HomeMy WebLinkAbout11/16/1999, C13 - APPROVAL OF LATHROP PROPERTY PURCHASE FOR EXPANSION OF DAMON-GARCIA SPORTS FIELDS SITE councilovem
ovember 16, 199
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C13
CITY OF SAN LUIS OBISPO
FROM: aul LeSage, Director of Parks and Recreation
SUBJECT: APPROVAL OF LATHROP PROPERTY PURCHASE FOR EXPANSION OF
DAMON-GARCIA SPORTS FIELDS SITE
CAO RECOMMENDATION
1. By resolution, approve a purchase and sales agreement to 'acquire Lot 3 of the Lathrop
Property at a cost of$231,000 for the purpose of expanding the Damon-Garcia Sports Fields
site.
2. Appropriate$231,000 from the unreserved General Fund balance for this purchase.
3. Authorize the Mayor to sign the purchase and sales agreement.
DISCUSSION
Background
In August of 1999, the City acquired a 23.5-acre parcel on Broad Street for the purpose of
developing a multi-field sports complex. On the surface, this would appear to be a sufficient
amount of land for the construction of four, multi-use athletic fields and their various support
facilities. But, since 3.5 acres of the site is a riparian creek corridor and 3.5 must be set aside for
the extension of Prado Road, only 16.5 acres are available for actual development. The Lathrop
Property will add additional space as well as provide an entrance to the sports fields at the
proposed Broad Street and Industrial Way intersection. The property (Exhibit B of Attachment
2), because of its linear nature, can function as a parking area capable of handling about 50 cars.
While this property could be used as a parking area,the actual use is yet to be determined. It will
depend on several factors such as the alignment of Prado Road and the ultimate design of the
fields.
Key Points of the Agreement
■ This is a cash for land transaction. The City will pay $231,000 for acquisition of the
approximately .55-acre site. As verified by an independent appraisal, this is a fair and
equitable price.
■ The seller will remove all structures from the property prior to the close of escrow.
• The purchase price for the property includes the curb, .gutter, sidewalk, and roadway
improvements along the street frontage of the property, as noted in Attachment B. In order
to insure completion of the improvements, the seller will provide the City with a letter of
credit in the amount of the estimated costs of the improvements. However, if the total
Lathrop property is not annexed to the City within 12 months of escrow close(which can be
extended an additional six months under certain circumstances), the seller's obligation to
install the street improvements shall cease.
C13-1
Council Agenda Report.=Approval of Lathrop Property Purchase
Page 2___
■ It is contemplated the City will create a legal parcel and annex.the property into the City.
FISCAL IlKPACT
Funds for this purchase are not included. in the 1999=01 Financial Plan. As such; staff
recommends appropriating $231,000 from the unreserved General Fund balance for this
purchase. Based on interim results for 1998-99, adequate resources are available to fund this
additional appropriation and retain fund balance at minimum policy levels..
Maintenance
Based upon maintenance projections for the.Damon-Garcia.Sports Fields.at $9,000 per acre, an
additional $5,400 needs to be allocated annually for the maintenance.
ATTACffi1ZENTS
1_ Resolution
2. Purchase and Sales Agreement, including_ the following Exhibits:
2-A Legal Description
2-B Property Map
A copy of the updated appraisal report-is available at the City Clerk's Office.
C13-2
RESOLUTIONNO. (1999 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING A PURCHASE AND SALES AGREEMENT WITH SCOTT LATHROP FOR
THE ACQUISITION OF A .55-ACRE PORTION OF THE LATHROP PROPERTY AT A
COST OF $231,000
WHEREAS, the City of San Luis Obispo (City) is a California Charter Municipal
Corporation; and
WHEREAS, the City, acting through its City Council, has determined that a .55-acre
portion of the Lathrop Property would be a valuable addition to the Damon-Garcia Sports Fields;
and
WHEREAS, the owner of the property, Scott Lathrop, has agreed to the sale; and
WHEREAS,the purchase of the property would serve an important municipal purpose;
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis
Obispo hereby approves this purchase and sales agreement.
BE IT FURTHER RESOLVED that the Council finds this purchase is exempt under
Section 15325 of the California Environmental Quality Act.
BE IT FURTHER RESOLVED that the Mayor is authorized to sign the purchase and
sales agreement.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of 1999.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
C)AL A
Je ey . Jo ens f ity ttorney C13-3
RECORDING REQUESTED BY
CITY OF SAN LUIS OBISPO
WHEN RECORDED MAIL TO:
City of San Luis Obispo
Attn: Paul LeSage
1341 Nipomo Street
San Luis Obispo,CA 93401
APN-
PURCHASE AND SALE AGREEMENT
(Lathrop Property - San Luis Obispo, CA)
THE CITY OF SAN LUIS OBISPO ("Buyer") , a California Charter
Municipal Corporation, hereby agrees to purchase, and SCOTT
LATHROP ( "Seller" ) , hereby agrees to sell, all of Seller' s
right, title and interest in that certain real property in
the County of San Luis Obispo, together with all easements,
rights and appurtenances thereto, as described in Exhibit
"A" attached hereto and incorporated by reference. Said
property shall hereinafter be referred to as the
"Property. "
1. Purchase Price and Terms.
The purchase price for the Property shall be Two
Hundred Thirty-One Thousand Dollars ($231, 000 . 00) . The
purchase price. shall be payable as follows :
(a) By Buyer paying the purchase price in the form of
a cashier' s or certified check or wire transfer, payable to
Escrow Holder, which shall be deposited by Buyer into
Escrow not less than two (2) days prior to the Closing
Date, as defined below.
2 . Conditions Precedent.
All of Buyer' s duties to purchase the Property are
expressly conditioned upon the occurrence and satisfaction
of each of the following conditions, each of which is
deemed exclusively for the benefit of Buyer:
(a) Title Report . Buyer' s approval of the exceptions
to title set forth in a CLTA preliminary title report for
the Property (the "Preliminary Title Report" ) . Buyer shall
C13-4
ATTACHMENT 2
have ten (10) days after the receipt of the Preliminary
Title Report, and copies of all documents referenced
therein, to provide to Seller written notice of Buyer' s
disapproval of any title exception. Any title exception.
not so disapproved shall be deemed approved, provided that
if a Supplemental CLTA title report is issued showing any
exception not shown on the Preliminary Title Report, Buyer
shall have an additional ten (10) calendar days after
receipt of such Supplemental Report to approve or
disapprove any such title exception. If Buyer disapproves
any title exception, Seller shall have no obligation to
cure such disapproval (except that Seller shall be
obligated to remove any liens) but Seller may elect, by
written notice to buyer within five (5) calendar days after
receipt by Seller of such notice of disapproval, to attempt
to remove such disapproved items. If Seller is unable
within a reasonable time to accomplish such cure or
removal, or if Seller elects not to attempt to so cure or
remove (which election shall be communicated to buyer
within ten (10) days after receipt of Buyer' s notice of
disapproval) , then Buyer may elect to (i) terminate its
obligations under this Agreement by providing written
notice to Seller, or (ii) waive its objections to such
exception, or (iii) elect to correct any such disapproved
exception itself, in which case Seller shall use its best
efforts to assist Buyer whenever Buyer may request in order
to cure any such defect, provided that Seller shall incur
no monetary obligations in connection with such cure, and
provided escrow shall be extended for a reasonable period
in which to effect such cure .
(b) Inspection and Approval of Property. Buyer' s
inspection and approval of the Property and all
improvements thereon, including at Buyer' s option and
expense, a noise study, a survey, a soils investigation, a
Phase I or Phase II environmental report or any other
investigation that the Buyer deems necessary. This
condition shall be deemed approved if the Buyer does not
send written notice of disapproval to Seller within thirty
(30) days after the opening of Escrow. If Buyer discovers
through its investigations any defects on the Property, or
improvements thereon, which it disapproves of, Seller shall
have no obligation to cure such defects but Seller may
elect, by written notice to Buyer within five (5) calendar
days after receipt by Seller of such notice of disapproval,
to attempt to cure. such disapproved defects. If Seller is
unable within a reasonable time to accomplish such cure, or
2 C13-5
if Seller elects not to attempt to cure said defects (which
election shall be communicated to Buyer within ten (10)
days after receipt of Buyer' s notice of disapproval) , then
Buyer may elect to (i) terminate its obligations under this
Agreement by providing written notice to Seller, or (ii)
waive its objections to such defects, or (iii) elect to
correct any such disapproved defects itself, in which case
Seller shall use its best efforts to assist Buyer whenever
Buyer may request in order to cure any such defect,
provided that Seller shall incur no monetary obligations in
connection with such cure, or (iv) the parties may enter
into additional negotiations, as may be mutually
acceptable, concerning an adjustment to the purchase price,
allocation of risk, or contribution to the cots to cure or
other matters, and provided escrow shall be extended for a
reasonable period of time to effect such negotiations
3 . Escrow and Deposit
(a) Closing Date. This purchase and sale shall close
upon the recordation of the Grant Deed to Buyer (the "Close
of Escrow" ) . The close of Escrow shall occur on or before
sixty (60) days (the "Closing Date" ) after a copy of this
Agreement (executed by both Buyer and Seller) is deposited
with the Escrow Holder, but no later than December 31,
1999, unless extended by mutual agreement of the parties,
or as otherwise provided herein.
(b) Escrow Holder. Within ten (10) business days
after the execution of this Agreement, Seller shall open an
Escrow for the consummation of the purchase and sale of the
Property with First American Title Company, 899 Pacific
St . . , San Luis Obispo, CA 93401 ("Escrow Holder" ) . The
Escrow shall be deemed to be "opened" as of the date on
which a copy of this Agreement (executed by Buyer and
Seller) is deposited with Escrow Holder.
(c) Escrow Instructions. Although Escrow Holder may
require further written instructions executed by Buyer and
Seller to clarify the duties and responsibilities of Escrow
Holder, any such further instructions shall not modify or
amend the provisions of this Agreement unless any such
instructions expressly provide that they are intended to
amend or modify the provisions of this Agreement.
(d) Title Insurance. Title to the Property shall be
conveyed by Grant Deed. Title to the Property shall be
3 C13-6
insured by a CLTA owners policy in the amount of the
purchase price, showing title vested in Buyer, subject only
to those exceptions specified in the Preliminary Title
Report and/or Supplemental Report and accepted by Buyer.
Seller shall pay First American Title Company the cost of
the CLTA policy. Buyer may elect to have title insured by
an ALTA policy of title insurance, provided that the Buyer
shall pay that portion of the premium which exceeds the
costs of a CLTA standard coverage policy of title
insurance. Buyer shall also pay the cost of any survey.
(e) Fees and Taxes . Seller agrees to pay all
documentary transfer taxes and recording fees . Escrow fees
shall be borne equally. Real property taxes shall be
prorated as of the close of Escrow, based on the most
recently available tax bill.
4. Representations, Warranties, Agreements and
Disclaimers
(a) Authorized Representative. Buyer and Seller
hereby represent and warrant to each other that the persons
who sign this Agreement and any other documents required to
be executed by such party to perform its obligations
hereunder, shall have all requisite power and authority to
have entered into this Agreement, and that all
authorizations required to be obtained by or on the part of
such party to execute and perform this Agreement have been
obtained.
(b) Proof of Citizenship. Seller is not a foreign
person as such term is used in Section 1445 of the Internal
Revenue Code. Prior to the close of Escrow, Seller shall
deposit in Escrow a non-foreign affidavit as provided under
said Section 1445, and the failure to do so shall entitle
Buyer to withhold from the purchase price such sums as are
required by said Section 1445 .
(c) Delivery of Property. Possession of the Property
shall be delivered by Seller to. Buyer upon the close of
Escrow. Seller shall have the right prior to the close of
escrow to remove all personal property and trade fixtures,
if any, provided the Property is left in a sound and
tenantable condition.
(d) Legal Actions. Seller represents and warrants
that there are no actions, suits, or legal proceedings
4 C13-7
related to the ownership, use, operation or sale of the
Property to which Seller is a party nor has Seller received
any notice that any such actions are pending or threatened.
(e) Indemnification by Seller. Effective as of the
closing date, Seller shall indemnify and hold harmless
Buyer from and against any and all claims, damages or
liabilities, (whether or not caused by negligence) ,
including civil or criminal fines, arising out of or
relating to any of the following:
(i) Any generation, processing, handling,
transportation, storage treatment or disposal of solid
wastes or hazardous wastes by Seller, including, but not
limited to, any of such activities occurring on any of the
properties;
(ii) Any releases by Seller (including, but not
limited to, any releases as defined under the Comprehensive
Environmental Response, Compensation and Liability Act of
1980) to the extent occurring or existing prior to closing,
including but not limited to such releases to land,
groundwater, 'surface water or into the air.
(f) Seller' s Knowledge of the Environmental
Conditions of the Property. As an inducement to Buyer to
enter into this agreement, Seller, to the best of Seller' s
knowledge and belief, represents and warrants that :
(i) Throughout the period of ownership of the
Property by Seller, there have been no notices, directives,
violation reports or actions by any local, state or federal
department or agency concerning environmental laws or
regulations, and the Property is in compliance with all
state and federal environmental laws;
(ii) The business and operations of Seller have
at all times been conducted in compliance with all
applicable federal, state, local or foreign laws,
ordinances, regulations, orders and other requirements of
governmental authorities on matters relating to the
environment .
(iii) There has been no spill, discharge,
release, cleanup or contamination of or by any hazardous or
toxic waste or substance used, generated, treated, stored,
5 C13-8
disposed of or handled by the Seller on or around the
Property.
(iv) There are no underground storage tanks
located at, on or under the Property;
(v) No hazardous or toxic substances or wastes
are located at, or have been located on. or removed from the
Property.
(vi) All studies, reports, and investigations,
known to Seller, concerning any pollution, toxic building
materials or toxic hazardous substances or wastes located
at, on, or under the Property have been provided or
otherwise been disclosed to Buyer prior to the close of
Escrow.
(vii) There are no soil or geological conditions
which might impair or adversely affect the current use or
future plans for use of the Property.
5. Notices
All notices, communications, consents, approvals and
disapprovals required or permitted hereunder must be in
writing and shall be delivered by personal delivery,
facsimile, or deposited in the United States mail, postage
prepaid and addressed as follows:
TO BUYER: City of San Luis Obispo
Paul LeSage, Parks and
Recreation Director
1341 Nipomo St .
San Luis Obispo, CA 93401
TO SELLER: Scott Lathrop
1619 LaVineda
San Luis Obispo, CA 93401
The foregoing addresses may be changed by written notice.
If served personally, or by facsimile, service shall be
conclusively deemed made at the time of service. If served
by mail, service shall be conclusively deemed made seventy-
two (72) hours after the deposit thereof on the United
States mail .
6 C13-9
6 . Brokers
Buyer and Seller each represent to the other that it
knows of no claim for broker' s or finder' s fees or other
commissions in connection with this transaction other than
as provided in this paragraph. In the event any broker or
finder asserts a claim for a commission or finder' s fee,
the party through whom the broker or finder makes this
claim shall indemnify the other party for any and all costs
and expenses (including attorney' s fees) incurred by the
other party in defending the same. Seller has an agreement
to pay to Rossetti Company a sales commission at the close
of escrow.
7. Miscellaneous.
This Agreement contains the entire agreement between
the parties hereto, and no modification or addition to any
term or provision shall be effective unless made in writing
and signed by both parties hereto. In the event any
litigation is commenced between the parties hereto in
connection with this Agreement, the prevailing party in
such litigation shall be entitled to a reasonable sum for
its attorneys fees and costs. The captions and headings in
this Agreement are for reference only and shall not be
deemed to define or limit the scope or intent of any of the
terms, covenants, conditions or agreements contained
herein.
8. Entry
With respect to Paragraphs 2 and 5, Buyer, its agents
and authorized representatives shall have the right to
enter onto the Property during normal business hours, or at
such other times as may be mutually agreed to by the
parties, which consent to enter shall not be unreasonably
withheld. Buyer shall indemnify and defend Seller against
and hold Seller harmless from, any and all liability, cost
and expense (including without limitation any and all
recorded mechanics or other liens) for loss of or damage to
any property or injury to or death of any person arising
out of or in any way related to the entry by Buyer or
Buyer' s agents onto the Property, unless such liability,
cost and expense is caused by the sole, active negligence
of Seller. In the event of the recording of any claim of
lien for materials supplied or labor or professional
services performed on behalf of Buyer; Buyer shall promptly
7 C13-10
satisfy and discharge such lien at its sole cost and
expense upon demand therefore by Seller. Buyer shall
repair any and all damages to the Property caused by any
such tests and inspections .
9 . Structures.
Seller shall remove all structures from the Property,
excluding foundations, prior to close of escrow.
"Structures" shall include, but not be limited to,
underground tanks or structures, if any.
10. Street Improvements.
As part of the consideration for this Agreement, upon
annexation of Seller' s remainder property to the City of
San Luis Obispo, Seller shall dedicate and construct the
street improvements shown on Exhibit A, including but not
limited to, a "T" intersection, roadway, and curb, gutter
and sidewalk along all street frontages of Buyer' s
property, in a manner and according to the standards of the
City of San Luis Obispo. In order to insure completion of
the above street improvements, Seller shall, prior to the
close of escrow, provide Buyer with a letter of credit in a
form acceptable to buyer in an amount equal to the
estimated actual cost of said improvements. In the event
the annexation of the Seller' s remainder property does not
occur within twelve months of the close of escrow, through
no fault of Seller, and after diligently pursuing said
annexation_, then the obligation to install the above-
described street improvements shall cease and the letter of
credit may be released; provided, if the City of San Luis
Obispo is diligently pursuing said annexation in its
capacity as a municipal corporation, and the annexation is
delayed through no fault of the City, then Seller' s
obligation to complete the street improvements and provide
a letter of credit shall be extended for an additional six
months beyond the initial twelve month period.
11. Creation of Legal Parcel.
It is contemplated between the parties that the
property described in Exhibit A will be conveyed by way of
a government lot, at the sole cost of Seller, or other
similar lot division, should the Parties so agree.
8 C13-11
12 . Survival.
The warranties, representations and agreements made in
this Agreement shall survive the close of escrow.
"SEL R" e,
OTT LATHROP
"BUYER"
CITY OF SAN LUIS OBISPO
By:
Allen K. Settle
Mayor of the City of San Luis Obispo
Date:
ATTEST:
John Dunn
City Administrative Officer
APPROVED AS TO FORM:
f y rg sen
i At o y
9 C13-12
EXHIBIT "A"
LEGAL DESCRIPTION
That portion of Lot 85 of the San Luis Obispo Suburban Tract, in the County of
San Luis Obispo, State of California, according to the map filed February 6, 1906
in Book 1 at Page 92 of Record of Surveys, in the Office of the County Recorder
of said County, excepting therefrom that portion of said.land described in the
deed to the State of California recorded April 11, 1975 in Book 1827 at Page 577
of Official Records, more particularly described as follows:
Beginning at the intersection of the southwesterly line of the property described
in said deed to the State of California with a line offset 30.00 feet northwesterly
from the southwesterly prolongation of the centerline of Industrial Way as said
road is shown on the map for Tract 2133 filed in Book 17 of Maps at Page 94 in
said Recorder's Office; thence parallel with the northwesterly line of said Lot 85
1. South 66035'25" West (record South 65010' West per said Record of Survey)
a distance of 328.12 feet to the beginning of a tangent curve concave
northerly having a radius of 20.00 feet; thence leaving said parallel line
2. westerly along the arc of said curve through a central angle of 90000'00" an
arc length of 31.42 feet; thence
3. North 23024'35" West a distance of 49.62 feet more or less to the
northwesterly line of said Lot 85; thence along said northwesterly line
4. North 66035'25" East (record North 65010' East per said Record of Survey) a
distance of 351.33 feet more or less to the southwesterly line of the property
described in said deed to the State of California and the beginning of a non-
tangent curve concave northeasterly having a radius of 7055.00 feet, a radial
to said curve bears South 69°31'02" West; thence along said southwesterly
line
5. southeasterly along the arc of said curve through a central angle of 0033'58"
an arc length of 69.71 feet more or less to the Point of Beginning containing
0.56 acres more or less.
Said property is shown graphically in Exhibit "A" page 2 of 2 attached hereto and
incorporated herein by reference.
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