HomeMy WebLinkAbout05/03/1994, C-9 - PROPERTY ACQUISITION - MUNCH PROPERTY Iypp� �pII MEETING DATE:
q1���w�Uljl���=ll j City Or SM L,OS OBISPO May 3, 1994
COUNCIL AGENDA REPORT ITEM
NUMBER:
FROM: Michael McCluskey, Public Works Director
SUBJECT: Property Acquisition - Munch Property
CAO RECOMMENDATION:
By motion, authorize the Mayor to execute an agreement with the Estate of Cecil Leroy
Munch for purchase of certain real property located at 3220 Bullock Lane
BACKGROUND:
The City of San Luis Obispo has long had plans to realign the intersection of Bullock Lane and
Laurel Lane with their confluence with Orcutt Road. The City has slowly acquired various
properties in the area to eventually make the intersection realignment a reality. The property
of the Estate of Cecil Leroy Munch became available for City purchase over a year ago.
Funding for the purchase of the property was approved by the City Council in the Capital
Improvement Program budget for the 1993-95 period.
Before negotiations of purchase of the property could begin, the City first proceeded to have an
appraisal prepared of the property. By law, all basis of negotiations must be on the basis of the
appraisal. Negotiations were then entered into with representatives of the Munch estate. The
Council was kept informed of the negotiations in progress. A negotiated and agreed upon price
of$166,500 was agreed to by the representatives of the Munch estate as a fair and reasonable
price. Staff agrees that this figure is fair and reasonable, and has received preliminary City
Council approval to negotiate for this price. Given that both parties agree that the above stated
figure is a fair and reasonable estimate of the value of the property, staff recommends that the
City Council take formal action to authorize the Mayor to sign the purchase and sale agreement
for the Munch property, as attached as Exhibit 1.
FISCAL IMPACT:
Funding in the amount of $200,000 has been previously authorized by the City Council in the
1993-95 Fiscal Plan via Transportation Impact Fees. Since the T.I.F. has yet to be
implemented, General Fund Reserves will be used for the purchase. The reserves will be
reimbursed upon implementation of the T.I.F. for purchase of this property. Funds previously
budgeted exceed the contract price and, therefore, no additional funding is required.
Attachment: Exhibit 1
ExNbit A
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PURCHASE AND SALE AGREEMENT
(Munch Property)
THIS PURCHASE AND SALE AGREEMENT ("Agreement") is dated
and constitutes an agreement by
which Jeannette G. Munch, Administrator of the Estate of Cecil
Leroy Munch, ("Seller") , agrees to sell, and CITY OF SAN LUIS
OBISPO, a chartered municipal corporation of the State of
California ("Buyer") , agrees to purchase that certain real property
("Property") legally described in the attached Exhibit A,
incorporated herein by reference as though fully set forth,
commonly known as 3220 Bullock Lane,
APN 053-071-005, City of San Luis Obispo, California.
The terms and conditions of this Agreement, are as follows:
1. Purchase and Sale. Seller agrees to sell to Buyer, and
Buyer agrees to purchase from Seller, the Property upon the terms
and conditions herein set forth.
2. Purchase Price. The Purchase Price of the Property shall
be One Hundred Sixty Six Thousand Five Hundred Dollars ($166,500)
cash.
3. Payment of Purchase Price. Prior to "Close of Escrow" as
defined below, Buyer shall pay the Purchase Price for the Property
by delivering to the Escrow Holder, (as defined below) for
disbursement to the Seller, as provided for in this Agreement, cash
or check, or warrant, of the City of San Luis Obispo, made payable
to Escrow Holder in the amount equal to the Purchase Price.
4. Conditions of Title. Fee simple absolute title to the
Property shall be conveyed by Seller to Buyer by grant deed (which
grant deed shall be fully executed and acknowledged and deposited
by Seller into escrow prior to the close thereof, subject to no
reservations and subject only to the following conditions of title
("Conditions of Title") .
a. A lien to secure payment of real estate taxes, not
delinquent;
b. Matters affecting the Conditions of Title created by, or
with the written consent of, Buyer.
With respect to any encumbrances securing obligations relative
to the Property, including, but not limited to, deeds of trust,
Seller covenants she will cause the removal of all said
encumbrances by the Close of Escrow (as defined below) .
Title shall be evidenced by the willingness of the Escrow
Holder to issue its C.L.T.A. owners form policy of title insurance
in the amount of the Purchase Price showing title to the Property
vested in Buyer, subject only to the Conditions of Title (at
Buyer's option, an A.L.T.A. policy of title insurance may be
substituted) . Seller will furnish Buyer within ten (10) days of
the opening of escrow a preliminary title report and the documents
reported as exceptions in it ("title documents") . Buyer shall
notify Seller in writing within ten (10) business days after
receipt of the report and the title documents of Buyer's
disapproval of any exception in it. If Escrow Holder (as defined
below) is unwilling to issue such insurance policy, or if Sellers
have not removed any exceptions disapproved by Buyer prior to the
Close of Escrow (as defined below) , at Buyer's option and in
addition to any other remedies available to Buyer, all Escrow
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Holder's obligations to the parties hereunder shall terminate, the
Escrow Holder shall return to Buyer any sums which have been
deposited into Escrow by Buyer, and Seller shall bear the costs of
escrow.
S. Escrow.
a. Onenina of Escrow. Upon execution of this Agreement,
escrow accounts shall be opened expeditiously in a manner
acceptable with First American Title Insurance Company, San Luis
Obispo, CA ("Escrow Holder") , Yolanda Herrera, Escrow Officer, for
the consummation of this transaction.
b. Close of Escrow. For the purposes of this
Agreement, the "Close of Escrow" shall be defined as the date that
the Grant Deed conveying the Property to Buyer is recorded in the
official records of the County of San Luis Obispo. The parties
agree to use their best efforts to effect the Close of Escrow, and
the parties shall be in a position to close no later than sixty
(60) days after escrow is opened (the "Closing Date") . In the
event that this escrow fails to close by the Closing Date (or as
extended by the mutual written agreement of the parties delivered
to Escrow Holder prior to the Closing Date) by reason of any
defaults hereunder, the defaulting party shall bear all costs and
expenses of escrow.
6. Costs and Expenses. The costs and expense of the title
insurance policy to be issued in favor of the Buyer pursuant to
paragraph 4 hereof, shall be paid by Seller. Buyer shall pay all
documentary transfer taxes payable in the recordation of the Grant
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Deed and any other documents which the parties may mutually direct
to be recorded in the official records. The escrow fees of Escrow
Holder shall be split equally between Buyer and Seller. Escrow
fees shall include, but not be limited to, Escrow Holder's
customary charges to either party for document drafting, recording,
and miscellaneous charges. Real property taxes and rents (if any)
for the Property shall be prorated as of the Close of Escrow.
7. Disbursements and Other Actions by Escrow Holder. Upon
the Close of Escrow, the Escrow Holder shall promptly undertake all
of the following in the manner hereinbelow indicated:
a. Disburse all funds deposited with Escrow Holder by Buyer
in payment of the Purchase Price for the Property as follows:
(1) Deduct therefrom all items chargeable to account of
Sellers pursuant hereto and for the account of any
lenders of record, pursuant to separate instructions by
Sellers.
(2) The remaining balance of the funds so deposited by Buyer
shall be disbursed to Seller promptly upon the Close of
Escrow.
b. Cause the Grant Deed and any other documents which the
parties hereto may mutually direct to be recorded in the official
records.
8. Default. Seller agrees that if the within sale is not
completed as herein provided by fault of Seller, Buyer, at its
option shall be entitled, in addition to any other remedy now or
hereafter available to Buyer under the laws or judicial decisions
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of the State of California, to compel Seller to perform its
obligations under this Agreement by means of a specific performance
proceeding.
9. Notices. All notices or other communication required or
permitted hereunder shall be in writing, and shall be personally
delivered or sent by registered or certified mail, postage prepaid,
return receipt requested, at the following addresses:
Seller: Jeannette G. Munch
Administrator of the Estate of Cecil Leroy Munch
c/o Philippe B. Craig, Esq.
1016 Walnut Street
San Luis Obispo, CA 93401
Buyer: City of San Luis Obispo
Attention: Public Works Director
955 Morro Street
San Luis Obispo, CA 93401
Notice shall be deemed given as of the time of personal delivery or
forty-eight (48) hours following deposit in the United States mail.
Notice of change of address shall be given by written notice in the
manner detailed in this paragraph.
10. Sellers' Representations and Warranties.
a. In addition to any express agreements of Seller contained
herein, the following constitute representations and warranties of
Seller which shall be true and correct as of the Close of Escrow
(and the truth and accuracy of which shall constitute a condition
to the Close of Escrow) :
(1) There areno actions, suits, materials, claims, legal
proceedings or any other proceedings affecting the
Property or any portion thereof at law or in equity
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before any Court or governmental agency, domestic or
foreign; excepting that said property is subject to a
probate court proceeding, and that the sale is subject to
presentment and approval by the probate court.
(2) Seller has not received any notices from governmental
authorities pertaining to violations of law or
governmental regulations with respect to the Property,
(3) Seller has no knowledge of any pending or threatened
proceeding in eminent domain or otherwise by any public
entity which would affect the Property, or any portion
thereof, nor does Seller know the existence of any facts
which might give rise to such action or proceedings.
(4) There exists a month-to-month rental agreement with
existing tenants of the residence on said property. The
current rent is $400 per month. The seller shall render
unto the buyer all rental agreements, any damage,
cleaning or prior collected "last month-Is rent", if
applicable. Rents received shall be prorated based upon
date of close of escrow.
(5) There are no liens or encumbrances upon, claims to, or
covenants, conditions and restrictions, easements, right
of way, rights of first refusal, options to purchase, or
other matters affecting the Property except as contained
in the Conditions of Title.
(6) There is no material adverse fact or condition relating
to the Property, or any portion thereof (including but
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not limited to the existence of any underground tanks or
pipelines or any hazardous waste or material) ,, which has
not been specifically disclosed in writing by Seller to
Buyer, provided, however, Seller makes no warranty that
the property will be free of any damage from or
infestation by wood-destroying pests and organisms,
including but not limited to termites, dry rot, and
fungi; and with respect to any said damages from or
infestation by wood destroying pests and organisms, Buyer
acknowledges that Buyer is purchasing the property solely
in reliance on Buyer's own investigation, in the
condition that it is in at Close of Escrow and that no
structural pest control inspection shall be required.
(7) Seller has the legal power, right and authority to enter
into this Agreement, and to consummate the transaction
contemplated hereby.
(8) There are no service or maintenance contracts, management
agreements or any other agreements which will affect
Buyer or the Property subsequent to the Close of Escrow.
(9) There are no encroachments onto the Property of
improvements located on any adjoining property nor do any
improvements located on the Property encroach onto any
other adjoining property.
(10) Seller warrants and represents that there are no
prescriptive or other easements affecting the Property.
b. In the event that, during the period between the
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execution of this Agreement, and the Close of Escrow,
Seller has actual knowledge of, learns of, or has a
reason to believe that any of the above representations
or warranties may cease to be true, Seller hereby
covenants to immediately give notice to Buyer of the
change in circumstances. Upon Seller notifying Buyer of
the change in circumstances, Buyer may, in addition to
any other recourse or remedy provided by law, at its sole
option, terminate this Agreement and all funds deposited
into Escrow or delivered to Seller in connection herewith
shall be immediately returned. Further, in the event
Buyer so elects to terminate, Seller shall pay all Escrow
costs, if any, incurred by both parties herein under this
Agreement.
11. Survival of Conditions. The covenants, agreements,
representations and warranties made in Paragraph (10) shall survive
the Close of Escrow and the recordation and delivery of the Grant
Deed conveying the Property to Buyer and any investigations by the
parties.
12. Successors and Assicns. This Agreement shall be binding
upon, and shall inure to the benefit of, the successors, heirs, and
assigns of the parties hereto.
13. Required Action of Buyer and Seller. Buyer and Seller
agree to execute all such instruments and documents and to take all
actions pursuant to the provisions hereof in order to consummate
the purchase and sale herein contemplated and shall use their best
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efforts to accomplish the timely Close of Escrow in accordance with
the provisions hereof.
14. Entire Agreement. This Agreement contains the entire
agreement between the parties hereto relating to the Property, and
may not be modified except by an instrument in writing signed by
the parties hereto.
IS. California Law. This Agreement has been entered into and
is to be performed in the State of California and shall be
construed and interpreted in accordance with the laws of the State
of California.
16. Waivers. No waiver by either party of any provision
hereof shall be deemed a waiver of any other provision hereof or of
any subsequent breach by either party of the same or any other
provision.
17. Caption. The captions, paragraph and subparagraph
numbers appearing in this Agreement are inserted only as a matter
of convenience and in no way define, limit, construe, or describe
the scope or intent of such paragraph of this Agreement, nor in any
way affect this Agreement.
13. No Broker's Fees or Commission. Buyer and Seller hereby
acknowledge that no broker's commission or finder's fee is payable
with regard to this transaction; and the Buyer and Seller each
("Indemnitor") agrees to indemnify and hold the other harmless from
and against all liability, claims, demands, damages or costs of any
kind arising from or connected with any broker's or finder's fee or
commission or charge claimed to be due any person arising from
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Indemnitor's conduct with respect to this transaction.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date and year first above written.
SELLERS BUYER
Jeannette G. Munch CITY OF SAN LUIS OBISPO
Administrator of the Estate
of 'Cecil Leroy
Munch �
J / �. lf��f By
MAYOR
ATTEST:
CITY CLERK
APPROVED AS TO FORM:
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EXHIBIT A
Property Description
Real property located at 3220 Bullock Lane, San Luis Obispo,
County of San Luis Obispo, State of California, legally
described as follows:
That portion of Lot 119 of the San Luis Obispo Suburban Tract,
in the County of San Luis Obispo, State of California,
according to the map thereof filed in Book 1, Page 92 of
Records of Surveys, records of said county described as
follows:
Beginning at a point on the Southwesterly line of said lot
distant thereon South 330 301 East along said Southwesterly
line 176.83 feet to the Northwest corner of the land described
in the deed to Louise G. Bell, recorded June 9, 1945 in Book
383, Page 321 of Official Records; thence North 560 30f East
along the Northwesterly line of the land described in said
deed 183.94 feet; thence North 00 22' West 144.84 feet; thence
Southwesterly along the Southerly line of the land described
in the deed to Russell D. Bullock, et ux. , recorded November
6, 1950 in Book 585, Page 337 of Official Records, to the
point of beginning.
Excepting therefrom that portion thereof heretofore deeded by
the grantor to Elwood E. Munch and Dolores M. Munch by deed
dated November 1, 1956, and recorded in Volume 868, Page 352,
Official Records of San Luis Obispo County.
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ML_.j1NP AGENDA
DATE ' '9 ITEM #
EXHIBIT A
Property Description .
Real property located at 3220 Bullock Lane, San Luis Obispo,
County qPSan Luis Obispo, State of California, legally
describe' Cis follows:
That portion of Lot 119 of the- San Luis Obispo Suburban Tract,
in the _...County _ of San Luis Obispo, State of California,
according- to the map thereof filed in Book 1, Page 92 of
Records of Surveys, records of said county described as
follows:
Beginning at a point on the Southwesterly line of said lot
said point is the point of beginning and is South 330 30'
East, 250 feet from the Northwest corner of said lot thence
South 330 30' East along said Southwesterly line 176.83 feet
to the Northwest corner of the land described in the deed to
Louise G. Bell, recorded June 9, 1945 in Book 383, Page 321 of
. Official Records; thence North 560 30' East along the
Northwesterly line of the land described in said deed 183.94
feet; thence North 00 22' west 144.84 feet; thence
Southwesterly along the Southerly line of the land described
in the deed to Russell D. Bullock, at ux. , recorded November
61 1950 in Book 585, Page 336 of Official Records and along
the Southerly line of the land described in the deed .to
Richard N. Bullock, at. ux. , recorded November 6, 1950 in Book . .
585, Page 337 of Official Records, to the point of beginning.
Excepting therefrom that portion thereof heretofore deeded by
the grantor to Elwood E. Munch and Dolores M. Munch by deed
dated November 1, 1956, and recorded in Volume 868, Page 352,
Official Records of San Luis Obispo County.
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