of Section 54233 of the Act.
Section 2.2 Term and Release of Property from Agreement. . Term. The provisions of this Agreement shall apply to the Property for the entire Term inless released as described in subsection (c) below. This Declaration shall bind any successor, heir, or assign of the Developer, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by the SA.
The SA intends to sell the Property on the condition, and in consideration of, this provision, and would not do so otherwise.
b. Covenant Running with the Land. The covenants and conditions herein contained shall apply to and bind, during their respective periods of fee ownership, Developer and its heirs, executors, administrators, successors, transferees, and assignees having or acquiring any right, title, or interest in or to any part of the Property, whether by operation of law or in any manner whatsoever, and shall run with and burden the Property for the Term of this Declaration until terminated in accordance with this Section. All of the provisions of this Declaration shall be enforceable as equitable servitudes and shall constitute covenants running with the land pursuant to applicable laws, including without limitation Section 1468 of the California Civil Code. Each covenant to do, or to refrain from doing, some act on the Property hereunder (a) is for the benefit of the Property and is a burden on the Property, (b) runs with the Property, and (c) is binding upon each party and each successive owner during its ownership of the Property or any portion thereof, and shall be a benefit to and a burden upon each party and the Property hereunder and each other person or entity succeeding in an interest to the Property.
c. Release of Restrictive Covenants.
i. Upon completion of all of the Affordable Units, if any, and the sale or rental of all of the Affordable Units at Affordable Ownership Price or Affordable Rent, as applicable, to Eligible Households, the SA shall release all portions of the Property except the parcels occupied by the Affordable Units from the burdens of this Agreement within thirty (30) days following written notice from the Developer, if at the time the Developer is in compliance with all terms of this Declaration. ii. Prior to the expiration of the Term, Developer shall provide all notifications required by Government Code Sections 65863.10 and 65863.11 or successor provisions and any other notification required by any state, federal, or local law. ili. Upon the expiration of the Term, SA shall execute and record a release of all portions of the Property from the burdens of this Declaration within thirty (30) days following written notice from the Developer, if at the time the Developer is in
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compliance with all terms of this Agreement, including without limitation Developer's compliance with subparagraph (c)(ii) of this Section.
Section 2.3 Nondiscrime tion, evelop, read, so, dexual orite tagion, marital status, familial persons on account of race,
status, ancestry or national origin in the use, sale, transfer, occupancy, lease, tenure or enjoyment of the Property, nor shall Developer or any person claiming under or through Developer establish or permit any such practice or practices of discrimination or segregation with respect to use or occupancy of the Property.
ARTICLE 3 DEFAULT AND REMEDIES
Section 3.1 Default. The SA may exercise any and all remedies available to it for violation of this Declaration, including but not limited to: (a) instituting against the Developer, or other parties, a civil action for declaratory relief, injunction or any other equitable relief, or relief at law, including without limitation an action to rescind a transaction and/or to require repayment of any funds received in connection with such a violation; and (b) where one or more persons have received financial benefit as a result of a violation of this Declaration, the SA may assess, and institute legal action to recover as necessary, a penalty in any amount up to and including the amount of financial benefit received, in addition to recovery of other benefits received; (c) prosecuting a misdemeanor against any person who has violated the Surplus Land Act; and (d) any other remedies authorized by law.
Section 3.2 Enforcement by Third Parties. As required by Section 54233 of the Act, any default in the Developer's obligations pursuant to this Declaration shall also be enforceable against the Developer by any of the entities described in subdivisions (a) through (f), inclusive, of Government Code Section 54222.5.
Section 3.3 Remedies Cumulative. No right, power, or remedy given is intended to be exclusive of any other available right, power, or remedy; but each and every such right, power, or remedy shall be cumulative and shall be in addition to every other right, power, or remedy given to the SA now or hereafter existing at law, in equity, or by statute or ordinance. Neither the failure nor any delay on the part of the SA to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the SA of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
ARTICLE 4 GENERAL PROVISIONS
Section 4.1 Interpretation. The terms of this Declaration shall be interpreted so as to insure to the maximum extent possible that the Affordable Units are used for affordable housing and are occupied by Eligible Households.
Section 4.2 Title of Parts and Sections. Any titles of the sections or subsections of this Declaration are inserted for convenience only and shall be disregarded in interpreting any part of the Declaration's provisions.
Purchase and Sale Agreement
APNs 190-270-01, -03, -05, -06
Section 4.3 Governmental Standards. In the event any standard established and maintained by any governmental agency which is necessary to give effect to this Declaration ceases to exist, and no comparable replacement is issued, the SA shall create a replacement standard utilizing the formula and factors previously used to create the discontinued standard Section 4.4 Authority. This Declaration has been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of SA Section 4.5 Survival; No Merger. All of the terms, provisions, representations, warranties and covenants of herein shall survive the close of escrow of any sale of the Property or the Affordable Units and shall not be merged in any deed transferring the Property or the Affordable Units.
Section 4.6 Severability. In the event any limitation, condition, restriction, covenant, or provision Date: CITY OF ARVIN, AS SUCCESSOR AGENCY
TO THE ARVIN COMMUNITY
REDEVELOPMENT AGENCY,
A CALIFORNIA PUBLIC AGENCY
By:
Name:
Title:
Purchase and Sale Agreement
APNs 190-270-01, -03, -05, -06