Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 13, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Megan Martin, Community Development Director
Gabriel Munoz-Morris, Senior Engineer
SUBJECT: Development Application 22-26 - Approval of Final Subdivision Map, Affordable Housing Agreement, Covenant Related to Easements Affecting Land, and Subdivision Improvement Agreement
RECOMMENDATION
Approve the Final Subdivision Map for Development Application 22-26 (1211 Baden Avenue/Valencia Court), Affordable Housing Agreement, Covenant Related to Easements Affecting Land, and Subdivision Improvement Agreement and authorize the City Clerk to sign and record the map and direct the City Manager to enter into a Subdivision Improvement Agreement with the applicant (Noslo Baden, LLC).
BACKGROUND
In order to subdivide a piece of property for sale, lease, or finance, two steps are required. First, the City must approve a tentative map with conditions required for final approval. Once all conditions of approval are satisfied, a final map is approved, which is the action recommended.
This proposed action is a final map for an approved vesting tentative subdivision map. Under California Subdivision Map Act (Map Act), once a vested tentative subdivision map is approved, that approval “confer[s] a vested right to proceed with development in substantial compliance with the ordinances, policies, and standards [in effect at the time when the map was deemed complete.]”
In February 2023, the Planning Commission approved a Vesting Tentative Subdivision Map for Development Application 22-26, an attached 8-unit development located at the northeast corner of the intersection of South 12th Street and Baden Avenue. The approval included requirements to complete frontage improvements along South 12th Street and Baden Avenue. Public improvement plans, including construction of frontage improvements, sewer service, water services, and a water mainline extension were reviewed and approved by staff. Recordation of the Final Map and bonds backed by the developer are required to construct the proposed subdivision.
The Map Act only allows an agency to further condition or deny a final map for an approved vesting subdivision map if it determines: (1) the subdivision would place residents of the subdivision or the immediate community in a condition dangerous to their health or safety; or (2) the condition or denial is required to comply with state or federal law. Caselaw on the City’s approval of a final map characterizes the Council’s action on a final map action as “ministerial.” Staff Report: Approval of Final Subdivision Map, CC&Rs & Subdivision Improvement Agreement Page 2 May 13, 2024
Development Code Section 8.30 – Subdivision Regulations, requires that when the conditions of approval have been met, and when an adequate final subdivision map that is substantially in conformance with the design of the approved tentative map has been submitted, the City Engineer will transmit the map with their approval and certification to the City Clerk (Clerk), awaiting your Council’s approval to record the map. Section 8.30.010 requires your Council to approve the map if it is determined to be in conformance with the City’s Subdivision Regulations and the Map Act.
The applicant has submitted a Final Subdivision Map for Tract Map 3203 for Council action and final acceptance. The Final Map includes private access, utility, pedestrian access, and drainage easements. There are no public dedications on the final subdivision map. The proposed new onsite drive lane within the development is private and will be maintained by the property owners.
Staff has reviewed the submittal and found it to be in substantial compliance subject to completion and acceptance of certain public improvements defined in the Subdivision Improvement Agreement. Additionally, as part of the review process, staff has reviewed the Affordable Housing Agreement and Covenant Related to Easements Affecting Land, consistent with project approvals.
Staff recommends approval of the Final Map based on its review.
Because the subdivision Conditions of Approval require public improvements that have not been completed, including the construction of infrastructure that will serve the development, the applicant is required by both the Development Code and the Map Act to enter into a Subdivision Improvement Agreement. Consistent with California Government Code § 66462(a), the subdivider is required to complete the improvements at their expense. The applicant has provided a performance bond that covers the cost of constructing the improvements in the event that the applicant does not complete the subdivision improvements. The estimated cost to complete the public improvements is approximately $307,000 based on an engineer’s cost estimate at prevailing wage.
FISCAL IMPACT
The City’s costs for review and certification are paid by the project applicant. There are no other costs associated with this action.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Approve the Final Subdivision Map for Development Application 22-26 (121 Baden Avenue/Valencia Court), Affordable Housing Agreement, Covenant Related to Easements Affecting Land, and Subdivision Improvement Agreement and authorize the City Clerk to sign and record the map and direct the City Manager to enter into a Subdivision Improvement Agreement with the applicant (Noslo Baden, LLC); or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Staff Report: Approval of Final Subdivision Map, CC&Rs & Subdivision Improvement Agreement Page 3 May 13, 2024
Attachments
1. Resolution
a. Final Map
2. Subdivision Improvement Agreement
3. Affordable Housing Agreement
4. Covenant Related to Easements Affecting Land
Attachment 1
RESOLUTION NO. 24-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA APPROVING FINAL TRACT MAP NO. 3203 AND AUTHORIZING THE CITY CLERK TO RECORD FINAL TRACT MAP NO. 3203 – 1211 BADEN AVENUE/VALENCIA COURT SUBDIVSION (APPLICANT: NOSLO BADEN, LLC)
WHEREAS, an application has been received from Paul Bischoff (“Applicant”) for recordation of a Final Map No. 3203, for an attached 8-unit development located at 1211 Baden Avenue (APN 060-357-016) in the High Density Residential (R3) Zone; and WHEREAS, approval of the final map of Vesting Tentative Subdivision Map 3203 is not a project and/or is otherwise exempt from environmental review under the California Environmental Quality Act (CEQA) per CEQA Guidelines 14 CCR Section 15268(b)(3); and WHEREAS, The Planning Commission of the City of Grover Beach, at a duly noticed Public Hearing held on February 7, 2023, approved Development Application 22-26, a development permit, state density bonus, and vesting tentative subdivision map; and NOW THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Grover Beach makes the following findings and determinations with respect to Final Tract Map 3203.
Section 1. Findings of Final Map Approval. The City Council finds as follows in accordance with the Grover Beach Municipal Code Article IX (Development Code) Chapter 8 and the California Subdivision Map Act:
1. The Final Map is consistent with §66443 of the California Government Code and Section
8.50 of the Grover Beach Development Code.
Fact. The City’s surveyor and the City Engineer have reviewed the final map and all associated documentation and determined that the Final Map meets both State of California requirements and Development Code requirements.
2. The Final Map meets all required conditions of approval to record a final map.
Fact. With the execution of the Subdivision Improvement Agreement, the Final Map meets all required conditions of approval to record a final map. The Final Map contains all required easements and deed notifications shall be recorded concurrently with the map.
3. Since the public improvements have not been completed prior to the acceptance of the Final Map, an improvement agreement between the subdivider and City will be entered into concurrent with recordation of Final Map consistent with §66462 of the California Government Code and Section 8.90.100 through 8.90.170 of the Grover Beach Development Code.
Fact. The Applicant has signed a Subdivision Improvement Agreement that has been reviewed by city staff. With approval of the final map, the City Council will authorize the City Manager to enter into this agreement for consistency with the California Subdivision Map Act and Development Code.
Resolution No. 24-__ Page 2
Section 2. Final Map Approval. The City Council of the City of Grover Beach, on May 13, 2024, resolves to approve Final Map 3203 as shown in Exhibit A, direct the City Clerk to sign the map for recordation along with all accompanying documents, and authorize the City Manager to enter into a Subdivision Improvement Agreement with the Applicant.
On motion by Council Member __________, seconded by Council Member ________, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 13th day of May 2024.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
**DRAFT**
Exhibit A
RECORDING REQUESTED BY:
City of Grover Beach
WHEN RECORDED MAIL TO:
City Clerk
City of Grover Beach
154 S. Eighth Street
Grover Beach, CA. 93433
PURSUANT TO GOVERNMENT CODE SECTION 6103,
NO RECORDING FEE REQUIRED
In the matter of the Approval of
The Subdivision Map of AGREEMENT AND UNDERTAKING FOR
INSTALLATION AND CONSTRUCTION
OF SUBDMSION IMPROVEMENTS
City of Grover Beach
County of San Luis Obispo
State of California
SUBDMSION AGREEMENT
FINAL MAP OF TRACT 3203
located at 121'1 Baden Avenue, Grover Beach California, hereinafter referred to as "Subdivider" without regard for number or gender, and is effective the date first appearing on the Clerk's Certification hereafter.
RECITALS
A. Subdivider has filed with City a Final Map proposing the subdivision of land owned by Subdivider, situated in the City of Grover Beach, County of San Luis Obispo, State of California, hereinafter referred to as the "Subject Property", dividing the real property more particularly described as follows:
LOTS II AND 12 IN BLOCK 155C, OF THE TOWN OF GROVER, IN THE CITY OF GROVER BEACH,
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE MAP OF SAID TOWN DRAWN BY A. LUNDQUIST AND FILED FOR RECORD NOVEMBER 23, 1892 IN BOOK A AT PAGE 6 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
TOGETHER WITH THAT PORTION THAT WOULD PASS BY CONVEYANCE AS ABANDONED BY RESOLUTION N0. 08-44, RECORDED JUNE 30, 2008 IN DOCUMENT N0. 2008033748, OF OFFICIAL RECORDS.
B. City requires as a condition precedent to the acceptance and approval of the Final Map the dedication of such streets, highways, public improvements, public places and easements as are delineated and shown on the Final Map, and deems the same as necessary for the public use, and also requires any and all streets, highways, public improvements, public places and easements delineated and shown on the Final Map, shall be improved by the construction and the installation of the improvements as hereinaffer specified.
Subdivision Agreement
Final Map of Tract 3203
1 Attachment 2
C. The City Municipal Code of Grover Beach requires Subdivider to enter into this Agreement with City whereby Subdivider agrees to do, perform and complete the work and matters required as Resolution No. 23-03 for Vesting Tentative Map 3203 dated February 7, 2023 issued by City and any amendments thereto, hereinaffer referred to as "Conditions ofApproval", within the time hereinafter specified.
D. Subdivider desires to construct the improvements and develop the Subject Property.
E. Subdivider hereby warrants that any and all parties having record title interest in the Final Map which may ripen into a fee have subordinated to this instrument and all such instruments of subordination, if any, are attached hereto and made a part of this instrument.
AGREEMENT
In consideration of the acceptance of the offers of dedication of the streets, highways, public improvements, public places, easements and facilities as shown and delineated on the Final Map, and in consideration of finding of substantial compliance with said Vesting Tentative Map, it is mutually agreed and understood by and between Subdivider and City, and Subdivider and City do hereby mutually agree as follows:
1 ) The Subject Property is subject to the following:
a) Time for Performance. The work and improvements required by the Conditions of Approval, Public Work Improvements, shall be performed on or before one year of the effective date of this Agreement.
However, the Subdivider shall automatically receive one extension of six (6) months to complete the installation of the improvements specified in this Agreement providing the Subdivider complies with all the conditions as follows:
i) At least a minimum of thirty (30) days prior to the expiration of said twelve months, the City Engineer receives a written request from the Subdivider for the six (6) months extension. ii) The Subdivider deposits two additional surety bonds with the City of Grover Beach to cover inflation on the uncompleted items: one for performance of the uncompleted Improvements and one to insure payment for the additional cost of labor and materials. Each of said surety bonds shall be the amount of five (5) percent of the sum of the costs of all uncompleted items from the list as shown in the Public Works Inspector's Punch List as of the date of extension as certified by the City Engineer. The surety bonds shall be supplied to the City Engineer within ten ("10) days from the date on the written transmittal from the City Engineer to the Developer of the additional surety bond amounts. The additional surety bonds to be approved by the City Engineer and CityAttorney as to sufficiency and to form. iii) If said Improvements are not made to the satisfaction of the City Engineer of the City of Grover Beach within twelve (12) months of the date of this Agreement, or within eighteen (18) months of the date of this Agreement if the conditions for the six (6) months extension have been complied with, the City of Grover Beach may exercise its right to proceed against the bonds or the Parties herein may mutually agree to enter into an amended subdivision agreement wherein Subdivider shall be responsible for issuing new bonds consistent with the bonding requirements of this Agreement. Said bonds shall be subject to approval by the City Attorney.
Subdivision Agreement
Final Map of Tract 3203
2 2) Scope of General Improvements.
a) Incorporation of Improvements. The work and improvements, including those depicted or required on the improvement plans for the Final Map, which may include plans relating to sewer, water, streets, storm drainage, street lighting, landscape and irrigation, grading, traffic signal plans, etc., as well as those required by Conditions of Approval (hereinafter collectively referred to as "Improvements"), are incorporated by reference and made a part of this Agreement. Improvements shall be done in accordance with the construction standards contained in the most current edition of the City of Grover Beach Standards and Specifications, Approved Public Improvement Plans, and any amendments thereto, at the sole cost and expense of Subdivider including all costs of engineering, inspection and testing. The construction cost estimates, and corresponding security requirements for these Improvements, are set forth in Exhibit "A".
b) Fire Deoartment Requirements. Issuance of building permits for any structure within the Subdivision shall conform to the requirements of the current edition of the California Fire Code (CFC) as adopted within the City of Grover Beach Municipal Code as may be amended. Subdivider's attention is particularly called to Part 9 of ntle 24 of the California Code of Regulations, as may be amended, relating to Fire Department access and water supply. No building permit shall be issued until all Fire Department access and firefighting water supply requirements have been met. No occupancy shall be allowed or occur until all Fire Department requirements for occupancy have been met. Authorization by City for occupancy of dwellings located within the Subject Property shall not be construed in any manner to constitute an acceptance and approval of any Improvements required by this Agreement or the Final Map.
3) Scope of Specific Improvements. The required Improvements include all work shown on the approved improvement plans. Subdivider shall perform and construct all work shown on the approved improvement plans for the Final Map and any amendments thereto as depicted and included within Exhibit "B", unless explicitly and specifically omitted by this Agreement. This requirement incorporates all work necessary For the required improvements to comply with the City of Grover Beach Standards and Specifications or any standards or policies which may be adopted by Council prior to their acceptance of the required public improvements.
4) Reserved for future use
5) Estimate Reimbursements for Certain Improvements.
a) Performance Security. The total amount shall equal 1 00% of the final Cost Estimate, as approved by the City Engineer, to be conditioned upon the faithful performance of this Agreement. Performance Security shall be in the form of a bond naming the City of Grover Beach as obligee, or a certificate of deposit made payable only to the City of Grover Beach, or cash. With the written authorization of the City, the Performance Security may be released in whole or in part in the following manner:
Subdivision Agreement
Final Map of Tract 3203
3 i) Performance Security, not in excess of 90% of the estimated costs of the individual items of public improvements, may be released, or the required amount of security may be reduced, as work is satisfactorily completed and tentatively accepted by the City. ii) Performance Security will be released in its entirety subject to the City's recording of the Notice of Completion for the Subdivision public improvements, and the Subdivider's provision of a Warranty Security to the City in accordance with provision 8) below. b) Payment (Labor and Material) Security. The total amount of the Payment Security shall equal I 00% of the estimated costs of the individual items of public improvements, as approved by the City Engineer, to secure payment to all contractors and subcontractors performing work on said Improvements and all persons furnishing labor, materials or equipment to them for said Improvements. Payment Security shall be in the form of a bond naming the City of Grover Beach as obligee, or a certificate of deposit made payable only to the City of Grover Beach, or cash. Thirty-five (35) days after the City's recording of the Notice of Completion for the Subdivision public improvements, the Payment Security may be released provided that no claims have been filed.
c) Other Improvement Security. Any and all other improvement security as required by Ordinance of the Grover Beach Municipal Code as may be amended.
6) Damaqe Prior to Final Acceptance. Any damage to the work and improvements constructed pursuant to this Agreement occurring after installation shall be made good to the satisfaction of the City Engineer by Subdivider before any securities are released or the final acceptance of the completed work. 7) Remedy of Defects. Subdivider shall remedy any defective work, labor or materials related to the Improvements, and shall pay City for any damage to the Improvements resulting therefrom, which occur within a period of one year from the date of acceptance of the Improvements by City. 8) Warranty Security. To insure Subdivider complies with its obligations set forth herein, on acceptance of the required work by the City Engineer, warranty security shall be furnished to, or existing securities retained by, City in the minimum amount identified in Exhibit "A." The warranty security shall serve as a guarantee and warranty of the work for a period of one year following acceptance against any defective work, labor or materials. Said warranty security shall be in the form of a bond, cash or certificate of deposit made payable only to the City of Grover Beach. The warranty security shall be released, less any amount required to be used for fulfillment of the warranty, one year after final acceptance of the subdivision Improvements. 9) No Riqht of Trespass. This Agreement shall in no way be construed as a grant by City of any rights to Subdivider to trespass upon land rightfully in the possession of, or owned by, another, whether such land be privately or publicly owned.
10) Indemnification. Subdividershallbeobligatedasfollows:
a) To the furthest extent allowed by law, Subdivider shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, fofeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Subdivider or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees, litigation and legal expenses incurred by City or held to be the liability of City, including plaintiff's or petitioner's attorney's fees if awarded, in connection with City's defense of its actions in any proceeding), arising or alleged to have arisen directly or indirectly out of performance or in any way connected with: (i) the making of this Agreement; (ii) the performance of this Agreement; (iii) the performance or installation of the work or Improvements by Subdivider and Subdivider's employees, officers, agents, contractors or Subdivision Agreement
Final Map of Tract 3203
4 subcontractors; (iv) the design, installation, operation, removal or maintenance of the work or Improvements; or (v) City's granting, issuing or approving use of this Agreement. b) Subdivider's obligations under the preceding sentence shall apply regardless whether City or any of its officers, officials, employees or agents are negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. c) If Subdivider should subcontract all or any portion of the work to be performed under this Agreement, Subdivider shall require each subcontractor to indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers in accordance with the terms of paragraphs "a)" and "b)" of this Section. Notwithstanding the preceding sentence, any subcontractor who is a "design professional" as defined in Section 2782.8 of the California Civil Code shall, in lieu of indemnity requirements set forth in paragraphs "a" and "b" of this Section, be required to indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers to the furthest extent allowed by law, from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage), and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses) that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of the design professional, its principals, officers, employees, agents or volunteers in the performance of this Agreement. d) Subdivider further agrees that the use for any purpose and by any person of any and all of the streets and works and Improvements hereinbefore specified, shall be at the sole and exclusive risk of Subdivider at all times prior to final acceptance by City of the completed street and other improvements thereon and therein. This Section shall survive termination or expiration of this Agreement. 11) Insurance. Prior to any work commencing to construct the improvements referenced in this Agreement, if self-performing the construction of the improvements, Subdivider shall pay for and maintain in full force and effect all policies of insurance described in this Section with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than "A-Vll" in Best's Insurance Rating Guide, or (ii) authorized by City's Risk Manager. If Subdivider should subcontract all or any portion of the services to be performed under this Agreement, Subdivider shall require each subcontractor to pay for and maintain in full force and effect all policies of insurance described in this Section with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than "A-Vll" in Best's Insurance Rating Guide, or (ii) authorized by City's Risk Manager. The subcontractors' certificates and endorsements shall be on file with both the Subdivider and City prior to the commencement of any work by the subcontractor or issuance of any permit for the construction of the improvements. The following policies of insurance are required:
a) COMMERCIAL GENERAL LIABILITY insurance, which shall be at least as broad as the most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 and shall include insurance for bodily injury, property damage, and personal and advertising injury with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations, contractual liability (including indemnity obligations under this Agreement), with limits of liability of not less than $1000,000 per occurrence for bodily injury and property damage, $1,000,000 per occurrence for personal and advertising injury and $1,000,000 aggregate for products and completed operations, and $2,000,000 general aggregate. b) COMMERCIAL AUTOMOBILE LIABILITY insurance, which shall be at least as broad as the most current version of Insurance Services Office (ISO) Business Auto Coverage Form CA 00 01 and shall include coverage for all owned, hired, and non-owned automobiles or other licensed vehicles (Section 1, Subdivision Agreement
Final Map of Tract 3203
5 subsection A. 1 entitled "Any Auto"), with combined single limits of liability of not less than $1000,000 per accident for bodily injury and property damage.
c) PROFESSIONAL LIABILITY (Errors and Omissions) insurance appropriate to the respective person's profession (applicable only to those subcontractors who are providing Professional Services to Subdivider), with limits of liability of not less than $1,000,000 per claim/occurrence and $2,000,000 policy aggregate.
d) WORKERS' COMPENSATION insurance as required under the California Labor Code. e) EMPLOYERS' LIABILITY with minimum limits of liability of not less than $I,000,000 each accident, $1,000,000 disease policy limit and $1000,000 disease each employee.
Subdivider shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Subdivider shall also be responsible for payment of any self-insured retentions.
If subcontracting all or any portion of the services to be performed under this agreement, the Subdivider's subcontractor shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Subdivider shall also be responsible for payment of any selfinsured retentions.
The above described policies of insurance shall be endorsed to provide an unrestricted 30 calendar day written notice in favor of City of policy cancellation of coverage, except for the Workers' Compensation policy which shall provide a 10 calendar day written notice of such cancellation of coverage. In the event any policies are due to expire during the completion of the improvements, Subdivider and/or Subdivider's subcontractor shall provide a new certificate evidencing renewal of such policy(ies) not less than "15 calendar days prior to the expiration date of the expiring policy(ies).
Upon issuance by the insurer, broker, or agent of a notice of cancellation in coverage, Subdivider and/or Subdivider's subcontractor shall file with City a new certificate and all applicable endorsements for such policy(ies).
The General Liability and Automobile Liability insurance policies shall be written on an occurrence form and shall name City, its officers, officials, agents, employees and volunteers as an additional insured.
Such policy(ies) of insurance shall be endorsed so Subdivider's and/or Subdivider's subcontractor's insurance shall be primary and no contribution shall be required of City. In the event claims-made forms are used for any Professional Liability coverage, either (i) the policy(ies) shall be endorsed to provide not less than a five (5) year discovery period, or (ii) the coverage shall be maintained for a minimum of five (5) years following the termination of this Agreement and the requirements of this Section relating to such coverage shall survive termination or expiration of this Agreement. Any Workers' Compensation insurance policy shall contain a waiver of subrogation as to City, its officers, officials, agents, employees and volunteers.
Subdivider and/or Subdivider's subcontractor shall have furnished City with the certificate(s) and applicable endorsements for ALL required insurance prior to City's approval of any permit authorizing construction of the improvements. Subdivider shall furnish City with copies of the actual policies upon the request of City's Risk Manager at any time during the life of the Agreement or any extension, and this requirement shall survive termination or expiration of this Agreement.
The fact that insurance is obtained by Subdivider or his/her/its subcontractors shall not be deemed to release or diminish the liability of Subdivider or his/her/its subcontractors including without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify City, its officers, officials, agents, employees and volunteers, shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of Subdivision Agreement
Final Map of Tract 3203
6 indemnification to be provided by Subdivider or his/her/its subcontractors. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Subdivider, its principals, officers, agents, employees, persons under the supervision of Subdivider, vendors, suppliers, invitees, subcontractors, consultants or anyone employed directly or indirectly by any of them.
If at any time during the construction of the improvements prior to final acceptance by the City, Subdivider fails to maintain the required insurance in full force and effect, the City Engineer, or his/her designee, may order that Subdivider, or its contractors or subcontractors, immediately discontinue any further work under this Agreement and take all necessary actions to secure the work site to insure that public health and safety is protected. All payments due or that become due to Subdivider shall be withheld until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Agreement and revoke any approved permit for construction of the improvements. 12) Payment for Materials and Supplies. Subdivider and Subdivider's contractors and subcontractors shall pay for any materials, provisions, and other supplies used in, upon, for, or about the performance of the Improvements contracted to be done, and for any work or labor thereon of any kind, and for amounts due under the Unemployment Insurance Act of the State of California, with respect to such work or labor, and shall file with City pursuant to Section 3800 of the California Labor Code, as may be amended, a Certificate of Workers Compensation and shall maintain a valid policy of Workers Compensation Insurance for the duration of the period of construction.
13) Compaction and Materials Testinq. Compaction and other materials testing performed for determination of compliance with Public Works Standards shall conform to City of Grover Beach Standards and Specifications. Materials testing shall at all times remain under the review of the City Engineer who may determine additional test procedures, and additional locations to be tested. All materials testing for improvement work within the public easements and rights-of-way shall be ordered and paid for by Subdivider.
14) Work by Subdivider. It shall be the responsibility of Subdivider to coordinate all work done by Subdivider's contractors and subcontractors, such as scheduling the sequence of operations and the determination of liability if one operation delays another. In no case shall representatives of City be placed in the position of making decisions that are the responsibility of Subdivider. It shall further be the responsibility of Subdivider to give the City Engineer written notice not less than two working days in advance of the actual date on which work is to be started. Failure on the part of Subdivider to notify the City Engineer may cause delay for which Subdivider shall be solely responsible.
15) . Whenever Subdivider varies the period during which work is carried on each day, Subdivider shall give due notice to the City Engineer so that proper inspection may be provided. If Subdivider fails to duly notify City as herein required, any work done in the absence of the City Engineer will be subject to rejection. Inspection of the Improvements by City shall not relieve Subdivider of any obligation to fulfill the Agreement as prescribed. Defective work shall be made good, and unsuitable materials may be rejected, notwithstanding the fact that such defective work and unsuitable materials have been previously overlooked by the City Engineer or City Inspector and accepted.
City shall inspect all Improvements. All Improvements and materials shall be done, performed and installed in strict accordance with the approved construction plans for said work on file with the City Engineer and City of Grover Beach Standards and Specifications, which said construction plans and Design Guidelines and Public Improvement Standards are hereby referred to and adopted and made by reference a part of this Agreement. In the event there are not any applicable Design Guidelines and Public Improvement Standards for any portion of said Improvements, it is agreed that the same shall be done and performed in Subdivision Agreement
Final Map of Tract 3203
7 accordance with the standards and specifications of the State of California, Division of Highways or County of San Luis Obispo Engineering Standards and Specifications, if applicable. All of said improvements and materials shall be done, performed and installed under the inspection of and to the satisfaction of the City Engineer.
16) Dust Control. Adequate dust control shall be maintained by Subdivider on all streets within and without the subdivision on which work is required to be done under this Agreement from the time work is first commenced in the subdivision until the paving of the streets is completed. "Adequate dust control" as used herein shall mean the sprinkling of the streets with water or the laying of an approved dust palliative thereon with sufficient frequency to prevent the scattering of dust by wind or the activity of vehicles and equipment onto any street area or private property adjacent to the subdivision in strict compliance with all rules and regulations established by the pertinent Air Pollution Control Board. Whenever in the opinion of the City Engineer adequate dust control is not being maintained on any street or streets as required by this paragraph, the City Engineer shall give notice to Subdivider to comply ("Notice to Comply") with the provisions of this paragraph forthwith. If in the opinion of the City Engineer Subdivider's failure to comply with the provisions of this paragraph is having an immediate and significant impact on the public's health, safety and welfare, the City Engineer may immediately issue a stop work order until City receives reasonable assurances Subdivider shall comply with the provisions of this paragraph forthwith. Such notices, Notice to Comply and stop-work orders may be personally served upon Subdivider. If Subdivider is not an individual, such notices, Notice to Comply and stop-work orders may be served upon (i) any person who has signed this Agreement on behalf of Subdivider (ii) upon any officer, manager or trustee of Subdivider or (iii) at the election of the City Engineer, such notices and stop-work orders may be served by mailed to Subdivider at Subdivider's address on file with the City Engineer. If the City Engineer has issued a Notice to Comply, and Subdivider has failed to commence adequate dust control or fails to maintain adequate dust control at any time thereafter, within twenty-four hours after personal service of the Notice to Comply or within forty-eight hours after the mailing thereof, the City Engineer may, without further notice of any kind, cause any such street or streets to be sprinkled with water, treated with a dust suppression agent or oiled, as the City Engineer may deem advisable to eliminate the scattering of dust, by equipment and personnel of City or by contract as the City Engineer shall determine. City may bill Subdivider for the entire cost to City of such treatment, including costs associated with equipment, material and staff time, as well as any other time or costs associated with the issuance with the elimination of the scattering of the dust including the Notice to Comply. Subdivider shall promptly pay to City the entire billed cost to City of such treatment. When the surfacing on any existing street is disturbed, this surfacing shall be replaced with temporary or permanent surfacing within fourteen calendar days, and the roadway shall be maintained in a safe and passable condition at all times between the commencement and final completion, and adequate dust control shall be maintained during these operations. 17) Street Surfacint:l and Underqround Facilities. Concrete curbs and gutters, the sanitary sewer system and sewer laterals, together with water mains and appurtenances, storm drainage facilities, gas mains, electrical and communication lines, and their respective service connections, and all other facilities required to be installed underground shall be completed in the streets and alleys before installation of street and alley surfacing.
Subdivision Agreement
Final Map of Tract 3203
8 18) Compliance with Conditions of Approval; Easements. Jn addition to the Covenants affecting land development, if any, Subdivider shall comply with all Conditions of Approval set forth in the Conditions of Approval for Vesting Tentative Map No. 3203 dated February 7, 2023, and any amendments thereto, not already fully completed or performed as of the date of the approval of the Final Map and which are not otherwise set forth in this Agreement. Compliance shall include, but is not limited to, any condition to convey to a specific party a fee interest or easement in any parcels in the Subject Property upon Subdivider's completion of all required improvements to said parcels. Subdivider's compliance with such conditions shall be completed within a reasonable time as determined by City, in City's sole discretion, commencing upon the City Engineer sending written notice to Subdivider of the outstanding condition and time in which Subdivider is required to comply, and Subdivider shall timely comply. 19) Compliance with Law. In performing obligations set forth in this Agreement, Subdivider shall comply with all applicable laws, regulations, and rules of all local, state and federal governmental agencies having jurisdiction including, without limitation, applicable federal and state labor standards and environmentai laws and regulations. Subdivider shall comply with the codes or ordinances of City including the Grover Beach Municipal Code, City Charter, and Building Codes. 20) Prevailing Waqes. Subdivider shall:
a) Pay prevailing wages on those improvements, if any, that are "public works" under Chapter 1, Part 7, Division 2 of the California Labor Code, including Section 1720(a) (collectively referred to as Public Works Improvements) and
b) comply with any applicable provisions of California Labor Code Sections 1720 et seq. and implementing regulations of the Department of Industrial Relations. Subdivider shall or shall cause its contractor and subcontractors to keep and retain such records as are necessary to determine that prevailing wages have been paid as may be required by law. During the construction of the PW Improvements, if any, Subdivider shall, or shall cause its contractor to, post at the Subject Property the applicable prevailing rates of per diem wages. Subdivider shall indemnify, hold harmless and defend (with counsel reasonably acceptable to the City) City against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Subdivider, its contractors and subcontractors) to pay prevailing wages as required by law or to comply with the other applicable provisions of California Labor Code Sections 1720 et seq. and the implementing regulations of the Department of Industrial Relations in connection with construction of any PW Improvements. 21) Enforcement of Obliqations. City may enforce this Agreement in any manner available at law or in equity, including, but not limited to, reversion to acreage.
22) Limitations of Legal Acts. Except as provided by the Section entitled "Attorney's Fees and Legal Expenses," in no event shalJ the City, or its officers, agents or employees, be liable in damages for any breach or violation of this Agreement, it being expressly understood and agreed Subdivider's sole legal remedy for breach or violation of this Agreement by City shall be a legal action in mandamus, specific performance or other injunctive or declaratory relief to enforce the provisions of this Agreement. 23) Attorney's Fees and Legal Expenses. If either party is required to commence any proceeding or legal action to enforce or interpret any term or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses. For the purposes of this Agreement, "attorneys' fees" and "legal expenses" include, without limitation, paralegals' fees and expenses, attorneys, consultants fees and expenses, expert witness fees and expenses, and all other expenses incurred by the prevailing party's attorneys in the course of the representation of the prevailing party in anticipation of and/or during the course of litigation, whether or not Subdivision Agreement
Final Map of Tract 3203
9 otherwise recoverable as "attorneys' fees" or as "costs" under California law, and the same may be sought and awarded in accordance with California procedure as pertaining to an award of contractual attorneys' fees.
24) Obligation Runninq With Land. This Agreement shall burden the Subject Property described and constitute a covenant running with the land in favor of and for the benefit of City shall be binding upon the successors, transferees, and heirs of Subdivider. Subdivider consents to the recordation of this Agreement with the Grover Beach County Recorder.
25) Waiver. The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
26) Successor Statutes Incorporated. All references to a statue or ordinance shall incorporate any or all successor statute or ordinance enacted to govern the activity now governed by the statute or ordinance, noted herein to the extent, however, that incorporation of such successor statute or ordinance does not adversely affect the benefits and protections granted to Subdivider under this Agreement. 27) Incorporation of Attachments: All recitals and attachments to this Agreement, including all Exhibits referenced herein, and all subparts thereto, are incorporated herein by this reference. 28) Time is of the Essence. Time is of the essence of this Agreement, and the same shalJ bind and inure to the benefit of the parties hereto, their successors and assigns. 29) No Assignment. No assignment of this Agreement or of any duty or obligation of performance hereunder shall be made in whole or in part by Subdivider without the written consent of City. 30) . Section, paragraph and other captions or headings contained in this Agreement are inserted as a matter of convenience and for reference, and in no way define, limit, extend or otherwise describe the scope or intent of the Agreement or any provision hereof and shall not affect in any way the meaning or interpretation of this Agreement.
31 ) Ambiquities or Uncertainties. Any ambiguities or uncertainties herein shall be equally and fairly interpreted and construed without reference to the identity of the Party or Parties preparing this Agreement, on the express understanding and agreement the Parties participated equa(ly in the negotiation and preparation of the Agreement, or have had equal opportunity to do so. Accordingly, the Parties hereby waive the benefit of California Civil Code §"l654 and any successor or amended statute, providing that in cases of uncertainty, language of a contract should be interpreted most strongly against the Party who caused the uncertainty to exist.
32) Severable Provisions. The provisions of this Agreement are severable. The invalidity or unenforceability of any one provision in this Agreement shall not affect the validity or enforceability of the other provisions, which shall remain in full force and effect.
33) Release of Conditions. The conditions and obligations of this Agreement shall remain in full force and effect until such time as City Engineer issues a Notice of Completion finding the conditions and obligations of this Agreement have been fully satisfied and are no longer required for public health and safety reasons and thereafter records such Notice of Completion with the Grover Beach County Recorder.
Subdivision Agreement
Final Map of Tract 3203
10 34) Venue. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be San Luis Obispo County, California. 35) Acknowledgement of Content. Each party acknowledges that they have read and fully understand the contents of this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both City and Subdivider.
Subdivision Agreement
Final Map of Tract 3203
11 IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement.
CITY OF GROVER BEACH
a Municipal Corporation
BV:
Matthew Bronson
APPROVED AS TO FORM:
Robert Lomeli, City Attorney
BY:
SUBDMDER
(Attach NotaryAcknowledgments)
Subdivision Agreement
Final Map of Tract 3203
12 ACKNOWLEDGMENT PAGE TO BE ATT ACHED TO THE FOLLOWING DOCUMENT:
SUBDMSION AGREEMENT FINAL MAP OF TRACT 3203
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of San Luis Obispo
On April 4 5, 2024 before me, J. Solis , Notary Public, (here insert name and title of the officer)
personally appeared Mark A. 01son and Amanda K. 01son
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws oT the State of California that the foregoing paragraph is true and correct.
I M ia 6 M (I! M 1111 * Ill lTh lTh ITS ( J. SOLIS 4 a"'o" NotaryPublic-California 4( San Luis Obispo County e
i % Commission # 2]80776 r
4 u My Comm. Expires act 29, 2025 @
Notary Acknowledgment - General
SSCORR)1863.doc/Updated: 09.23.19
Printed: 04.15.24 @ 01 :53 PM by JS
CA-FT-FSLC-01 500.076002-SaleNetSheetJS
CLERK'S CERTIFICATION
State of California )
County of Grover Beach)
On beforeme, ,personallyappeared,
, who proved to me on the basis of satisfactory evidence, to be the person(s) whose name(s2 is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is tme and correct.
WITNESS my hand and official seal
City Clerk, City of Grover Beach
BV
Deputy
EXHIBIT "A"
IMPROVEMENTS, COST ESTIMATES AND SECURITY REQUIREMENTS
SEE BELOW FOR DETAILS OF COSTS OF WORK
PERFORMANCE BOND: $307,700
PAYMENT BOND (LABOR & MATERIAL): 50% OF PERFORMANCE BOND AMOUNT o $153,850 WARRANTY BOND: 1 0% OF PERFORMANCE BOND AMOUNT o $30,770 -... ..... .. .................-._....._ & jRk i i & i $% i jllk ? 4 & k i i ffi i i ffik j% 0 a 4 a j% %!&. l- r I @ @ @ V r I h %< n € @ @ @ %; I N @ %; IN
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* i DEPARTMENT OF PUBLIC; WORKS -$9 !l W m i J k .. . , . . ... . , .- . . - .. ,.- - .- 41 -i Standard Unit COStS jar Protect Security (penormance BOna) Project: Baden Ave - Tract 3203 PIPs
Prepared by: Perry McBeth, PE 90,377
Firm Name: Garing, Taylor & Associates
Date: August 31, 2023
PRICEINDEXBASELINE,2011CALTRANSINDEX= 51.6
2nd Quarter 2021 PRICE INDEX = 92.0
-ENGINEER'SSEAL- -RESULTSSubtotal $112,101.35
Cost Index Factor 1.78
a'OF"%<
Adjusted Subtotal $199,783.72
Inflation (IO%) $19,978.37
Administration (20%-40%) $59,935.12
/ff/" "-\'ThTh
31 - I No. 90377 1- H
%* /*/
I
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I
Adjusted Subtotal $279,697.21
Contingency (1 0%) $27,969.72
u"4rtcNl""X'
I
TOT AL SECURITY TO BE POSTED: $307,700
(rounded to the nearest $100)
Mk 2/2/2024
Engine'er'ssignature date
page 1 of 11
I revised 6/'1/20228
page 2 of 11
SITE PREPARATION: SEC. 2-1 TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL CLEARING AND GRUBBING $0.03 SF
TREE REMOV AL $300.00 EA
CONCRETE REMOVAL S.W. $3.25 SF 40 130.00
CONCRETE REMOVAL C&G $10.00 LF
GRIND HOT MIX ASPHALT $1 .03 SF $4,250 4350 4,480.50
DISPOSAL OF HOT MIX ASPHALT $50.00 CY $360 40 2,000.00
OTHER REMOVAL (SPECIFY) AC DIKE $5.00 LF 235 1,175.00
ABANDON WELL $1 ,650.00 EA
ABANDON SEPTIC SYSTEM $500.00 EA
DISPOSAL OF CLIII BASE $29.00 CY $360
EXCAV ATION O-1000 CY $22.00 CY $500
1000-20000 CY $15.00 CY
> 20000 CY $9.00 CY
IMPORT O-1000 CY $31 .00 CY $500
1000-20000 CY $22.00 CY
> 20000 cy $12.00 CY
FINE GRADING $0.30 SF
Subtotal 7,785.50
page 3 of 11
ROADWAYS: SEC. 3-1 TYPE UNJT COST UNIT MINIMUM QUANTITY TOTAL HOT MIX ASPHALT IN PLACE II $1.95 SF $800
HOT MIX ASPHALT IN PLACE II $2.90 SF $800 3600 10,440.00 HOT MIX ASPHALT IN PLACE II $3.70 SF $800
HOT MIX ASPHALT IN PLACE II $4.90 SF $800
HOT MIX ASPHALT IN PLACE II $5.60 SF $800
HOT MIX ASPHALT IN PLACE $135 TON $800
CLASS It AGG. BASE II $0.87 SF
CLASS It AGG. BASE II $1 .30 SF 4940 6,422.00
CLASS II AGG. BASE II $1 .75 SF
CLASS II AGG. BASE 1 0" $2.10 SF
CLASS It AGG. BASE 12" $2.50 SF
CLASS II AGG. BASE 1 8" $3.70 SF
CLASS II AGG. BASE $35.00 TON
CROSS GUTTER AND SPANDREL D-5 $17.00 SF 80 1 ,360.00
GEOTEXTLE FABRIC $1.00 SF
SEAL COAT/SLURRY SEAL $0.60 SF
CHIP SEAL $2.00 SF
SAW CUT CONCRETE $4.00 LF $250
SAW CUT HMA $2.17 LF $250 525 1,139.25
Subtotal 19,361.25
page 4 of 11
ROAD EDGES: SEC. 4-1 TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL DRIVEWAY APPROACH - CONCRETE (B-2,3) $9.00 SF 270 2,430.00 DRIVEWAY APPROACH - HMA (B-1) $5.50 SF
HANDICAP RAMP C-5 $13.00 SF 70 910.00
CURB AND GUTTER II $22.00 LF 255 5,610.00
CURB ONLY C-2A $16.00 LF
HOT MIX ASPHALT DIKE C-3 $10.00 LF $800
SIDEWALK C-4 $10.00 SF 1342 13,420.00
GUARDRAIL $40.00 LF
STREET TREE WELL M-5 $700.00 EA
DECOMPOSED GRANITE WALKWAY $1 .50 SF $625
Subtotal 22,370.00
page 5 of 11
STORM DRAIN: SEC. 5-1 TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL CURB INLET D-2 $3,900 EA
RURAL INLET D-2A,B $1 ,700 EA
CULVERT PIPE 1 5" $38.00 LF
CULVERT PIPE 1 8" $60.00 LF
CULVERT PIPE 24" $80.00 LF
CULVERT PIPE 30" $90.00 LF
CULVERT PIPE 36" $105.00 LF
CULVERT PIPE 48" $135.00 LF
CULVERT PIPE 60" $150.00 LF
HEADWALL (CALTRANS D89) 15"-36" PIPE $3,420.00 EA
HEADWALL -WING TYPE (D89) 18"-60" $4,800.00 EA
UNDERDRAIN (SIDEWALK) D-4A, D-4B $1 ,soo.oo EA
UNDERDRAIN (SIDEWALK) PIPE D-4 $500.00 EA
RIP-RAP DISSIPATER 0.25 TON, H-5 $150.00 CY
RIP-RAP DISSIPATER 0.5 TON, H-5 $160.00 CY
'RIP-RAP DISSIPATER 1 TON, H-5 $170.00 CY
RIP-RAP DISSIPATER 2 TON, H-5 $180.00 CY
OVERSIDE DRAIN, (CALTRANS) HMA $320.00 EA
CONCRETE V-DITCH (SLOPE) $40.00 LF
MANHOLE D-3 8' DEPTH $4,500 EA
TIE TO EX. MANHOLE $2,000 EA
UNDERGROUND BASIN STORMTECH $8.00 CF $500
Subtotal -
page 6 of 11
WATER SUPPLY: SEC. 6-1 TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL WATER SERVICE AND METER BOX W-4 $1,700.00 EA g 15,300.00 RAISE WATER METER $400.00 EA
WATER MAIN II $50.00 LF
WATER MAIN II $58.00 LF 177 10,266.00
WATER MAIN I O" $68.00 LF
WATER MAIN 1 2" $92.00 LF
WATER MAIN 1 4" $106.00 LF
WATER MAIN 1 6" $120.00 LF
HOTTAP IT $1 ,ggs.oo EA
HOTTAP II $2,238.00 EA
HOTTAP 1 0" $3,219.00 EA
GATE VALVE II $300.00 EA 3 900.00
GATE VALVE II $514.00 EA
GATE VALVE II $1 ,500.00 EA
GATE VALVE II $2,056.00 EA 1 2,056.00
FIRE HYDRANT W-2 $4,800.00 EA
RELOCATE FIRE HYDRANT $2,280.00 EA
BLOWOFF ASSEMBLY W-5 $2,000.00 EA
AIR RELIEF VALVE W-6, 1" $1 ,550.00 EA
AIR RELIEF VALVE W-6, 2" $2,370.00 EA
AIR RELIEF VALVE W-6, 4" $5,285.00 EA
WATER SAMPLING ST ATION W-7 $1,250.00 EA
THRUST BLOCKS W-1 , 6" $275.00 EA
THRUST BLOCKS W-1 , 8" $385.00 EA
THRUST BLOCKS W-1 , 1 0" $484.00 EA
THRUST BLOCKS W-1 , 1 2" $714.00 EA
STEEL WATER TANK WELDED $1.50 PER GAL
STEEL WATER TANK BOLTED $1.00 PER GAL
Subtotal 28,522.00
page 7 of 11
WASTEWATER DISPOSAL: SEC. 7 -1 TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL SEWER LATERAL, TIE IN S-3 $1,350.00 EA 8 10,800.00
SEWER LATERAL, TIE IN STEEP S-3a $1,eoo.oo EA
SEWER CLEANOUT S-2 $1,500.00 EA 1 1,500.00
SEWER MAIN (BACKFILL TYPE) 6" NATIVE $35.00 LF 142 4,970.00 SEWER MAIN (BACKFILL TYPE) 8" NATIVE $50.00 LF
SEWER MAIN (BACKFILL TYPE) 6" IMPORT $40.00 LF
SEWER MAIN (BACKFILL TYPE) 8" IMPORT $60.00 LF
SEWER MAIN (BACKFILL TYPE) 12" IMPORT $75.00 LF
SLURRY BACKFILL $19.00 LF
MANHOLE TYPICAL (S-1) $4,500.00 EA
MANHOLE DROP (S-1 A) $5,400.00 EA
TIE TO EXISTING MANHOLE $2,000.00 EA
FORCE MAIN 4" OR LESS $40.00 LF
ADJUST MANHOLE COVER $535.00 EA
Subtotal 17,270.00
page 8 of 11
uTILITIES: SEC. 8-1 TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL JOINT TRENCH P-4 $40.00 LF 100 4,000.00
GAS TRENCH $24.00 LF 180 4,320.00
PIPE JACKING (BORING) 6" PIPE OR LESS $120.00 LF
SERVICE POLE RELOCATE $1,ooo.oo EA
TELEPHONE POLE RELOCATE $2,500.00 EA
ELECTRIC POLE RELOCATE $6,000.00 EA
JUNCTION POLE RELOCATE $9,000.00 EA
UNDERGROUND + JP RELOCATE $15,000.00 EA
INST ALL SIDEWALK GUY $1,300.00 EA
STREET LIGHTS $5,000.00 EA
GUY ANCHOR ONLY RELOCATE $1,soo.oo EA
GUY POLE AND ANCHOR RELOCATE $3, 100.00 EA
Subtotal 8,320.00
page 9 of 11
TRAFFIC CONTROL: SEC. 9-1 TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL TRAFFIC STRIPING THERMOPLASTIC $3.00 SF BULK
TRAFFIC STRIPING PAINT $0.60 LF
TRAFFIC STRIPING THERMOPLASTIC $1 .20 LF
REMOVE STRIPING $3.00 LF
TRAFFIC MARKING $1 .25 SF
STOP + STREET NAME SIGNS M-4 $600.00 EA I 600.00
STREET NAME SIGN ONLY M-4 $300.00 EA
BARRICADE MET AL (M-2) $1 ,300.00 EA
BARRICADE WOOD (M-2A) $80.00 LF
MARKERS AND DELINEATORS $32.00 EA
CONSTRUCTION AREA SIGNS $400.00 EA
TRAFFIC CONTROL % OF IMPV. 3% EA 200000 6,000.00
Subtotal 6,600.00
page 10 of 11
EROSION CONTROL: SEC. 1.1.2.J & APP.B TYPE UNIT COST UNIT MINIMUM QUANTITY TOTAL SAND OR GRAVEL BAG $3.00 EA 30 90.00
JUTE MAT $0.35 SF
STRAW MAT $0.28 SF
STRAW BALE BARRIER $5.24 LF
STRAW BALE INLET BARRIER $3.53 LF
SILT FENCE $2.E31 LF 460 1 ,292.60
FIBER ROLLS $1.96 LF 250 490.00
FIBER MAT $0.40 SF
HYDROSEED $0.33 SF
Subtotal 1,872.60
page 11 of 11
EXHIBIT "B"
LIST OF IMPROVEMENT PLANS
All documents listed herein are incorporated by reference into this Agreement as if set out in full and shall become part of the terms and conditions of this Agreement.
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i211 BADEN A7EjfUE,,,, uKuVi+f EkAUH, l;ALlrUKNlA N(011111 L Illli lll.i( -g-' This document is recorded for the
benefit of the City of Grover Beach and
is exempt from recording fees pursuant
to Government Code Sections 6103
and 27383.
RECORDING REQUESTED BY:
City of Grover Beach
WHEN RECORDED MAIL TO:
City of Grover Beach
Community Development Director
154 S Eighth Street
Grover Beach, CA 93433
Space above reserved for use of County
Recorder
AFFORDABLE HOUSING AGREEMENT
WHEREAS, THIS AGREEMENT is made and entered into this )S day of Af)(i'! L.S)-'I by and between the CITY OF GROVER BEACH, a municipal corporation (the "City"), and Noslo Baden, LLC, a California Limited Liability Company, whose address is Pa Box 1492, Arroyo Grande, CA 93421, (collectively the "Developer"); whom collectively are referred to as "the Parties"; and
WHEREAS, Developer is the owner and developer of approximately O.32 acres of real property that is described in the attached Exhibit A (the "Property"); and WHEREAS, Developer proposes to develop and construct an 8-unit residential development and associated improvements, (the "Project"), on the above-described Property; and WHEREAS, the Project is required to include one 3-bedroom moderate-incomehousing unit which has been designated as Unit #7, and
WHEREAS it is the intention of Developer and the City to set forth in greater detail and specificity within this separate document the terms and conditions for producing and selling affordable ownership housing within the Project, and
WHEREAS, it is the intention of Developer and the City that this Agreement run with the title of the Property and be binding on all parties that have or will acquire any right, title, or interest in said Property prior to the sale of the Affordable Units to individual home buyers for a time period of thirty (30) years.
NOW, THEREFORE, in consideration of the foregoing, and of the mutual terms and covenants hereinafter set forth, the parties hereby agree that Developer shall produce and sell the Affordable Unit as described in this Agreement.
Attachment 3
1.0 .O Definitions. Words and phrases used in this Agreement shall have the meanings that are defined below:
1.1 "Administering Agency" means the City of Grover Beach, or any other agency as determined by the Grover Beach City Council, which has experience in the administration of affordable housing programs.
1 .2 "Affordable Unit" means Unit #7 as shown on Exhibit "B". 1 .3 "Agreement" means this Affordable Housing Agreement.
1.4 "Eligible Purchaser" means a household that is qualified by the Administering Agency as meeting the requirements of this Agreement for the purchase of the Affordable Unit.
1.5 "Eligible Renter" means a household that is qualified by the Administering Agency as meeting the requirements of this Agreement for the rental of the Affordable Unit.
1 .6 "Maximum Allowable Sales Price" means the maximum price at which an Affordable Unit may be sold. The Maximum Allowable Sale Price established for the Affordable Unit is the absolute maximum price that the Developer or individual may charge for the unit or may receive as compensation for the unit. The Developer or individual owner may not charge or receive any additional amount or compensation for an Affordable Unit regardless of whether the additional amount is 1 ) for options, upgrades or additional improvements to the unit, 2) paid through escrow or outside of escrow, 3) paid prior to, after or as part of the purchase escrow or 4) paid in cash or in kind.
1.7 "Maximum Allowable Rent" means the maximum rent which an Affordable Unit may produce. The Maximum Allowable Rent is established for the Affordable Units by the Administering Agency as set forth in Exhibit C.
1.8 "Moderate Income" means the varying income levels which change depending upon the number of Family Members as set forth on the Affordable Housing Standards, as published by the San Luis Obispo County Department of Planning and Building. An example of the Affordable Housing Standards is attached hereto as Exhibit C.
1.9 "Unrestricted Fair Market Value" means the amount that an Affordable Unit could sell for if its sales price and occupancy were not restricted under the Affordable Housing Ordinance. The City may, at its sole option, require that the Unrestricted Fair Market Value be established through an appraisal by a Member of the Appraiser Institute (MAI) or other qualified appraiser.
2.O Compliance with Affordable Housing Agreement. Developer shall comply with this Affordable Housing Agreement, and any special terms, conditions, requirements and/or waivers that were specifically applied to the Project as part of the City's approval of the Project.
3.O Pricinq of Affordable Units. Developer shall sell the Affordable Unit for no more than the Maximum Allowable Sales Price set for the unit as established by the City.
Developer shall notify City thirty (30) days prior to offering the Affordable Unit for sale.
The method for calculating the Maximum Affordable Sales Price is described in Exhibit C of this Agreement.
4.O Renter Eliqibility. The Affordable Units may be rented, as long as the Affordable Units are only rented to persons eligible under the income standards in the Affordable Housing Standards for the appropriate income level as determined by the Administering Agency, and attached as Exhibit C. The mix ofAffordable Units shall not change during the term of this Agreement, unless the Administering Agency determines such a change meets or exceeds the affordable housing requirement established for this Project. Each Affordable Unit shall remain affordable for renters for a minimum period of forty-five (45) years from the execution of this Agreement or until the unit is sold to persons eligible under the income standards in the Affordable Housing Standards for the appropriate income level as determined by the Administering Agency.
Developer, or current owner ofAffordable Units, shall provide verification to the City that the renter's income does not exceed the maximum allowed for the Moderate income Level for that unit. The City shall qualify renters by written request before occupancy of any Affordable Units.
5.O Rental Cost. Developer understands and agrees that during the term of this Agreement, monthly rental costs for the designated Affordable Units shall not exceed the maximum allowed rental costs specified in the City's Affordable Housing Standards for Moderate income levels. Rental costs may be adjusted to reflect changes to the Affordable Housing Standards as updated by the Administering Agency.
6.O Recordation and Release ofAqreement. This Agreement shall be recorded against the title to the Property prior to the recordation of the Final Subdivision Map(s) for the Project. Upon the recordation of a Final Subdivision Map(s), the City shall release from this Agreement all parcels created by the Final Subdivision Map(s) that are not designated as Affordable Units.
7.0 Marketinq and Sales ofAffordable Units.
7.1 Verification of Buyer Eligibility. Prior to the close of escrow for the sale of the Affordable Unit, the Developer shall provide verification to the City that the buyer's income does not exceed the maximum allowed for the Moderate income Level for that unit. Incomes shall be verified (or previous verifications shall be updated) no earlier than sixty (60) days prior to close of escrow. The San Luis Obispo Housing Authority, or similar non-profit entity, shall qualify owners.
7.2 Individual Regulatory, Security and Disclosure Documents. Prior to the sale of the Affordable Unit, Developer shail ensure that:
7.2. 1 The buyer and the City sign a Buyer's Occupancy and Resale Agreement with Option to Purchase (hereinafter "Resale Agreement"), which is in the form that is attached as Exhibit D to this Agreement. The Resale Agreements shall be recorded against the title to each unit immediately following the liens for any loans that are obtained by the homebuyer to finance the purchase of the unit.
7.2.2 The buyer signs a Deed of Trust, which is in the form that is attached as Exhibit E to this Agreement, to secure performance of the Buyer's obligations under the Resale Agreement and, should the buyer fail to comply with the terms of the Resale Agreement, payment of Excess Sales Proceeds. The Deed ofTrust shall be recorded against the title to the unit following the liens for any loans that are obtained by the homebuyer to finance the purchase of the unit.
8.O Default. The City of Grover Beach shall have the first opportunity to purchase an affordable unit that has a defaulted loan.
9.0 0ther Provisions. The following terms and conditions shall also apply to this Agreement and the development and sale of the Affordable Units that are governed by this Agreement.
9. 1 Term of Agreement. This Agreement shall remain in force until two (2) months following the sale of the Affordable Unit to an Eligible Purchaser.
9.2 TermofAffordability. EachAffordable
minimum period of forty-five (45) years from
Eligible Purchaser.
Unit shall remain affordable for a
the date of its sale by Developer to an
9.3 No Joint Venture or Partnership. Nothing contained in this Agreement or any document executed with this Agreement shall be construed as creating a joint venture or partnership between the City and Developer.
9.4 Reporting and Compliance Monitoring. Compliance with the requirements of this Agreement covering the initial sale of the Affordable Units shall be reported to the City by the Developer. Developer shall provide the City with other reports as reasonably required by the City to verify compliance with this Agreement.
9.5 Appointment of OtherAgencies. At its sole discretion, City may designate, appoint or contract with any other public agency, for-profit or non-profit organization to perform the City's obligations under this Agreement.
9.6 Burden to Run with Property. The covenants and conditions herein contained shall apply to and bind the heirs, executors, administrators, successors, transferees, and assignees of all the parties having or acquiring any right, title or interest in or to any part of the Property and shall run with and burden the Property until terminated or released in accordance with the provisions hereof. Prior to the issuance of building permits, the Developer shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the Property. Notwithstanding anything to the contrary set forth in this Agreement, mortgage lenders holding deeds of trust on such individual units after sale to such purchasers, shall not be subject to the terms of this Agreement; and the terms of this Agreement shall be of no further force or effect with respect to such completed unit on the date of the recordation of a deed to the individual purchaser.
9.7 Hold Harmless. Developer will indemnify and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as "Indemnities"), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and executions for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to the development of the Property or the sale of units on the Property, and shall protect and defend Indemnities, and any of them with respect thereto.
9.8 Recording of Agreement. The parties hereto shall cause this Agreement to be recorded against the Property in the official Records of the County of San Luis Obispo.
9.9 Third Party Beneficiaries. This Agreement is made for the sole protection and benefit of City, and their permitted Successors. No other person shall have the right of action based on any provision of this Agreement.
9. 10 Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Any dispute arising out of this Development Agreement shall be determined by the State Courts of the County of San Luis Obispo.
9. 11 Partial Invalidity or Unenforceability. If any provision of this Agreement shall be determined by a court to be invalid and/or unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable according to the terms of any statute of the State of California which became effective after the effective date of this Agreement, then the remaining provisions of this Agreement shall nevertheless remain in full force and effect.
9.12 Notices and Correspondence. Any notices and correspondence concerning this Agreement shall be sent to the parties at the following address:
City of Grover Beach
154 S Eighth Street
Grover Beach, CA 93433
Attn: Community Deveiopment Director
Noslo Baden, LLC
PO Box 1492
Arroyo Grande, CA 93421
IN WITNESS WHEREOF, this Agreement has been duly executed by the undersigned as of the d set forth below.
By:
(&,,,t-=r:
']"'l)A'TE
4//5/z4
By: DATE
CITY:
Karen Bright, Mayor
APPROVED AS TO FORM:
Robert Lomeli, City Attorney
ACKNOWLEDGMENT PAGE TO BE ATT ACHED TO THE FOLLOWING DOCUMENT:
Affordable Housing Agreement
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of San Luis Obispo
On April 15, 2024 before me, J. Solis , Notary Public,
(here insert name and title of the officer)
personally appeared Mark A. 01son and Amanda K. 01son
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing Notary Acknowledgmem - General
SSCORPD1863.doc/Updated: 09.23.19
Printed: 04.15.24 @ 01:53 PM byJS
CA-FT-FSLC-01 500.076002-SaleNetSheetJS
Exhibits
ExhibitA- Legal Description
Exhibit B - Location and Distribution ofAffordable Units Exhibit C - Calculation of Maximum Allowable Sales Prices Exhibit D - Form of Resale Agreement
Exhibit E - Form of Deed of Trust
Exhibit A
Legal Description
LOTS 1l AND 12 IN BLOCK 155C, OF THE TOWN OF GROVER, IN THE CITY OF GROVER BEACH,
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE MAP OF SAID TOWN DRAWN BY A. LUNDQUIST AND FILED FOR RECORD NOVEMBER 23, 1892 IN BOOK A AT PAGE 6 0F MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
TOGETHER WITH THAT PORTION THAT WOULD PASS BY CONVEYANCE AS ABANDONED BY RESOLUTION N0. 08-44, RECORDED JUNE 30, 2008 IN DOCUMENT N0. 2008033748, OF OFFICIAL RECORDS.
Exhibit B
Location and Distribution of Affordable Units
(A copy of the Location and Distribution Map ofAffordable Unit(s) follows this page) LLI
I
N86'{ I 35' W i05 9o'M AFFORDABLE HOUSING AGREEMENT
EXHIBIT "B"
LOT 4
2121 S.F
5 PPIVA?E DRAINIW
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vsstt {jw !5 80'
LOT 3
1.501 S.F.
N86'42 41'll 55 81
LOT 2
j .500 S F
N!tt 42 4J W 55 81
LOT 1
2.291 S F
Nfit ()J W 5o OJ
5 4R1VA+E OPITNAO(
PER IIHIS )iA-P
EASEMENT NOTE:
LOT 6
1,340 S F
3 PRIVATE ptorsmlav ACCESS
E::ftl\ 71N, S: V8:,:T
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LLI
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N8612 l.i W 50 0(
LOT 7
1,341 SF
moderate income
ffordable unit
I
I LOT 8
I 2.049 5 F
GRAPHIC SCALE
in o iO 2)
( IN FEET )
1 inch = ! 0 {t
EIAS I S O F B F A R I N G S
{H[ BASIS (F BEAPINGS }OR IHIs SllRV[Y iias TAKEN TROM {H[ C(NTERIIN! OT i21H STR((T BtTl'lE(N TOUNO 1.10)IMENII A'l THE INi[RiEt'llON OT i.iiH sihtri ill{H BADEN SIRE(T AND NlC[ SlR[tT AS SHOWN BEARING N J 14 at' R Pill R)
Nllt'4) 13 W 105 8) M
BADEN AVENUE
LOT LAYOUT
TRACT 3203
Februiiry 20. 2024
Exhibit C
Maximum Allowable Sales Price Calculation for the Affordable Unit The Maximum Allowable Sales Price for the Affordable Unit upon the initial sale by the Developer shall be determined by the Affordable Housing Standards, as published by the San Luis Obispo County Department of Planning and Building. The Maximum Allowable Sales Price (initial sale by Developer) will be the amount shown in the Rents and sales prices table as the "initial sales price" of a Moderate Income and 3-bedroom (unit size) property. This value will be determined using the Affordable Housing Standards published for the month in which the sale escrow is initiated opened.
The Affordable Housing Standards, dated February 1, 2024, and prepared by the San Luis Obispo County Department of Planning and Building are page 2 of this Exhibit C.
They are included as an example of the document that will be used for calculations for this provision. On the February 1, 2024 document, for example purposes only, the Maximum Allowable Sales Price would be $433,000
The Maximum Allowable Sales Price Calculation for resale by individual home owners who purchased an affordable unit shall be the higher of 1 ) the above calculation or 2) the owner's original purchase price plus an amount equal to the original purchase price times seventy five percent (75%) of the change in the House Price Index since the purchase date. "Housing Price Index" shall mean the San Luis Obispo-Grover Beach Metropolitan Statistical Area Housing Price Index as published from time to time by the office of Federal Housing Enterprise Oversight or, if such index is no longer published, a comparable index designated by the City of Grover Beach. ,. AFFORDABLE HOUSINGAGREEMENT
EXHIBIT "C"
Affordable Housing Standards
SAN LUIS OBISPO COUNTY DEPARTMENT OF PLANNING AND BUILDING County Government Center San Luis Obispo, California 93408 Telephone (805) 781-5600 This bulletin summarizes the county's affordable housing standards including maximum household incomes, home purchase prices and rents. It applies to new projects in both the Coastal and Inland portions of the County.
Income limits: The state defines family income groups as follows:
Acutely Low is defined by Section 50063.5 as 30% times '1 5% of county median income adjusted for family size appropriate for the unit
Extremely Low is defined by Section 50106 as 30% of county median income Very Low Income is defined by Section 50105 as 50% of county median income Low Income is defined by Section 50079.5 as 80% of county median income Moderate Income is defined by Section 50093 as 1 20% of county median income Workforce is defined by Title 22 of the County Code as I 60% of county median income The following income limits are effective as of June 6, 2023 (HCD annual update document):
income-limits-2023. df ca. cv
Personsin_ A-ciitely_[ow Extr'emely.. Ve'ryLow 'Lowlri-come _Median Moderate Workforce Housettold. - .- Low- Income- incorm. - Income ", _ .
1 $11,850 $24,350 $40,550 $64,900 $79,150 $95,000 $126,640 2 $13,550 $27,800 $46,350 $74,150 $90,500 $108,550 $144,800 3 $15,250 $31,300 $52,150 $83,400 $101,800 $122,150 $162,880 I 4 $16,950 $34,750 $57,900 $92,650 $113,100 $135,700 $180,960 5 $18,300 $37,550 $62,550 , $100,100 $122,150 $146,550 $195,440 e s"ig,eiso $40,350 $67,200 I $107,500 $131,200 $157,400 $209,920 -l $21,000 $45,420 $71,800 I $114,900, $140,250 $168,250 $224,400 s $22,350 $501560 I, $76,450 I $122,300 I $149,300 $179,100 II $238,880 Sample maximum sales prices: (see footnotes)
. U-nit..Size Ac4fely Low - EXtremely= Very L_ow Loylricome Moderate. Workforce (Bedrooms_) - Low Income - Income -' -Income = -. -
Studio 18,000 $55,000 $IO0,000 $154,000 $297,000 $412,000 1 24,000 $66,000 $120,000 $178,000 $342,000 $474,000
2 29,000 $76,000 $140,000 $203,000 $388,000 $535,000
3 34,000 $87,000 $157,000 $228,000 $433,000 $597,000
4 38,000 $95,000 ,, $171 ,000 , $247,000 , $469,000 $646,000 Notel: Homeownerassociationdue(HOA)assumptionpermonthis '150.00 Note 2: Mortgage financing assumed at a fixed rate for 30 years (HSH Associates) is 6.69% Note 3: Prices shown are preliminary estimates and may be revised. Round to the nearest 4 000th.
Note 4: Actual sales price limits will be determined by the County on a case-by-case basis.
Updated: 2/1/2024
Maximum rents: (see footnotes)
Unit Size Acutely Low Extremely Very Low Low Income Moderate Workforce (Bedrooms) Lowlncome Income Income
l Studio $297 $594 $989 $1,187 $2,177 $2,968
' 1 $339 $679 $1,131 $1,358 , $2,489 $3,394
, 2 $382 $764 $1,273 $1,527 I $2,800 $31818
I 3 $424 $848 $1,414 $1,697 I $3,110 I $4,241
l: 4 1, $458 ,, $916 I, $1,527 ii $11832 1, $3,359 I $4,581 Note 1 : The maximum rent limits shown above do not include adjustments for utilities. Refer to the utility allowance bulletin posted on the website of the Housing Authority of the City of San Luis Obispo.
Note 2: Rent limits are updated when the State issues its annual update to median incomes, generally in April of each year.
Updated: 2/1/2024
Exhibit D
Form of Resale Agreement
(A copy of the proposed individual Resale Agreement follows this page) Complimentary Recording Requested
Pursuant To Government Code
Section 6103 and 27383
AFFORDABLE HOUSING AGREEMENT
EXHIBIT "D"
When Recorded Mail To:
City of Grover Beach
Attn: City Clerk
154 S Eighth Street
Grover Beach, CA 93433
BUYER'S OCCUPANCY AND RESALE AGREEMENT
WITH OPTION TO PURCHASE
CITY OF GROVER BEACH HOUSING PROGRAM
Owner:
Address of Home:
Development:
Income Category of Home:
Number of Bedrooms in Home:
Sales Price at Original Purchase:
This Buyer's Occupancy and Resale Agreement with Option to Purchase (the "Agreement") is entered into as of this day of I 20, by and between the City of Grover Beach (the "City") and name of owner whose address is address of owner (the "Owner").
RECIT ALS
A. Owner intends to purchase the property located in the City of Grover Beach, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Home").
The Home is an Affordable Unit. The Home has been designated by the City and the Developer as a # bedroom, very low/low/moderate-income unit.
B. Pursuant to the Affordable Housing Agreement, the Developer and the City are required to ensure the continued affordability of the Home as an Affordable Unit, and the City therefore requires the Owner to execute this Agreement as a condition of the Owner's purchase of the Home. The Owner has agreed to execute and comply with this Agreement in consideration of the Developer's agreement to sell the Home to the Owner at an affordable price that is below the fair market value of the Home.
C. The purpose of this Agreement is to place resale controls on the Home and to require the payment of any excess proceeds of sale to the City. This Agreement also provides the City an option to purchase the Home at a restricted price, given in consideration of the economic benefits to the Owner resulting from purchase of the Home at a below market price. 1 D. The Owner is receiving a first mortgage loan (the "First Mortgage Loan") originated by name of lender (the "First Lender"). The First Mortgage Loan is secured by a deed of trust executed by the Owner in favor of First Lender and recorded in the County of San Luis Obispo (the "First Mortgage Deed of Trust"). The Owner may receive a second mortgage loan (the "Second Mortgage Loan), not to exceed twenty five (25%) of the total purchase price, from name of lender (the "Second Lender"). The Second Mortgage Loan is secured by a deed of trust executed by the Owner in favor of the Second Lender and recorded in the County of San Luis Obispo (the "Second Mortgage Deed of Trust").
E. This Agreement shall be secured by a deed of trust on the Home (the "City Deed of Trust"). This Agreement and the City Deed of Trust shall be subordinate to the lien of the First Mortgage Deed of Trust and Second Mortgage Deed of Trust.
NOW, THEREFORE, in consideration of the benefits received by the Owner and the City hereunder, the Owner and the City agree, as follows:
1. DEFIN)TIONS
The following terms are specially defined for this Agreement and their definitions can be found in the sections indicated below:
A. "Agreement" - First sentence of the Agreement on page 1 B. "Affordable Price" - Section I OB
C. "City" - First sentence of the Agreement on page 1
D. "City Deed of Trust" - Recital E
E. "City Option" - Section 1 2A
F. "City Option Price" - Section 1 2B
G. "Eligible Purchaser" - Section 11 B
H. "Excess Sales Proceeds" - Section 14
I. "Unrestricted Fair Market Value" - Section 10B
J. "First City Response Notice" - Section 8
K. "First Lender" or "Second Lender"- Recital D
L. "First Mortgage Deed of Trust" and "Second Mortgage Deed of Trust" - Recital D M. "First Mortgage Loan" and "Second Mortgage Loan" - Recital D N. "Home" - Recital A and Section 2
0. "Housing Price Index" - Section 1 0A
2 P. "Indexed Value" - Section 10A
Q. "Market Purchaser" - Section 1l E
R. "Marketing Period" - Section 11A
S. "Maximum Allowable Sales Price" - Section 10
T. "Owner" - First sentence of the Agreement on Page 1
U. "Owner's Notice of Failure to Locate Eligible Purchaser" - Section 1l E V. "Owner's Notice of Intent to Sell" - Section 7
W. "Second City Response Notice" - Section 11E
X. "Transfer" - Section 6
2. DESCRIPTION OF PROPERTY
This Agreement concerns the real property in the City of Grover Beach, State of California with the street address set forth on page 1 of this Agreement, which is more fully described in Exhibit A attached hereto and incorporated in this Agreement by reference (the "Home").
3. OWNER CERTIFICATIONS: OWNER OCCUPANCY REQUIREMENT
The Owner certifies that the financial and other information previously provided in order to qualify to purchase the Home is true and correct as of the date first written above. The Owner shall occupy the Home as the Owner's principal place of residence. The Owner shall be considered as occupying the Home if the Owner is living in the unit for at least ten (10) months out of each calendar year. The Owner shall provide an annual written certification to the City, within ten (10) days of receiving a written request for said certification from City, that the Owner is occupying the Home as his or her principal place of residence.
4. LEASING OF HOME
The Owner shall not lease the entire Home to another party. Any lease in violation of this Agreement is prohibited, and shall be a default under this Agreement and the City Deed of Trust.
5. MAINTENANCE AND INSURANCE REQUIREMENTS
A. The Owner shall maintain the Home, including landscaping, in good repair and in a neat, clean and orderly condition and will not commit waste or permit deterioration of the Home.
B. The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Home (adjusted every five (5) years by appraisal, if requested by City), naming the City as an additional insured. Additional insurance requirements are set forth in Section 5 of the City Deed of Trust.
3 6. RESTRICTIONS ON RESALE OF THE HOME
Any Transfer of the Home will be subject to the provisions of this Agreement including, without limitation, the City Option described in Section 12 below. "Transfer" means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Home, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest, or an interest evidenced by a land contract by which possession of the Home is transferred and Owner retains title. Any Transfer without satisfaction of the provisions of this Agreement is prohibited. Transfers by devise or inheritance to an existing spouse or domestic partner, or a spouse as part of a dissolution proceeding, or in connection with marriage shall not be considered a Transfer for the purposes of this Agreement.
7. NOTICE OF INTENDED TRANSFER: PREPARATION OF HOME FOR SALE A. In the event the Owner intends to Transfer or vacate the Home, the Owner shall promptly give the City written notice of such intent (the "Owner's Notice of Intent to Sell"). The Owner's Notice of Intent to Sell shall be sent to the City by certified mail, return receipt requested at the address provided in Section 31 of this Agreement. The Owner's Notice of Intent to Sell shall include the information necessary for the City to determine the Maximum Allowable Sales Price of the Home, including the following information:
(1) theaddressoftheProperty;
(2) the date of purchase of the Home by the Owner;
(3) the purchase price of the Home paid by the Owner at the time of his/her purchase;
(4) a copy of the HUD-1 Settlement Statement or equivalent document from the close of escrow on the Owner's purchase of the Home; (5) the date on which Owner intends to vacate Home;
(6) the date Home will be placed on the market; and
(7) the name and phone number of the person to contact to schedule inspection of the Home by the City.
B. Following delivery to the City of the Owner's Notice of Intent to Sell, the Owner shall prepare the Home for sale, as follows:
(1) withinthirty(30)daysofdeliveryoftheOwner'sNoticeoflntenttoSell, the Owner shall obtain and deliver to the City a current written report of inspection of the Home by a licensed structural pest control operator;
(2) within the sooner of (a) sixty (60) days from the date of delivery of the Owner's Notice of Intent to Sell, or (b) prior to close of escrow on the Transfer, the Owner shall repair all damage noted in the pest report including damage caused by infestation or infection by wood-destroying pests;
4 (3) withinten(10)businessdaysofthedateoftheOwner'sNoticeoflntentto Sell, the Owner shall allow the City, or its designee, to inspect the Home to determine its physical condition;
(4) if the Home is vacant, the Owner shall maintain utility connections until the close of escrow on the Transfer;
8. CITY RESPONSE TO OWNER'S NOTICE OF INTENT TO SELL
The City shall respond in writing (the "First City Response Notice") to the Owner's Notice oflntent to Sell within ten (10) business days of City receipt of a complete Owner's Notice of Intent to Sell that includes all information required under Section 7 above. The First City Response Notice shall inform the Owner of the following information: (1) the maximum qualifying income for an Eligible Purchaser; (2) the certifications required of an Eligible Purchaser; and (3) the Maximum Allowable Sales Price the Owner may receive for the Home, calculated by the City pursuant to Section 11 below. The First City Response Notice will be prepared using the Affordable Housing Standards as prepared by the San Luis Obispo County Department of Planning and Building. A copy of the x,XX20xx Affordable Housing Standards are attached as Exhibit B for reference. As is noted thereon, the maximum qualifying income for an Eligible Purchaser will be based upon the number of Persons in Family. As of ,xxx20xx, for example purposes only, the Affordable Price would have been defined as $XXX ,XxX.
9. OWNER ACKNOWLEDGMENT OF CITY RESPONSE NOTICE
No later than seven business (7) days following the date of the First City Response Notice, the Owner shall acknowledge in writing to the City that he/she has received the City Response Notice and still intends to Transfer the Home.
10. DETERMINATION OF MAXIMUM ALLOWABLE SALES PRICE FOR RESTRICTED SALE
If the Owner sells to an Eligible Purchaser, the maximum sales price (the "Maximum Allowable Sales Price") that the Owner shall receive from the Eligible Purchaser for purchase of the Home shall be the of the Indexed Value or the Affordable Price, but in no event greater than the Unrestricted Fair Market Value.
A. Indexed Value. The Indexed Value of the Home means the sales price of the Home at the time of purchase by the Owner, as set forth on page 4 of this Agreement, increased by seventy five percent (75%) of the annual percentage of increased value in the Housing Price Index from the date of the original purchase of the Home by the Owner to the date of receipt by the City of the Owner's Notice of Intent to Transfer, and, where applicable, adjusted pursuant to subsection (2) below to reflect the cost of deferred maintenance. "Housing Price lndex" shall mean the San Luis Obispo-Grover Beach Metropolitan Statistical Area Housing Price Index as published from time to time by the office of Federal Housing Enterprise Oversight or, if such index is no longer published, a comparable index designated by the City of Grover Beach.
B. Affordqble Price. The Affordable Price of the Home means the affordable price as published in the Affordable Housing Standards prepared by the San Luis County Department of Planning and Building for a Very Low/Low/Moderate Income property.
C. Unrestricted Fair Market Value. In certain circumstances it may be necessary to determine the fair market value of the Home (the "Unrestricted Fair Market Value"). These circumstancesinclude: (1)wherethepartieswishtodetermineiftheMaximumAIIowableSales 5 Price exceeds the Unrestricted Fair Market Value in order to determine the Maximum Allowable Sales Price pursuant to Section 1 0; (2) where the Owner is selling the Home to an Market Purchaser at an unrestricted price pursuant to Section 1 3; and (3) where the Owner wishes to refinance the First or Second Mortgage Loan as described in Section 24 below. If it is necessary to determine the Unrestricted Fair Market Value of the Home, it shall be determined by a certified MemberAppraiser Institute (MAI) or other qualified real estate appraiser approved in advance by the City. If possible, the appraisal shall be based upon the sales prices of comparable properties sold in the market area during the preceding three (3)-month period.
The cost of the appraisal shall be shared equally by the City and the Owner, unless the appraisal is obtained from a new purchaser, or unless the appraisal is necessary because the Owner wishes to refinance the First or Second Mortgage Loan pursuant to Section 24 below, in which event the Owner shall pay the cost of the appraisal. Nothing in this section shall preclude the Owner and the City from establishing the Unrestricted Fair Market Value of the Home by mutual agreement in lieu of an appraisal pursuant to this section.
D. Holdback for Damage Repair Cost. If the City finds that the Owner, through neglect, abuse, or lack of adequate maintenance, has damaged the Home, the City may require that repairs be made at the Owner's cost prior to sale or through the escrow for the sale of the Home.
11. SALEOFHOMETOELIGIBLEPURCHASERATRESTRICTEDPRICE
Following receipt of the First City Response Notice notifying the Owner of the Maximum Allowable Sales Price, the Owner may proceed to sell the Home in compliance with the following requirements:
A. Marketing Period. The Owner shall have ninety (90) days from the date of the First City Response Notice (the "Marketing Period") to market the Home and find an Eligible Purchaser. During the Marketing Period, the Owner shall use bona fide good faith efforts to sell the Home to an Eligible Purchaser in compliance with this Section 11, keeping the Home in an orderly condition, making the Home available to show to agents and prospective buyers, and providing buyers with Eligible Purchaser requirements, including income qualifications and the City's form of disclosure statement summarizing the terms of the buyer's resale agreement. A proposed purchaser ("Proposed Purchaser"), who the Owner believes will qualify as an Eligible Purchaser, shall be referred to the City for an eligibility determination.
B. Eligible Purchaser. A Proposed Purchaser shall qualify as an "Eligible Purchaser" if he or she meets the following requirements, as determined by the City:
(1 ) Intent to Owner Occupy. The Proposed Purchaser shall certify that he or she will occupy the Home as his or her principal place of residence throughout his or her ownership.
(2) Agreement to Sign Buyer's Resale Agreement and to Cooperate with City.
The Proposed Purchaser shall agree to sign a buyer's resale and occupancy agreement with option to purchase restricting future resale of the Home and shall agree to cooperate fully with the City in promptly providing all information requested by the City to assist the City in monitoring the Proposed Purchaser's compliance with the buyer's resale and occupancy agreement with option to purchase.
6 (3) Income Eligibility. The combined maximum income for all household members of the Proposed Purchaser shall not exceed the income level designated by the City in the First City Response Notice.
C. Maximum Allowable Sales Price and Closing Costs. The purchase price for the sale of the Home by the Owner to the Eligible Purchaser shall not exceed the Maximum Allowable Sales Price calculated by the Section 10 above, as set forth in the First City Response Notice. The Maximum Allowable Sales Price shall not include closing costs paid by the Eligible Purchaser. The closing costs paid by the Eligible Purchaser shall not exceed reasonable and customary buyers' closing costs in the County of San Luis Obispo.
D. Disclosure and Submittals. The Owner and the Proposed Purchaser shall provide the following information and documents to the City:
(1) Thename,addressandtelephonenumberinwritingoftheProposed Purchaser.
(2) A signed financial statement of the Proposed Purchaser in a form acceptable to the City and any other supporting documentation requested by the City. The financial information shall be used by the City to determine the income eligibility of the Proposed Purchaser.
(3) The proposed sales contract and all other related documents which shall set forth all the terms of the sale of the Home. Said documents shall include at least the following terms: (a) the sales price; and (b) the price to be paid by the Proposed Purchaser for the Owner's personal property, if any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any.
(4) A written certification, from the Owner and the Proposed Purchaser in a form acceptable to the City that the sale shall be closed in accordance with the terms of the sales contract and other documents submitted to and approved by the City. The certification shall also provide that the Proposed Purchaser or any other party has not paid and will not pay to the Owner, and the Owner has not received and will not receive from the Proposed Purchaser or any other party, money or other consideration, including personal property, in addition to what is set forth in the sales contract and documents submitted to the City. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or certification submitted to the City, the City shall have the right to foreclose on the Home or file an action at law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the Proposed Purchaser for the return of any moneys paid or received in violation of this Agreement or for any of the Owner's and/or the Proposed Purchaser's costs and legal expenses, shall be borne by the Owner and/or the Proposed Purchaser and they shall hold the City and its designee harmless and reimburse the City's and its designee's expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the terms of this Agreement.
(5) An executed buyer's resale and occupancy agreement and option to purchase and an executed deed of trust from the Proposed Purchaser in forms provided by the City. The recordation of the new deed of trust and buyer's resale and occupancy agreement and option to purchase shall be a condition of the City's approval of the proposed sale. 7 (6) The name of the title company escrow holder for the sale of the Home, the escrow number, and name, address, and phone number of the escrow officer. (7) Upon the close of the proposed sale, certified copies of the recorded City deed of trust and buyer's resale agreement, a copy of the final sales contract, settlement statement, escrow instructions, and any other documents which the City may reasonably request.
E. Failure To Locate Eliqible Purchaser: Notice to City. If, despite bona fide good faith marketing efforts, the Owner is unable to locate an Eligible Purchaser during the Marketing Period and any extensions to the Marketing Period granted by the City, the Owner shall provide written notice to the City of this fact (the "Owner's Notice of Failure to Locate Eligible Purchaser"). Within thirty (30) days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser, the City shall provide a second response notice to the Owner (the "Second City Response Notice") stating either (1) that the City will exercise the City Option to purchase the Home pursuant to Section 12 below, or (2) that the Owner may Transfer the Home to a person of the Owner's choosing (a "Market Purchaser") who is not an Eligible Purchaser, at an unrestricted price (supported by an MAI or other qualified appraisal), but shall pay all Excess Sales Proceeds to the City as set forth in Section 13 below.
12. CITY PURCHASE OPTION
A. Exercise of Option. If the Owner fails to sell the Home to an Eligible Purchaser at or below the Maximum Allowable Sales Price, the City shall then have the option to purchase the Home (the "City Option") for the City Option Purchase Price, as defined below. The City Option may be exercised by the City in the Second City Response Notice (as described in Section 1 'l E above), to be sent by the City to the Owner within thirty (30) days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser. If the Second City Response Notice states that the City will exercise the City Option, the City shall purchase the Home within fortyfive (45) days of the date of the City's Second Response Notice. The City may, instead of purchasing the Home itself, assign its right to purchase the Home pursuant to the City Option to another public agency, a nonprofit corporation, or to an Eligible Purchaser. In the event of exercise of the City Option and purchase of the Home by the City or its designee, the Owner shall permit a final walk-through of the Home by the City in the final three (3) days prior to close of escrow on the Transfer.
B. City Option Price. If the City exercises the City Option, the purchase price to be paid by the City (the "City Option Purchase Price") shall be the highest of the following: (1) the outstanding principal balances of the First Mortgage Loan; (2) the total of the outstanding principal balance of the First Mortgage Loan and any purchase money Second Mortgage Loan; or (3) the appraised value of the Home with the affordability covenants intact, as determined by an appraiser selected by the City and approved by the Owner, and who employs standard appraisal practices.
13. UNRESTRICTED SALES
If the Second City Response Notice states that the City will not exercise the City Option and that the Owner may proceed to Transfer the Home to a person of the Owner's choosing (a "Market Purchaser") who is not an Eligible Purchaser, at an unrestricted price (supported by an MAI or other qualified appraisal), the Owner may proceed to do so, but the Owner shall pay all Excess Sales Proceeds to the City as set forth in Section 44 below. If the Owner Transfers the Home pursuant to this Section 13, the purchaser shall not be required to execute a buyer's 8 resale and occupancy agreement with option to purchase, and the City shall reconvey the liens of this Agreement and the City Deed of Trust from the Home, provided that the Owner pays the Excess Sales Proceeds to the City pursuant to Section 14 below. The Owner shall provide the City with the following documentation associated with such a Transfer:
(1 ) The name and address of the purchaser;
(2) The final sales contract and all other related documents which shall set forth all the terms of the sale of the Home. Said documents shall include at least the following terms: (a) the sales price; and (b) the price to be paid by the Market Purchaser for the Owner's personal property, if any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any.
(3) A written certification, from the Owner and the Market Purchaser in a form acceptable to the City that the sale shall be closed in accordance with the terms of the sales contract and other documents submitted to and approved by the City. The certification shall also provide that the Market Purchaser or any other party has not paid and will not pay to the Owner, and the Owner has not received and will not receive from the Market Purchaser or any other party, money or other consideration, including personal property, in addition to what is set forth in the sales contract and documents submitted to the City. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or certification submitted to the City, the City shall have the right to foreclose on the Home or file an action at law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the Market Purchaser for the return of any moneys paid or received in violation of this Agreement or for any costs and legal expenses, shall be borne by the Owner and/or the Market Purchaser and they shall hold the City and its designee harmless and reimburse their expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the terms of this Agreement.
(4) A copy of the MAI or other qualified appraisal for the Home. (5) Upon the close of the proposed sale, a copy of the final sales contract, settlement statement, escrow instructions, and any other documents which the City may reasonably request.
14. PAYMENT TO CITY OF EXCESS SALES
PROCEEDS
If the Owner Transfers the Home at an unrestricted price pursuant to Section 13 above, or if the Owner makes a Transfer in violation of this Agreement, the Owner shall pay the Excess Sales Proceeds to the City. For purposes of this Agreement, "Excess Sales Proceeds" shall mean seventy five percent (75%) of the amount by which the Unrestricted Fair Market Value for the Home exceeds the Maximum Allowable Sales Price for the Home (in the amount that was stated in the First City Response Notice). This amount shall be a debt of the Owner to the City, secured by the City Deed of Trust. The Owner acknowledges that the City shall have no obligation to cause reconveyance of this Agreement or of the City Deed of Trust until the Excess Sales Proceeds are paid to the City. The City shall utilize the Excess Sales Proceeds for City affordable housing programs.
15. DEFAULTS
g
A. The following events shall constitute a Default by the Owner under this Agreement:
('1) TheCitydeterminesthattheOwnerhasmadeamisrepresentationto obtain the benefits of purchase of the Home or in connection with its obligations under this Agreement;
(2) The Owner fails to owner occupy the home, as required pursuant to Section 3 above, and such failure continues following written notice by the City and sixty (60) days opportunity to cure following the date of such notice. (3) The Owner makes a Transfer in violation of this Agreement; (4) The Owner otherwise fails to comply with the requirements of this Agreement and such violation is not corrected to the satisfaction of the City within ten (10) days after the date of written notice by the City to the Owner of such violation; or (5) A notice of default is issued under First or Second Mortgage Loan or other financing secured by the Home.
(6) A lien is recorded against the Home other than the lien of a bone fide mortgage loan.
(7) Owner places a mortgage on the Home in violation of Section 24 below.
B. UponadeclarationofDefaultbytheCityunderthisAgreement,theCitymay exercise any remedies at law or in equity, including without limitation, any or all of the following (1) DeclareallExcessSalesProceedsimmediatelydueandpayablewithout further demand and invoke the power of sale under the City Deed of Trust; (2) Apply to a court of competent jurisdiction for such relief at law or in equity as may be appropriate;
(3) Declare a Default under the City Deed of Trust and pursue all City remedies under the City Deed of Trust; and
(4) Exercise the City Purchase Option Upon Default as described in Section 17 below.
16. NOTICE OF DEFAULT AND FORECLOSURE
A request for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the Home shall be recorded by the City in the Office of the Recorder of the County of San Luis Obispo for the benefit of the City. The City may declare a Default under this Agreement upon receipt of any notice given to the City pursuant to Civil Code Section 2924b, and may exercise its rights as provided in Sections 15 and 17.
In the event of default and foreclosure, the City shall have the same right as the Owner to cure defaults and redeem the Home prior to the foreclosure sale. Nothing herein shall be 10 construed as creating any obligation of the City to cure any such default, nor shall this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage.
If the City failed to file the request for notice of default, the City's right to purchase the Home shall commence from the date a notice of default is given by the City to the Owner.
17. PURCHASE OPTION UPON DEFAULT
Notwithstanding, and in addition to, the remedies provided the City in Section 16, and the City Option provided to the City in Section 12, the Owner hereby grants to the City the option to purchase the Home following written notice by the City to the Owner of the declaration of a Default by the City under this Agreement. This option to purchase is given in consideration of the economic benefits received by the Owner resulting from ownership of the Home made possible by the City's Affordable Housing Program.
The City shall have thirty (30) days after a Default is declared to notify the Owner and the First Lender and Second Lender of its decision to exercise its option to purchase under this Section 'l 7. Not later than ninety (90) days after the notice is given by the City to the Owner of the City's intent to exercise its option under this Section 17, the City shall purchase the Home for the City Option Price, payable in cash or by assuming existing debt and paying the balance in cash, calculated in the manner set forth in Section I 2B.
18. NONLIABILITY OF THE CITY
A. No Obliqation to Exercise Option. The City shall have no obligation to exercise any option granted it under this Agreement. In no event shall the City become in any way liable or obligated to the Owner or any successor-in-interest to the Owner by reason of its option to purchase under Sections 12 and 17 nor shall the City be in any way obligated or liable to the Owner or any successor-in-interest to the Owner for any failure to exercise its option to purchase.
B. Nonliability for Negligence, Loss, or Damage. Owner acknowledges, understands and agrees that the relationship between Owner and the City is solely that of an owner and an administrator of a City affordable housing program, and that the City does not undertake or assume any responsibility for or duty to Owner to select, review, inspect, supervise, pass judgment on, or inform Owner of the quality, adequacy or suitability of the Home or any other matter. The City owes no duty of care to protect Owner against negligent, faulty, inadequate or defective building or construction or any condition of the Home and Owner agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or assert any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Home and will hold the City harmless from any liability, loss or damage for these things.
C. . Owner agrees to defend, indemnify, and hold the City harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorneys fees that the City may incur as a direct or indirect consequence of: (1) Owner's default, performance, or failure to perform any obligations as and when required by this Agreement or the Deed of Trust; or (2) the failure at any time of any of Owner's representations to the City to be true and correct.
11 19. RESTRICTIONS ON FORECLOSURE PROCEEDS
If a creditor acquires title to the Home through a deed in lieu of foreclosure, a trustee's deed upon sale, or otherwise, the Owner shall not be entitled to the proceeds of sale to the extent that such proceeds otherwise payable to the Owner when added to the proceeds paid or credited to the creditor exceed the Maximum Allowable Sales Price. The Owner shall instruct the holder of such excess proceeds to pay such proceeds to the City in consideration of the benefits received by the Owner through purchase of the Home under the City's Affordable Housing Ordinance.
20. RESTRICTION ON INSURANCE PROCEEDS
If the Home is damaged or destroyed and the Owner elects not to rebuild or repair the Home, the Owner shall pay the City the portion of any insurance proceeds received by the Owner for such destruction or damage which is in excess of the Maximum Allowable Sales Price calculated pursuant to Section 10 above.
21. TERM OF AGREEMENT
All the provisions of this Agreement, including the benefits and burdens, run with the Home and this Agreement shall bind, and the benefit hereof shall inure to, the Owner, his or her heirs, legal representatives, executors, successors in interest and assigns, and to the City and its successors, until the earlier of (i) thirty (30) years from the date of purchase of the Home by Owner, or (ii) the date of Transfer of the Home to the City or another purchaser in compliance with this Agreement.
22. SUPERIORITY OF AGREEMENT
The Owner covenants that he or she has not, and will not, execute any other agreement with provisions contradictory to or in opposition to the provisions hereof, and that, in any event, this Agreement is controlling as to the rights and obligations between and among the Owner, the City and their respective successors.
23. SUBORDINATION
Notwithstanding any provision herein, this Agreement shall not diminish or affect the rights of the First and Second Lender under the First and Second Lender Deed of Trust or any subsequent First and Second Lender deeds of trust hereafter recorded against the Home in compliance with Section 24 of this Agreement.
Notwithstanding any other provision hereof, the provisions of this Agreement and the City Deed of Trust shall be subordinate to the lien of the First and Second Lender Deed of Trust and shall not impair the rights of the First and Second Lender, or such lender's assignee or successor in interest, to exercise its remedies under the First and Second Lender Deed of Trust in the event of default under the First or Second Lender Deed of Trust by the Owner. Such remedies under the First and Second Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this Agreement and the City Deed of Trust shall be forever terminated and shall have no further effect as to the Home or any transferee thereafter; provided, however, if the holder of such First or Second Lender Deed of Trust acquires title to the Home pursuant to a deed or assignment in lieu of foreclosure, this Agreement and the City Deed of Trust shall automatically terminate upon such acquisition of title, only if (i) the City has been given written notice of default under such First or Second Lender Deed of Trust with a 12 sixty (60)-day cure period and (ii) the City shall not have cured the default within such sixty (60)- day period or commenced to cure and given its firm commitment to complete the cure in form and substance acceptable to the First and Second Lender, or (iii) the City shall not have exercised its option to purchase the Home pursuant to Section 17 above within such sixty (60)- day period and then proceeded diligently to cure the default within sixty (60) days of acquiring title to the Home.
24. REFINANCE OF FIRST OR SECOND MORTGAGE LOAN: FURTHER
ENCUMBRANCE OF HOME
A. The City agrees to, within ten (10) business days of receipt of a request, execute and deliver any documents reasonably requested to subordinate this Agreement and the City Deed of Trust to a deed of trust securing a refinanced First Mortgage Loan and Second Mortgage Loan provided that, following such refinance, the principal amount of all debt secured by the Home will not exceed the greater of the outstanding principal balance of the refinanced First and Second Mortgage Loan or ninety-five percent (95%) of the Indexed Value of the Home, determined in accordance with Section 1 0A above.
B. The Owner covenants and agrees: (i) not to place any additional mortgage or deeds of trust on the Property without obtaining prior written consent of the City; and (ii) that the total principal amount of all debt secured by the Property shall not exceed ninety-five percent (95%) of the Indexed Value of the Home, determined in accordance with Section I OA above, unless specifically approved in writing by the City. The City and the Owner agree that the requirements of this Section 24B are necessary to ensure the continued affordability of the Home to Owner and to minimize the risk of loss of the Home by Owner through default and foreclosure of mortgage loans. Owner further acknowledges that violation of the provisions of this Section 24B shall constitute a Default under this Agreement.
25. NONDISCRIMINATION
The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Home, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Home. The foregoing covenant shall run with the land.
26. RIGHTS OF BENEFICIARIES UNDER DEEDS OF TRUSTS
This Agreement shall not diminish or affect the rights of the City under the City Deed of Trust.
Notwithstanding any other provision in this Agreement to the contrary, this Agreement shall not diminish or affect the rights of the California Housing Finance Agency ("CHFA"), United States Department of Housing and Urban Development ("HUD"), the Federal National Mortgage Association ("FNMA"), or the Veterans Administration ("VA") under the First and Second Mortgage Deed of Trust or any subsequent First or Second Lender deeds of trust hereafter recorded against the Home in compliance with Section 24 above. 13 Notwithstanding any other provisions in this Agreement to the contrary, all of the provisions of this Agreement shall terminate and have no further force and effect upon the occurrence of one of the following events:
A. Title is acquired by CHFA, HUD, FNMA, VA, the First or Second Lender or another party upon foreclosure of a deed of trust to the First or Second Lender or CHFA, or a deed of trust insured by HUD or guaranteed by VA.
B. Title is acquired by another party by a deed in lieu of foreclosure of the First or Second Lender, CHFA, or FNMA deed of trust.
27. HUD FORBEARANCE RELIEF
Notwithstanding other provisions of this Agreement, the City Option on Default pursuant to Section 17 above shall not be exercised by the City when a deed of trust insured by HUD is secured by the Home, and: (i) the owner is undergoing consideration by HUD for assignment forbearance relief; or (ii) the owner is undergoing consideration for relief under HUD's Temporary Mortgage Assistance Payment (TMAP) program.
28. INVALID PROVISIONS
If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.
29. CONTROLLING LAW
The terms of this Agreement shall be interpreted under the laws of the State of California. The venue for any legal action pertaining to this Agreement shall be San Luis Obispo County, California.
30. NO WAIVER
No delay or omission in the exercise of any right or remedy of City upon any default by Owner shall impair such right or remedy or be construed as a waiver. The City's failure to insist in any one or more instance upon the strict observance of the terms of this Agreement shall not be considered a waiver of the City's right thereafter to enforce the provisions of the Agreement.
The City shall not waive its rights to enforce any provision of this Agreement unless it does so in writing, signed by an authorized agent of the City.
31. NOTICES
All notices required herein shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt and shall be deemed to be effective as of the date received or the date delivery was refused as indicated on the return receipt as follows:
To the Owner: i
address
Grover Beach, CA 93433
14 To the City: City of Grover Beach
154 S Eighth Street
Grover Beach, CA 93433
Attn: City Clerk
The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section.
32. INTERPRETATION OF AGREEMENT
The terms of this Agreement shall be interpreted so as to avoid speculation on the Home and to insure to the extent possible that its sales price and mortgage payments remain affordable to persons and families of low- and/or moderate-income
33. EXHIBITS
Any exhibits referred to in this Agreement are incorporated by such reference.
IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date first written above.
CITY:
By:
RO € [nT r'[:nn/\ULT
CITY M/\N/\C[:nl</\REN BRIGHT
MAYOR
OWNER(S):
XXX
XXX
Replace this sheet with standard notary acknowledgement sheets for City Manager 16 Replace this sheet with standard notary acknowledgement sheets for Owner(s) 17 EXHIBIT A
Legal Description
18 Replace this sheet with legal description
19 EXHIBIT B
Affordable Housing Standards
San Luis Obispo County Department of Planning and Building 20 Replace this sheet with Affordable Housing Standards 21 Exhibit E
Form of Deed of Trust
(A copy of the proposed individual Deed of Trust follows this page) Complimentary Recording Requested
Pursuant To Government Code
Sections 6103 And 27383
AFFORDABLE HOUSING AGREEMENT
EXHIBIT "E"
When Recorded Mail To:
City of Grover Beach
154 S Eighth Street
Grover Beach, CA 93433
DEED OF TRUST
AND SECURITY AGREEMENT
The Owner, in consideration of the promises herein recited and the trust herein created, irrevocably grants, transfers, conveys and assigns to Trustee, in trust, with power of sale, the property located in the City of Grover Beach, San Luis Obispo County, State of California, described in the attached Exhibit A and more commonly known as TOGETHER with all the improvements now or hereaffer erected on the property, and all easements, rights, appurtenances, and all fixtures now or hereafter attached to the property, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Deed of Trust; and TOGETHER with all articles of personal property or fixtures now or hereafter attached to or used in and about the building or buildings now erected or hereafter to be erected on the Property which are necessary to the complete and comfortable use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted therein, similar to the one herein described and referred to, and all renewals or replacements thereof or articles in substitution therefore, whether or not the same are, or shall be attached to said building or buildings in any manner; and all of the foregoing, together with the Property, is herein referred to as the "Security"; To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever;
TO SECURE to the City the performance of the covenants and agreements of Owner contained in that certain Buyer's Occupancy and Resale Agreement with Option to Purchase executed by and between the Owner and the City of even date herewith (the "Resale Agreement") and to secure the payment of Excess Sales Proceeds (as defined in the Resale Agreement) that may become due by Owner to City.
TO SECURE the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Deed of Trust; and the performance of the covenants and agreements of Owner herein contained.
OWNER AND CITY COVENANT AND AGREE AS FOLLOWS:
l
1. Owner's Estate. That Owner is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Security, that other than this Deed of Trust, the Security is encumbered only by: (a) that deed of trust executed by Owner in connection with a loan made to Owner by (the "First Lender"), and
(second Lender"), securing a promissory note executed by Owner in favor of the First Lender ("First Lender Note") and Second Lender ("Second Lender Note"), to assist in the purchase of the Property and (b) the Resale Agreement. Owner agrees to warrant and defend generally the title to the Security against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring the City's interest in the Security. (As used in this Deed of Trust, the term "First Lender" shall include all successors and assigns of the First Lender and the term "Second Lender" shall include all successors and assigns of the Second Lender).
2. Payment of Excess Sales Proceeds. Owner will promptly pay to the City, when and if due pursuant to the Resale Agreement, the Excess Sales Proceeds (as defined in the Resale Agreement).
3. Resale Agreement. Owner will observe and perform all of the covenants and agreements of the Resale Agreement.
4. Charqes; Liens. Owner will pay all taxes, assessments and other charges, fines and impositions attributable to the Security which may attain a priority over this Deed of Trust, by Owner making any payment, when due, directly to the payee thereof. Upon request by the City, Owner will promptly furnish to the City all notices of amounts due under this paragraph. In the event Owner makes payment directly, Owner will promptly discharge any lien which has priority over this Deed of Trust; provided, that Owner will not be required to discharge the lien of the Deed of Trust securing the First or Second Lender Note (the "First Lender Deed of Trust" or "Second Lender Deed of Trust") or any other lien described in this paragraph so long as Owner will agree in writing to the payment of the obligation secured by such lien in a manner acceptable to the City, or will, in good faith, contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Security or any part thereof.
5. Hazard Insurance. Owner will keep the Security insured by a standard all risk property insurance policy equal to the replacement value of the Security (adjusted every five (5) years by appraisal, if requested by the City). If the Security is located in a flood plain, Owner shall also flood insurance. The insurance carrier providing this insurance shall be licensed to do business in the State of California and be chosen by Owner subject to approval by the City.
All insurance policies and renewals thereof will be in a form acceptable to the City and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of the First and Second Lender Note and the City as their interests may appear and in a form acceptable to the City. The City shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Owner shall promptly furnish to the City, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Owner will give prompt notice to the insurance carrier and the City or its designated agent. The City, or its designated agent, may make proof of loss if not made promptly by Owner. The City shall receive thirty (30) days advance notice of cancellation of any insurance policies required under this section.
Unless the City and Owner otherwise agree in writing, insurance proceeds, subject to the rights of the First Lender, will be applied to restoration or repair of the Security damaged, provided such restoration or repair is economically feasible and the security of this Deed of 2 Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds will be used to repay any amounts due under the Resale Agreement, with the excess, if any, paid to Owner. If the Security is abandoned by Owner, or if Owner fails to respond to the City, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to Owner that the insurance carrier offers to settle a claim for insurance benefits, the City, or its designated agent, is authorized to collect and apply the insurance proceeds at the City's option either to restoration or repair of the Security or to pay amounts due under the Resale Agreement.
If the Security is acquired by the City, all right, title and interest of Owner in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Security prior to the sale or acquisition will pass to the City to the extent of the sums secured by this Deed of Trust immediate prior to such sale or acquisition, subject to the rights of the First Lender.
6. Preservation and Maintenance of Security. Owner will keep the Security in good repair and in a neat, clean, and orderly condition and will not commit waste or permit impairment or deterioration of the Security. If there arises a condition in contravention of this Section 5, and if the Owner has not cured such condition within thirty (30) days after receiving a City notice of such a condition, then in addition to any other rights available to the City, the City shall have the right (but not the obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Security to recover its cost of Cunng.
7. Protection of the City's Security. If Owner fails to perform the covenants and agreements contained in this Deed of Trust or if any action or proceeding is commenced which materially affects the City's interest in the Security, including, but not limited to, default under the First Lender Deed of Trust, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the City, at the City's option, upon notice to Owner, may make such appearances, disburse such sums and take such action as it determines necessary to protect the City's interest, including but not limited to, disbursement of reasonable attorney's fees and entry upon the Security to make repairs.
Any amounts disbursed by the City pursuant to this paragraph, with interest thereon, will become an indebtedness of Owner secured by this Deed of Trust. Unless Owner and City agree to other terms of payment, such amount will be payable upon notice from the City to Owner requesting payment thereof, and will bear interest from the date of disbursement at the lesser of (i) ten percent (10%); or (ii) the highest rate permissible under applicable law. Nothing contained in this paragraph will require the City to incur any expense or take any action hereunder
8. . The City may make or cause to be made reasonable entries upon and inspections of the Security; provided that the City will give Owner reasonable notice of inspection.
9. Forbearance by the City Not a Waiver. Any forbearance by the City in exercising any right or remedy will not be a waiver of the exercise of any such right or remedy. The procurement of insurance or the payment of taxes or other liens or charges by the City will not be a waiver of the City's right to require payment of any amounts secured by this Deed of Trust.
10. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law or equity, and may be exercised concurrently, independently or successively. 3 11. Successors and Assigns Bound. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the City and Owner subject to the provisions of this Deed of Trust.
12. Joint and Several Liability. All covenants and agreements of Owner shall be joint and several.
13. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Owner provided for in this Deed of Trust will be given by certified mail, addressed to Owner at the address shown in the first paragraph of this Deed of Trust or such other address as Owner may designate by notice to the City as provided herein, and (b) any notice to the City will be given by express delivery, return receipt requested, to the City of Grover Beach at 154 S Eighth Street Grover Beach, CA 93433, Attention: City Manager, or to such other address as the City may designate by notice to Owner as provided above. Notice shall be effective as of the date received by City as shown on the return receipt.
14. Governing Law. This Deed of Trust shall be governed by the laws of the State of California.
15. . In the event that any provision or clause of this Deed of Trust or the Resale Agreement conflicts with applicable law, such conflict will not affect other provisions of this Deed of Trust or the Resale Agreement which can be given effect without the conflicting provision, and to this end the provisions of the Deed of Trust and the Resale Agreement are declared to be severable.
16. . The captions and headings in this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof.
17. Nondiscrimination. The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Home. The foregoing covenant shall run with the land.
18. Nonliability for Negligence, Loss, or Damage. Owner acknowledges, understands and agrees that the relationship between Owner and City is solely that of an owner and an administrator of a City density bonus program, and that City neither undertakes nor assumes any responsibility for or duty to Owner to select, review, inspect, supervise, pass judgment on, or inform Owner of the quality, adequacy or suitability of the Security or any other matter. City owes no duty of care to protect Owner against negligent, faulty, inadequate or defective building or construction or any condition of the Security and Owner agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or assert any right or action against City for any loss, damage or other matter arising out of or resulting from any condition of the Security and will hold City harmless from any liability, loss or damage for these things.
19. . Owner agrees to defend, indemnify, and hold City and Agency harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorneys fees that City and Agency may incur as a direct or indirect consequence of:
4 A. Owner's failure to peform any obligations as and when required by the Resale Agreement and this Deed of Trust; or
B. the failure at any time of any of Owner's representations or warranties to be true and correct.
20. Acceleration; Remedies. Upon Owner's breach of any covenant or agreement of Owner in this Deed of Trust, including, but not limited to, the covenants to pay, when due, any sums secured by this Deed of Trust, the City, prior to acceleration, will mail by express delivery, return receipt requested notice to Owner specifying; (1) the breach; (2) the action required to cure such breach; (3) a date, not less than thirty (30) days from the date the notice is received by Owner as shown on the return receipt, by which such breach is to be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Security. The notice will also inform Owner of Owner's right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of default or any other defense of Owner to acceleration and sale. If the breach is not cured on or before the date specified in the notice, the City, at the City's option, may: (a) declare all or the sums secured by this Deed or Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by California law. (b) either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any breach hereunder or invalidate any act done in response to such breach and, notwithstanding the continuance in possession of the Security, the City shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any uncured breach, including the right to exercise the power of sale; (c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (d) deliver to Trustee a written declaration of default and demand for sale, pursuant to the provisions for notice of sale found at California Civil Code Sections 2924, et seq., as amended from time to time; or (e) exercise all other rights and remedies provided herein, in the instruments by which the Owner acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law.
The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees.
21. Owner's Right to Reinstate. Notwithstanding the City's acceleration of the sums secured by this Deed of Trust, Owner will have the right to have any proceedings begun by the City to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Security pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) Owner pays City all sums which would be then due under this Deed of Trust and no acceleration under this Deed of Trust or the Resale Agreement has occurred; (b) Owner cures all breaches of any other covenants or agreements of Owner contained in the Resale Agreement or this Deed of Trust; (c) Owner pays all reasonable expenses incurred by City and Trustee in enforcing the covenants and agreements of Owner contained in the Resale Agreement or this Deed of Trust, and in enforcing the City's and Trustee's remedies, including, but not limited to, reasonable attorney's fees; and (d) Owner 5 takes such action as City may reasonably require to assure that the lien of this Deed of Trust, City's interest in the Security and Owner's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Owner, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred.
22. Due on Transfer of the Property. Upon a Transfer (as defined in the Resale Agreement) of the Property or any interest in it, the City shall require immediate payment in full of all sums secured by this Deed of Trust.
23. Reconveyance. Upon payment of all sums secured by this Deed of Trust, the City will request Trustee to reconvey the Security and will surrender this Deed of Trust and the Resale Agreement to Trustee. Trustee will reconvey the Security without warranty and without charge to the person or persons legally entitled thereto. Such person or persons will pay all costs of recordation, if any.
24. Substitute Trustee. The City, at the City's option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed hereunder. The successor trustee will succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law.
25. Superiority of First Lender Documents. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the First Lender Deed of Trust or any subsequent First Lender deeds of trust hereaffer recorded against the Security in compliance with the requirements of Section 24 of the Resale Agreement. City agrees to promptly upon request execute and deliver any documents reasonably requested to subordinate this Deed of Trust to any subsequent First Lender Deed of Trust permitted by Section 24 of the Resale Agreement.
Notwithstanding any other provision hereof, the provisions of this Deed of Trust shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the rights of the First Lender, or such lender's assignee or successor in interest, to exercise its remedies under the First Lender Deed of Trust in the event of default under the First Lender Deed of Trust by the Owner. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. Affer such foreclosure or acceptance of a deed in lieu of foreclosure, this Deed of Trust shall be forever terminated and shall have no further effect as to the Property or any transferee thereafter; provided, however, if the holder of such First Lender Deed of Trust acquired title to the Property pursuant to a deed or assignment in lieu of foreclosure, this Deed of Trust shall automatically terminate upon such acquisition of title by First Lender, provided that (i) the City has been given written notice of default under such First Lender Deed of Trust with a sixty (60)-day cure period and (ii) the City shall not have cured or commenced to cure the default within such sixty (60)-day period or commenced to cure and given its firm commitment to complete the cure in form and substance acceptable to the First Lender; or (iii) the City shall not have exercised its option to purchase the Property pursuant to Section 17 of the Resale Agreement and then proceeded diligently to cure the default within such sixty (60)-day period.
26. Request for Notice. Owner requests that copies of the notice of default and notice of sale be sent to Owner at the address set forth in Section 13 above. 6 IN WITNESS WHEREOF, Owner has executed this Deed Of Trust as of the date first written above.
7 Replace this sheet with standard Notary acknowledgement 8 Recording Requested by:
Noslo Baden, LLC
When recorded, mail document to:
Noslo Baden, LLC
PO Box 1492
Arroyo Grande, CA 93421
Above Space for Recorder's Use Only
COVENANT RELATED TO EASEMENTS AFFECTING LAND
THIS COVENANT OF EASEMENTS AFFECTING LAND (this "Agreement") is made as of A(>r:! )'::> , 20Z-t by and between Noslo Baden, LLC.
Recitals
A. Declarants are the fee simple owners of that certain real property referred to herein as the Declarant Lots, located in the City of Grover Beach (the "City"), County of San Luis Obispo (the "County"), State of California (the "State"), as indicated on the Tract Map attached as Exhibit A to this Agreement (the "Site Plan"), consisting of Lots 1, 2, 3, 4, 5, 6, 7, and 8 of Tract Map 3203, recorded in Book i Pages of Tract Maps in the office of the San Luis Obispo County Recorder. The eight Lots are each individually referred to herein as a "Lot" and collectively as the "Property". Schedule I to this Agreement contains definitions of capitalized terms that may not be otherwise defined in the Agreement. The Schedule and Exhibits are incorporated by reference in the Agreement.
B. Declarants have hereby established certain easements and covenants, (collectively, the "Restrictions") as are hereinaffer set forth, subject to which all of the Property will be held, exchanged, leased, sold and conveyed.
C. Each of the Restrictions (i) is imposed upon each Lot of land now or hereafter comprising all or any portion of the Property as a mutual equitable servitude in favor of all Lots comprising the Property, (ii) creates reciprocal rights and obligations between and among each owner of such Lots, and (iii) creates a privity of contract and estate between and among the owners of such Lots and their heirs, successors and assigns.
D. Each of the Restrictions are intended and will run with the land and each Lot of land now or hereafter comprising all or any portion of the Property is and will be affected and burdened by the covenant of its owner for the benefit of the other Lots in the Property and their respective heirs, successors and assigns.
E. Declarants wili hereaffer hold, lease and convey title to the land comprising the Property, subject to the covenants, and easements as set forth in this Agreement.
Attachment 4
Agreement
NOW, THEREFORE, Declarants hereby covenant, agree, and declare that all of their interests, as the same may from time to time appear in and to the land comprising the Property, will be held transferred, sold, leased, occupied and conveyed subject to the following covenants, easements and restrictions which are hereby declared to be for the benefit of said interest in the Property, and the Owner of said interest and their Occupants, heirs, successors and assigns. These covenants, easements and restrictions will run with the Property on every part thereof or interest therein and will be binding upon all parties having or acquiring any right or title in said interests or any part thereof and are and will be imposed upon the Property now or hereafter subject to this Agreement, and every part thereof or interest therein, as a servitude in favor of each and every portion thereof as the dominant tenement or tenements.
Article I
Easements
Ingress and Egress.
"1.1 (a) Ingress and Egress on Entry Driveway. Each Owner with respect to its Lot hereby grants to each other Owner as grantee, for the benefit of each other Owner and their respective Occupants and invitees and for the benefit of the Lots owned by such grantee, a non-exclusive easement appurtenant to each grantee's Lot for the purpose of ingress and egress by vehicular and pedestrian traffic upon, over, across and through the Access Area located within grantor's Lot.
Without limiting the generality of the foregoing, Declarants grant a non-exclusive easement over, across and through the entry driveway into the Property from Baden Avenue as indicated on Exhibit A, including any future reconfiguration thereof ("Entry Driveway"), for ingress and egress to and from the Declarants Lots, Tor the benefit of Declarants Lots, their Occupants, and invitees. This Section
1. 4 (a) will not create any rights in any parties other than the Owners, and no Owner will have the right to grant easements for ingress, egress, parking or use of the Common Area to any third party who is not an Owner or Occupant or invitee of an Owner or Occupant (b) Egress on Pedestrian Access Easement. Each Owner as described below with respect to its Lot hereby grants to other Owners as grantee as described below, for the benefit of each grantee and their respective Occupants and invitees and for the benefit of the Lots owned by such grantee, a non-exclusive easement appurtenant to each grantee's Lot for the purposes of egress only by pedestrian traffic only from the grantee's Lot, upon, over, across, and through the Pedestrian Access Easement located within grantor's Lot. This Section 1.1 (b) will not create any rights in any parties other than the Owners, and no Owner will have the right to grant easements for egress or use of the Pedestrian Access Easement to any third party who is not an Owner or Occupant or invitee of an Owner or Occupant. The Lot 8 0wner grants access for egress to the Lot 5, Lot 6 and Lot 7 0wners Occupants, and invitees. The Lot 7 0wner grants access for egress to the Lot 5 and Lot 6 0wners, Occupants, and invitees. The Lot 6 0wner grants access for egress to the lot 5 0wners, Occupants, and invitees. Declarants will install emergency panic bars on each gate providing access from each grantee's Lot to each grantor's Lot. Grantors agree to leave said emergency panic bars in place and operational, and also agree to refrain from blocking the access gate with objects that would prevent grantees from freely utilizing the Pedestrian Access Easement.
Transfer of Rights to Tenants.
1.2 Transfer of Rights to Tenants. Notwithstanding anything to the contrary herein, an Owner may transfer and assign the easement rights contained in this Article I of this Agreement to its Occupants so long as any such Owner remains liable for any breach of the obligations of an Owner set forth in this Agreement.
Article II
Common Area; Maintenance
Common Area Use.
2.1. Common Area Use. The Common Area will be used for:
(a) Pedestrian and vehicular ingress and egress by Occupants, their agents, employees, and other invitees, to and from Buildings, Common Area and adjacent public streets; (b) Ingress and egress of delivery and service vehicles to and from the Property or any portion thereof and adjacent public streets
(c) Delivery of goods, wares, merchandise and the retention of services to Owners and Occupants of the Property;
(d) Perimeter walls and fences;
(e) Trash, recycling, and green waste pickup point/enclosure.
Maintenance of Common Area.
2.2 (a) Owner will, at its own expense, cause the Common Area iocated on its Lot to be maintained at all times in a safe, good and clean condition and repair, including, without limitation, the following:
(i) Maintaining the paved surfaces in a level, smooth and evenly covered condition with the type of surfacing material originally installed or such substitute as will in all respects be equal or superior in quality, use and durability;
(ii) Removing all papers, debris, filth and refuse, and thoroughly sweeping the area to the extent reasonably necessary to keep the area in a clean and orderly condition and removing trash and litter from areas within the Property where such trash and litter emanated from such Owner's Lot; (iii) Placing, keeping in repair, and replacing appropriate directional signs, and markers, where necessary or appropriate
(iv) Operating, keeping in repair, and replacing such artificial lighting facilities as will be reasonably required:
(v) Maintaining all landscaped areas and repairing automatic sprinkler systems or water lines and replacing shrubs and other landscaping as is necessary; (vi) Maintaining and repairing any and all walls and utilities and (vii) Maintaining free and unobstructed access to and from its Lot and the adjoining portions of the Property and to and from its Lot and the streets adjacent thereto; and (viii) Maintainingtheportionofthecommonstormdrainagesystemonandunderowner'slotper the requirements of the recorded operations & maintenance plan for the property (ix) Additional maintenance required: the owners of Lots 1, 2. 3, 4, and 8 are required to maintain all landscaping in the City's road right-of-way adjacent to each of these lots, to a level acceptable to the City.
The Owner or Occupant undertaking such work will take all measures necessary to minimize any disruption or inconvenience caused by such work. Such work will be accomplished by the Owner or Occupant undertaking it in a reasonable manner so that any damage or adverse effect which might be caused by such work to any other Owner or Occupant or to any Lot (including the Lot on which the work is being accomplished) is minimized. The Owner or Occupant undertaking such work will repair at its own cost any and all damage caused by such work and will restore the affected portion of any Lot (including the Lot upon which such work is performed) to a condition which is equal to or better than the condition which existed prior to the beginning of such work. In addition, the Owner or Occupant undertaking such work will pay all costs and expenses associated therewith and will indemnify, protect, defend and hold all other Owner(s) and Occupants from all liabilities, damages, losses, costs, expenses or claims arising out of, in connection with or attributable to the performance of such work. Except in cases of emergency (in which event concurrent notice or no notice appropriate under the circumstances will be all that is required), all such work which causes disruption or inconvenience to any other Owner or Occupant or to any Lot (including the Lot on which the work is being accomplished) will be undertaken only after giving all Owners fifteen (15) days prior written notice of the work to be undertaken, the scope and nature of the work, the duration of the work and the area in which the work is to be performed. (b) Owner's Right to Cure or Abate. If any Owner (a "Defaulting Owner") violates this Section 2.2 or permits or suffers any Occupant of its Lot to violate this Section :.:, then in addition to any other remedy provided for in this Agreement, any Owner (each or together, as applicable, the "Creditor Owner") may demand by written notice (the "Default Notice") that the violation be cured. If the Defaulting Owner does not cure the violation of a monetary obligation within ten (10) days after delivery of the Default Notice, or if such non-monetary default is of a kind that cannot reasonably be cured within thirty (30) days and the Defaulting Owner does not within such thirty (30) day period commence to cure such default and diligently thereafter prosecute such cure to completion, then the Creditor Owner (and its agents and employees) will have the right to (i) pay any sum owed by the Defaulting Owner to the person entitled thereto, (ii) enter upon the Lot of the Defaulting Owner (or any portion of the Common Area owned by the Defaulting Owner) and summarily abate, remove or otheise remedy any Improvement, thing or condition which violates this Section 2.2, and (iii) enter upon the Lot of the Defaulting Owner (or any portion of the Common Area owned by the DeTaulting Owner) and perform any obligation of the Defaulting Owner to be performed thereon. The Defaulting Owner will, within ten (10) days of written demand by any other Owner, accompanied by appropriate supporting documentation, reimburse the Creditor Owner for all costs and expenses incurred by the Creditor Owner in undertaking any of the actions permitted by clauses (i) through (iii) in the preceding sentence, including without limitation, wages, benefits and overhead allocable to the time expended by any employee of the Creditor Owner in taking such actions, together with interest thereon accruing from the date such costs and expenses were advanced or incurred by the Creditor Owner, at the Default Interest Rate (as herein defined). For purposes of this Agreement, the "Default Interest Rate" is the rate equal to the lesser of: (i) four percent (4%) per annum in excess of the "Prime Rate," or (ii) the highest lawful rate. The "Prime Rate" will be the rate announced as such from time to time by Bank ofAmerica or its successor.
(c) City of Grover Beach as third-party beneficiary for purposes of enforcement. This agreement expressly adds the City oT Grover Beach as a third-party beneficiary for purposes of enforcement.
The City may, at its sole discretion, after following the procedure above in (b), perform corrective work on an owner's common area or landscaping area adjacent to an owner's lot as noted in 2.2(a) (viii) and shall be entitled to any and all enforcement remedies of the Creditor Owner stated in section 2.2 (b) and in addition shall be entitled to lien the Defaulting Owner's property for enforcement actions of the City.
Article Ill
Indemnification and Insurance
Indemnification.
3.1. Indemnification. Each Owner ("Indemnifying Party") hereby indemnifies, holds harmless and defends the other Owner ("Indemnified Party(ies)") from and against all claims, damages, expenses (including, without limitation, reasonable attorney's fees and reasonable investigative and discovery costs), liabilities and judgments on account of injury to persons, loss of life, or damage to property occurring on its Lot, caused by (i) the business activities of the Occupants and Owners, and (ii) the active or passive negligence or willful misconduct of the Indemnifying Party, its agents, servants or employees; provided, the Indemnifying Party does not indemnify the Indemnified Party against any injury, loss oflife, or damage which is caused by the active or passive negligence or willful misconduct of the Indemnified Party, the other Owners in the Property, or their agents, servants or employees. The parties' obligations with respect to indemnification hereunder will remain effective, notwithstanding the expiration or termination or this Agreement, as to claims arising or accruing prior to the expiration or termination of this Agreement.
Waiver of Certain Rights.
3.2. Waiver of Certain Rights. With respect to any loss or damage that may occur to the Property (or any improvements thereon) or the respective property of the Owners therein, arising from any peril customarily insured under a fire and extended coverage insurance policy, regardless of the cause or origin, excluding willful acts but including negligence 'of the Owners, their agents, servants or employees, the Owner suffering such loss hereby releases the other Owner from all claims with respect to such loss; and the Owners each agree that their respective insurance companies will have no right of subrogation against the other Owner on account of any such loss, and each Owner will procure from its respective insurers under all policies of fire and extended coverage insurance a waiver of all rights of subrogation against the other Owners which the insurers might otherwise have under such policies.
Performance of Indemnity Agreements.
3.3. Performance of Indemnity Agreements. All policies of liability insurance will insure the performance by the Owner insured thereunder of the indemnity agreements contained herein. Each Owner will promptly notify the other Owner of any asserted claim with respect to which such Owner is or may be indemnified against hereunder and will deliver to such other Owner copies of process and pleadings.
Article IV
Taxes
Each Owner will pay or cause to be paid directly to the tax collector when due, the Real Property Taxes assessed against the property owned by such Owner, including the portion of the Common Area owned by such Owner.
An Owner will have the right, at its own cost and expense, and in its own name, to contest or protest or seek to have reviewed, reduced, equalized or abated any real property tax or other special tax or assessment levied upon its Lot by first paying such tax or assessment and thereafter filing a claim for refund or pursuing such other remedy as may be available under and in accordance with State Law.
Article V
General Provisions
Notices.
5.1. Notices. Any notice or demand given or served by one Owner to another Owner will not be deemed to have been duly given or served unless in writing and personally delivered or forwarded by postage prepaid certified or registered mail, return receipt requested, or by another commercially recognized means of delivery addressee to owner(s) of record.
Notices and demands will be deemed effective upon receipt. The person and place to which notices are to be given may be changed by written notice the other Owners.
Attorney's Fees.
5.2. Attorney's Fees. In the event legal proceedings are brought or commenced to enforce any of the terms of this Agreement against any Owner or other person with an Interest in the Property, the successful party in such action will be entitled to receive and will receive from the defaulting Owner, a reasonable sum as attorney's fees and costs, to be fixed by the court in the same action.
Duration.
5.3. Duration. Except as otherwise provided herein, this Agreement will remain in full force and effect for a term of 99 years from the date hereof: provided, however, the term of this Agreement will automatically and without further notice continue in full force and effect for successive terms of five (5) years unless at least one (1 ) year prior to the expiration of the initial term or any such five (5) year extension, there will be recorded an instrument conforming to the provisions of Section 5.4 of this Agreement.
Modification.
5.4. Modification. Except as otherwise provided herein, this Agreement may not be modified in any respect whatsoever or rescinded, in whole or in part, except by a writing executed by First Declarant or its successor as the Owner of the First Declarant Lot and Second Declarant or its successor as the Owner of the Second Declarant Lot, and Third Declarant or its successor as the Owner of the Third Declarant Lot, and duly recorded.
Not a Public Dedication.
5.5. Not a Public Dedication. Nothing herein contained will be deemed to be a gift or dedication of any portion of the Property to the general public or for any public purposes whatsoever, it being the intention of the Owners that this Agreement will be strictly limited to and for the purposes herein expressed.
Severability.
5.6. Severability. If any term or provision of this Agreement or the application of it to any person or circumstance will to any extent be invalid and unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is invalid or unenforceable will not be affected thereby, and each term and provision of this Agreement will be valid and will be enforced to the extent permitted by Law.
Pronouns.
5.7. Pronouns. When required by context, the singular will include the plural, and the neuter gender will include a person, corporation, firm, association, or other business arrangement.
Captions.
5.8. Captions. The captions in this Agreement are for convenience only and do not constitute a part of the provisions hereof.
Not a Partnership.
5. 9. Not a Partnership. The provisions of this Agreement are not intended to create, nor will they be in any way interpreted to create, a joint venture, a partnership, or any other similar relationship between the Owners.
Governing Law.
5. 10. Governing Law. This Agreement will be construed and enforced in accordance with and governed by the Law of the State of California. The venue for any litigation or enforcement in court of any action arising from this Agreement shall be the County of San Luis Obispo.
No Presumption.
5. 11. No Presumption. This Agreement will be interpreted and construed only by the contents hereof and there will be no presumption or standard of construction in favor of or against any Owner.
Inurement.
5.12. Inurement. ThisAgreement and the easements, covenants, benefits and obligations created hereby will inure to the benefit and be binding upon each Owner and its successors and assigns, provided, (i) if any Owner conveys all of its Interest in any Lot owned by it, such Owner will thereupon be released and discharged from any and all further obligations under this Agreement as fee owner of the property conveyed by it if the buyer assumes in writing all of such obligations, and (ii) no such sale will release such Owner from any liabilities, actual or contingent, existing as of the time of such conveyance.
Estoppel Certificate.
5.13. Estoppel Certificate. Upon request by an Owner, the other Owner will issue to a prospective lender of such requesting Owner or to a prospective purchase of such requesting Owner's interest, an estoppel certificate stating:
(a) whether the Owner knows of any default by the requesting Owner under this Agreement, and if there are known defaults, specifying the nature thereof; (b) whether this Agreement has been assigned, modified or amended in any way (and if it has, then stating the nature thereof) and
(C) that to Owner's knowledge this Agreement as of that date is in full force and effect.
Compliance by Tenants.
5.14. Compliance by Tenants. Any Occupancy Agreement entered into after the date hereof must provide that the terms of such Occupancy Agreement will be subject in all respects to the provisions of this Agreement. Any Owner who enters into such an agreement will be responsible for assuring compliance by such Occupant with this Agreement. Notwithstanding anything to the contrary herein, an Owner hereunder may cause its Occupants to fulfill the obligations of an Owner hereunder provided that Owner will be responsible for assuring compliance by such Occupant with this Agreement and Owner will remain liable for any breach of obligation hereunder.
Reasonable Consent.
5.15. Reasonable Consent. Except as otherwise specifically provided in this Agreement, if an Owner is required to give its consent or approval to any action on the part of the other Owner, the consent or approval will not be unreasonably withheld or delayed. Except where other time periods to give or deny consent are provided in this Agreement, consent will be deemed granted at the end of the tenth (1 0th) business day following delivery of a request for consent, provided such request specifically refers to this Section 5. 15 of this Agreement and states that consent will be deemed granted at the end of the tenth (1 0th) business day from delivery of the request, unless a written denial of consent stating the specific reason for denial is delivered before the end of the tenth (1 0th) business day after delivery of the request for consent. In the event the requested consent is unreasonably withheld, the other party will be entitled to specific performance and will have such other remedies as are reserved to it under this Agreement or at Law.
Counterparts.
5.16 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Alternative Dispute Resolution.
5.17. Alternative Dispute Resolution. Any claim or dispute arising out of or relating to this Agreement, regardless of the nature of the claim or dispute, will be settled by the parties hereto pursuant to this Section 5.16.
(a) Mediation. If any claim or dispute arising out of or relating to this Agreement is not settled by direct discussions within ten (10) days afier notice of the claim or dispute, the parties agree first to try in good faith to settle the claim or dispute by non-binding mediation administered by the American Arbitration Association ("AAA") under its Commercial Mediation Rules. (b) Binding Arbitration. If the parties fail to settle a claim or dispute through mediation, it will be settled by binding arbitration administered by the AAA under its Commercial Arbitration Rules. Judgment on the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. (c) Provisional Relief. Nothing in this Section 5.16 will prevent either party from applying for or obtaining a provisional judicial remedy regarding any claim or dispute. Notwithstanding such application, the final resolution of the claim or dispute will be mediated or arbitrated under this Section 5. 16 and failure by either party to comply with any law will not be deemed to waive such party's rights to mediate or arbitrate under this Section 5.16.
IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.
DECLARANT:
Noslo Baden, LLC, a California
Limited Liability Compan)i
Name: Mark A. 01son
Its: manager
Name: Arnanda K. 01son
Its: manager
Date:-vliSpq
/Attach notarial acknowledgmentl
Schedute I
Definitions
Unless the context clearly indicates otherwise, the following terms used in this Agreement are defined as follows:
1. "Access Area" means the access area or drive areas depicted on Exhibit A, including any future reconfiguration thereof, and such other driveways and areas as may be established from time to time as areas within Lots over which reciprocal access easements between or among adjacent Lots are necessary or beneficial for ingress and egress to and from such Lots or the Improvements thereon.
2. "Building" means any structural tmprovement on any Lot which is enclosed by exterior walls, floor and roof and is designed for human occupancy and the conduct within of activities and business by the Owner or Occupant of such Improvements.
3. "City" means the City of Grover Beach, California and any individual departments or agencies thereof asserting jurisdiction over the Property.
4. "Common Area" means all real property within the Property upon which there are no Buildings or outdoor areas existing or under construction which are devoted to the exclusive or non-exclusive use of any Owner or Occupant, specifically excluding any Service Facilities.
5. "Effective Date" means the date that this Agreement is recorded in the offices of the County Recorder.
6. "Improvement(s)" means all Buildings, Service Facilities, outbuildings, parking or loading areas, parking garages (if any), roadways, walkways, curbs, gutters, storage areas, trash enclosures, security facilities, fences, walls, poles, signs, exterior lighting, exterior air conditioning equipment, hedges, berms, mass or large plantings, landscaping, trees, shrubs, sewer lines and sewer pipes, water lines and water pipes, electrical lines and electrical conduit and other utility lines, pipes, and conduits, lighting standards and fixtures, stairways, ramps and all other structures of any kind or appurtenances thereto located above or below the ground within the exterior boundaries of the Property, and any replacements, additions, repairs or alterations thereto of any kind whatsoever.
7. "Indemnified Party" means the party described in Section 3. 1 of this Agreement.
8. "Indemnifying Party" means the party described in Section 3.1 of this Agreement.
9. "Law(s)" means any statute, constitution, ordinance, resolution, regulation, rule, administrative order or requirement of any municipal, county, state, federal or other governmental agency or authority having jurisdiction over the Property in effect as of the Effective Date or which may thereaffer be enacted, adopted, amended or modified.
10. "Mortgage" means any duly recorded mortgage or deed of trust encumbering a Lot.
11. "Mortgagee" means and refers to the mortgagee or beneficiary under any Mortgage.
12. "Occupancy Agreement" means a lease, sublease, assignment agreement, ground lease or other agreement between an Owner and any Occupant that entitles an Occupant to conduct its business in the Property and utilize the Common Area in connection with its occupancy.
13. "Occupant" means any person, firm, corporation, association or other legal entity entitled to occupy and utilize any portion or portions of the Property for the conduct of its business pursuant to an Occupancy Agreement.
14. "Owner" means (i) the person or persons holding fee title to any portion of the Property, or (ii) the Occupant entitled to occupy all of a Lot under an Occupancy Agreement for a fixed original term of thirty (30) years or longer if the fee owner elects in a written notice to the other Owners that such Occupant is to be considered an Owner of such Lot for purposes of this Agreement during the term of the Occupancy Agreement, or (iii) the ground lessee under a long term ground lease (i.e. 30 or more years in duration or the Occupant of the Lot that is the subject of the ground lease if so designated by the ground lessee pursuant to subsection (ii) hereof.
15. "Person" means any individual, partnership, firm, association, corporation, trust, governmental agency, administrative tribunal or any other form of business or legal entity.
16. "Real Property Tax(es)" means any form of real or personal taxes, assessments, fees, charges, levies, penalties, impositions or taxes of every kind and nature whatsoever, assessed or levied or imposed by any authority having the direct or indirect power to tax, including, without limitation, any City, County, State or federal government, or any improvement or assessment district of any kind or nature whatsoever, whether or not consented to or joined in by Owner, against the Lot or any legal or equitable interest or Owner therein or any personal property of Owner used in the operation thereof or the ownership, leasing, operation, management or occupancy of the Lot, whether now or hereafter imposed, and whether or not now customary or in the contemplation of the parties on the date of this Lease, excepting only inheritance or estate taxes and taxes measured by the net income of Owner. Real Property Taxes will include without limitation general and special assessments, service payments in lieu of taxes, excises, possessory interest taxes, business or license taxes or fees, gross receipts taxes, transit assessments or fees, child care subsidies fees and/or assessments, job training subsidy fees and/or assessments, open space fees and/or assessments, housing subsidies and/or housing fund fees or assessments, public art fees and/or assessments, and any other fees or assessments imposed in connection with the environmental, sociological or fiscal effects of the Lot or the ownership, leasing, operation, management or occupancy of the Lot, any tax, fee or excise on the use or occupancy of the Lot or any part thereof, or in connection with the business of renting space in the Lot, any other tax, fee or other excise, however described, that may be levied or assessed as a substitute for, or as an addition to, in whole or in part, any other Real Property Taxes.
ACKNOWLEDGMENT PAGE TO BE ATT ACHED TO THE FOLLOWING DOCUMENT:
COVANANT RELATED TO EASEMENTS AFFECTING LAND
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of San Luis Obispo
On April 15, 2024 before me, J. Sofis , Notary Public,
(here insert name and title of the officer)
personally appeared Mark A. 01son and Amanda K. 01son
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESSmyhandandofficials5al.
,':l;i!A
Signature ,z,,,- /
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Notary Acknowledgment - General
SSCORPD1863.doc/Updated: 09.23.19
Printed: 04.15.24@01:53 PMbyJS
CA-FT-FSLC-01500.076002-SaleNetSheetJS
OWNER'S STATEMENT CITY ENGINEER'S
COVENANT RELATED TO EASEMENTS AFFECTING LAND
EXHIBIT "A"
SLIRVEYOR-S STATEMENT ST ATEM ENT
SIGNATURE OMMISSIONS
1. aEORGE MARCHENkO. AC'nNG ON BE)OILF OF 11(E CITY E)0-INEER OF THE CnY OF (-ROVER eEACll. HER!)!Y C(RffFY THAT I HAVE EXA)llNti) THE MAI' SHII!WN HEREON, AIIO 'n'ltT I AM SAtlainfD tXfT N!i M}P IS TECHNICALLY CORR!CT SUeSECfiON (a)(3)(A) OF ThlE SueOMSION MAP ACT AS T)IFIR lllTEil CANNOT RIPEN INTO A WE TH} uNDA5aNE0. H!IY CalTFY ThlAT WE IIAE AkL THE OWNERS W. AND ALL RECORDHOE[RS OF S(CIIRITY IllT[R[ST IN AND ju PANTIES HAXNa ANY RECORD TTnj IN W EACH OF US DOES HERE!If Cl)NSENT TO TH! aNG AND/OR R!CORDAtlON (F THIS Ml WE ALSO RESERVE TO OuRl!lV[S. 011R HaRS. AIID IISSIGNS C!)IT&N PIIMIF ACCISS. ljnljtY.
PEDESTRUN AaCaS. AND DRANAO( EAS!MENTS mR TIIE u!iE AND BENEIT OT T+IE IJ'L;ENT AND IIITUNE (llllN[Raa OF 'IH[ kOl! ACTtD !I{ SUCH FAS!IMtNT5 AS DalNEA'lEn ON !AID IMP
SOILS REPORT NOTE
COLINTY RECORDER'S
ST ATEM ENT
NOTARY
OF THE INDMDIAL WHO SIGN(D W 00CuM(NT TO WIIICH THIS CERnnCATE 6 ATTACHED. AND Nm Tilt mlmlRlLNESS. ACCURACY. OR VAuOnY (F THAT DOCuMEllT Cl TY C O LI N Cl L' S ST ATEM ENT
HEREBY C!Il'NFY TIIAT 71115 SuBOMSION WAS DULY ADOl'aTED AND APPROVEO AND WAS ACCEPTED BY THE COUNCIL OF THE CTh OF GROVER B!aH ON . AND THAT NE CffY CIERR WAS tXlLY Au'IHORIZED AIIO DIR!ClTTh TO (NOORSE H(!IEON ITS #PR0VAk OF THE :aWE
RECORDER'S DISCLAIMER
(OuNTl (F
PERSI)NAuY APPTARTn Wlln PRnV!D {O ME ON THE !U!aS
Or !alTISEtCTORY (VIOENCE TO !IF THE PERSON(S) WHOS'E IlAljE(S) IS/ARE tu!lSCRPEn }O NF WTHIN INnNUfflFNT AND eKNOlEDa!D }O VE fflt HE/SHt/THEY !:tECa ThlE Sat[ IN HS/Hf /Tsaq Aumomm ctpacm(Its). Allo 7)lAt BY HS/HER/'l)lnR SlaNaluR!(S) ON NE Ila'lulaT THE pnsm(s). op th[ ENmY uPOx a!ilT or WHICH 'IHE PERSON(S) ACTm. EXECUIED TH! INl'mlM!NT i) SuBDMSION AaR!IEII(NT. PIJ
3) A170RDABLE HOUSING AOREEMENT P[R
PRINTED 11AljL )IY covvissiox opiua
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