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HomeMy WebLinkAbout20E - AA - BRISTOL ST IMPROVEMENTSREQUEST FOR�=Y COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 19, 2019 TITLE: APPROVE APPROPRIATION ADJUSTMENT AND PURCHASE AND SALE AGREEMENTS PER RFP 19-026 GENERATING $8,104,200 IN REVENUE FOR BRISTOL STREET IMPROVEMENTS (PROJECT NO. 11-6741) (NON -GENERAL FUND) (STRATEGIC PLAN NOS. 6, 1 G; 3, 2C) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO /s/ Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTIONS 1. Authorize the City Manager to execute a purchase and sale agreement with Southwest Group Properties LLC, for the sale of City -owned property located at APN's 405-252-21 and 405-252- 22 in the amount of $1,100,000, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Authorize the City Manager to execute a purchase and sale agreement with Merchant Star International General Trading, for the sale of City -owned property located at APN's 405-272- 11, 450-272-12, 405-272-13, 405-272-14, 405-272-15, 405-272-16, 405-272-17, 405-272-18, and 405-272-21 in the amount of $2,605,000, subject to non -substantive changes approved by the City Manager and City Attorney. 3. Authorize the City Manager to execute a purchase and sale agreement with Merchant Star International General Trading , for the sale of City -owned property located at APN's 004-123- 48 and 004-123-52 in the amount of $1,025,000, subject to non -substantive changes approved by the City Manager and City Attorney. 4. Authorize the City Manager to execute a purchase and sale agreement with Merchant Star International General Trading, for the sale of City -owned property located at APN's 015-194-37 and 015-194-40 in the amount of $1,050,000, subject to non -substantive changes approved by the City Manager and City Attorney. 5. Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APN 399-085-11 in the amount of $127,700, subject to non -substantive changes approved by the City Manager and City Attorney. Real Property Purchase Agreements per RFP 19-026 November 19, 2019 Page 2 6. Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APN 004-122-39 in the amount of $257,700, subject to non -substantive changes approved by the City Manager and City Attorney. 7. Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APN's 405-073-14 and 405-073-15 in the amount of $188,700, subject to non -substantive changes approved by the City Manager and City Attorney. 8. Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APN's 405-073-16, 405-073-17, and 405-073-18 in the amount of $287,700, subject to non -substantive changes approved by the City Manager and City Attorney. 9. Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APN's 008-231-24, 008-231-26, and 008-231-27 in the amount of $237,700, subject to non -substantive changes approved by the City Manager and City Attorney. 10.Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APN's 008-231-23 and 008-231-29 in the amount of $237,700, subject to non -substantive changes approved by the City Manager and City Attorney. 11.Authorize the City Manager and Clerk of the Council to execute a purchase and sale agreement with Dustin Do, for the sale of City -owned property located at APN's 008-232-31 and 008-232- 34 in the amount of $192,800, subject to non -substantive changes approved by the City Manager and City Attorney. 12.Authorize the City Manager to execute a purchase and sale agreement with Dustin Do, for the sale of City -owned property located at APN 010-022-09 in the amount of $184,800, subject to non -substantive changes approved by the City Manager and City Attorney. 13.Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APNs 010-183-01, 010-183-42, 010-183-43, and 010-183-44 in the amount of $357,700, subject to non -substantive changes approved by the City Manager and City Attorney. 14.Authorize the City Manager to execute a purchase and sale agreement with IAS Management, for the sale of City -owned property located at APN's 010-183-40, 010-183-41, and 010-183-42 in the amount of $251,700, subject to non -substantive changes approved by the City Manager and City Attorney. Real Property Purchase Agreements per RFP 19-026 November 19, 2019 Page 3 15. Approve an appropriation adjustment recognizing revenue in the amount of $5,498,000 in Select Street Construction Fund revenue account for Fiscal Year 2019-20 from the sale of City -owned property located at various locations and appropriating the same to the OCTA Bristol Street Corridor Improvements expenditure account. Receipt of Measure M Street Construction proceeds in the amount of $2,606,200 will be disbursed to the Orange County Transportation Authority (OCTA). DISCUSSION The City is the owner of substantial real property assets and interests that were specifically acquired for various street widening projects. Approval of recommended actions will allow the City to sell such City -owned vacant property acquired with Orange County Transportation Authority (OCTA) Right -of -Way restricted grant funds, and return proceeds of sale to Bristol Street Improvement Project, and funding agency, proportionally based on match requirements, consistent with Comprehensive Transportation Funding Program (CTFP) Cooperative Agreement C-6-0069 between respective agencies. On April 2, 2019, the City issued Request for Proposals (RFP) 19-026 that solicited the sale and development of eighty-eight (88) individual properties that were grouped into twenty-two (22) combined properties with discreet parcel identification numbers (Parcel IDs) and detailed in Exhibit 1 and the table below. These parcels were combined into larger residential (10 parcels), commercial (9 parcels), and professional office (3 parcels) lots to provide the greatest public benefit and to ensure that the lots met the minimum development standards based on zoning. The properties that are the subject of the RFP are leftover parcels from full parcel acquisitions that were originally made for street -widening projects now completed. The full parcel acquisitions were made following the City's environmental analysis that the project impacts could not be adequately mitigated if only partial acquisitions were made. When full acquisitions are made under these circumstances, some leftover land ordinarily results. These parcels have remained vacant since project completion, and have always been held for the purpose of exchange only. To provide an opportunity for all interested parties to submit proposals, RFP was solicited electronically via the City's web -based electronic procurement system, PlanetBids. Through the PlanetBids online portal, vendors may register to receive notifications on all current and future City projects, as well as download RFP documents, receive project updates, and submit proposals electronically. A total of 147 vendors were notified of the project via PlanetBids, and 51 prospective bidders downloaded the RFP document. On May 29, 2019, 47 proposals were received, accompanied by $260,459 in deposit checks (approximately 1 % of proposed bid amounts) from 11 vendors. Out of the RFP's 22 parcel IDs, six (6) combined properties did not receive proposals. During the Evaluation process, one proposal was deemed non -responsive based on zoning requirements delineated in the RFP. The proposals were evaluated and ranked by a review committee comprised of representatives from Public Works Agency, Community Development Agency, Planning and Building, and Finance Management Services. Ranking criteria included Project Team, Experience, Proposed Development Concept, and Financial Capacity; Bid Amount and Deposit Verification; Fiscal and Real Property Purchase Agreements per RFP 19-026 November 19, 2019 Page 4 Economic Benefit Analysis; and Community Benefit for both Commercial / Professional and Residential zoned proposals. The ranking of the firms is as follows: Parcel ID Entity Proposed Development Purchase Price 1 C-1 Southwest Group Properties Retail Drive-thru (Starbucks) $1,100,000 2 C-2 Merchant Star International General Trading Multi -Tenant Restaurant $2,605,000 3 C-3 Merchant Star International General Trading Restaurant $1,025,000 4 C-6 Merchant Star International General Trading Multi -Tenant Restaurant $1,050,000 6 R-1 IAS Management Single Family Residence $127,700 7 R-2 IAS Management Single Family Residence + ADU $257,700 8 R-3 IAS Management Single Family Residence $188,700 9 R-4 IAS Management Duplex $287,700 10 R-5 IAS Management Single Family Residence + ADU $237,700 11 R-6 IAS Management Single Family Residence + ADU $237,700 12 R-7 DVD Construction Single Family Residence $192,800 13 R-8 DVD Construction Single Family Residence $184,800 14 R-9 IAS Management Triplex $357,700 15 R-10 IAS Management Single Family Residence + ADU $251,700 Total $8,104,200 Distribution of Funds Estimated Proceeds for Bristol Improvements $5,498,000 Estimated Proceeds to be Returned to Funding Agency (OCTA) $2,606,200 The top -scoring proposals demonstrated necessary capacity and presented a diverse mix of development concepts consistent with current zoning as required by RFP. The bid offers received were reasonable and within industry standard and the above -recommended proposals were found to provide the best value for the City of Santa Ana, both in the short-term and long-term benefits. Approval of Recommended Actions No. 1-15 will enhance community satisfaction with reduction in neighborhood blight, revitalize neighborhoods, and reduce liability to the City and community in general. The estimated economic development benefits that will occur as a result of activation of these vacant lots will promote revenue generating developments, create new local jobs, and generate new sales tax revenues. Disposing of these properties will generate sustainable City general fund revenues with increased property tax rolls and additional utility user taxes collected on an annual basis in perpetuity. The following table summarizes key statistics: Real Property Purchase Agreements per RFP 19-026 November 19, 2019 Page 5 KEY PROJECTED STATS Estimated Construction Cost $10,338,787 Estimated Jobs Created (Construction) 72 Estimated Property Value for Tax Purposes $21,410,844 Estimated Taxable Sales Revenue (annual) $14,087,499 Estimated Taxable Revenue Annual Property Tax Value (1.1%) $228,092 x 10 years $2,141,084 Annual Sales Tax Value (9.25%) $1,303,094 x 10 years $13,030,937 Total Estimated 10-Year Taxable Revenue $15,172,021 *A portion of the taxable revenue amount will be allocated to the City of Santa Ana based on property and sales tax formulas If approved, the escrow period will commence Wednesday, November 20, 2019 and projected to close on or before end December 20, 2019. Conditions will be imposed in the Sale Agreements for each property requiring each successful bidder to complete the proposed improvements within 36 months from close of escrow for commercial developments and 18 months for residential. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). ENVIRONMENTAL IMPACT In 1990, City Council approved the Bristol Street Final Environmental Impact Statement/Environmental Impact Report (FEIS/EIR No. 89-01). On June 3, 2014, the City Council approved an Addendum to the FEIS/EIR pursuant to the California Environmental Quality Act to account for several minor design modifications in Phase IIIB. FISCAL IMPACT Real Property Purchase Agreements per RFP 19-026 November 19, 2019 Page 6 The revenue generated will be used to reimburse project expenditures and replenish grants used on acquisition costs, as well as fund additional public improvements along Bristol Street. The sale of these properties would lead to other significant economic activity spurred from the development of various projects on each parcel ID, such as creating local jobs, sales tax boosts, and increased property tax that will be realized by the City in perpetuity. In addition, the City will be relived from the continued maintenance, clean up, and liability from owning these vacant parcels. Approval of the recommended Appropriation Adjustment (Recommended Action No. 15) will recognize receipt of $5,498,000 into the Select Street Construction Fund revenue account (No. 05917002-57071) and appropriate the same into the OCTA Bristol Street Corridor Improvements Fund expenditure account (No. 05917661-66220). These funds will be available for expenditure on the Bristol Street Improvement Project. The remaining proceeds of $2,606,000 will be received in the Measure M Street Construction Fund (Account No. 03201001-20215) for disbursement to OCTA, consistent with Cooperative Agreement C-6-0069. The table below summarizes the sales price, Bristol revenue and payments to OCTA. Parcel ID Sale Price Bristol Improvement Fund (Account# 05917661-66220) Reimburse Funding Agency (Account# 03201001-20215) C-1 $1,100,000 $352,000 $748,000 C-2 $2,605,000 $833,600 $1,771,400 C-3 $1,025,000 $1,025,000 C-6 $1,050,000 $1,050,000 R-1 $127,700 $40,864 $86,836 R-2 $257,700 $257,700 R-3 $188,700 $188,700 R-4 $287,700 $287,700 R-5 $237,700 $237,700 R-6 $237,700 $237,700 R-7 $192,800 $192,800 R-8 $184,800 $184,800 R-9 $357,700 $357,700 R-10 $251,700 $251,700 $8,104,200 $5,498,000 $2,606,200 Real Property Purchase Agreements per RFP 19-026 November 19, 2019 Page 7 APPROVED AS TO FUNDS AND ACCOUNTS: Fuad S. Sweiss, PE, PLS Kathryn Downs, CPA Executive Director Executive Director Public Works Agency Finance and Management Services Agency FSS/EWG/JG/ST/HG Exhibits: 1. RFP 19-026 — Sale of City Owned Vacant Properties 2. Purchase and Sale Agreement — APN 405-252-21 and 405-252-22 3. Purchase and Sale Agreement — APN 402-272-11 to 402-272-18; and 402-272-21 4. Purchase and Sale Agreement — APN 004-123-48 and 004-123-52 5. Purchase and Sale Agreement — APN 015-194-37 and 015-194-40 6. Purchase and Sale Agreement — APN 399-085-11 7. Purchase and Sale Agreement — APN 004-122-39 8. Purchase and Sale Agreement — APN 405-073-14 and 405-073-15 9. Purchase and Sale Agreement — APN 405-073-16 to 405-073-18 10. Purchase and Sale Agreement — APN 008-231-24 to 008-231-26 11. Purchase and Sale Agreement — APN 008-231-23 and 008-231-29 12. Purchase and Sale Agreement — APN 008-232-31 and 008-232-34 13. Purchase and Sale Agreement — APN 010-022-09 14. Purchase and Sale Agreement — APN 010-183-42 to 010-183-44; and 010-193-01 15. Purchase and Sale Agreement — APN 010-183-40 to 010-183-42 REQUEST FOR PROPOSALS (RFP) FOR SALE OF CITY OWNED VACANT PROPERTIES RFP NO.: 19-026 CITY OF SANTA ANA Santa Ana Public Works Agency 20 Civic Center Plaza Santa Ana, CA 92701 Jason Gabriel Project Manager VA for Release: Sweiss, PE, PLS ,ecutive Director c Works Agency KEY RFP DATES (Subiect to change at discretion of Ci Issue Date: Tuesday, April 2, 2019 Pre -Proposal Meeting: April 16, 2019 at 1:30 PM (Location to be posted on PlanetBids) Deadline for Submitting Questions: April 24, 2019 Proposal Due Date: May 29, 2019; at 4:00 PM Projected Award Date: Varies EXHIBIT 1 NOTICE INVITING PROPOSALS NOTICE IS HEREBY GIVEN that the City of Santa Ana will receive Proposals from qualified individuals or entities (Proposers) for the development of various vacant properties in the City of Santa Ana. Responses to this Request for Proposals (RFP) must be submitted electronically to the PlanetBids system no later than May 29, 2019 at 4:00 PM. Proposals received after this date/time will not be considered. It is the responsibility of the Proposer to ensure that any Proposals submitted have sufficient time to be received by the City of Santa Ana prior to this Proposal due date and time. Respondents are invited and encouraged to attend an optional pre -submittal meeting. The date and time of the meeting is April 15, 2019 at 1:30 PM. Additionally, it is a requirement that hard copy Proposals shall also be sent by courier service or hand delivered in an enclosed sealed envelope and marked clearly with the following information formatted exactly as shown below on or before the deadline: "SEALED PROPOSAL FOR SALE OF CITY OWNED VACANT PROPERTIES RFP NO. 19-026 IN THE CITY OF SANTA ANA DO NOT OPEN WITH REGULAR MAIL." CITY OF SANTA ANA ATTN.: SEAN THOMAS PUBLIC WORKS AGENCY; M-36 20 CIVIC CENTER PLAZA SANTA ANA, CA 92701 For further instructions regarding hard copy submission Proposals and Deposits, refer to PlanetBids. All notifications, requests for information, updates and addenda will be posted online on PlanetBids at https://www.planetbids.com/portal/vortal.cfm?CompanvID-20137. Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation. Failure to respond to required updates may result in a determination of a nonresponsive qualification. City of Santa Ana RFP 19-026 Page ii TABLE OF CONTENTS I. INTRODUCTION / PROJECT DESCRIPTION II. INSTRUCTIONS TO PROPOSERS A. CITY RESPONSIBILITIES B. PROPOSER RESPONSIBILITIES C. REQUEST FOR INFORMATION OR CLARIFICATION D. ADDENDA E. PRE -PROPOSAL MEETING r'. CITY RIGHT TO REJECT G. BID PROTESTS III. SUBMITTAL REQUIREMENTS AND CONDITIONS A. GENERAL B. PROPOSAL CONTENTS C. CONDITIONS 1 2 3 IV. PROPOSAL REVIEW 9 A. EVALUATION AND RATING B. SELECTION V. PURCHASE AND SALE AGREEMENT A. EXECUTION OF AGREEMENT B. REQUEST FOR COUNCIL ACTION VI. PUBLIC RECORDS VII. CITY INFORMATION VIII. APPENDIX ATTACHMENT 1: PROJECT LOCATION EXHIBITS ATTACHMENT 2: PROPERTY BID FORM ATTACHMENT 3: SAMPLE RIGHT OF ENTRY AGREEMENT ATTACHMENT 4: SAMPLE PURCHASE AND SALE AGREEMENT 9 10 10 City of Santa Ana RFP 19-026 Page iii L INTRODUCTION / PROJECT DESCRIPTION A. NATURE OF WORK The City of Santa Ana is seeking qualified individuals or entities (Proposers) for the purchase and development of 22 vacant properties (Attachment 1) in the City of Santa Ana. B. BACKGROUND The City's remnant parcels (Attachment 1) for disposition associated with this RFP were all acquired for various public transportation improvement projects using Federal and State grants. These properties are considered exempt per the California Surplus Lands Act (SLA) as explained herein. For purposes of the SLA, surplus land means "land owned by any local agency, that is determined to be no longer necessary for the agency's use, except property being held by the agency for the purpose of exchange." All of the properties listed under this RFP are remnant parcels from right-of-way transactions that have never been put to any municipal or other use, and were being held solely for purposes of exchange. The proceeds from the sale of these properties are considered as restricted funds and must be used to reimburse the granting agencies, and/or to fund further improvements within the same or similar project. There are eighty-eight (88) individual parcels that have been combined into twenty-two (22) combined parcels. These parcels were combined into these larger residential (10 parcels), commercial (9 parcels), and professional office (3 parcels) lots to provide the greatest public benefit and to ensure that the lots met the minimum development standards based on zoning. Proposals for developing each parcel listed in this RFP will be accepted provided that they are generally consistent with the existing zoning for each site. Proposal's content should be complete and reflect the specific ownership, financing, and land use features of each proposed project. Property zoning and size (sq. ft.) for each site is shown on the Property Location Exhibits in Attachment 1. C. PROPOSER RESPONSIBILITY Each Proposer must be capable of providing experienced, knowledgeable and professional team to deliver a complete project. The Proposer shall be responsive and fulfill all requirements of the RFP. The Proposer shall provide adequate staffing levels for each project at all times and adhere to established schedules. The Proposer shall be knowledgeable of and comply with federal, state and local laws, including the Santa Ana Municipal Code, as it applies to their Proposal. D. NUMBER OF PROPOSALS AND SIGNATURE A complete Proposal package shall be submitted on PlanetBids on or before the deadline listed on the cover of this REP. Additionally, five (5) hard copies of the electronic submission on PlanetBids shall be delivered to the City of Santa Ana to the location noted on the Notice Inviting Proposals. Hard copy Proposals and Deposits shall be submitted per instructions on PlanetBids. City of Santa Ana RFP 19-026 Page 1 One of the hard copies shall be marked as "ORIGINAL" and shall be wet signed by a company official with the power to bind the company and submitted to the City of Santa Ana. Please be explicit in identifying the appropriate contractual person with legal authority to bind the company for contract execution purposes. The Proposal shall be limited to a maximum of (10) double -sided pages (excluding front and back covers, section dividers and attachments such as resumes, forms, and exhibits). Font size shall be minimum 11-point Arial. Proposal exhibits shall be maximum 11" x 17". Proposers may submit Proposals for a single or multiple properties. However, a separate Proposal is required for each parcel. E. PROPOSAL EVALUATION AND RATING The criteria for evaluating the Proposals submitted will take into consideration the following: Scoring Criteria Commercial / Professional Residential Project Team, Experience, Proposed Development Concept, & Financial Capacity 30% 30% Bid Amount and Deposit Verification 40% 60% Fiscal and Economic Benefit Analysis 20% N/A% Community Benefit 10% 10% TOTAL: 100% 100% Staff shall review all Proposals to determine if the RFP Process requirements, as outlined in this document, are met. All Proposals that meet the requirements will be deemed responsive and will be evaluated by a Review Panel. The Review Panel will include representatives from various City Departments, such as the Public Works Agency, Planning and Building Agency, Community Development Agency, and Finance and Management Services Agency. The Review Panel will evaluate Proposals based on the responsiveness to the RFP, which includes adherence to outlined directions, format, and the City evaluation criteria set forth above and in Section III of this REP. II. INSTRUCTIONS TO PROPOSERS A. CITY RESPONSIBILITIES The City will provide information in its possession relevant to preparation of required information in RFP. The City will provide only the staff assistance and documentation specifically referred to herein. City of Santa Ana RFP 19-026 Page 2 B. PROPOSER RESPONSIBILITIES Point of Contact: The selected Proposer will assume responsibilities for all services in its Proposal. The selected Proposer shall identify a sole point of contact with the greatest knowledge in regard to the required service operations and contractual matters, including payment of any and all charges resulting from the Agreement. C. REQUEST FOR INFORMATION OR CLARIFICATION All questions or requested clarifications shall be made only in writing to the Q&A section located in PlanetBids no later than date listed on the cover of the REP. No verbal requests or responses will be accepted. Significant interpretations or clarifications will be addressed via addenda to this REP. D. ADDENDA Any changes in RFP from the date of release to the date of submittal of inquiries/questions will be summarized in an addendum or amendment to the REP. Notification of such addendum or amendment shall be posted on PlanetBids at httys://www.planetbids.com/portal/portal.cfm?CompanvID-20137 as set forth in the Notice Inviting Proposals. Addenda shall become part of the agreement documents. E. PRE -PROPOSAL MEETING There will be a non -mandatory pre -Proposal meeting. The meeting date and time are listed on the cover page of this RFP and the location will be posted on PlanetBids. The meeting will include discussion of the project scope and a question- and -answer session. It is highly recommended that the Proposer's key team members attend this meeting. Attending the meeting is not mandatory. Any significant interpretations or clarifications will be addressed via addenda to this RFP, as described above in "Section D: Addenda." F. CITY RIGHT TO REJECT The City reserves the right to reject any or all Proposals submitted and no representation is made hereby that any Purchase and Sale Agreement will be entered into pursuant to this RFP or otherwise. G.BID PROTESTS City staff will endeavor to expedite the review and evaluation of Proposals. Proposals will be evaluated and ranked according to the criteria described in this REP. Each Proposer will receive a notification in PlanetBids from the City whether their Proposal was accepted or rejected. Proposers with concerns or rebuttal of any staff determination of non -responsiveness may submit, in writing within five (5) business days, to the Project Manager, any concerns regarding the RFP processor staff determination. Such writing shall be considered by the City Manager or his designated representative, and may be acted upon within five (5) business days. If no action is taken within such time, there shall be no change to the staff determination. All successful Proposals will be presented to the City Council along with staff recommendations for final approval. City of Santa Ana RFP 19-026 Page 3 III. SUBMITTAL REQUIREMENTS AND CONDITIONS A. GENERAL L The number of Proposal Copies is specified in: RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION. IL Deadline: Proposals are due to the City of Santa Ana at the date, time, and location specified in the Notice Inviting Proposals. B. PROPOSAL CONTENTS The Proposal format and page limitation, if any, is specified in: RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION. The information being requested by this RFP is necessary for the City to adequately evaluate the Proposals. Failure to supply the requested information may result in rejection of the Proposal. ➢ Project Narrative & Preliminary Site Plan for Proposed Development 1. A cover page that includes the following information: a. Proposer's name and mailing address b. Proposer's current legal status: corporation, partnership, sole proprietor, non-profit, etc. c. Contact person's name, title, phone number and e-mail address d. Signature of authorized corporate officer for each entity proposing as a partnership or team shall be signed by a company official with the power to bind the company 2. A Letter of Introduction — Include a summary of the respondent's basic qualifications, experience, past projects of similar nature and size, and reasons for interests in this opportunity. The letter must be signed by an individual authorized to make legally binding commitments for the entity. 3. Identify the entities that will be involved, including the following information: a. An organizational structure that describes roles each entity will play (e.g., developer, architect, building owner, property manager, tenant, professional consultant). b. A summary of the developmentteam's past experience in working together to develop similar projects, including location, type of development, Proposer's role(s), cost of project, funding sources, status of project, and information about any continued financial or operating interest in each. c. Include specific previous relevant experience with public entities, especially within Orange County, including reference contact information. The City may ask for supporting documentation substantiating claims of previous experience. City of Santa Ana RFP 19-026 Page 4 d. The purchase and sale agreement shall be in the Proposers name submitted in the bid Proposal. During the agreement period, the Proposer/buyer may not assign its rights or obligations under an agreement without the prior written consent of the City, which consent may be withheld in the sole discretion of City. The Proposer may assign its rights and obligations to 1) a partnership of which the Proposer or an affiliate entity is the general partner, 2) to a limited liability company of which the Proposer or an affiliate entity is the managing member and which the Proposer or an affiliate entity directly or indirectly holds an ownership interest, or 3) any other entity in which Proposer directly or indirectly has an ownership interest and is responsible for managing the day to day activities of such entity. 4. A detailed and concise project description of the proposed development including narrative, preliminary site plan and renderings if available (e.g., size of building and square footage of specific components, nature of improvements, number of parking spaces, development plan, anticipated materials and design style, circulation patterns, loading/service provisions) to be built on the site. Information should be included about the anticipated type of tenants expected. For all projects, the narrative must also address the development concept for the site, current zoning, and anticipated development costs. 5. A letter of intent from tenants or other information documenting the demand for the proposed space, if available. 6. A proposed timeframe for the development, including identification of any conditions that must be met before the Proposal can become a reality. The schedule should include the time needed to obtain financing, complete design and secure permits and entitlement approvals, prepare the site, start and complete construction, and start and complete occupancy and/or lease -up. 7. Provide evidence of sufficient financial strength to undertake and successfully complete a project of this scale. The preferred evidence is recent financial statements for respondent with an accompanying letter from a certified public accountant verifying that the financial statements were prepared in accordance with Generally Accepted Accounting Principles. The City, at its sole discretion, may consider alternative evidence of sufficient capacity to undertake a development of the proposed scope: (NOTE: alternative evidence must be approved by the City prior to respondent's submission of a response to this REP. 8. A description of proposed project financing structure and anticipated return (e.g. anticipated sources and proportions of debt/equity and financial return threshold required by respondent). 9. Please indicate whether fundraising to finance all or a portion of development costs is proposed, and if so, in what amount. City of Santa Ana RFP 19-026 Page 5 10. Identification of any projects/financings upon which the respondent team or its members has collectivity or individually defaulted. For any Proposal that is selected for recommendation to City Council, additional information including complete financial statements for the last three years for all team members who will retain an ownership interest in the project may be required. 11. Any other information that would help City staff understand and evaluate the concepts proposed. ➢ Bid Amount and Deposit Verification A completed Property Bid Form (Attachment 2). Proposals that do not include an executed Property Bid Form, including initials acknowledging each page, shall be considered incomplete which will be grounds for rejection of the entire Proposal. It is not required that the bid amount match or exceed the "Appraised Amount" listed on the Property Bid Form. 2. Each bid must be accompanied by a deposit in the form of a cashier's check, treasurer's check or bank draft of any state or national bank, payable to the City of Santa Ana, in the amount of One Percent (1%) of the total bid amount for each parcel. If bidding on multiple properties, multiple deposit checks will be required. These deposits shall be submitted at the same time as the hard copy Proposals. ➢ Fiscal and Economic Benefit Analysis (Commercial and Professional Office Proposals Only) 3. A development budget showing the detailed sources and uses of all funds (including debt, equity and other funding sources) to acquire and develop the site. Ensure that the capital pro forma breaks out project costs to indicate all developer and professional fees. Information as to the status of securing those funds should be included, and inclusion of a conditional financing commitment is strongly encouraged. If the project includes multiple uses, the development budget should be broken down by the component uses (commercial, office, etc.). An electronic and editable copy of the development budget and pro forma including all underlying assumptions and equations in .xls format shall be provided if requested by the City. 4. An estimate of the taxable value upon completion and annual real estate taxes. Also include a description of the additional benefits that will result from the development, such as the jobs created or retained (including the estimated number, type and wage levels of both full time and part time positions within the first five years of development). City of Santa Ana RFP 19-026 Page 6 ➢ Community Benefit 5. Describe how the proposed development will serve the local community. Community benefits may be achieved through developing or increasing access to the following: • Affordable housing, with a focus on community -controlled, permanently affordable housing, for example a community land trust; • Affordable, healthy food retail; • Community gardens / pocket parks, children's playground, etc; • Community health clinics; • School facilities; • Renewable energy infrastructure; • Public transportation; • Green space, parks and recreation centers; • Affordable childcare; • Youth and senior facilities and services; • Community agriculture; • Development of land by a community land trust; • Hiring Local workforce for construction and ongoing operations; 6. Identify any other business or property holdings in the greater Santa Ana Region and participation in any local business, business partnerships, or community based partnerships in this area C. CONDITIONS All information contained in this RFP are believed to be accurate; however, no representation or warranty is made with respect thereto. 1. Additional Deposit: The development team whose Proposal is ultimately selected by the City Council must make the required down payment of Ten Percent (10%)to the selected escrow company within Ten (10) days of City Council Approval. After the deposit of Ten Percent (10%) is made, the initial One Percent (1%) deposit will be returned. Additionally, the City will return the One Percent (1%) deposit submitted from all Proposers who are not selected by City Council for award. 2. Escrow: Following City Council approval of the sale of the property, escrow shall commence. The remainder of the bid amount shall be due prior to close of escrow. Closing on the property sale must be completed within thirty to forty- five (30 - 45) days of escrow opening or the Ten Percent deposit (10%) may be forfeited. Upon opening of escrow, the buyer will agree in writing to forfeit and release the deposit money to the City in the event of buyer default. The purchaser shall pay all escrow related fees, including the seller's portion as well as documentary fees, surtaxes, and all recording fees, etc. City of Santa Ana RFP 19-026 Page 7 3. Due Diligence Period: Potential bidders may arrange for contractors, consultants, architects and others they deem necessary to inspect the properties they would like to submit bids for. Bidders are inspecting the properties at their own risk, and they are fully responsible and liable for their personnel, investors, inspectors, guests and invitees of all types while at the properties. Bidders agree to accept this liability at all times during any property inspection. Inspections are recommended but not mandatory. Potential bidders shall conduct their own due diligence at their own cost prior to submitting a bid. In order to conduct a site investigation, a no -fee Right of Entry Permit shall be required (Attachment 3). If desired, submit form to PWAPrope , Sale ,santa- ana.or. 4. Warranties of Bum Buyer will warranty a commitment of milestones for the entitlement process, as well as construction of proposed development to be specified in the actual purchase and sale agreement. Refer to Sample Agreement (Attachment 4) for specific provisions. 5. Withdrawal of Bids: Proposers may withdraw their Proposals at any time prior to the deadline for Proposal submittal. After the deadline, the Proposal will constitute an irrevocable offer for a period of 180 days. Once opened, Proposals become a record of the City and will not be returned to the Proposer. Any Proposers that withdraw bids after the deadline but prior to council award shall forfeit their initial One Percent (1%) deposit. 6. Bid Postponement / Cancellation: The City may, at its sole and absolute discretion, reject any bids that are not submitted in accordance with the terms in this Bid Solicitation. The City may re -advertise this Bid; postpone or cancel, at any time during this Bid process; or waive any irregularities in this Bid or in the Proposals received as a result of this Bid. 7. Costs Incurred by Proposers: All expenses involved with the preparation and submission of bids to the City, or any work performed in connection therewith, including participating in any presentations or negotiations related to this REP, shall be borne by the Proposer(s). No rights of ownership will be conferred until title of the property is transferred to the successful bidder. All fees for copying and reproduction services for items listed herein are nonrefundable. 8. Business Entity Registration: It is the responsibility of the Proposer to update information concerning any changes, such as new address, telephone number, etc. 9. Oral Presentations: The City does not anticipate that oral presentations will be required of Proposers. The committee reserves the right to interview any Proposer, begin City of Santa Ana RFP 19-026 Page 8 negotiations and enter into an agreement without interview or further discussions. 10. Pronerty Records: The properties were acquired as part of various City improvement projects and are being sold "AS IS". The City of Santa Ana does not provide an abstract of title or survey of the property. Interested parties are able to review all available property records, by appointment. 11. Broker Fees: The City intends on negotiating directly with Proposers on the sale of these properties. Proposers may employ and compensate brokers at their own expense. IV. PROPOSAL REVIEW A. EVALUATION AND RATING The criteria for evaluating the Proposals are specified in: RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION. B. SELECTION The committee may interview the top ranking Proposers. Staff will recommend authorization of a purchase and sale agreement to the Proposer who best meets the scoring criteria. V. PURCHASE AND SALE AGREEMENT A. EXECUTION OF AGREEMENT The submitted Proposal will be the basis for any negotiation of final terms which will lead to a completed agreement ready for execution based on the sample Agreement attached herein as Attachment 4 in the Appendix. B. REQUEST FOR COUNCIL ACTION Following evaluation and rating by the Proposal review committee, the Project Manager will bring forth the recommended Proposals to City Council for authorization. VI. PUBLIC RECORDS All data, documents and other products used, developed, or produced during response preparation of the RFP will become property of the City. All responses to the RFP shall become property of the City. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act. City of Santa Ana RFP 19-026 Page 9 VIL CITY INFORMATION BRISTOL STREET IMPROVEMENTS The majority of the parcels are located on Bristol Street. Within the City of Santa Ana, Bristol Street is classified as a north -south Major Arterial per the City's General Plan Circulation Element (GPCE) and the County of Orange's Master Plan of Arterial Highway (MPAH). Due to growth experienced during the late 1980's resulting in traffic congestion and safety concern with lack of bike lane, the City of Santa Ana proposed to improve Bristol Street providing adequate vehicular capacity and adding bike lanes from Warner Ave. to Memory Lane. The proposed improvements have been designed utilizing Complete Streets principals to provide safe, comfortable, and convenient travel for all users — pedestrians, bicyclists, transit riders, and motorists. Safety: The narrow travel lanes and raised median will deter speeding through the project segment; Landscape parkways will provide a safe buffer between pedestrians and motorists; Bicyclists will travel in a designated bike lane instead of mixing flow with vehicles and pedestrians; longer raided median and cul-de-sac streets are potentially reduced controlled left turn movements and improved traffic flow. Accessibility: Installation of wider sidewalks, ADA compliant curb ramps, and bike lanes will greatly improve accessibility for pedestrians and bicyclists. Traffic Flow: Improving the remaining phases of Bristol Street will complete the ultimate roadway cross section with six lanes between Warner Ave to 17th St. Ultimately, the proposed Bristol Street improvements will provide safe mobility for all users while improving traffic flow. Development along the Bristol Street Corridor must adhere the Bristol Street Specific Plan. The document can be accessed via the following link: httns://www.santa-ana.org/yb/nlanning- division/zoning-documents TRANSIT ZONING CODE Some of the parcels are within the boundaries of the Transit Zoning Code, it is adjacent to the boundaries where the code impacts future development of the Downtown. In 2010, the City adopted Specific Development 84 (Transit Zoning Code), a comprehensive land use plan that incorporates approximately 450 acres extending from Grand Avenue to the City's downtown core. The Transit Zoning Code (TZC) is designed to provide the zoning necessary to supportthe long-term development of a successful transit program. The completed document can be viewed in its entirety at: httn://www.ci.santa-ana.ca.us/nba/nlanning/Transit Zoning Code.asn The Transit Zoning Code encourages transit -oriented development containing a mix of residential, commercial, and professional uses to achieve the City's and the region's goals of establishing housing adjacent to transit. The Transit Zoning Code area is primed for increased growth given its proximity to major transit systems and its adjacency to existing residential communities, creating amenity -enriched connections between the government center and rail station, and improving area -wide walkability. City of Santa Ana RFP 19-026 Page 10 OCSTREETCAR The cities of Santa Ana and Garden Grove in cooperation with the Orange County Transportation Authority (OCTA) are constructing a fixed guideway/streetcar transportation system between the Santa Ana Regional Transportation Center (SARTC) and Garden Grove. The system will provide transit services for commuters travelling from the train station to employment and activity centers in the heart of Orange County and for residents and visitors alike travelling to destinations throughout the area. The OC Streetcar will increase transportation options and provide greater access along its 4.15- mile route (in each direction) along Santa Ana Boulevard, 4th Street, and the Pacific Electric right-of-way to Harbor Boulevard in Garden Grove. The OC Streetcar will provide the some of the sites with easy access to both the Civic Center and downtown. More information regarding the OC Streetcar can be viewed at http://www. octa. net/Proi ects-and-Programs/All-Projects/Rail-Prof ects/OC-Streetcar/ City of Santa Ana RFP 19-026 Page 11 Appendix ATTACHMENT PROJECT LOCATION EXHIBITS 0 i Y i Miles City of Santa Ana RFP 19-026 Attachment i F(-,FNn P _ EXISTING ARCEL C1 PROPERTY LINE COMBINED ZONING APPROX. AREA PARCEL COMMERCIAL 18,290 SF H W W J 0 Ir EXISTING PROPERTY LINE COMBINED PARCEL WASHINGTON AVENUE ; PARCEL C2 ZONING APPROX. AREA COMMERCIAL 48,597 SF 1.1 AC 9TH STREET CIVIC CENTER DRIVE i F(-,FNn P _ EXISTING ARCEL C3 PROPERTY LINE COMBINED ZONING APPROX. AREA PARCEL r - POTENTIAL EDISON COMMERCIAL 24,176 SF L _ I EASEMENT WILLITS STREET EXISTING PROPERTY LINE COMBINED PARCEL CAMLE STREET PARCEL C4 ZONING APPROX. AREA COMMERCIAL 48,287 SF 1.1 AC 720 ST. 109 HIGHLAND STREET _..8._.. Sr i) am aw 34 8= S S. I F(;FNF) EXISTING PROPERTY LINE COMBINED PARCEL `yam.,. •� �IRT_ r PARCEL C5 ZONING APPROX. AREA COMMERCIAL 49,403 SF 1.13 AC BROOK STREET N Z _ EXISTING PROPERTY LINE COMBINED PARCEL PARCEL C6 ZONING I APPROX. AREA COMMERCIAL 1 17,415 SF EXISTING PROPERTY LINE PARCEL C7 EDCOMBINED ZONING PARCEL COMMERCIAL APPROX.AREA 12,734 SF I F(;FNI): _ EXISTING PROPERTY LINE COMBINED PARCEL \ 3RD STREET -kimL-- I -TT PARCEL C8 ZONING APPROX. AREA COMMERCIAL 21,313 SF u lame {� CIVIC CENTER DRIV 724 RISTOL ST. 05-074dffi Y 1 — 715 N•BRIS LST. - ` I 465- -17 _ 712N RISTOLST. Ire 05-074-18 F f T � . i 0L 704 BRISTOL ST. 1 405-07419 r - "1JIlh Cf) - f m ff B 7TH STREET 41r X All N I F(;FNI): EXISTING PROPERTY LINE COMBINED PARCEL r iPOTENTIAL EDISOI EASEMENT PARCEL P1 ZONING APPROX. AREA PROFESSIONAL 17,164 SF Aw who PINE STREET F(;FNF)PARCEL P2 EXISTING PROPERTY LINE COMBINED ZONING APPROX. AREA PARCEL 36,504 SF PROFESSIONAL 0.84 AC r EXISTING PROPERTY LINE ElCOMBINED PARCEL 10TH STREET fmmobt AA..a6d"ift AM AWOL Y PARCEL P3 ZONING I APPROX. AREA PROFESSIONAL 1 11,868 SF EXISTING PROPERTY LINE COMBINED PARCEL 18TH STREET �io-o J co Lo 00 m O Z rn � , co W N H LjIL � I PARCEL R1 ZONING I APPROX. AREA RESIDENTIAL 1 4,365 SF M rI%AE I J 0 �" ce) I co zo co m um 9TH STREET F(;FNF)PARCEL R2 _ EXISTING PROPERTY LINE COMBINED ZONING APPROX. AREA PARCEL RESIDENTIAL 7,755 SF .J 0 Fr 00 7TH Sl EXISTING PROPERTY LINE COMBINED PARCEL PARCEL R3 ZONING I APPROX. AREA RESIDENTIAL 1 5,949 SF EXISTING PROPERTY LINE PARCEL R4 EDCOMBINED ZONING PARCEL RESIDENTIAL APPROX.AREA 9,355 SF EXISTING PROPERTY LINE COMBINED PARCEL PARCEL R5 ZONING I APPROX. AREA RESIDENTIAL 1 6,513 SF I F(;FNF) _ EXISTING PROPERTY LINE COMBINED PARCEL _iw CHESTNUT AVENUE PARCEL R6 ZONING APPROX. AREA RESIDENTIAL 6,469 SF I F(;FNF) EXISTING PROPERTY LINE COMBINED PARCEL _>` CHESTNUT AVENUE PARCEL R7 ZONING I APPROX. AREA RESIDENTIAL 1 4,701 SF I RAYMAR STREET I F(;FNF) EXISTING PROPERTY LINE COMBINED PARCEL PARCEL R8 ZONING APPROX. AREA RESIDENTIAL 4,595 SF F(;FNF)P _ EXISTING ARCEL R9 PROPERTY LINE COMBINED ZONING APPROX. AREA PARCEL RESIDENTIAL 12,071 SF m I F(;FNI): EXISTING PROPERTY LINE COMBINED PARCEL 1) 711 S. ISTOL 010-183 2 S. tBRIS L ST.013-40 STREET PARCEL R10 ZONING APPROX. AREA RESIDENTIAL 8,492 SF Appendix ATTACHMENT PROPERTY BID FORM Each row must be completed with either a bid amount or a ✓ indicating no bid is placed for that property. Print and Sign name below. For each property in which a bid amount is extended, all submittal requirements apply. PARCEL ZONING LOT SIZE APPRAISED BID NO BID ID (SQ. FT) AMOUNT (USD $)* AMOUNT (USD $) Cl Commercial 18,290 $1,095,000 $ C2 Commercial 48,597 $2,915,000 $ C3 Commercial 24,176 $1,450,000 $ C4 Commercial 48,287 $2,800,000 $ C5 Commercial 49,403 $2,865,000 $ C6 Commercial 17,415 $1,180,000 $ C7 Commercial 12,734 $635,000 $ C8 Commercial 21,313 $1,385,000 $ C9 Commercial 25,139 $1,355,000 $ P1 Professional 17,164 $995,000 $ P2 Professional 36,504 $1,970,000 $ P3 Professional 11,868 $590,000 $ Rl Residential 4,365 $150,000 $ City of Santa Ana RFP 19-026 Attachment 2 PROPOSER INITIAL PARCEL ZONING LOT SIZE APPRAISED BID NO BID ID (SQ. FT) AMOUNT (USD $)* AMOUNT (USD $) (� R2 Residential 7,755 $300,000 $ R3 Residential 5,949 $235,000 $ R4 Residential 9,355 $325,000 $ R5 Residential 6,513 $260,000 $ R6 Residential 6,469 $255,000 $ R7 Residential 4,701 $160,000 $ R8 Residential 4,595 $160,000 $ R9 Residential 12,071 $410,000 $ R10 Residential 8,492 $305,000 $ *The "Appraised Amount' is an estimate of the market value per an appraisal report prepared by a California licensed appraiser. It is not required that the bid amount match or exceed the "Appraised Amount' listed hereon. Name of Firm Name of BIDDER Signature of BIDDER Title (If an individual, so state. If a firm or co -partnership, state the firm name and give the names of all individual co- partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof) City of Santa Ana RFP 19-026 Attachment 2 PROPOSER INITIAL Appendix ATTACHMENT SAMPLE RIGHT OF ENTRY AGREEMENT RIGHT OF ENTRY [Property Address] The City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California, does hereby grant to NAME OF GRANTEE ("Grantee"), the right to enter the parcel described as PARCEL X adjacent to ADDRESS, Santa Ana, County of Orange, as more particularly shown in Exhibit A, attached hereto and incorporated herein by reference ("Property"), for the following purposes: The right to enter and use the Property for the purpose of conducting site investigations Grantee agrees to indemnify, defend, and hold harmless City, its officers, agents, representatives, employees, and volunteers from and against any and all actions, suits, claims, demands, judgments, losses, expenses, or liabilities, injuries and damages to persons and property, including death, arising out of or related to Grantee's use of the Property or the entry by any Grantee party on the Property, including without limitation, Grantee's guests and invitees. Grantee further agrees to repair any damage to the Property caused by the exercise of this Right of Entry at its sole cost and expense and to restore said property to the state in which it existed prior to its use. Grantee shall maintain commercial general liability insurance which shall include, but not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of its use of the Property, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence and $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. The rights herein granted to Grantee are exclusive, and Grantee agrees not to assign, transfer, lease, pledge, or otherwise dispose of this Right of Entry without the prior express written approval of the City. This instrument conveys no right of entry to existing buildings, if any. This Right of Entry shall expire on DATE, unless otherwise terminated earlier or extended by written agreement between the parties. THE CITY OF SANTA ANA A charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California. City of Santa Ana RFP 19-026 Attachment 3 Steven Mendoza Acting City Manager Date: NAME OF GRANTEE APPROVED AS TO FORM: John M.Funk Assistant City Attorney City of Santa Ana RFP 19-026 Attachment Appendix ATTACHMENT SAMPLE PURCHASE AND SALE AGREEMENT AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): THIS California AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a charter city and municipal corporation ("Seller") and ('Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APNs) I located at in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for APNs , filed with the County of Orange as Document No. [INSERT DOCUMENT NUMBER], is attached hereto as Exhibit "B" and is incorporated herein by this reference. C. The subject Property was acquired by Seller in IYear(s)l as part of the IProiect Name(s)l . These parcels are vacant and are not needed for public use or improvements. D. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. FACIN=I =ILril4L,kl The parties therefore agree as follows: f�1�1:ZN:/GF9q Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the City of Santa Ana RFP 19-026 Attachment 4 purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 2.1 Purchase Price The total purchase price for the Property shall be the sum of ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyerwill remit into escrow a deposit of ten percent (10%) of the purchase price, or ("Escrow Deposit"). Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Closing Payment. The Purchase Price, as adjusted by the application of the Escrow Deposit and by the proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(b) being herein called the "Closing Payment"). (c) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Percent (1 %) of the purchase price, or ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow Escrow shall close ("Close of Escrow") (Duration) business days subsequent to the Effective Date of this Agreement or as soon as possible thereafter. City of Santa Ana RFP 19-026 Attachment 4 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment") binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following City of Santa Ana RFP 19-026 Attachment 4 conditions: (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have fifteen (15) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete any additional due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies not performed during the proposal period ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyerwith reasonable access to the Property, as further set forth below. Within ten (10) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period City of Santa Ana RFP 19-026 Attachment 4 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: City of Santa Ana RFP 19-026 Attachment 4 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) To Seller's actual knowledge, no litigation and no governmental, administrative or regulatory act or proceeding regarding the environmental, health and safety aspects of the Property is pending, proposed or threatened; and (c) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (d) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (e) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Proposed Use defined in this section within [Duration (months)l following the Close of Escrow. The proposed operation of an [Proposed Use(s)l by Buyer on the Property is critical to the Seller's decision to sell the Property to Buyer. The [Duration (months)l timeframe shall be tolled by any delays directly attributable to the actions or inactions of the Seller or Tenant, by any natural causes outside the control of either party ("Force Majeure"), or by mutual agreement of the parties. If Buyer does not comply with this guarantee within the timeframe provided, the Seller may opt to nullify the sale of the Property, at which time the Property shall be returned to the Seller, including any and all improvements to the Property completed by Buyer, in exchange for payment by the Seller to Buyer of eighty percent (80%) of the Purchase Price. (b) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any City of Santa Ana RFP 19-026 Attachment 4 contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (c) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. ACKNOWLEDGEMENT OF FULL BENEFITS By execution of this Agreement, Seller hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for damages, interest, loss of goodwill, severance damages, or any other compensation or benefits other than as already expressly provided for in this Agreement, it being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property. C7AdiIAQ1:11 If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. 6. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. ln�GF96YK67►1QIIEel ►1 Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the City of Santa Ana RFP 19-026 Attachment 4 Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 8. MISCELLANEOUS 8.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Executive Director, PWA Facsimile: E-mail: Buyer: Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall City of Santa Ana RFP 19-026 Attachment 4 be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 8.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 8.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the Executive Director of Public Works Agency shall have the authority to review and approve or deny any request for assignment. 8.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 8.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 8.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 8.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 8.8 Additional Documents All parties hereto agree to execute any and all additional documents and City of Santa Ana RFP 19-026 Attachment 4 instruments necessary to carry out the terms of this Agreement. 8.9 No Merger All warranties, representations, acknowledgements, releases, covenants and obligations contained in this Agreement shall survive delivery and recordation of the grant deed. 8.10 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 8.11 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] City of Santa Ana RFP 19-026 Attachment SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation 21 Steven A. Mendoza Acting City Manager ATTEST: 0 Norma Mitre Acting Clerk of the Council APPROVED AS TO FORM: in John M. Funk Assistant City Attorney BUYER: 21 City of Santa Ana RFP 19-026 Attachment EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described as follows: City of Santa Ana RFP 19-026 Attachment EXHIBIT "B" ORANGE COUNTY RECORDER DOCUMENT NO. [INSERT DOCUMENT NO.I [attached behind this page] City of Santa Ana RFP 19-026 Attachment AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 406-252-21, 406-252-22 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and Southwest Group Properties, LLC("Buyer") for the acquisition by Buyer of certain real property described below. A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 405-252-21, 405-252-22 located at 1601 - 1607 N Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. AGREEMENT The parties therefore agree as follows: 1. PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: EXHIBIT 2 2.1 Purchase Price The total purchase price for the Property shall be the sum of $1,100,000 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have fifteen (15) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 36 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 2 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Retail Drive-thru (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: Southwest Group Properties, LLC 714 S. Plymouth Blvd Los Angeles, CA 90005 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 9 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 405-252-21, 405-252-22 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation M Kristine Ridge City Manager ATTEST: By: Daisy Gomez -"; Clerk of the Council APPROVED AS TO FORM: By: � 7g, -f.L (John M. Funk Assistant City Attorney BUYER: 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] Exhibit A In the City of Santa Ana, County of Orange, State of California, being Lots 3, 5, and 7, of a Surveyors Map, per map filed in book 3 page 12, of Record of Surveys, in the Office of the County Recorder of said County, Except that Land described in a Deed as Instrument 20 H 0 ooq IU S, official records of said County. Containing 18290 square feet, more or less. Subject to all Covenants, Conditions, Reservations, Restrictions, Rights of Way and Easements of record, if any. The bearing used for Bristol Street is North 10 32' 07" East; per Record of Survey 2011-1081 filed in book 253, pages 1.7 through 20, of Records of Survey, in the Office of said County Recorder of Orange County. All as shown on Exhibit B, attached hereto and by this reference made a part hereof. Prepared by me, or under my direction on jo ( / John M. Gonzales, PLS 9065 Id" SKETCH TO ACCOMPANY LEGAL DESCRIPTION SEVENTEENTH I STREET ----- -------- --�— - _ _ _ 5 89°11 43 - E - - - - - uJ i /90< 1 93, Sri 85.00' EAST z OF C.L. s 89°11'43" E I N i 6g =3,e L1 15 .' 1 BS �W C2 I o I. I C 1 ILLLLLJI I LLI v ti d i I r w 0 Z � I I I i 5 89011'43" E v.64.00' EAST OF C.L.. A= 10' EASEMENT PER INST.1 1918 BK 4156 PG 413 B= 10' EASEMENT PER INST.! 12214'BK 3785 PG 22_ 1 C1 C2 C3 C= 10' EASEMENT PER ( e = 21428'58" A = 1°48'45" R 100.007O" BK 3631 PG 214. R = 100.00' R = 100.00 t ) = PER RS 2011-1061 L = 37.50' L = 3.16' L = 37,46' RSB 253/17-20. 1 L1 = N 24949'50" E, 11.87 = RSB 3/12. oNp) LQN�s Go/v WASHINGTON AVE. (W) I - ------------ - - WASHINGTON AVE. No.9065 s STREET R/W PER INST. NO 2olloyo�tiUj EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXES APPROVED AS TO APPROVED BY DESCRIPTION DISCRIPTION AP R/WMAP PARCEL FORM BY ATTY. DIRCTI WRTTTENBY CHECKEDK NDMBER NDMBER NDMBER 405-252-21 & 22 Ct DEED NIiALBER 1601 & 1607 N. BRISTOL STREET 8735 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: Southwest Group Properties, LLC, the real property in the City of Santa Ana, County of Orange, State of California. described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] , � 0 � � 2 (D CL 0 U) (D | (D r) o- E O E o > U a) < $ _0 w a) U U) 0 O 0 O CL n PARCEL�] \ ƒ k � � � « AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 405-272-11, 450-272-12, 405-272-13, 405-272-14, 405-272-15, 405-272-16, 405-272-17, 405-272-18, 405-272-21 THIS AGREEMENT of Purchase and Sale ("Agreement"), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and Merchant Star International General Trading ("Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 405-272-11, 450-272-12, 405-272-13, 405-272-14, 405-272- 15, 405-272-16, 405-272-17, 405-272-18, 405-272-21 located at 1303 to 1411 N Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. AGREEMENT The parties therefore agree as follows: 1. PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing EXHIBIT 3 otherwise. The Escrow instructions shall include the following terms and conditions of sale: Purchase Price The total purchase price for the Property shall be the sum of $2,605,000 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment"). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 4 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment") binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closinq Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 5I Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Seller will not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 36 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the A open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Multi -Tenant Restaurant (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) Buyer: Merchant Star International General Trading 701 Park Center Drive Santa Ana, CA 92705 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governina Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 9 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 405-272-11, 450-272-12, 405-272-13, 405-272-14, 405-272-15, 405-272-16, 405-272-17, 405-272-18, 405-272-21 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST. By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: lit'- ohn M. Funk Assistant City Attorney BUYER: Merchant S International General Trading By: 1 ✓`-� 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] Exhibit A In the City of Santa Ana, County of Orange, State of California, being .L,ots 12 through 20, of Tract Map 863, per map recorded in Book. E, page 30 of Miscellaneous Maps, in the Office of the County .Recorde.r of said County, Except that land described in a Deed as Instrument number ZQ aaa'official records of said County Together with that land described in a Deed as Instrument number 2017000525166 official records of said County. Described.as a 'whole. Subject to all Covenants, Conditions, Reservations, Restrictions, Rights of Way and Easements of record, if any. Containing 49,079,0 square feet, more or less. All as shown on Exhibit 8, attached hereto and by this reference made a part hereof, Prepared by me, or under my direction on ( ohn M. Gonzales, PI.S 9065 OHN M. GONZALES *� No..9065 OF -A1: Page 1 of 2 ' SKETCH TO ACCOMPANY LEGAL DESCRIPTION . ! <� <y | SEE PAGE 2 OF 3 = u/ x_ F CD ________________-_~_______��. Z | � | | ` ] / ~ ' l ^ ~ +� r \� --____�_________��_______ | �* | L------------------------------------------ S89"14/38" E -- a_.�-.-�-_~_'. --'-----^--'-----'-----'--'_-.--'--'--.—_--'-----,--.--'-- | � `WASHINGTON AVE. (E) C1 C2 � " ^ " Zl= 327 = , 11 R. = 12~ ' J3� R=2».VV L = 6.96' L= 16.65, Ll = N "14' " . 0. 1 L2 = N �5'1U'27* W. 9.17° L3 = N �3^45^23° W. 33.82~ 72.00' - ` RT. �L 8RnSTnL 53^99' LTCLWASHlNGTON (E) = 88.92' RT° CL~ 8RlSTOL J?.00^ LT. CL W4$HlNGTON (E) [ l = PER TRACT 863~ M.M. 26/30. ( ) = PER R5 2011-1081, RS8 253/17-20. STREET R.W. PER INST. NO JOHN M. GONZALES Ll PAGE 1 OF 3 EXHIBIT ° SEE PAGE 3 OF 3 64.00, ' *v ... �Jzc 0D�~ iuu� ] . {)~' .r Ln <�| / |4 U- on on co Lo | ' (D =WEST 10' OF LOT 18 | EASEMENT TO THE 8ANTA N4A BK' 4132 P5.432' | ��~EAST 10' OF THE WEST 20' OF LOT 18 ' EASEMENT TO THE SANTA ANA PER INST. 82-202192 | PER TRACT 863. N.N. 26/30. } = PER RS 2011-1081, RSB 253/17-20. VwASNM \� C3/C4 �/ \ ' " E � 89"14 38 _ /1 = 9^08^35" �—'---'^—'I�'--'--'--'--'----'--'-----'-- R = 50.00' | ,~-`~. .�~.~.. AVE.~~ | &�� ��� L = 7.99' . . | STREET R.W. DATA PER INST. 2 OF ° EXHIBITB' <\ 4 ' m \'- | | iJ ! . /��| /\\,�� � . �___----_���----------__-____-__-----_---- �_ /�n'1 S 8B"��'38" E [�44.71/l ~ � /- __ /--��-�T °°/ -1 -- ---------- | ' ` | | / m � |-- � �- . '- -------- . .| ' | / � m w =| i-- /- w `�^~* . � | o / m � o m | �r* ------ - - ------- r`. � �- | | - / | -_/ m ~ �� [3O'] / / p z � . � L --- � /-- � m - ---------- | | �� uu / III ��--'.---y��------[--U | S 89"14 ' " � �� " . �8 | | � L� _/ -� . E'C. L/ | SEE Sm ' [144.&8^) PAGE 2 OF 3 � C = EASEMENT PER BK 4115. PG 336O.R. ' D = EASEMENT PER BK 4156, PC 359 O.R. E = EASEMENT PER BK 4134, P8 566 D.R. ' «» F = EASEMENT PER BK 13734, PC 1430 O.R. � o = PER TRACT 863. NI~ M^ 26/30' | -~ . [ ) = PER RS 2011-1081^ RSB 253/17-20, | ' STREET R.W.DATA PER lNST | ^ V&ASK(W) -'-----'-- (a' |/ \ S 88^14'38" E '--'--'-----'_'_-'--'_'--'--' | � | ^~~~' ~`~~'~~'` AVE. ��� ~~' (c�" °~ PAGE 3 OF 3 GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXES APPROVED AS TO APPROVED BY DESCRIPTION DISCRIPTION A.P. R/W MAP PARCEL FORM BY ATTY. DIRCTOR WRITTEN BY CHECKED O.K. NUMBER NUMBER NUMBER 405-272-11, 12, 13,14, 15 16 17 18 & 21 C2 DEED NUMBER 1303 - 1411 N. BRISTOL STREET 8736 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: Merchant Star International General Trading, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A" attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C" INTENDEDIMPROVEMENTS [attached behind this page] 'lrF�i� ■ r w z 00 f Fir onnFe T?Irtu - - BRISTOL STREET i1TE SL'M�5/i6P' - P,E AURAr7T 1Yi M!4 PitOSy ! 111p7a 3,1. �eF�ueAR+fh 1,aawsr. TO1xleW;ti1++lS Aefx S,ICO S.f. 1Y�C04iRAGF 16eU1L ief% sn COWRAGEPLI tau% eAP,j -ig SL'M YiAR-f •;0UTAUDAtIT yAD;At1�F D_ C71wED • TREI'DM ?AND $rAcn SPACO N"CwAAC04pFeQ•F W um tfoom t0j" eomcd e t%4AM 1 OpCM4F, 1f 11 (LISlY O7�Oc vv.ca7 iMme". tv'wou- !A 24 aa50lLO1]*C ' U vAC#57 IOfX 11 ,' R� C2 �f#, MERCHANT STAR INTERNATIONAL WAS M 3"MET APM WA;'-00TOM AVENLF— aA ITA ANA, CA 4? W ""�fAon oar. 6tiM�i9 eXi• p I'. M OPTION #2 `�"�i' SlE?}!i . Wic sa geaysmea Page 60 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 004-123-52, 004-123-48 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and Merchant Star International General Trading ("Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 004-123-52, 004-123-48 located at 828 N Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. /eLMV44Jtl4J1111 The parties therefore agree as follows: 1. PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 EXHIBIT 4 2.1 Purchase Price The total purchase price for the Property shall be the sum of $1,025,000 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit'). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit'). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ('Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment") binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Dilioence Period 12 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 36 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the 'Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the n. open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Restaurant (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) Buyer acknowledges that the Seller is coordinating the undergrounding of utilities along Bristol Street and a future twenty-five (25) foot by twenty- five (25) foot easement for Southern California Edison shall be required at the northeast corner of the site as detailed in the Seller Request for Proposal No. 19-026 and Buyer's proposed site plan (Exhibit C). The limits of the easement shall be determined concurrent with the Approvals. Buyer shall ensure that the Intended Improvements shall not be in conflict with the proposed easement. No compensation shall be provided for the easement. (d) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (e) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive 7 remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Buyer: Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) Merchant Star International General Trading 701 Park Center Drive Santa Ana, CA 92705 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors 9 in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 004-123-52, 004-123-48 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By 7VV, -.', Jbfin M. Funk Assistant City Attorney BUYER: Merchant Star International General Trading By. �n' ez5 _ 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] Exhibit A In the City of Santa Ana, County of Orange, State of California, being those portions of Parcel 1 and 2 of Parcel Map 79-905, per Parcel Map Book 150, pages 12 and 13, filed in the Office of the County Recorders of said County, Except that land described Ina Deed per Instrument Number 7_01!Wpn4ynj , official records of said county, Containing 25 000.0 square feet, more or less. Subject to all Covenants, Conditions, Reservations, Restrictions, Rights of Way and Easements of record, if any. All as shown on Exhibit &, attached hereto and by this "reference made a part hereof. Prepared by me, or under my direction on John M. Gonzales, PLS 9065 f` JOHN M. GONZALES _ � V* \ No.. 9065 / * Page 1 of 1 EXHIBIT 'B' SKETCH TO ACCOMPANY LEGAL DESCRIPTION Y-- / I C1 �-< % 4 PCl I �r o ;.' 9 TH STREET Q z �� C7 '`ap1^pp R. y ti 2 in¢w M.b30 a WWOp.O OPe¢LL IA U� ysobo cZe � Jp Q] V IJQYP N 89'31' Wl PRC Q 4°48'23" R = 2000.00' L = 167.78' ---- -----'---------------- Lu ----- I o DEED BK .591. PA�. 169. x; . 24.21' I _ 783 z i I �w/ I u C3 - PRC lRA81 }� m. 1 C4 i I BC. 64'CONCENTNIC 1p t Lu -64` PARALLEL BC iJ POL. I �t } -i�•} N I —Iy j}1 VI 24. 21' t`LLI _ -- --� w 'I o I � I •- C1 C2 PLL 2 I V!N- 4 a^•�� �I a I i Z t ws a / ` f s � I RADIAL BEARINGS B1. =.N 19°08'48" E B2 = N 27'43'44 E B3 = S 45017'05" E 64 = N 81.37'42" E C3 1 I t t I — -- (8 TH STREET) j_-- CMC CENTER DR -.II' I C4 I = 14°53'08" A = 83.41'23" A = 141.50'42" = 0`39'34" R = 95.00' R = 43:00' R = 5.00' R = 2064.0W L = 24.68' L = 62.81' L = 12.3V L = 23.76' W CO E ( I PER PM 79-905. PMB 15012-13. (( )) = PER DEED BK. 591. PC, 109, O = STREET R. W. PER INSTRUMENT NO. ?,QLRQQO jy 3 /'�- PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. SPACE ABOVE THIS LINE FOR RECORDER'S USE TAXES APPROVED AS TO .APPROVED BY DESCRIPTION DI,(RIPTION A.P. R/NMAP PARCEL FORMBY \TTY_ DIRCTOR WRITTENBY CHECKED O.K. NUMBER LUMBER NLMBER 004-123-48 & 52 C3 DEED NUMBER 828 N. BRISTOL STREET 8737 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: Merchant Star International General Trading, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A° attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Kristine Ridge City Manager, City of Santa Ana Attested by: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C" INTENDEDIMPROVEMENTS [attached behind this page] L COM4iERC1Af. — I .. RESIDENTIAL j— LU ¢ a — � C � 1 �.s BRISTOL STREET m sym, Pt PARgNO SL'M y-CStAU lm VA'd1 EPLYA RQ Vl4E.IlIUy •rMV. • IMMV.C, 1](Yf,JT'i 31�fl31. •�.p YwGtl ,�Y •[QWW mOymp NJMIO •Jlpll]Y!. \]ri1. {]y],y,.y/ YI(d L. ► q Yt G[N�l.�l lGlUfll 11J]i ♦mn%41COY .Y PAib1 1!r! 3m <w[.wl snn rnw C3 �((�� � MERCHANT STAR INTERNATIONAL sln s:a�t]ums OPTION M3 �.F �stnEr.sAr,A.lwaans .«..�; wn, ocswm Page 60 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 015-194-37, 015-194-40 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller') and Merchant Star International General Trading ("Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 015-194-37, 015-194-40 located at 2235 S Bristol St. and 1211 W Warner Ave. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. AGREEMENT The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder'), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 EXHIBIT 5 2.1 Purchase Price The total purchase price for the Property shall be the sum of $1,050,000 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment"). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 36 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Multi -Tenant Restauraunt (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: Merchant Star International General Trading 17702 Mitchell North Irvine, CA 92614 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 015-194-37, 015-194-40 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: Assistant City Attorney BUYER: Merchant Star International General Trading By: C \ ✓" rc�ns�/i-5�v- nw\ GRMcr.� 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT "A" LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA LOTS 183, 184, 185 AND 186 OF TRACT MAP NO. 1192 AS PER THE MAP FILED IN BOOK 39, PAGE 17 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 184, 185 AND 186 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER 2 o 19 000 H N f3'�) 18 OFFICIAL RECORDS OF SAID COUNTY. CONTAINING A TOTAL AREA OF 17,564 SQUARE FEET. SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD. EXHIBIT "B° ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION: PAGE 1 OF 1 EXHIBIT //B" PLAT TO ACCOMPANY LEGAL DESCRIPTION ................................................ LOT 182 N®° I�4 j LOT 187 NORTHERLY: LINE \U ! 105.01 ' N89°52'10"E _ i LLJ LLJ POOF LOT 183 1 I o o m I Q I] STREET a' F- - R/W LI WE m Z 77' 108.91' I C ~ S89°52'10"W s S89°52'10"W i Z w L1IF PO. OF Cl 30' �Q POR. OF Q m LOT 184 Q 17 2 LOT 185 ti M °_ L4 LINE z L3 95ET R/RWE.97' N89°52'10"E C� PUBLIC STREET PER INSTRUMENT NUMBER v wN00o l 8 3l6 B.R. 1 j — — — — — — — — — — — — — — — — N — — — — — — —---------------------------------------J 288.27' S89°52'10"W ( WARNER AVENUE PARCEL LIMITS PUBLIC STREET R/W PER INST. NO. Z O0 ODD 'Hi 3 CURVE TABLE N0. RAOI US DELTA LENGTH Cl 964. 84' 01 °1 B'08" 21 .93' C2 964.84' 03 °21'45" 56.62' C3 1030.00' 1 00°12'06" 1 3.63 LINE TABLE N0. BEARING DISTANCE L1 500°10'45"W 1 12.27' L2 944°59 20 E 35.46 L3 N89°52'10"E 53.09' 14 N39°49 31-El 20.23 C3 l= PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXLS %PPROALEAS 10 APPROVLDBY DLSCRIPI ION DISCRIPI ION AP. RAVM PARCLL I'ORM BY AI IY. DIRCIOR V:RII ILNBY CHLIXLDO.K. NUMBER NUMBER NGMBLR 015-194-37 & 40 C6 DEED?TMEER 2235 S. BRISTOL STREET & 1211 W. WARNER AVENUE GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: Merchant Star International General Trading, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] lu- - - —� - - -- - L! I--- J g m - -- WARNERAVENUE - AW -_ sin lwm *• aAartrio sl;MM/Afr-afSTmulr us ANA xai .a,n+u. .m u.ce sr.ta •P r.....c:•..ne � uie,n u[A Sro,r. Ew wxn9 raae.e �cA vECONfwI,[TYII iILA .6 fr.WNe Yi{'AL. A [f.)psbiCv yvwCOi C6 MERCHANT STAR INTERNATIONAL �a�+.rn nw �% t Of'1'ION #3 �- 9rW^10LSnK.AN�,INPRRA4MJl.^ 7&AW U9TW 5110'P.A1 KRFe PARCEL C6 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 399-085-11 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 399-085-11 located at 1725 N Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 *3:113rr11 2.1 Purchase Price The total purchase price for the Property shall be the sum of $127,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 399-085-11 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation 0 Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: Afin M. Funk Assistant City Attorney BUYER: IAS Management 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT "A" LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA THAT PORTION OF LOT 25 TRACT MAP NO. 1572 AS PER THE MAP FILED IN BOOK 48, PAGE 16 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOT 25 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER IW Ova � 1l 9163 , OFFICIAL RECORDS OF SAID COUNTY. CONTAINING AN APPROXIMATE AREA OF 4,521 SQUARE FEET. SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD. EXHIBIT 'B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION: PAGE 1 OF 1 EXIBIT B SKETCH TO ACCOMPANY LEGAL DESCRIPTION i EIGHTEENTH STREET L------ ------------------------------------------ N 890 49 50" E Lo L I L 2 (40') 0.: W 51 o Ln U) 64. 00' co PARALLEL t4) cc rr) 0 00 0 czto m i oC3 (40') L 16. 'L L4 PUBLIC STREET R/W PER INST. NO-2-0/9 OD(24�16 36 3 ( ) = TRACT MAP 1572, M.M. 48/16. Ll = N 450 16' 56" E, 16.00' L2 = N 890 49' 50" E, 26.75' L3 = N 000 30' 10" E. 120.02' 14 = S 890 51' 40" W, 38.42' RIGHT OF WAY IS BASED ON CITY OF SANTA ANA BRISTOL STREET IMPROVEMENT PLANS 06-1500. 0 z PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXLS %PPROALDAS 10 APPROVLDBY DI SCRIPI ION DISCRIPI ION AP. R/WMAP PARCLL I'ORNI BY AI IY. DIRCIOR V:RIIILNBY CHLCK LD NUMBER NUMBER NGMBLR 399-08511 RI DEED?TMEER 1725 N. BRISTOL STREET 8739 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] x aoyza'tla•�alGb�nia � loaG•ce�•vlc DAtlVMO'I014004 102Z6 VD V'S IS .4 A 061 °a 4,11i .p.. Z54�4Zq>4L? 'DNI S1N9W1S9ANJ V�V3O9V] N81S9a9NVONJ.Uvla 1008�Eas W4) '7111N3W3DVNVW SVI SGnaHWV9ya 'V?'VNVViNVG .. ... Ntlld9L6pg w 9 M3NOIGaa 1018171G'N 5ZL4 *Al sllaN a � $ A � � N as 101S.RI8 , La Z 1d.a-sos e i� a e i z a I I w m — 'id .L'+Gii is 10lsias .__.-.-.-.-..-._.._._...�-._._.'Id_9�BG4 O $� �e N N U5 _.idea -sip • N PARCEL R1 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 004-122-39 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 004-122-39 located at 908 N Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 *000114111011 2.1 Purchase Price The total purchase price for the Property shall be the sum of $257,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence + ADU (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 004-122-39 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By. !ry. AM M. Funk Assistant City Attorney BUYER: IAS Management By: 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] Exhibit A In the City of Santa Ana, County of Orange, State of California, being that portion of the South 8 feet of the East 120 feet of Lot 1, of Tract 933 per Map filed in book 33, page 1of Miscellaneous Maps, in the Office of the County Recorders of said County, Together with those portions of the South half of Lot 3, and all of Lots 4 and 5 of Tract 671 filed in book 24, page 32 of Miscellaneous Maps records of said County, Except that land described in a Deed as instrument Number )-ollooap N8 36-2- 1 official records of said County. Containing 7608.0 square feet, more or less. Subject to all Covenants, Conditions, Reservations, Restrictions, Rights of Way and Easements of record, if any. All as shown on Exhibit B, attached hereto and by this reference made a part hereof. Prepared by me, or under my direction on John M. Gon ales, PLS 9065 Page 1 of I EXHISIT 'B' SKETCH TO ACCOMPANY LEGAL DESCRIPTION w PRC � II a I I I 933 -------71-20' (30' ) 1 I W M _Z I•p 1!! ! ;a 6V • u11I O I V7 o C:} O 11CD ~ Nn � I II W ----------------a ----- `� - I ! W ,pv oio J N M Pi N 64 CONCENTRIC I 1 ! N I I °a. i Z ca \aF Ain\\ cz� g3' It II t�1 (50') \ d Q fYl 1(30'186. I RC tRAO! W C3 ! O AWl � � ♦Q6, I \1 �PQ qqp �s•+,r 140.92' —_ s-,� j -----------------------••--__..- �: ----- --- --- N 89031 ' 30 W 9 TH STREET 24.21' I BC! I PARCEL LIMITS PURL I C S TREE T R/W PER INS T. No. 2-c l9 voo t9 V B U z. C1 A = 7°01'55" R = 95.00' L = 11.66' C2 A = 88043'57" R = 43,00' L = 66.59' ( ) = PER TRACT 671, MM 24/32. C3 R - 5.04' L = 12.38' BASIS OF BEARING = BRISTOL STREET WIDENING PHASE 3 PROJECT 13-•6792. PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXLS %PPROALEAS 10 APPROVLDBY DLS(RIP I ION DISCRIPIION AP. RAVM PARCLL I'ORM BY AI IY. DIRCIOR V:RIIILNBY CHLCRLD NUMBER NUMBER NGMBLR 004-122-39 R2 DEED?TMEER 908 N. BRISTOL STREET 8740 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] PARCEL R2 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 405-073-14, 405-073-15 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 405-073-14, 405-073-15 located at 622 - 624 N Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 EXHIBIT 8 2.1 Purchase Price The total purchase price for the Property shall be the sum of $188,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 405-073-14, 405-073-15 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: 0 Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: K 7g, -f.-L J n M. Funk Assistant City Attorney BUYER: .mop� /0M WA 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] r#'i:II7MT In the City of Santa Ana, County of Orange, State of California, being those portions of Lots 1 through 3 of Tract 662, per map filed in Book 24, page 17 of Miscellaneous Maps, in the Office of the County Recorders of said County, Except that land described in Deed as Instrument Number 20 igogo Y83 Y official records of said County. Containing 5,955.0 square feet, more or less. Subject to all Covenants, Conditions, Reservations, Restrictions, Rights of Way and Easements of record, if any. All as shown on Exhibit B, attached hereto and by this reference made a part hereof. Prepared by or under my direction on e \�//201 John M. Gonzales, PLS 9065 PIS 9065 DEED INS 20120000 EXIHEBIT B SKETCH TO ACCOMPANY LEGAL DESCRIPTION SEE OETAYL M1 hQ Ln Ln N In LOT 2� 07 1 V I caS 50.35' 7TH STREET ,po,•' S ptf,' o 3 p t { lL WJ ' 0 N N �Oa .N- f O W. C] 100.00' PARALLEL , i 120.42' I PARCEL LIMITS. PUBLIC STREET R/W PER INST. NO. 2-011 oo o 9 3(o V CURVE 1 0 73, 33' 51" RADIAL 1 L = 55.20' S 27°,38'27 W R = 43.00' (RAD.1 o CURVE-93' 40' 44" RADIAL 245z20" E �GJC'p�NdS�p/�� L = 1.64' R = 1 .00' " ( RAD. ) '� JOHN M. O DEED 2, 10' EASEMENT GONZALES DEED BK 3352, PG 76. DEED 1- 10' EASEMENT DEED BK 3352, PG 78. * No.9065 TRACST �P (( ) l )= TRACT T1152 M.M. 38/9. gr�OF CAUFQ�� BASIS OF BEARING PER BRISTOL STREET PROJECT 08-1700 z 0 H z Z (30' ) 1 Deta i —_— C.L. 7 TH ST. O v O M M R.W. PER TRACT 662 c2 R.W, PER BRISTOL ST. PROD. 08-1700 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXLS %PPROALDAS 10 APPROVLDBY DLS(RIP I ION DISC RIPI ION AP. R/WMAP PARCLL I'ORNI BY AI IY. DIRCIOR V:RIIILNBY CHLIXLo0_K. NCMBLR NUMBER NGMBLR 405-073-14 & 15 R3 DEED?TMEER 908 N. BRISTOL STREET 8741 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] A 'VJbNVV.UM 101$ltig'N 4Z8 s H a id l."ZI ( NISI R IS3AWSII C'MVDW1 NI I °J I + IQ I S '�Nf S1NSW1S8AN1 YJVa08V) Iltd_ � 'J111NaW8`JVNVW SVI NVId �Nr §1. '18 '10181me PARCEL R3 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 405-073-16, 405-073-17, 405-073-18 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 405-073-16, 405-073-17, 405-073-18 located at 602 - 610 N Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 EXHIBIT 9 2.1 Purchase Price The total purchase price for the Property shall be the sum of $287,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Duplex (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 405-073-16, 405-073-17, 405-073-18 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: !w. hn M. Funk Assistant City Attorney BUYER: IAS Managem nt By: 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT A In the City of Santa Ana, County of Orange, State of California, being those portions of Lots 9 through 11 of Tract 1152, per map filed in Book 38, page 9 of Miscellaneous Maps in the office of the County Recorder in said County, Except that land described in a Deed as Instrument Number' op Y% )&5, official records of said County. Containing 9132.0 square feet, more or less, Subject to all Covenants, Conditions, Reservations, Restrictions, Rights of Way and Easements of record, if any. All as shown on Exhibit B, attached hereto and by this reference made a part hereof. Prepared by me, or under my direction on - dQ. CI John M. Gonzales, PLS 9065 EXIHIBIT B SKETCH TO ACCOMPANY LEGAL DESCRIPTION M 7TH STREET (30') . .......... ........ .... : ( ( 40' ) I I I :W 100.00, PARALLEL: 4c), I 59, 801 ------------------------- Ci ----------- 6TH STREET PARCEL LIMITS PUBLIC STREET R/W PER INST. NO. 2oM000 H V 0 36 5- TRACT 662 M.M. 24/17. TRACT 1152 M.M. 38/9. BASIS OF BEARING PER BRISTOL STREET PROJECT 08-1700 joHN M. GONZALES nt -9� No. 9065 OF EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXLS %PPROALDAS 10 APPROVLDBY DI SCRIPI ION DISC RIPI ION AP. R/W MAP PARCLL I'ORNI BY AI IY. DIRCIOR V:RIIILNBY CHLCKLo O_K. C NMBLR NUMBER 1 NGMBLR 405-073-16, 17 & 18 R4 DEED?TMEER 602 - 610 N. BRISTOL STREET 8742 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] N 60926 O'901MAR4 'IAVVM0lp188OS ' OS°YLL ._... t0LZ6 V� YS';S axs'M 06t 'ONI n: -' m x5 �. ztbE tZLlro1Q QN8WMANI YJVUOSV'� ^!F N01S300NVONI1dVH0 LIIOS-FM Ibtd) '7111N3W3"0VNVW SVI 4 3S110H WV9N0 'VO'VNVVJNVS Nyld 3LS # 119N0IS30 loaltlS'N ZOO :OdNI S.U9NM0 R IS 10lsias 1d.O-.t94 I I _._._ __._._,...._._._._.—._._._......_.....-- —_.._....._.—.._._._.—.-----._..x. � I I p � Aax Aul a 1 1� N I^ N I � I I AID I I S I ld.Vd9t IS a0lsiae la.a,t9t ------ _._.—._._.—._._--------------- ._._.----- .--- N .—.—.—.—._..._._._.__._._.—. It 6^ s^ I O Aex I X I a r F Z? 1 N lei 8 B j m Z FFF-- N 1 i g & �. .itt .. I I I All, � Id 4.3st ........ I A g y� S pp tl gg 3 0 PARCEL R4 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 008-231-24, 008-231-27, 008-231-26 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 008-231-24, 008-231-27, 008-231-26 located at 303 - 309 S Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 EXHIBIT 10 2.1 Purchase Price The total purchase price for the Property shall be the sum of $237,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence + ADU (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 008-231-24, 008-231-27, 008-231-26 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: Jdhn M. Funk Assistant City Attorney BUYER: 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT "A" LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA THAT PORTION OF LOTS 12,13 AND 14, BLOCK 0, OF TRACT 610 AS PER THE MAP FILED IN BOOK 19, PAGE 12 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 12,13 AND 14 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER '7 c 1 QOO 114 0 `i OFFICIAL RECORDS OF SAID COUNTY. CONTAINING AN APPROXIMATE AREA OF 6,350 SQUARE FEET. SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD. EXHIBIT "B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION: CHRYSOSTOMO, L.S. 9216 DN PAGE 1 OF 1 PINE STREET ------- fL--- i Ill cc CURVE Q ,L = 71 * 00' 31 R = 45.00' L = 55.77' F:O SKETCH TO ACCOMPANY LEGAL DESCRIPTION PINE STREET East) 0 32. 11 J PERPENDICULAR (30' PORTION OF LOT 12 51.60' 40' I NOS.. o PORTION Orr o c� N LOT la C) 0 0 51.60' 'ORT[,--,tl 40' LOT 14 51.60' (30' 1 '97. 00' PARALLEL ------------- �o INSTRUMENT # zz 2009000042037 PARCEL LIMITS SQUARE FEET = 6,350 + / - PUBLIC STREET R/W PER INST. NO. 2-007 000 111R 1-1 / A I I = TRACT 1363, M.M 42/32. RADIA- LINE 1 = S 44'28'11" W RADIAL LINE 2 = S 26'32'20" E 10' EASEMENT GRANTS TO THE CITY OF SANTA ANA DEED I = BK 2216, PG 312 OC RECORDS. DEED 2 = BK 2221, PG 33 OC RECORDS. DEED 3 = BK 2200, PG 326 OC RECORDS. DEED 4 = BK 2101, PG 620 OC RECORDS RIGHT OF WAY IS BASED ON CITY OF SANTA ANA BRISTOL STREET IMPROVEMENT PLANS 06-1500. K PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXLS %PPROALDAS 10 APPROVLDBY DLSCRIPI ION DISCRIPI ION YI, R/W MAP PARCLL I'ORNI BY AI IY. DIRCIOR V:RII ILNBY CHL(RLDO.R NCMBLR NUMBER NGMBLR 008-231-24, 26 & 27 RS DEED?TMEER 303 - 309 S. BRISTOL STREET 8743 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] b x n t� r AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 008-231-23, 008-231-29 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 008-231-23, 008-231-29 located at 313 - 323 S Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 EXHIBIT 11 2.1 Purchase Price The total purchase price for the Property shall be the sum of $237,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence + ADU (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 008-231-23, 008-231-29 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: t4 i6fin M. Funk Assistant City Attorney BUYER: IAS Manageme By: 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT "A77 LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA THAT PORTION OF LOTS 15,16 AND 17, BLOCK C, OF TRACT 610 AS PER THE MAP FILED IN BOOK 19, PAGE 12 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 15,16 AND 17 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER 20 I anp Ll 19 W I OFFICIAL RECORDS OF SAID COUNTY. CONTAINING AN APPROXIMATE AREA OF 9,124 SQUARE FEET. SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD. EXHIBIT "B ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION: CHRYSOSTOMO, L.S. 9216 DA PAGE 1 OF 1 *I1MII-3Is-1 SKETCH TO ACCOMPANY LEGAL DESCRIPTION I PUBLIC STREET I 97.00' PARALLEL ' (30') . j -_—_—_—_—_ j .. 'Lu W I ...... :.; . i 4 3 40' ( 118.60' l� W O 51.60' O M PORTION OP., (� M j O j o I..vT 15 0 9 ^� L11 3 P Q J O o O j oI ... I —_-- -— —� j z N INST. NO. orw jZoMjomiNtii�lq 0 = o POIiTIOtd OF o e LOTI6 40/ LLJ Qi j 51.60' POi?TIOi•I OF , l Qj m LOT 17 W P> m m ( 30' ): o ° OM 35.13' PERPENDICULAR L `Op c L.__—___________—__-__— { 3 { o I INSTRUMENT # 2008000405164. I I CHESTNUT AVENUE PARCEL LIMITS c� PUBLIC STREET R/W PER INST. NO. '2-01 ODD�i I8 ) ( ) = TRACT 610, M.M. 19/12. (( )) = TRACT 1363, M.M. 42/32. RADIAL LINE 1 = N 38°37' 42" W RADIAL LINE 2 = N 31°28' 34" E 10' EASEMENT GRANTS TO THE CITY OF SANTA ANA DEED 1 = BK 2200, DEED 2 = BK 2228, DEED 3 = BK 2101, DEED 4 = BK 2200, PG 341 CC RECORDS. PG 522 OC RECORDS. PG 620 OC RECORDS. PG 326 OC RECORDS. RIGHT OF WAY IS BASED ON CITY OF SANTA ANA BRISTOL STREET IMPROVEMENT PLANS 06-1500. CURVE Q L = 70006'16" R = 45.00' L = 55.06' SO.FT.= 9.124 +/— O M zz PAGE IOF1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instnmient to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXES APPROVED AS TO APPROVED BY DESCRIPTION DISCRPTION AP. RRMAT PARCEL FOFAIDY ATTY. DIRCTOR BRIT TEN BY CFIECKED OK TLI- ER TLI- ER ➢LI- ER 008-231-23 & 29 R6 DEED ATA DER 313 - 323 S. BRISTOL STREET 8744 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] 809ZS'VMOIO a3nla - --- 3AVVMOlOL 960E IOLLb t7V'S'�S aa£'M ObI aa r S1pL`IZLIpI!) WRF:: SE VW ONI S1N3W1S3ANItlOV40 IV J r—m NOIS30ONVONUAVa0 Vd0'VNVV1.NVS 'MIINSW90VNVW SVI y p4 3 nw WN0I$ 0�0 101SIa8'S EiE I ;09NI S�a3NM0 I NV'1d 3116 I d $ B N :Ls ioisiaa PARCEL R6 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 008-232-31, 008-232-34 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and Dustin Do("Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 008-232-31, 008-232-34 located at 401 - 407 S Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 EXHIBIT 12 2.1 Purchase Price The total purchase price for the Property shall be the sum of $192,800 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: Dustin Do 6500 E. Carnegie Ave Anaheim, CA 92807 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 008-232-31, 008-232-34 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: 7�r. TV�L hn M. Funk Assistant City Attorney BUYER: Dustin Do 1 By: ` > 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT "Ayl LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA THAT PORTION OF LOTS 12,13 AND 14, BLOCK D, OF TRACT 610 AS PER THE MAP FILED IN BOOK 19, PAGE 12 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 12, 13 AND 14 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER W I `l ®any W 8 11.0 OFFICIAL RECORDS OF SAID COUNT`!. CONTAINING AN APPROXIMATE AREA OF 4285.0 SQUARE FEET MORE OR LESS SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD, EXHIBIT "B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION; PAGE 1 OF 1 �� ma : sm. SKETCH TO ACCOMPANY LEGAL DESCRIPTION CHESTNUT AVENUE _ - --------F------------.-.---.-----._._ 35.32' o PERPENDICULAR �0 O ..............tv......... S5.06.....,. j(30')io Q j^ iwi INSTRUMENT # I� n; o 's...i;:'"I' Ec.'. �' 2008000273140. 0 :...............® ................ j o 40'' O :..I. :i co hj z ......................... 51.60° �W j INSTRUMENT # i97.00' 2007000246364. I N:PARALLEL " to J ;w, o:... ,.. 40' rr m �(30'Ji I PARCEL LIMITS PUBLIC STREET R/W PER INST. NO.2201` 000 �l y�,�7-0 CURVE AQ A = 7Q°06' 16" R = 45.00' L = 55.06' SO.FT.= 4285.0 ( > = TRACT 610. M.M. 19/12. (( )) = TRACT 1363, M.M. 42/32. RADIAL LINE 1 = S 38°16'40" W 10' EASEMENT GRANTS TO THE CITY OF SANTA ANA DEED 1 = BK 2231, PG 591 OC RECORDS. DEED 2 = BK 2246, PG 338 OC RECORDS. ZQ Z RIGHT OF WAY IS BASED ON CITY OF SANTA ANA BRISTOL STREET IMPROVEMENT PLANS 06-1500. PAGE OF EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instnnnent to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXES APPROVED AS TO APPROVED BY DESCRIPTION DISCRIPTION AP R/WMAP PARCEL FORM BY ATTY. DIRCTI WRTTTENBY CHECKEDK NDMBER NDMBER NDMBER 008-232-31 & 34 R7 DEED NIiALBER 401 - 407 S. BRISTOL STREET 8745 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: DVD Construction, the real property in the City of Santa Ana, County of Orange, State of California. described as follows: See Exhibit "A" attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] ORIGINAL COPY 3b. Development Team's Past Experience The same group of companies in the organizational chart above just completed a 2-story 1,600 sf new construction residential house together in Long Beach. The property is currently in escrow and is estimated to close on May 31st, 2019. The development teams' expertise in residential construction eased the process with experience and hard work. I was the owner/investor of the project and self -funded with cash savings from working for another contractor, that is how I funded the project. The cash from this sale will be used to pay for the expenses incurred on this project. 3c. No previous experience with public entities within Orange County. 3d. Dustin Do will be the one to purchase the land, develop, and pay for all expenses as a personal investment. The only reason DVD Construction was included in the proposal was because I am registered in Planet Bids under my company name "DVD Construction". The buyer in the contract will be Dustin Do, not DVD Construction. 4. Project Description New construction of a 2-story single family residence that matches the style and texture of the existing neighborhood using the City of Santa Ana residential guidelines. The idea is to avoid a box -link structure and to have architectural details to beautify the neighborhood and provide cost effective housing for local residents. Around 2,000 sf of living space with 4 bedrooms and 4 baths will provide a comfortable living situation for a growing family. 2-car garage with 2 cars available to park on the driveway and 1 on the street if needed. Energy efficient materials and sustainable design components will be utilized for long term sustainability on the project. Current zoning of R-1 provides the necessary tools to build a single-family residence that will increase the value of land in Santa Ana. Development cost of $215,000 will cover everything from start to finish. 5. No letter of intent from tenants, however there are tons of people who would like to own their own house in Santa Ana and they deserve a chance to be a homeowner too. PARCEL 7 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 010-022-09 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and Dustin Do("Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 010-022-09 located at 1306 W Raymar St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. Five] C7=I =Ikyil=Izr11 The parties therefore agree as follows: 1. PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: Imo:/:113r�rc3 2.1 Purchase Price The total purchase price for the Property shall be the sum of $184,800 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 2 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: Dustin Do 6500 E. Carnegie Ave Anaheim, CA 92807 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 9 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 010-022-09 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: 0 Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: 6 )(- J n M. Funk Assistant City Attorney BUYER: Dustin Do By: 1 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT "A" LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA THAT PORTION OF LOT 29 OF TRACT MAP NO. 1457 AS PER THE MAP FILED IN BOOK 53, PAGE 2 OF MISCELLANEOUS MAPS; OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOT 29 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER 2z-") pv yq 9 "1 Z 1 , OFFICIAL RECORDS OF SAID COUNTY. CONTAINING AN APPROXIMATE AREA OF 4600 SQUARE FEET MORE OR LESS SUBJECT TO EASEMENTS; RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD. EXHIBIT "B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION; JOHN M. GONZALES No. 9065 % * OF PAGE 1 OF 1 SKETCH TO ACCOMPANY LEGAL DESCRIPTION C.L. PROLONGATION RAYMAR STREET - -.................................� 20 o I 59,16, 0 PERPENDICULAR �• I A vK7^ --- A,• I 4?gyp• o I " I l3.35 , ...... OIL i- `. 'A I lw ?' a 21, O Iz O f•l O m 103. 00' j PARALLEL PARCEL LIMITS PUBLIC STREET R/W PER INST. NO. Z012000 ham/ B "1 7-1 CURVE 3QA CURVE QB 4 = 6° 3'26" 0 = 86050'52" R = 45.00' R = 45,00' L = 5.14' L = 68,21' ( ) = TRACT 1457, M.M. 53/2 RADIAL LINE 1 = S 290 30' 56" E RIGHT OF WAY IS BASED ON CITY OF SANTA ANA BRISTOL STREET IMPROVEMENT PLANS 06-1500. it z z PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXES APPROVED AS TO APPROVED BY DESCRIPTION DISCRIPTION AP R/WMAP PARCEL FORM BY ATTY. DIRCTI WRTTTENBY CHECKEDK NDMBER NDMBER NDMBER 010-022-09 R8 DEED NIiALBER 1306 W. RAYMAR STREET 8746 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: DVD Construction, the real property in the City of Santa Ana, County of Orange, State of California. described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] ORIGINAL COPY 3b. Development Team's Past Experience The same group of companies in the organizational chart above just completed a 2-story 1,600 sf new construction residential house together in Long Beach. The property is currently in escrow and is estimated to close on May 3111, 2019. The development teams' expertise in residential construction eased the process with experience and hard work. I was the owner/investor of the project and self -funded with cash savings from working for another contractor, that is how I funded the project. The cash from this sale will be used to pay for the expenses incurred on this project. 3c. No previous experience with public entities within Orange County. 3d. Dustin Do will be the one to purchase the land, develop, and pay for all expenses as a personal investment. The only reason DVD Construction was included in the proposal was because I am registered in Planet Bids under my company name "DVD Construction". The buyer in the contract will be Dustin Do, not DVD Construction. 4. Project Description New construction of a 2-story single family residence that matches the style and texture of the existing neighborhood using the City of Santa Ana residential guidelines. The idea is to avoid a box -link structure and to have architectural details to beautify the neighborhood and provide cost effective housing for local residents. Around 2,000 sf of living space with 4 bedrooms and 4 baths will provide a comfortable living situation for a growing family. 2-car garage with 2 cars available to park on the driveway and 1 on the street if needed. Energy efficient materials and sustainable design components will be utilized for long term sustainability on the project. Current zoning of R-1 provides the necessary tools to build a single-family residence that will increase the value of land in Santa Ana. Development cost of $215,000 will cover everything from start to finish. 5. No letter of intent from tenants, however there are tons of people who would like to own their own house in Santa Ana and they deserve a chance to be a homeowner too. PARCEL R8 AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 010-183-01, 010-183-42, 010-183-43, 010-183-44 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 010-183-01, 010-183-42, 010-183-43, 010-183-44 located at 701 - 711 S Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJil4.rI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 2.1 Purchase Price The total purchase price for the Property shall be the sum of $357,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Triplex (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 010-183-01, 010-183-42, 010-183-43, 010-183-44 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: 14 Ig" T JUhn M. Funk Assistant City Attorney BUYER: [AS Managem nt By: 11 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT "All LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA THE NORTH HALF OF LOT 3, AND ALL OF LOTS 1 AND LOT 2 OF TRACT MAP NO, 228 AS PER THE MAP FILED IN BOOK 13, PAGE 19 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 1, 2 AND 3 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER 26 19 oo.0 41 `1 P H 22 OFFICIAL RECORDS OF SAID COUNTY. CONTAINING AN APPROXIMATE AREA OF 11,880 SQUARE FEET, SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD. EXHIBIT "B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION: CHRYSOSTONIO, L.S. 9216 PAGE 1 OF 1 RICHLAND STREET (E) 2g'3o 0 0 �- j 00 94.00' 88.00' (50) PARALLEL -� I N ... i�• m(30') coo .5...'.:.. OD N I Ib cr INST. NO. c _ °' I I 88.00, — I I i I m ;., O N I Q I I ...... G'' O N L0 C I I I O O I Z Z 88.00' I i o :.: ::+ .....;.. 2, o O it: ---- - - - - -- �• I -_ " I I I uj I I I I I I 1 W I 1 W �I I co I (30) ® 1 I I I m I I I ...... CQ 3 h.i j.... in M O Z PARCEL LIMITS PUBL I C STREET R/W PER I NST. NO. 2 01 2. Z ® = DOCUMENT REFERENCE 1 = DEED BOOK 2219, PAGE 377 O.R. 2 = DEED BOOK 12252, PAGE 325 O.R. 3 = DEED BOOK 2219. PAGE 129 O.R. 4 = DEED BOOK 2198, PAGE 329 O.R. 1 ) = TRACT MAP 228, M.M. 13/29. 5 = DEED BOOK 2243, PAGE 376 O.R. ........... = LOT LINES PER TRACT 228. 6 = INSTRUMENT NO. 93-062253. EXIBIT B SKETCH TO ACCOMPANY LEGAL DESCRIPTION PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] I FC;FNII _ EXISTING PROPERTY LINE COMBINED PARCEL RICHLAND STREET r 11 S. BRISTOL ST. 010-183-01 s 7 PARCEL R9 ZONING APPROK AREA RESIDENTIAL 12,071 SF U EXHIBIT "All LEGAL DESCRIPTION IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA THE NORTH HALF OF LOT 3, AND ALL OF LOTS 1 AND LOT 2 OF TRACT MAP NO, 228 AS PER THE MAP FILED IN BOOK 13, PAGE 19 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 1, 2 AND 3 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER 26 19 oo.0 41 `1 P H 22 OFFICIAL RECORDS OF SAID COUNTY. CONTAINING AN APPROXIMATE AREA OF 11,880 SQUARE FEET, SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS, AND ANY OTHER RIGHTS OF RECORD. EXHIBIT "B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION: CHRYSOSTONIO, L.S. 9216 PAGE 1 OF 1 RICHLAND STREET (E) 2g'3o 0 0 �- j 00 94.00' 88.00' (50) PARALLEL -� I N ... i�• m(30') coo .5...'.:.. OD N I Ib cr INST. NO. c _ °' I I 88.00, — I I i I m ;., O N I Q I I ...... G'' O N L0 C I I I O O I Z Z 88.00' I i o :.: ::+ .....;.. 2, o O it: ---- - - - - -- �• I -_ " I I I uj I I I I I I 1 W I 1 W �I I co I (30) ® 1 I I I m I I I ...... CQ 3 h.i j.... in M O Z PARCEL LIMITS PUBL I C STREET R/W PER I NST. NO. 2 01 2. Z ® = DOCUMENT REFERENCE 1 = DEED BOOK 2219, PAGE 377 O.R. 2 = DEED BOOK 12252, PAGE 325 O.R. 3 = DEED BOOK 2219. PAGE 129 O.R. 4 = DEED BOOK 2198, PAGE 329 O.R. 1 ) = TRACT MAP 228, M.M. 13/29. 5 = DEED BOOK 2243, PAGE 376 O.R. ........... = LOT LINES PER TRACT 228. 6 = INSTRUMENT NO. 93-062253. EXIBIT B SKETCH TO ACCOMPANY LEGAL DESCRIPTION PAGE 1 OF 1 When recorded, please mail this Instnmient to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXES APPROVED AS TO APPROVED BY DESCRIPTION DISCRIPTION AP. RR'MAP PARCEL FORNIHY ATTY. DIRCTOR BRIT TEN HY CFIECKED OK TTlffiER TLI- ER ➢LI- ER 010-183-01, 42, 43 & 44 R9 DEED ATA DER 701 — 711 S. BRISTOL STREET 8747 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] k 609L6NWROISHMIN 3AVVNIOtO18609 �- 61 lOLL6 YJ V7S PeE iN 06l 'S ':)NISLIOWMANI °' r LL6ILMOW VaWOSVZ NO'IS3OONVONUwUO WRS-WOVIL) 'j111N3WSOVNVW SVI '$ 9 MON IVVSNO 'VO VNVV.WVS ,,,��. NV1d 3113 HSN61630 10161UG'S 104 !OdNI%NaWA0 •ls •Lolslas -- i � I k J 1 6R I gg € 8 y 0 8 �za R .7 I I � I P I I 8 j j I I c j i $I ) ,A� I _.._.__.._._._._._._J 8 <m PARCEL R9 � AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 010-183-40, 010-183-41, 010-183-42 THIS AGREEMENT of Purchase and Sale ("Agreement'), dated , 2019, is entered into by and between the CITY OF SANTA ANA, a California charter city and municipal corporation ("Seller") and IAS Management(" Buyer") for the acquisition by Buyer of certain real property described below. RECITALS A. Seller owns certain real property commonly known as Orange County Assessor Parcel Nos. (APN) 010-183-40, 010-183-41, 010-183-42 located at 711 - 717 S Bristol St. in the City of Santa Ana, County of Orange, State of California. Buyer desires to purchase a fee interest in such real property owned by Seller as more particularly described and depicted in Exhibit "A", attached hereto and made part hereof ("Property"), and Seller desires to sell the Property. B. A copy of the Grant Deed for the Property in executable format, by which Seller shall convey the Property to Buyer upon the Close of Escrow (as defined below) is attached as Exhibit "B" and incorporated by this reference. C. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property. File] N=I =IJi14.kI The parties therefore agree as follows: PURCHASE Buyer agrees to buy, and Seller agrees to sell and convey, the Property for the purchase price and upon the terms and conditions hereinafter set forth. 2. ESCROW Upon execution of this Agreement by all parties, the parties shall open an escrow ("Escrow") with Commonwealth Land Title Company ("Escrow Holder"), whose address is 4100 Newport Place Drive, Suite 120, Newport Beach, CA 92660, for the purpose of consummating the purchase and sale of the Property, as described herein. The date on which Escrow is opened with Escrow Holder shall be referred to as the "Effective Date." The parties shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder, as may be required to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressively agree in writing otherwise. The Escrow instructions shall include the following terms and conditions of sale: 1 acu 3rSW 2.1 Purchase Price The total purchase price for the Property shall be the sum of $251,700 ("Purchase Price"). (a) Escrow Deposit. Within three (3) business days following the Effective Date, Buyer will remit into escrow a deposit equal to nine percent (9%) of the Purchase Price ("Escrow Deposit"). Such Escrow Deposit shall be fully refundable until the expiration of the Due Diligence Period and as otherwise set forth herein. Such Escrow Deposit shall be credited towards the Purchase Price paid to Seller as provided in this Agreement. (b) Proposal Deposit. As part of the proposal submitted for this site, Buyer paid to Seller a proposal deposit equal to one percent (1 %) of the Purchase Price ("Proposal Deposit"). The Proposal Deposit shall be retained by the Seller and credited to the Buyer towards the Purchase Price. (c) Closing Payment. The Purchase Price, as adjusted by the application of the Proposal Deposit, Escrow Deposit and by any proration and credits specified herein, shall be paid by Buyer to Seller in cash at the Close of Escrow (the amount to be paid under this Section 2.1(c) being herein called the "Closing Payment'). (d) Independent Consideration. Escrow Holder shall pay a portion of the Escrow Deposit in the amount of One Hundred Dollars ($100.00) ("Independent Consideration") to Seller upon the earlier to occur of the Close of Escrow (as defined below) or the termination of this Agreement for any reason. The Independent Consideration constitutes bargained -for consideration for this Agreement and Buyer's rights under Section 2.6(d) and is expressly acknowledged to be adequate. The obligation of Buyer to pay the Independent Consideration to Escrow Holder, and the obligation of Escrow Holder to pay the same to Seller, are unconditional and shall survive any termination of this Agreement. 2.2 Close of Escrow If Buyer does not exercise its right to terminate this Agreement under Section 2.6(d) prior to the expiration of the Due Diligence Period (as defined below), then Escrow shall close ("Close of Escrow") on or before December 20, 2019. If Escrow is not in a condition to close by such date, Escrow shall be closed as soon as possible thereafter. 2 2.3 Condition of Title to Property Seller shall cause the conveyance of title to the Property to Buyer as evidenced by an ALTA Owner's Policy of Title Insurance covering the Property and any easements appurtenant thereto ("Title Policy") issued by Commonwealth Land Title Company ("Title Company") in an amount equal to the Purchase Price. During the Due Diligence Period, Buyer shall have the right to obtain and examine: (i) an ALTA title commitment (the "Title Commitment') binding the Title Company to issue the Title Policy to Buyer; and (ii) an ALTA/ACSM survey of the Property. The Title Policy shall show as exceptions with respect to the Property only matters approved in writing by Buyer, which approval shall be delivered in writing by Buyer to Seller prior to the expiration of the Due Diligence Period. Buyer shall in addition have approved in writing the legal description of the Property to be set forth in the Title Policy prior to the expiration of the Due Diligence Period. At the Close of Escrow, Seller shall cause all standard title exceptions typically appearing on an ALTA title insurance policy, including the gap exception, the exception relating to parties in possession, the survey exception, and all exceptions related to mechanics liens to be deleted from the Title Commitment. 2.4 Escrow and Closing Costs Buyer shall pay the cost of the Title Policy, the Escrow Fees and all documentary transfer fees and recording fees, as may be applicable, and all other costs and expenses incurred related to the purchase of the Property by Buyer (collectively, "Closing Costs"). Seller shall pay all other costs and expenses incurred by Seller related to the sale of the Property. 2.5 Deposit of Funds and Documents (a) Prior to Close of Escrow, Buyer shall deposit into Escrow (i) the Escrow Deposit, (ii) all escrow and Closing Costs as described above; (iii) the Closing Payment; and (iv) such other documentation as is necessary to close Escrow; provided, however, that Buyer shall not be required to deposit the Closing Payment until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow Holder each of the documents and instruments to be delivered by Seller in connection with the sale of the Property, (ii) Title Company is irrevocably and unconditionally committed to issue and deliver the Title Policy, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer. (b) Prior to the Close of Escrow, Seller shall deposit into Escrow (i) the properly executed grant deed for conveyance of the Property to Buyer and (ii) such other documents and sums, if any, as are necessary to close Escrow in conformance herewith. 2.6 Buyer's Conditions Precedent to Close of Escrow The obligation of Buyer to purchase the Property as contemplated by this Agreement and the Close of Escrow is subject to satisfaction of each of the following conditions: 3 (a) All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow. (b) Seller shall timely perform all obligations required by the terms of this Agreement to be performed by it. (c) The irrevocable and unconditional written agreement of Title Company to record the grant deed at the Close of Escrow and to issue to Buyer the Title Policy, effective as of the date and time the deed is recorded. (d) Buyer shall have seven (7) calendar days, from the opening of escrow ("Due Diligence Period"), within which to perform and complete all of Buyer's due diligence examinations, reviews and inspections of all matters pertaining to the Property, including all leases and service contracts, all physical, environmental and compliance matters and conditions respecting the Property, and satisfy its contingencies ("Due Diligence Investigations"). During the term of this Agreement, Seller shall provide Buyer with reasonable access to the Property, as further set forth below. Within three (3) days following the Effective Date, Seller shall deliver to Buyer true and complete copies of any environmental reports, title documents and any other agreements, documents, or information pertaining to the Property to the extent in Seller's possession or reasonably obtainable by Seller. Seller will make every effort to provide all pertinent documents, but Seller's inability or failure to provide any document shall not be considered a violation subject to termination of the Agreement. At any time on or before the last day of the Due Diligence Period, Buyer may, in its absolute and sole discretion, for any reason or no reason, give written notice ("Termination Notice") to Seller electing to terminate this Agreement, whereupon a condition to Buyer's obligation to close shall not be satisfied, the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement, and the obligations of the parties hereunder, shall terminate (other than those obligations that expressly survive a termination of this Agreement). In the event of termination by Buyer pursuant to this section, the Proposal Deposit shall be nonrefundable and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the expiration of the Due Diligence Period, then Buyer shall have no further right to terminate this Agreement and have the Escrow Deposit (less the Independent Consideration) returned to Buyer except as otherwise set forth herein. (e) No material adverse physical change to the Property, including those caused by condemnation and/or casualty, shall have occurred subsequent to the Effective Date and on or prior to the Close of Escrow. 2.7 Seller Conditions Precedent to Close of Escrow For the benefit of Seller, the Close of Escrow shall be conditioned upon the timely performance by Buyer of all obligations required by the terms of this Agreement. 2.8 License to Enter Property During Due Diligence Period 0 Seller licenses the Buyer and its contractors to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Buyer deems necessary and appropriate. The license given in this Section 2.8 shall only be effective until the earlier of: (i) the Close of Escrow, (ii) the termination of this Agreement, or (iii) the date of any Termination Notice provided hereunder. The Buyer shall conduct all Due Diligence Investigations during the Due Diligence Period at its sole cost and expense. The Buyer shall abide by any reasonable condition(s) of entry onto the Property required by Seller, whether or not set forth in this Agreement. Any Due Diligence Investigations by the Buyer shall not unreasonably disrupt any then -existing use or occupancy of the Property. (a) Limitations. The Buyer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without Seller's prior written consent. Following the conduct of any Due Diligence Investigations on the Property, the Buyer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. (b) Indemnity. Buyer agrees to indemnify, defend and hold the Seller, and its officers, employees and agents, harmless from and against all actual damages, judgments, costs, expenses and fees arising from or related to any act or omission of Buyer in performing its Due Diligence Investigations under this Agreement (excluding discovery of any pre-existing conditions at the Property), except to the extent arising out of the negligence or willful misconduct of Seller, its officers, employees or agents. (c) Insurance. Prior to any entry upon the Property by or on behalf of Buyer, Buyer (at Buyer's sole cost and expense) shall provide Seller with a certificate of Buyer's liability insurance policy designating Seller as an additional insured. The foregoing certificate shall evidence that Buyer has obtained a policy or policies of comprehensive general liability and property damage insurance against loss, damage or liability for injury to or death of any person, or loss or damage to property occurring in or about the Property. Such insurance shall include comprehensive general liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit, and shall include automobile liability coverage for bodily injury and property damage in the amount of at least $1,000,000.00 combined single limit. The foregoing policy or policies shall contain a provision that such policy or policies will not be cancelled, reduced in coverage, renewed or otherwise amended in any manner until at least thirty (30) days prior written notice has been given to Seller. Buyer shall see that insurance coverage as provided in this paragraph is maintained throughout the duration of Buyer's right of entry onto the Property. 3. REPRESENTATIONS AND WARRANTIES OF PARTIES 3.1 Representation and Warranties of Seller Seller makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow: 5 (a) The execution and delivery of this Agreement by Seller, Seller's performance hereunder, and the consummation of the transaction contemplated hereby will not result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound; and (b) Sellerwill not enter into any agreements or undertake any new obligations prior to Close of Escrow which will in any way burden, encumber or otherwise affect the Property without the prior written consent of the Buyer; and (c) Seller, as a government agency, has not been subject to real property tax assessment on the property. Transfer of title to Buyer at the Close of Escrow will subject the Property to an assessment from the Orange County Office of the Assessor and shall be the obligation of the Buyer henceforth; and (d) Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any knowledge which they may have regarding any release of Hazardous Substances (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller warrants and represents to Buyer that Seller is not aware that any such Hazardous Substances have been generated, stored or disposed of upon or under the Property. 3.2 Representations and Warranties of Buyer Buyer makes the following representations and warranties with respect to the Property, each of which shall survive Close of Escrow. (a) Subject to Permitted Delay (as defined herein), Buyer hereby represents and guarantees that it will complete construction and development of the Property for the Intended Use (defined below) within 18 months following the Close of Escrow ("Project Deadline"). If Buyer does not comply with the Project Deadline, Seller may elect to repurchase the Property from Buyer (the "Repurchase Right") pursuant to the terms and conditions in this section. Seller shall provide written notice to Buyer of its exercise (the "Exercise Notice") within one hundred eighty (180) days following the Project Deadline (the "Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than thirty (30) days following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both Seller and Buyer (the "Repurchase Closing Date"). If Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, then the Repurchase Right shall automatically terminate and be of no further force and effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be free and clear of any and all mortgage liens or other evidence of indebtedness. The purchase price to be paid by Seller to Buyer for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement. As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of God; fire; earthquake; flood; explosion; action of the elements; war; invasion; insurrection; riot; mob violence; sabotage; malicious mischief; inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, materials, or supplies in the 0 open market; failure of transportation; strikes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; requisition or order of government or civil or military or naval authorities; or any other similar cause to those stated above, not within Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability of Buyer constitute Permitted Delay. (b) Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with Buyer's proposal for the Property submitted in response to City's Request for Proposal No. 19-026 (a copy of which is attached as Exhibit "C", (the "Intended Improvements") appropriate for the operation of a Single Family Residence + ADU (the "Intended Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements. Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standards, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. (c) The execution and delivery of the Agreement by Buyer, Buyer's performance hereunder, and the consummation of the transaction contemplated hereby will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Buyer is at present a party or by which Buyer is bound; and (d) No other action by Buyer is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. 4. REMEDIES If Seller defaults under this Agreement, then Buyer may either: (i) terminate this Agreement by written notice to Seller, whereupon the Escrow Deposit (less the Independent Consideration) shall be immediately returned by the Escrow Holder to Buyer, and this Agreement and the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement); or (ii) bring an action for specific performance of this Agreement. If Buyer defaults under this Agreement, and such default is not cured within thirty (30) days following the date of Seller's written notice of default to Buyer, then Seller may, as Seller's sole and exclusive remedy under this Agreement by reason of such default, terminate this Agreement by written notice to Buyer, whereupon the obligations of the parties hereunder shall terminate (other than those obligations that expressly survive a termination of this Agreement) and the Escrow Deposit shall be delivered to Seller as full compensation and liquidated damages under and in connection with this Agreement, and in such event, Buyer shall not be liable to Seller for monetary damages except for full payment of the amount of the Escrow Deposit due at the time of termination and forfeiture of said Escrow Deposit to the Seller. Under no circumstances shall Buyer be entitled to a refund of the Proposal Deposit, which shall be retained by Seller. 7 5. RIGHT OF POSSESSION Seller hereby grants Buyer and its representatives, agents, consultants and contractors, physical and legal possession of the Property effective as of the Close of Escrow. 6. AS IS CONDITION Buyer shall rely solely and exclusively upon the results of its Due Diligence Investigations of the Property with regard to any physical condition or state of the Property. By completing the purchase of the Property following its Due Diligence Investigations, Buyer evidences its unconditional acceptance of the condition of the Property. Buyer acknowledges and agrees that Buyer is purchasing the Property on an "AS -IS," "WHERE -IS" basis. Buyer is not offering to purchase the property based on any representation by Seller or Seller's agent except those expressly set forth in Section 3.1. Buyer hereby acknowledges that the purchase of the Property is without warranties of any kind from Seller, expressed or implied, except as expressly set forth in Section 3.1, as to the condition of the Property or its improvements, if any, including, without implied limitation, soils, access to the Property or to utilities, appliances, structure utility systems, roof, foundation, landscaping or any other component of the Property. Seller does not warrant that the Property conforms with any ordinances, including, without implied limitation, zoning or building ordinances. 7. MISCELLANEOUS 7.1 Notice Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered (a) in person, (b) by overnight courier, (c) by facsimile or as a PDF or similar attachment to an email (provided that such facsimile or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (a), (b) or (d)), or (d) by United States Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows: Seller: City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council Copy to: Executive Director of Public Works Agency (at same address) 0 Buyer: IAS Management 25 Brookline Aliso Viejo, CA 92656 Any notice or other document sent by personal delivery, overnight courier or registered or certified mail as aforesaid shall be considered to have been effectively served or delivered on the day of actual delivery (whether accepted or refused) as evidenced by printed confirmation if by facsimile or email (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting the receiving party's facsimile machine or computer, the deadline for receiving such notice or other communication shall be extended through the next business day), as shown by the addressee's return receipt if by certified mail, and as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non -business day, then such notice or communication so made shall be deemed effective on the first business day after the day of actual delivery. 7.2 Time of Essence Time is of the essence with respect to each and every provision hereof. 7.3 Assignment Neither this Agreement, nor any interest herein, shall be assignable by any party without prior written consent of the other, non -assigning party hereto. For Seller, the City Manager or designee shall have the authority to review and approve or deny any request for assignment. 7.4 Governing Law All questions with respect to this Agreement, and rights and liabilities of the parties hereto, shall be governed by the laws of the State of California. Venue shall be in the County of Orange. 7.5 Inurement Subject to the restrictions against assignment as herein contained, this Agreement shall inure to the benefit of and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto. 7.6 Attorney's Fees In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs. 0 7.7 Entire Agreement The Agreement contains the entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein. 7.8 Additional Documents All parties hereto agree to execute any and all additional documents and instruments necessary to carry out the terms of this Agreement. 7.9 Authority to Execute Agreement The persons executing this Agreement and the instruments referenced herein on behalf of Buyer and Seller hereby represent and warrant that such persons have the right, power and authority to bind Buyer and Seller, respectively. 7.10 Counterparts This Agreement may be signed in counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. [SIGNATURES ON NEXT PAGE] 10 SIGNATURE PAGE TO AGREEMENT OF PURCHASE AND SALE ASSESSOR PARCEL NUMBER(S): 010-18340, 010-183-41, 010-183-42 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. SELLER: CITY OF SANTA ANA, a California charter city and municipal corporation By: Kristine Ridge City Manager ATTEST: By: Daisy Gomez Clerk of the Council APPROVED AS TO FORM: By: 14 7g, hn M. Funk Assistant City Attorney BUYER: IAS Management By: 11 Type text here EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B: [attached behind this page] EXHIBIT A In the City of Santa Ana, County of Orange, State of California, being those portions of the South half of Lot 3, Lot 4, and Lot 5, of Tract Map 228, per map recorded in Book 13, page 19 of Miscellaneous Maps, in the Office of the County Recorder of said County, Except that land described in a Deed as Instrument Number � 0)9000 q jgg Z3 official records of said County, Also Except the Easterly 20.00 feet of said Lots, Containing 8,121.0 square feet, more or less. Subject to all Covenants, Conditions, Reservations, Restrictions, Rights of Way and Easements of record, if any. All as shown on Exhibit B, attached hereto and by this reference made a part hereof. Prepared by me, or under my direction on 1 j , l John M. Gonzales, PLS 9065_ JOHN M. GONZALES No.9065 %* ,F EXIBIT B SKETCH TO ACCOMPANY LEGAL DESCRIPTION PUBLIC RIGHT OF WAY 94.00' PARALLEL I I I I (30') I :... •..:: 3:x I LL, ' 4 LLI �I N N I co I M^1 \v J W i :.............. . ...3. QQ °- I N . I I I Z .i o.... O ' {. ........... ..... Z I I = I — I (30') 3 ........... :iS 2.0 o * _ N in ^ O Ca N (o N Ln 4l O � � h O ?O m: 73.85' J o INST. NO. I �O PARCEL LIMITS 20' ...................... .... 0 ------------------------------------------- HIGHLAND STREET PUBLIC STREET R/W PER INST. N0. 2ol� occg'1 B y2 3 ( ) = TRACT MAP 228, M.M. 13/29. ........... = LOT LINES PER TRACT 228. ® = 10' EASEMENTS TO THE CITY OF SANTA ANA 4 = DEED BOOK 2198, PAGE 229 D.R. 5 = DEED BOOK 2243, PAGE 376 O.R. 6 = DEED BOOK 2158, PAGE 634 D.R. CURVE DATA = 93°15'53" R = 45.00' L = 73.25' ® = 0°22'26" R = 95.00' L = 0.60' 31 = N 56058' 12" W RIGHT OF WAY IS BASED ON CITY OF SANTA ANA BRISTOL STREET IMPROVEMENT PLANS 06-1500. PAGE 1 OF 1 EXHIBIT "B" GRANT DEED (TO BE EXECUTED) [attached behind this page] When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Government Code Section 6103, 27383. USE SPACE ABOVE THIS LINE FOR RECORDER'S TAXLS %PPROALEAS 10 APPROVLDBY DLS(RIP I ION DISCRI PI ION AP_ R/WMAP PARCLL I'ORNI BY AI IY. DIRCIOR KRII ILN BY (LL'ELDOE IL MBLR NUMBER NGMBLR 010-183-40, 41 & 42 RIO DEED?TMEER 711 — 717 S. BRISTOL STREET GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: IAS Management, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A' attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: By: Kristine Ridge City Manager, City of Santa Ana Attested by: Dated: By: Daisy Gomez City Clerk, City of Santa Ana EXHIBIT "C INTENDEDIMPROVEMENTS [attached behind this page] ffi 909Z3'V0'9413L9AU1 3AtltlMO1O19693 2tVE•tZL(VlL) t00ETbE 16tLI Iwo lo�l tOLL6 VD V'S'JS wPM O6t '7NI S1N3W1S3ANI h'OV809V7 g j! T. NO199OONVONudwa 'VO'vNvvINV9 ':)111N3W3'JVNVW SVI aw 99t1OH VAMM 1O191tl6'S 44 ..., -U, , ^:OdN1 $ gg U9NOI89O ;. S,S9NN1O Wnd 311E SS 8 1d,6yEZt I _ I 6 W yy R y J a i I i.._.........._............._._._. ._ _ ._._._._._._._._._._._.. -_...-...-_. _.._._._._._._._._. 1d."Vt IS 1O1SIa® PARCEL R10