HomeMy WebLinkAbout12/02/1986 Item C6B - 148-182 Higuera - Evans Property Property Transferi.i{.1 I,W Clty Ot San Lr.^tS OBISpO
CGIIJNCILAGENDA
MEETING DATE:Dec. 2, 1985
ITEM
FROM:Anne M. Russell, Assistant City Attorney
Request by Evans Fanily to Allow Intra-family Transfer
Encumbering the Evans Property Until Close of
Escrow with the City of San Luis Obispo
SUBJECT:
Adopt Resolution approving requested encumbrance,
subject to conditions.
CAO FIECOMMENDATION
BACKGROUND:
In the Capital Facilities Plan, the Councit has planned for the
widening of Higuera street north of the intersectlon with Madonna
Road. The CFP projects property acquisition in the area for fiscalyear 1986-87, and construction of the actual improvenents in the
following fiscal year.
In November, 1985, the City acquired an option fron the Evans familyto purchase the parcel located at the southwest corner of Higuera and
South Street. In August, 1986, the City entered into an agreement,
contingent upon its exercising the Option to purchase the Evansproperty, to sell that portion of the Evans property unnecessary forstreet widening to Paul and Jacqueline Prather.
On October 7, 1986, in closed session, by consensus the City Council
detenmined to acquire the Evans property by exercising the Option.
Accordingly, it directed the City Administrative Officer to exercise
the Option. This was done on November 3, 1986. A companion iten on
the agenda tonight confirms that exercise of the Option.
The transaction is currently in escrolv. One of the owners of theproperty desires to sell her interest to a co-owner for tax reasonsprior to the close of 1986. A copy of a request on behalf of
Lorraine Evans dated November 4, 1986, is attached.
The Evans family proposes to buy out Lorraine Evans, by encumbering
the property wlth a trust deed in the anount of $24b,000. The City
Attorneyrs office recomnends that owners agree in writing that thistrust deed will be renoved prior to cfose of escrow, and that the
Councilrs approval of this encumbrance is not to be deemed an
accepted condition of title. Paragraph 4 of the Purchase and Sale
Agreement contains ambiguous language in this regard. The City
Attorney's office recomnends this ambiguity be renoved
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CG,TJNCIL AGIEN tr'A FIEPG'FIT
Approving the requested encunbrance is not required of the City.
However, relations between the Clty and the Evans family have been
very cooperative to date. The suggested transaction should not
affect the Cityrs interest.
RECOMMENDATION
Adopt Resolution approving encumbrance.
ATTACHMENTS:
Resolution
Letter dated November 4, 1986, fron Clifford Evans
r-8-2
E\/ANS BR'OI{ERAGE COMPANY
GERALD B. EVANS INaURANCE
13IO MARSH STREET
P.O, BOX A()6
6AN LUr6 OBTBPO, CALIFOnNTA 03{OA
TEI,EPIIC)NE 5.IS.O?20
RECEIVED
NOv 61986
N0VEMBER qt 1986 OFF ICF- OFart-v "r\FljtY
ANNE M. RUS$ELL
ASSI STAI'IT CITY ATTORNEY
P.O. BOX 8i00
sAN LUIS OBISPO, CA 93403-9100
RE: 148-182 HIGUERA STREET' SAN LUIS OBISPO
DEAR ANNEI
As PER oUR TELEFHOI.IE C0I'IUERSATION, I I^II:IULD LIKE TO RETiUEST
THAT THE CiTY OF 5AT.I LUIS OBISPO ALLOI^J THE ABOVE PRCIPERTY TO
BE ENCUI"IBERED BY AN iNTRA-FAI'4ILY TRANSFER OF I}'ITEREST. THE
PROPERT'/ NOLJ IS UNDER THE OI^INERSHIP OF LORRAINE EVANS AND
JAN EUANS, EACH AS TO AN UI'IDIUIDED T/2 INTEREST.
tAtE ARE PRfiPOSING THAT JAN PURCHASE LORRAINE'S INTEREST FOR
1F245,000 BY MEANS 0F A TRUST DEED F0R THAT SAI'4E A|'40UNT.
THiS ESCROT^I I^IOULD RUN CON*CURRENT t^JITH THE CITY',S, BUT LJOULD
cLosE FRIOR TO JANUARY I, 1997" AS YOU ARE AHARE! THE
OPTION AGREEI'4ENT l^JHICH tJE EXECUTED DENIES ANY ENCUI'4BERING BF
THE PROPERTY, BUT AS THIS IS BETI^JEEN FAMILY |'4Er4BERS AND
co-siGNERS OF THE OPTION AND SALES AGREEMENTS, I SHOULDN'T
THINK IT I^]TIULD PRESENT ANY FROFLEM. THE TRUST DEED INJILL
HAUE A " DUE UPON SALE CLAUSE" SO YOU I^JI LL BE DELIUERED A
FREE ANT) CLEAR TITLE UPON THE CLOSURE OF THE CITY'S ESCROI^I"
PLEASE ADUISE IF THIS IS AGREEABLE TO THE CITY AND t.JE I^IILL
l"lAKE THE I'IECESSARY FREFARATION5.
BEST R DS'
'( "._.-
CLIFFORD E. EVAI{S
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