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HomeMy WebLinkAboutPalm Street Structure 10.19.11RELEASE AND WAIVER This Release and Waiver ( "Release Agreement" or "this Agreement ") is entered into as of December g, 2011, between by and between THE CITY OF SAN LUIS OBISPO, a municipal corporation and charter city ( "City "), and PALM STREET PARKING STRUCTURE, a California limited liability company ( "Developer "), with respect to the following facts: RECITALS A. The parties entered into that certain Payment Agreement, dated as of November 5, 2003 (the "Payment Agreement ") in connection with the construction of the parking structure at the corner of Palm and Morro Street in San Luis Obispo, California. On June 9, 2006, the Developer submitted a Payment Request to the City under the Payment Agreement and, at the City's request, provided additional information to the City on June 26, 2006. On July 7, 2006, the City notified the Developer that portions of the amount requested by the Developer would not be paid based on the information provided. The City paid the balance of the amount requested on August 2, 2006. B. A dispute exists between the parties regarding the amount due to the Developer under the Payment Agreement. The partied entered into tolling agreements to extend the statue of limitations with respect to the dispute, which will expire on December 31, 2011. C. The parties hereto wish to resolve any and all claims either party may have against each other in connection with payments made or payable under the Payment Agreement. Accordingly, in consideration of the mutual understandings and promises set forth in this Release Agreement, the parties agree as follows: AGREEMENT 1. For good and valuable consideration, the sufficiency of which is hereby acknowledged, Developer and anyone claiming by, through or under Developer fully and irrevocably releases City, and each of its employees, officers, directors, representatives, agents, servants, attorneys, affiliates, parent companies, subsidiaries, successors and assigns, and all persons, firms, corporations and organizations acting on its behalf ( "Released City Parties "), from any and all claims that it may now have or hereafter acquire against any of the Released City Parties for any and all costs, losses, liabilities, damages, expenses, demands, claims, actions or causes of action (collectively "Claims ") arising from or related to the Payment Agreement. This release includes any and all claims of which Developer is presently unaware or which Developer does not presently suspect to exist which, if known by Developer, would materially affect Developer's release to City. Developer specifically waives the provision of California Civil Code Section 1542, which provides as follows: GENERAL RELEASE. 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. 2. For good and valuable consideration, the sufficiency of which is hereby acknowledged, City and anyone claiming by, through or under City fully and irrevocably releases Developer, and each of its employees, officers, directors, representatives, agents, servants, attorneys, affiliates, parent companies, subsidiaries, successors and assigns, and all persons, firms, corporations and organizations acting on its behalf ( "Released Developer Parties "), from any and all claims that it may now have or hereafter acquire against any of the Released Developer Parties for any and all costs, losses, liabilities, damages, expenses, demands, claims, actions or causes of action (collectively "Claims ") arising from or related to the Payment Agreement. This release includes any and all claims of which City is presently unaware or which City does not presently suspect to exist which, if known by City, would materially affect City's release to Developer. City specifically waives the provision of California Civil Code Section 1542, which provides as follows: GENERAL RELEASE. 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. 3. Based upon the advice of its counsel, each party hereby expressly, knowingly and voluntarily waives and relinquishes any and all rights that it may have under Section 1542 as well as under the provisions of all comparable, equivalent, or similar statutes and principles of law or equity of any and all states of the United States or of the United States. Each Party understands and acknowledges the significance and consequences of this waiver and hereby assumes the risk of any injuries, losses or damages which may arise from such waiver. Each Party expressly intends that such waiver apply to any and all of the claims released by it. 4. This Release Agreement does not constitute an admission by either party of liability, or an admission that any cause of action exists in favor of either party for any claim referred to in this Agreement. 5. All notices, requests, demands and other communications under this Release Agreement shall be in writing and shall be deemed to have been duly given on the date of service if served personally, by reliable overnight courier, or by telecopy transmission for receipt during the receiving parties' normal business hours to the party to whom notice is to be given, or on the third (3rd) day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, return receipt requested, postage prepaid, and properly addressed as follows: City: City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401 -3249 Attention: City Administrative Officer Facsimile: (805) 781 -7109 With a copy to: City Attorney City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401 -3249 Facsimile: (805) 781 -7409 Developer: Palm Street Parking Structure, LLC Post Office Box 12260 San Luis Obispo, California 93406 Attention: Tom Copeland Facsimile: (805) 593 -0109 With a copy to: Suzanne Fryer General Counsel Palm Street Parking Structure, LLC Post Office Box 12260 San Luis Obispo, California 93406 Facsimile: (805) 593 -0109 Any party may change its address for purposes of this Tolling Agreement by giving the other party written notice of the new address in the manner set forth above. 6. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 7. This instrument contains the entire agreement, for purposes of addressing the Payment Agreement only, between the parties, and no statement, promise, or inducement made by either party or agents of the parties that is not contained in this written contract shall be valid or binding; and this contract may not be enlarged, modified, or altered except in writing signed by the parties. 8. Each of the individuals executing this Agreement on behalf of the undersigned parties represents and warrants that he or she has the right, power and authority to bind the party on whose behalf he or she purports to sign. 9. This Agreement may be executed in counterparts or by facsimile. IN WITNESS WHEREOF, the parties to this Modification have duly executed it as of the day and year first written above. CITY OF SAN LUIS OBISPO, a municipal corporation and Charter City By: UAn 41e w�[ Its: NlQ.ree,r PALM STREET PARKING STRUCTURE, LLC, a California limited liability company I ui c Approved as to Form: By: J. Christine Dietrick City Attorney Approved as to Form: ByC Suza ne F er Gen ral C unsel, Palm Str Parking Structure, LLC