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HomeMy WebLinkAboutWILD ORCHIDS INVESTMENTS, LLCINSURANCE NOT REQUIRED WORK MAY PROCEED CITY CLERK A-2022-254-18 DATE: JUN 18 2024 P e LW CITY OF SANTA ANA tp Rs�u\r (e�MR COMMERCIAL PROPERTY COMPLIANCE ASSISTANCE PROGRAM PROGRAM BENEFITS AND PROPERTY MAINTENANCE AGREEMENT This PROGRAM BENEFITS AND PROPERTY MAINTENANCE AGREEMENT ("Agreement") is effective upon 1111512023 ("Effective Date"). This Agreement is entered into by and between the City of Santa Ana ("City") and Wild Orchid Investments, LLC ("Owner'). RECITALS WHEREAS, The American Rescue Plan Act ("ARPA") was signed into law in March 2021. ARPA provides funding for a number of different programs, including the Coronavirus State and Local Fiscal Recovery Fund ("SLFRF"), to provide monetary support to local governments respond to, mitigate, and recover from the COVID-19 public health emergency; and WHEREAS, On July 20, 2021, The Santa Ana City Council authorized the City Manager to utilize ARPA SLFRF funding from the United States Department of Treasury for the Revive Santa Ana Spending Plan, which includes five spending categories: recovery from the pandemic, direct assistance programs, public health and safety, critical infrastructure, and city fiscal health; and WHEREAS, On June 21, 2022, The Santa Ana City Council authorized the Executive Director of the Building and Planning Agency to Implement the Property Compliance Assistance Program and begin accepting applications for economic relief funds; and WHEREAS, the City of Santa Ana has established a Commercial Property Compliance Assistance Program ("Program") for application within the Qualified Census Tract as established by the U.S. Department of Housing and Urban Development; and WHEREAS, pursuant to the Program, the City provides grant funding up to $50,000 to commercial property owners whose application to the Program has been approved by the City for fagade and other eligible improvements to their property; and WHEREAS, Owner made an application under the Program with respect to the improvements described herein at the real property located at 214-218 W Fourth St. in Santa Ana, CA, which is more particularly described in the legal description attached hereto as Attachment "A" and incorporated herein ("Property"); and WHEREAS, City approved Owner's Program application on November 15, 2023 ; and WHEREAS, under the Program, Owner will make certain improvements to the Property for which Owner will be receiving financial assistance from City and that are more particularly described in the specifications attached hereto as Attachment "B" ("Improvements"); and WHEREAS, pursuant to the Program's terms and conditions, Owner is required to enter into this Agreement to ensure the proper compliance with approval conditions, operational restrictions, maintenance, and upkeep of the Improvements. The Parties therefore agree as follows: Section 1. RECITALS. The Recitals above are true and correct and incorporated into the body of this Agreement by this reference. Section 2. COMPLIANCE WITH LAW. Owner acknowledges that the funds being provided by City for said program are received by City pursuant to ARPA, and that distribution and expenditure of these ARPA SURF Funds shall be in accordance with ARPA and all pertinent regulations issued by agencies of the federal government, including but not limited to, all regulations found at Title 24 of the Code of Federal Regulations. Owner agrees to comply fully with all federal, state and local laws and court orders applicable to its operation and administration of said program, whether or not referred to in this agreement. Section 3. REIMBURSEMENTS. The City shall reimburse the OWNER for the cost of Improvements in the amount of $ 45.203.ss , In exchange for these funds, Owner expressly acknowledges and agrees to the entire terms and conditions of the Program as described in the Program brochure, which are hereby incorporated by reference as though fully set forth herein. Section 4. NO OTHER ELIGIBLE IMPROVEMENTS. No improvement that is not described on Exhibit B and approved by the City is eligible for the reimbursement. Section 5. COMPLETION OF IMPROVEMENTS. OWNER shall complete all Improvements within one hundred (100) calendar days beginning from the effective date fixed in paragraph 1. Upon completion of the Improvements and upon their final inspection and approval by the City, the OWNER shall submit to the City a property executed and notarized contractor statement showing the full cost of the work as well as each separate component amount due to the contractor and each and every subcontractor involved in furnishing labor, materials, or equipment necessary to complete the improvement related work. In addition, the OWNER shall submit to the City proof of payment of the contract cost pursuant to the contractor's statement and final lien waivers from all contractors and subcontractors. The City shall, within fourteen (14) business days of receipt of the contractor's statement, proof of payment, and lien waivers, issue a check to the OWNER as reimbursement in the total grant amount stated in Section 3 of this agreement. Section 6. FAILURE TO COMPLETE. If the OWNER fails to complete the Improvements provided for herein in conformity with the approved plans, drawings, and specifications and the terms of this Agreement, then upon written notice being given by the City to the OWNER, this Agreement shall terminate with no further action necessary by the City, and the financial or any other obligations on the part of the City under this Agreement shall cease and become null and void. Section 7. COMPLIANCE WITH APPROVED DEVELOPMENT PLANS AND CITY CONDITIONS. This Agreement fulfills the requirements set forth in the Program application. The Improvements shall substantially conform with all approved development plans and city conditions, as applicable. Section 8. MAINTENANCE AND REPAIR OF IMPROVEMENTS. A. Ongoing Operational/ Maintenance Conditions. In exchange for participation in the Program, Owner hereby agrees to maintain and repair the Improvements as follows: 1. The Improvements shall be maintained in conformance with the standards generally applicable to comparable retail/commercial businesses located within the City. The Improvements shall comply with operational conditions of the Santa Ana Municipal Code (SAMC) applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.). 2. The Improvements shall be in ongoing compliance with the approved design and construction parameters, signage parameters, and restrictions, as well as landscape designs, as applicable. 3. Ongoing maintenance, repair and upkeep of the Improvements shall be provided by the Owner (including but not limited to controls on the proliferation of trash and debris about the Property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, pedestrian pathways/open space areas, lighting and irrigation fixtures, walls and fencing, landscaping and related landscape improvements, and the like, as applicable). B. City Right to Conduct Maintenance and Repairs. Owner hereby confers upon the City the right but not the obligation to conduct maintenance and repairs on the Improvements as required in this Section 8. Such powers are conferred by Owner on the City for the benefit of the City to provide for the health, safety and welfare of all persons who use the Improvements or any portion thereof and other persons who reside in the vicinity of the Improvements and the entire City. C. City Right to Enforce. The right and power of the City to enforce the maintenance obligations of Owner herein shall not be deemed to arise by virtue of this Section 8 alone. Any provision of this Agreement to the contrary notwithstanding, the City may, by public nuisance abatement proceeding, and/or by the initiation of an action at law or in equity, notwithstanding this Section 8, enforce the law as relates to the abatement or elimination of a public nuisance regarding the Improvements or enforce any provision or conditions of approval of a building or development permit issued for the Improvements by the City. It shall be presumed that the City is proceeding under the general municipal policy powers reserved to the City under this Section 8(C) if the City issues a written notice of "Maintenance Deficiency" as this term is defined in Section 8(D) of this Agreement. D. Notice of Maintenance Deficiencies. Upon any failure by Owner to perform any of the maintenance and repair obligations referenced in Section 8(A) (such failure hereinafter referred to as a "Maintenance Deficiency"), the City shall issue written notice of such Maintenance Deficiency to Owner. E. Maintenance Deficiencies. Owner shall comply with any issuance of a Notice of Maintenance Deficiency within the timeframe specified by the Code Enforcement Division to cure the Maintenance Deficiency identified in such Notice. Within the timeframe specified by the Code Enforcement Division in the notice of a Maintenance Deficiency, Owner may submit a written request to the City seeking additional time to cure the Maintenance Deficiency. Each such written request for additional time shall describe and specify in detail: (i) which tasks require additional time to complete the cure of the Maintenance Deficiency and the reason why such additional time is needed under the circumstances; and (ii) what steps Owner have already taken to commence the cure of the Maintenance Deficiency. The City, in its reasonable discretion, may grant, conditionally grant or deny any written request for additional time as determined by the Code Enforcement Manager. The City shall be under no obligation to consider untimely submitted time extension requests or requests which fail to provide any of the information required above. P. Removal of Graffiti. Owner hereby further covenants and agrees to keep the exterior surfaces of the Improvements located on the Property free and clear of graffiti. Graffiti shall be removed within twenty-four (24) hours following the time of its application. A failure by Owner to remove graffiti within twenty-four (24) hours following its application on any structure, fixture or other improvement located on the Property shall be deemed to be a Maintenance Deficiency for which no further notice under Section 8(D) needs to be given by the City. G. City y Cure Maintenance Deficiency. 1. In the event Owner fails to cure a Maintenance Deficiency within the time allowed, the City may enter upon or otherwise access the Property for the purpose of curing the Maintenance Deficiency without further notice to Owner. 2. The foregoing notwithstanding, the City, without notice to Owner, shall have the right to enter the Property and remove graffiti, solid waste, trash, or other debris under the following two circumstances: (i) a failure by Owner to remove graffiti within twenty-four (24) hours following its application on the Improvements; or (ii) a failure by Owner to remove the accumulation of solid waste, trash, or other debris immediately adjacent to the Improvements that is visible for a duration of twenty- four (24) hours from an adjacent or contiguous public right-of-way or from a designated fire lane on the Property. H. City's Lien Authority. Any sums expended by the City in enforcing, maintaining, repairing or replacing, or curing any element of the Improvements as authorized in Section 8 for which a Maintenance Deficiency has been declared by the City to exist, shall become a lien on the Property subject to enforcement by the City under applicable law. I. Enforcement of Liens by The rights conferred upon the City by Owner under Section 8 of this Agreement expressly include the power to establish and enforce a lien or other encumbrances against the Property or any portion thereof, subject to all then existing other liens and encumbrances on the Property, in an amount reasonably necessary to reimburse the City for its reasonable costs of the necessary and reasonable costs incurred by the City under Section 8(G) to restore the Improvements to the maintenance standard required under this Section 8, including reasonable attorney's fees and costs of the prevailing party associated with the correction of the Maintenance Deficiency in connection with such action. J. No approval by Owner shall be necessary for the City to establish and foreclose a lien for non-payment of amounts expended by the City to cure a Maintenance Deficiency under Section 8 of this Agreement. No failure by the City to enforce any default pertaining to the maintenance, repair or replacement of any element of the Improvements under Section 8 shall be deemed to be a waiver of the right or power of the City to enforce any subsequent default thereof by Owner. Section 9. TERM OF AGREEMENT. This agreement shall remain in effect for a period of 5 years from the Effective Date or the date the Property is no longer owned by Owner, whichever is earlier. Section 10. INTEGRATION. This Agreement contains the entire understanding between the Parties relating to the transaction contemplated by this Agreement, except as otherwise provided. All prior contemporaneous agreements, understandings, representations and statements, oral or written, are merged in this Agreement and shall be of no further force or effect. This Agreement constitutes the entire understanding and agreement of the Parties on the subject matter herein, notwithstanding any previous negotiations or agreements between the Parties or their predecessors in interest with respect to all or any part of the subject matter hereof. Section 11. SEVERABILITY. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. Section 12. AMENDMENT. No amendment, modification or supplement of this Agreement shall be valid or binding unless executed in writing and signed by both Parties. Section 13. NOTICES. All notices permitted or required under this Agreement shall be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose: OWNER: Wild Orchid Investments, LLC 3646 Long Beach Blvd Ste 210 Long Beach,CA 90803 Attn: Liennette Chung CITY: City of Santa Ana Planning and Building Agency, M-20 PO Box 1988 Santa Ana, CA 92702 (714) 647-5804 PlanningDepartment@santa-ana.org Section 14. COUNTERPARTS. This Agreement may be executed in counterparts, each of which shall be of equal force and effect. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as evidenced by the signatures of the authorized officers of each of them. CITY City of Santa Ana By: i Gd 1 Gj Acting f City Manager ATTEST: APPROVED AS TO FORM: SONIAR. CARVALHO City Attorney By: Jonathan T. Martinez Assistant Citv Attorney OWNER i2 Na Title: lwllee�y,�/ nolmlillylMaw LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THOSE PORTIONS OF LOTS 7 AND 10 IN BLOCK 12 OF THE TOWN OF SANTA ANA, CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 2, PAGE 51 OF MISCELLANEOUS RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 10 FEET AND 8 INCHES WEST OF THE NORTHEAST CORNER OF SAID LOT 10; THENCE WEST 51 FEET AND 4 INCHES; THENCE SOUTH 100 FEET; THENCE EAST 51 FEET AND 4 INCHES; THENCE NORTH 100 FEET TO THE POINT OF BEGINNING. PARCEL 2: A RIGHT OF ENTRY AND RIGHT OF WAY OVER 4 FEET FRONTING ON FOURTH STREET AND ADJOINING PARCEL 1 ABOVE DESCRIBED ON THE EAST, FOR A STAIRWAY FOR THE JOINT USE OF THE BUILDING ON THE EAST AND ON THE WEST OF SAID STAIRWAY, AS CONVEYED BY DEED FROM W.H. SPURGEON TO FRANK RIVERIN, RECORDED IN BOOK 138, PAGE 346 OF DEEDS OF LOS ANGELES COUNTY. APN: 398-264-16 Grant Deed GO (DSI Rev. 4/5/18) Last Saved: 3/21/2022 2:15 PM by JHO Escrow No.: 00134416-002-JHO ATTACHMENT B MAYOR Valerie Amezcua MAYOR PRO TEM Thai Viet Phan COUNCILMEMBERS Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Benjamin Vazquez L PLANNING AND BUILDING AGENCY 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 wwW.santa-ana.orD May 9th, 2024 Wild Orchid Investments, LLC ATTN: Liennette Chung 214-218 W. Fourth St. Santa Ana, CA 92701 ACTING CITY MANAGER Alvaro Nuriez CITY ATTORNEY Sonia R. Carvalho CITY CLERK Jennifer L. Hall The Commercial Property Compliance Assistance Program Staff has received your final materials indicating that the work as approved in your application has been completed. This notice will serve as you completing your improvements, notifying staff, and providing all materials as requested. After improvement completion, final reimbursement amount is as follows: Approved Improvements: Nunez Pro Services Club ($8,000) — Pressure wash K Troung Glass ($5,000) — Glass & Door Restoration LSR Builders ($17,100) — Paint Son Nguyen ($10,000) —Window & Frame Restoration Isagani Dino($5,103.99) — Architectural Plans Grand Total: $45,203.99 If you have any questions regarding this notice, please contact Alondra Aguirre at 714-647- 5897 or at aaguirre@santa-ana.org Sincerely, 1 Alondra Aguirre Management Aide, Planning and Building Agency SANTA ANA CITY COUNCIL Valerie Amezoua Thai Viet Phan Benjamin Vazquez Jessie Lopez Phil Berhame Johnalhan Ryan Hernandez David Penaloza Mayer Mayor Pro Tom, Ward l Ward Ward Wahl4 Ward Wards �amezruaaaahta-maom tohanratsanta-ana.om bvazauezlalsanlaana am esselooez(dsanla-ane.om pbruhmagaanla.anaom-rvminerha,dzOiihita-ana rim duenalozadt,anla-aria are