HomeMy WebLinkAboutPOPULAR MEDICAL CLINIC & GASTON & RUTH CILLIANI LIVING TRUST 1 - 2007
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A-2007-077
ACQUISITION SETTLEMENT AGREEMENT
This Acquisition Settlement Agreement ("Agreement'") is made and entered into
on Apv-. I '7- ,2007 between 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 (hereinafter "City'" or "Buyer'"), and Popular Medical Clinic Inc.,
a California corporation (hereinafter "Clinic'"), and The Gaston and Rnth Cilliani
Living Trnst, dated Febrnary 31, 1991, of which Gaston and Ruth Cilliani are the named Co-
Trustees (hereinafter "Owner'"). City, Clinic and Owner are hereinafter sometimes
collectively referred to as the "Parties'".
RECITALS
A. Clinic operates a business commonly known as the Popular Medical Clinic and is
the occupant of the real property and improvements located at 420 S. Bristol
Street, Santa Ana, California, more specifically described in Exhibit
"A", Legal Description, attached hereto (hereinafter the "Property'"). The Gaston
and Ruth Cilliani Living Trust, dated February 31, 1991 is the fee owner of the
Property.
B. The Property is located within the Area of the Bristol Street Widening Project
from Pine Street to McFadden Avenue and City intends to acquire a portion of the
Property for a public use.
C. The Parties' rights and obligations with regard to the acquisition of the Property
by City are in dispute. The Parties desire to establish their respective rights and
obligations and to resolve any and all existing disputes with regard to the
acquisition of the Property by City upon the terms and conditions as hereinafter
set forth.
NOW THEREFORE, in addition to the compensation outlined in the Purchase and Sale
Agreement For Acquisition of Real Property and Bilateral Escrow Instructions
(hereinafter "PSA'"), the Parties agree as follows:
I. Consideration
A. City agrees to pay to Clinic the sum of Seventy Five Thousand and
No/I00 Dollars ($75,000) as compensation for any and all loss of business
goodwill, leasehold interests, personal property, severance damages, and
any and all other damages associated with the purchase of the Property by
City from Owner.
B. Said amount is to be paid after the Parties have executed this Agreement
and after Clinic has completely vacated the Property, and after all Tenants
have signed and delivered a Certificate of Abandonment to the City. Said
amount, as identified in paragraph A will be paid within 14 days of the
City's receipt and acceptance of the Certificates of Abandonment
Acquisition Settlement Agreement
Page 1 of7
referenced above, with interest accruing at 10% per annum for each day
thereafter.
C. Receipt of full payment of the consideration referenced in section lea)
above, will constitute full satisfaction of any and all of City's obligations
to Clinic and Owner, including, without limitation, any obligations for loss
of business goodwill, leasehold interests, compensation for personal
property, improvements and/or any other damages of any nature.
3. Failure to Vacate and/or Demolish the existing building and other improvements
from the Propertv
(A) As of the Vacation Date, if Clinic has not removed all its moveable personal
property, trade fixtures, furniture and equipment from the existing building
and other improvements to the Property, Clinic and Owner authorize the
City to remove said items at Clinic and Owner's expense. All Parties to this
Agreement agree that any and all demolition costs paid for by the City shall
be deducted from the Consideration as identified in paragraph lea) of this
Agreement.
(B) Upon the Vacation Date, if Owner has not demolished or removed the
existing building and other Improvements from the Property, Owner
authorizes the City, in its sole and absolute discretion, to remove said
building and Improvements at Owners expense. All Parties to this
Agreement agree that any and all costs associated with the demolition of the
existing building and all other Improvements on the Property shall be paid
by the Owner, and subtracted from said amount identified in paragraph lea)
of this Agreement.
5. Release
(A) Clinic and Owner, individually and collectively on behalf of themselves,
their agents, assigns and related entities, agree to indemnify, fully release,
acquit and discharge City, and the officers, directors, employees, attorneys,
accountants, other professionals, insurers and agents of City (collectively
"Agents") and all entities related to City, from any and all rights, claims,
interests, demands, actions or causes of action which Clinic and/or Owner
now have or may in the future have against City arising from the acquisition
of the Property, including, but not limited to, trade fixtures, furniture and
equipment, Leasehold interests, and including, but not limited to, claims for
loss of business goodwill and/or severance damages.
This release is intended as a full and complete release and discharge of any and all
such claims that Clinic and/or Owner mayor might have against City and/or its
agents or related entities arising from the facts and circumstances described in this
Agreement. In making this release, Clinic and Owner intend to release City, its
related entities and Agents from any liability of any nature whatsoever for any
claim or injury or for damages and remedies in law or equity, including
Acquisition Settlement Agreement
Page 2 of7
declaratory or injunctive relief of any kind, whether the claim, or any facts on
which such claim might be based, is known or unknown to the real party in
interest of said claim(s). Clinic and Owner expressly waive all rights under
Section 1542 of the Civil Code of the State of California, which Clinic and Owner
understand provides as follows:
A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.
(B) Clinic and Owner acknowledge that they may hereafter discover facts or law
different from or in additional to those facts and laws which it now believes
to be true with respect to their release of claims. Clinic and Owner agree
that the foregoing release shall be and remain effective in all respects
notwithstanding such different or additional facts or law or any Party's
discovery thereof. Clinic and Owner shall not be entitled to any relief or
remedies in law or equity in connection herewith, including, but not limited
to, any damages or any right or claim to set aside or rescind this Agreement.
(C) No Party nor any Agents nor any related entities to this Agreement have
made any statement or representation to any other Party regarding any fact
relied upon in entering into this Agreement, and each party expressly states
it does not rely upon any statement, representation or promise of any other
Party or any Party's Agent or related entities in executing this Agreement,
except as is expressly stated in this Agreement. Each Party to this
Agreement has made such investigation of the facts and law pertaining to
this Agreement, and of all other matters pertaining hereto, as it deems
reasonable, necessary and/or appropriate, and has consulted with legal
counsel concerning the matters contained herein.
6. Attornev's Fees
In the event of litigation relating to this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees and costs.
7. Indemnitv Bv Clinic and Owner
Clinic and Owner shall individually and collectively indemnify, defend and hold
harmless City from and against any and all claims, demands, liabilities, losses,
judgments, expenses and attorney's fees resulting from the breach by Clinic
and/or Owner of any provision of this Agreement or the falsity of any
representation or warranty made by Clinic or Owner contained in this Agreement.
Acquisition Settlement Agreement
Page 3 of7
8. Entire Agreement
This Agreement contains the entire Agreement of the Parties hereto pertaining to
the subject matter discussed herein, and supersedes any prior written or oral
agreements between them concerning the subject matter contained herein.
9. Partial Invalidity
In the event that any term, covenant, condition or provision of this Agreement
shall be held by a court of competent jurisdiction to be invalid or against public
policy, the remaining provisions shall continue in full force and effect.
10. Waiver
The provisions of this Agreement may be waived, altered amended or repealed, in
whole or in part, only upon the written consent of all Parties to this Agreement.
The waiver by one party of the duty of performance by the other Party of any
provision in this Agreement shall not invalidate this Agreement, nor shall it be
considered a waiver of any rights or remedies available to the non-breaching Party
of this Agreement.
II. Headings
The headings, subheadings and numbering of the different paragraphs of this
Agreement are inserted for convenience only and shall not be considered for any
purpose in construing this Agreement.
12. Governing Law
The rights and obligations of the parties hereto shall be construed and enforced in
accordance with, and governed by, the laws of the State of California.
13. Successors In Interest
Subject to any restrictions against assignment contained herein, and to any legal
limitations on the power of the signatories to bind non-signatories to this
Agreement, this Agreement shall inure to the benefit of, and shall be binding
upon, the assigns, successors-in-interest, personal representatives, executors,
estate, heirs, legatees, Agents and related entities of each of the Parties hereto.
14. Necessary Acts
Each Party to this Agreement agrees to perform any further acts and execute and
deliver any further documents that may be reasonably necessary to carry out the
provisions of this Agreement.
Acquisition Settlement Agreement
Page 4 of7
. .
15. Advice Of Counsel
Each Party hereto, by its execution of this Agreement, represents to every other
Party that it has reviewed each term of this Agreement with its counsel and
hereafter no Party shall deny the validity of this Agreement on the ground that the
party did not have advice of counsel. Each Party to this Agreement has had the
opportunity to receive independent legal advice with respect to the advisability of
entering into and being bound by this Agreement and with respect to the meaning
of California Civil Code Section 1542.
16. Parties Have Not Transferred Right Or Claims
The Parties hereto each represent and warrant to the other Party that they have not
assigned, transferred or sublet to any third party any of the rights, claims, causes
of action or items to be released or transferred which they are obligated to transfer
or to release as part of this Agreement.
17. Authoritv To Execute This Agreement
Each Party executing this Agreement represents that it is authorized to execute
this Agreement. Each Party executing this Agreement on behalf of an entity,
other than an individual executing this Agreement on his or her own behalf,
represents that he or she is authorized to execute this Agreement on behalf of said
entity.
18. Construction
Each Party has cooperated in the drafting and preparation of this Agreement. In
any construction or interpretation to be made of this Agreement, or of any of its
terms, conditions and/or provisions, the same shall not be construed against any
party.
19. Notices
All notices, requests, demands and other communications required or permitted to
be given under this Agreement shall be in writing and shall either be delivered in
writing personally or be sent by telegram or by regular or certified first class mail,
postage prepaid, deposited in the United States mail, and properly addressed to
the Party at its address as set forth below, or at any other address that such Party
may designate by written notice to the other Party:
To City:
City of Santa Ana
Public Works Agency
20 Civic Center Plaza M-36
Santa Ana, CA 92702
Attention: Souri Amirani
Acquisition Settlement Agreement
Page 5 of7
. .
.
With copy to:
To Clinic:
and Owner
Gaston and Ruth Cilliani
2544 S. Wilson
Tustin, CA 92701-1268
20. Counterparts
This Agreement may be executed in counterparts, each of which shall be deemed
an original, and, when taken together with other signed counterparts, shall
constitute one Agreement, which shall be binding upon and effective as to all
Parties.
IN WITNESS WHEREOF, the Parties to this Agreement have executed this Agreement
as of the date first written above,
CLINIC:
Popular Medical Clinic, Inc.
By: /-t:~ (~-d4'-rl'(,PI;\
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./ /,,'J, >LT
Print Name and Title
Date 34;/1-''7
/ /
OWNER:
For: The Gaston and Ruth Cilliani Living Trust, dated February 31,1991
By' ;c';~;J' . Date ~h/~ate tJ3-06 ~O-::;-
aston Cilliani, Co- Trustee ~~ham,s;.o;rrustee
~A.
BY: ,.~
~ David N. Ream
City Manager
Patricia E, Healy
Clerk of the Council
APPROVAL TO FORM:
Joseph W. Fletcher,
City Attorney
oval
ssistant City Attorney
BY:
Jose
Seni
Acquisition Settlement Agreement
Page 6 of7
. . . .
EXHIBIT A
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA,
COUNTY OF ORANGE, CITY OF SANTA ANA, AND IS DESCRIBED AS FOLLOWS:
The easterly 35 foot-wide strip of land Lot 1 of the Sepulveda Tract, as shown on a map
recorded in Book 31, Page 197 of Deeds, in the Office of the County Recorder of Los Angeles
County, California, described as follows:
Beginning at the Southeast corner of said Lot 1, said point being on the East line of Section 14,
Township 5 South, Range 10 West, in the Rancho Santiago De Santa Ana; thence North 0 17'
East, 146.70 feet along the East line of said Section; thence Westerly 176.03 feet to a point
which is North 143.50 feet from the South line of said Lot 1; thence Southerly 143.50 feet to a
point on the South line of said Lot 1, said pOint being West 176.00 feet from the Southeast
corner of said Lot 1; thence East 1760.00 feet to the point of beginning.
PORTION OF APN: 007-302-22