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HomeMy WebLinkAboutR-10688 - APPROVING A FIRST AMENDMENT OF PURCHASE AND SALE-PALM DEVELOPMENT SITE, AUTHORIZING THE SALE OF CITY PROPERTY AND AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE CLOSING DOCUMENTSRESOLUTION NO. 10688 (2016 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A FIRST AMENDMENT OF PURCHASE AND SALE -PALM DEVELOPMENT SITE, AUTHORIZING THE SALE OF CITY PROPERTY AND AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE CLOSING DOCUMENTS WHEREAS, the City entered into an Agreement of Purchase and Sale -Palm Development Site with SLO Chinatown LLC, a California limited liability company, which agreement was approved by the Council on December 13, 2011, and dated December 19, 2011 (the "Agreement ") ; and WHEREAS , the Agreement authorized the sale of City owned property between Morro and Chorro Streets and Monterey and Palm Streets to SLO Chinatown LLC upon certain terms and conditions; and WHEREAS, SLO Chinatown LLC has requested amendment of certain terms and conditions in order to expedite development of the property, including assignment to Hotel SLO LLC, a California limited liability company and Sutter Tustin SLO LLC, a California limited liability company; and WHEREAS, amendment of the Agreement to expedite the sale and development of the property supports the City's planning goals for development of the downtown area and is in the City's best interest. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The First Amendment to the Agreement of Purchase and Sale -Palm Development Site, a copy of which is attached as Exhibit "l ", (the "First Amendment ") is hereby approved and the City Manager is authorized to execute the same. SECTION 2. Upon satisfaction of all the terms and conditions of the Agreement, as amended by the First Amendment, the City is authorized to sell the property legally described in Exhibit "B ", attached to the First Amendment. SECTION 3. The Mayor or the City Manager is authorized to execute all escrow instructions and other closing documents necessary to complete the transaction; provided, the Mayor, or Vice -Mayor in her absence, shall execute the grant deed on behalf of the City. The City Attorney is authorized to make any and all non - substantive changes to correct or conform documents or to facilitate the transaction. R 10688 Resolution No. 10688 (2016 Series) Page 2 Upon motion of Council Member Christianson, seconded by Council Member Rivoire, and on the following roll call vote: AYES: Council Members Christianson and Rivoire, Vice Mayor Carpenter and Mayor Marx NOES: None ABSENT: None ABSTAINED: Council Member Ashbaugh The foregoing resolution was adopted this 19th day of January, 2016. (a /-� May Ja Marx ATTEST: ' Lkcc 9. Z�2'�A Traci R. McGinley, MMC City Clerk VED AS J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this day o 5 x161 f ,. Traci R. McGinley, M MCA,•' ~ City Clerk Resolution No. 10688 (2016 Series) EXHIBIT 1 FIRST AMENDMENT TO AGREEMENT OF PURCHASE AND SALE Palm Development Site Page 3 This First Amendment to Agreement ( "Amendment ") is made and entered into as of January 19, 2016, by and between SLO CHINATOWN, LLC, a California limited liability company ( "Copelands "), HOTEL SLO, LLC, a California limited liability company ( "Hotel LLC ") and Sutter Tustin SLO, LLC ,a California limited liability company ( "ST SLO "; and collectively with Hotel LLC, "Hotel Developer "), and the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city ( "City "), with respect to that certain Agreement of Purchase and Sale — Palm Development Site, dated as of December 19, 2011 (the "Agreement "), by and between the Copelands and the City. City, Hotel Developer, and Copelands are each a "Party" hereto, and are sometimes collectively referred to as "Parties ". Capitalized terms not otherwise defined herein shall have the same meaning as in the Agreement. RECITALS A. Copelands has requested City consent to the assignment of the Agreement because the assignment, in the absence of City's consent, would violate the Agreement, would be null and void and would confer no right or benefit upon Hotel Developer or any other party. B. In connection with the proposed Assignment, Copelands and Hotel Developer have requested that certain terms of the Agreement be amended to expedite the start and subsequent completion of the planned hotel project. C. In consideration of the representations, warranties and covenants herein made by Copelands and Hotel Developer in favor of the City, the City is willing to consent to the proposed assignment to Hotel Developer, and to amend the Agreement, pursuant to the provisions and subject to the limitations set forth in this Agreement. Now therefore, the parties agree as follows: AGREEMENT 1. Effective Date of Assignment. The assignment of Copelands' interest in the Agreement to Hotel Developer, and the assumption thereof by Hotel Developer, shall take effect on or before January 19, 2016 (the "Effective Date "). Assignment and Assumption. 2.01 Assignment. As of the Effective Date, Copelands as assignor assigns all of its rights under the Agreement to Hotel Developer. 2.02 Assumption. As of the Effective Date, Hotel Developer accepts the assignment from Copelands and assumes, in favor of each of Copelands and the City, all obligations under the Agreement, which obligations Hotel Developer hereby covenants to perform fully and timely. 3. Consent. As of the Effective Date and provided that the representations and warranties made in Section 5 of this Amendment shall be true and correct as of the Effective Date, the City hereby consents to the foregoing assignment from Copelands to Hotel Developer and accepts Hotel Developer as the purchaser under the Agreement. 4. No Implied Consent or Waiver. The City's consent to the assignment of the Agreement from Copelands to Hotel Developer is specifically limited to this assignment in particular on all the terms set forth in this Amendment. The City has granted this consent upon the understanding and agreement Resolution No. 10688 (2016 Series) EXHIBIT 1 Page 4 of Copelands and Hotel Developer, which understanding and agreement Copelands and Hotel Developer hereby ratify and confirm, that the City's consent to this assignment: (a) is not a consent to any future assignment of the Agreement; and (b) shall in no way diminish or waive the City's right, as set forth in the Agreement, to restrict any subsequently proposed assignment or other transfer of the rights under the Agreement. 5. Representations and Warranties by Copelands and Hotel Developer. 5.01 Representations and Warranties of Copelands. Copelands makes the following representations and warranties to City: (a) Copelands is a California limited liability company duly organized and validly existing under the laws of the State of California, and is qualified to do business in the State of California. (b) Copelands has the right, power and authority to enter into this Amendment and to perform its obligations hereunder, and the person(s) executing this Amendment on behalf of Copelands have the right, power and authority to do so. (c) This Amendment constitutes the legal, valid and binding obligation of Copelands enforceable against Copelands in accordance with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the rights of contracting parties generally. Neither this Amendment nor the consummation of any of the transactions contemplated hereby violates or shall violate any provision of any agreement or document to which Copelands is a party or to which Copelands is bound. (d) Copelands is not bankrupt or insolvent under any applicable Federal or state standard. Copelands has not filed for protection or relief under any applicable bankruptcy or creditor protection statute. Copelands has not been threatened by creditors with an involuntary application of any applicable bankruptcy or creditor protection statute. Copelands is not entering into the transactions described in this Amendment with an intent to defraud any creditor or to prefer the rights of one creditor over any other. City and Copelands have negotiated this Amendment at arms - length and the consideration to be paid represents fair value for the assets to be transferred. All representations and warranties of Copelands in this Amendment are made as of the date of this Amendment, and shall survive the Closing and the recordation of the Grant Deed. 5.02 Representations and Warranties of Hotel Develo er. Hotel LLC and ST SLO each make the following representations and warranties to City: (a) Hotel LLC and ST SLO are each a California limited liability company duly organized and validly existing under the laws of the State of California, and each is qualified to do business in the State of California. (b) Hotel LLC and ST SLO each have the right, power and authority to enter into this Amendment and to perform its obligations hereunder, and the person(s) executing this Amendment on behalf of Hotel LLC and ST SLO each have the right, power and authority to do so. (c) This Amendment constitutes the legal, valid and binding obligation of Hotel LLC and ST SLO enforceable against each of them in accordance with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the rights of contracting parties generally. Neither this Resolution No. 10688 (2016 Series) EXHIBIT 1 Page 5 Amendment nor the consummation of any of the transactions contemplated hereby violates or shall violate any provision of any agreement or document to which Hotel LLC or ST SLO is a party or to which Hotel LLC or ST SLO is bound. No consent from any third party is required before the Palm Development Site may be purchased by Hotel Developer. (d) Neither Hotel LLC nor ST SLO is bankrupt or insolvent under any applicable Federal or state standard. Neither Hotel LLC nor ST SLO have filed for protection or relief under any applicable bankruptcy or creditor protection statute. Neither Hotel LLC nor ST SLO have been threatened by creditors with an involuntary application of any applicable bankruptcy or creditor protection statute. Neither Hotel LLC nor ST SLO is entering into the transactions described in this Amendment with an intent to defraud any creditor or to prefer the rights of one creditor over any other. City and Hotel Developer have negotiated this Amendment at arms - length and the consideration to be paid represents fair value for the assets to be transferred. All representations and warranties of Hotel Developer in this Amendment are made as of the date of this Amendment and as of the Closing, and shall survive the Closing and the recordation of the Grant Deed. It shall be a material default if Hotel Developer is unable to make such representations and warranties truthfully as of the Closing Date. 6. Amendments to Agreement. As of the Effective Date, the Agreement is amended as follows 6.01 Purchaser. All references in the Agreement to Copelands shall be understood to mean Hotel Developer. Notwithstanding the foregoing, all references in this Amendment to Copelands shall continue to mean SLO Chinatown, LLC, a California limited liability company. 6.02 Conditions to _Closing. Section 4.02(c). Construction on Palm Development Site: Section 4.02(c) of the Agreement is hereby deleted in its entirety and shall be replaced as follows: (c) Construction on Palm Development Site. Hotel Developer shall have provided evidence reasonably satisfactory to the City that it is prepared to commence construction on the Palm Development Site in accordance with San Luis Obispo City Council Resolution No. 10128 (2009 Series), adopted November 17, 2009, and in conformity with the 2009 EIR (including without limitation the reuse of the Shanghai Low Restaurant sign), or as such entitlements subsequently may be modified and approved by the City in the normal exercise of its development review authority following request therefor by Hotel Developer or its predecessors in interest (the "Project ") as follows: (i) Hotel Developer has obtained such demolition and grading permits for Project as may be reasonably needed to prepare for construction of the Project (the "Demolition Permit ") and the Demolition Permit has not expired; (ii) Hotel Developer shall have submitted evidence to the City's reasonable satisfaction demonstrating sufficient financial resources, from construction lenders and from equity funds and investors as may be necessary, to complete the construction and equipping of the Project in accordance with a budget prepared by Hotel Developer; (iii) Hotel Developer shall have submitted evidence to the City's reasonable satisfaction that Hotel Developer has entered into construction contracts for the Project evidencing that the work of construction can be completed within the budget; and (iv) Hotel Developer has submitted evidence to the City that a binding contract has been entered into, or is not appropriate, between Hotel Developer and an operator of the completed Project. Resolution No. 10688 (2016 Series) EXHIBIT 1 Page 6 (v) The Closing on the Palm Development Site is conditioned on closing concurrently with the closing of the construction loan from the construction lender referenced in subsection (ii) above; (vi) Hotel Developer has provided security in the amount of $1,000,000 to City to ensure diligent progress in construction of the Project, which shall be available for restoration of the Palm Development Site if Hotel Developer fails to diligently commence and pursue construction. The security shall be forfeited to City, (a) if Hotel Developer does not obtain all building permits for the Palm Development Site and commence construction within twelve (12) months of the Closing Date, and (b) if Hotel Developer does not diligently pursue construction; provided, City shall release three - fourths of the security when all building permits are issued, and the remaining one -fourth when the foundation is signed off by the City. 6.03 Conditions to Closing. Section 4.02(4). Construction on Monterey Parcels: Section 4.02(d) of the Agreement is hereby deleted in its entirety and shall be replaced as follows: (d) Construction on Monterey Parcels. Significant progress on the construction of the Monterey Improvements on the Monterey Real Property has been made and Copelands is diligently pursuing completion thereof. 6.04 Early Termination, Section 4.08. Early Termination: Section 4.08 of the Agreement is hereby deleted in its entirety and not replaced. 6.05 Post Closing obligations. Section 7.41. Limitations and Restrictions on the Use of Palm Development Site' Reverter. Section 7.01 of the Agreement is hereby deleted in its entirety and shall be replaced as follows: After the Closing, Hotel Developer agrees to promptly commence construction on the Project and to diligently pursue such construction to completion thereafter in accordance with the Demolition Permit and the construction Permits (collectively, the "Permits ").The parties agree, and the Grant Deed shall contain property restrictions and conditions, in a form acceptable to the City Attorney and in substantively the same form as Exhibit F -1 attached hereto (the "Property Restrictions "). The Property Restrictions shall reflect, that until Substantial Completion(as defined below) of the Project in accordance with the Permits: (i) the use of the Palm Development Site shall be limited and restricted to the construction of the Project in accordance with the Permits; (ii) Hotel Developer shall not encumber the Palm Development Site except as security for construction loans to finance the construction of the Project: and (iii) the City has the right of reverter and a power of termination (Civil Code section 885.010) to cause the title of Hotel Developer to the Palm Development Site to terminate and to revert to the City under the conditions set forth in the next sentence. The Grant Deed or other document shall reflect that City may exercise its right of reverter and power of termination described above (a) if Hotel Developer does not obtain all of the Permits required to construct the Project within twelve (12) months of the Closing Date and (b)if Hotel Developer does not commence work on the Project in accordance with any of the Permits within six (6) months of the Closing Date; or (c) if construction is commenced but construction is not diligently pursued by Hotel Developer to Substantial Completion within twenty -four (24) months of the Closing Date, or within such additional period of time to which the City may consent in writing upon demonstration by Hotel Developer of diligence and good cause, including time diligently spent in archaeological review and remediation, such consent not to be unreasonably withheld. "Substantial Completion" shall be deemed to have occurred when the Project is complete in accordance with the construction contract the Permits and Project approvals, including the exterior shell(s) roofed, exterior windows and doors installed, final exterior siding /stucco with finishes applied, all public improvements including, but not limited to, sidewalks, relocated parking and driveways, required by the Permits or Project approvals, have been accepted by the City or other applicable public Resolution No. 10688 (2016 Series) EXHIBIT 1 entity, and all debris, construction fencing ,materials or equipment that encroach in the right of way removed. Substantial Completion does not include, and excepts, interior improvements, a final punch list of construction items related to the above work and a final issuance of a Certificate of Occupancy. If the City exercises its power of termination and right of reverter, in return for waiving its right to recover attorneys' fees and costs incurred in the exercise of such power and right, as set forth in the Grant Deed, City shall not be required to repay the Purchase Price, the Palm Parking Mitigation Payment, or any other sums expended or incurred by Hotel Developer or any other person or entity in connection with Hotel Developer's purchase or development of the Palm Development Site. In the event the City, being entitled to do so, causes the title to the Palm Development Site to revert to the City, the City shall be entitled permanently to retain title to the Palm Development Site, including but not limited to 861/863 Palm Parcel and shall have no obligation to offer, return or to sell title to the Palm Development Site to Hotel Developer, any co- tenant or any other person or entity. Upon the timely substantial completion of the Project in accordance with the Permits, the City shall execute and deliver to Hotel Developer a Certificate of Completion in substantially the form attached hereto as Exhibit F -2, which shall acknowledge that the deed restriction and any right of reverter in favor of the City have terminated. Page 7 6.06 Assignment, Section 11.11. Successors and Assigns: The following subsection (d) shall be added to Section 11.11 of the Agreement and thereafter, shall collectively be referred to, along with subsections (a), (b) and (c), as "Permitted Assignments ": (d) The assignment of the Agreement to Hotel Developer as provided herein in which: (i)the Copelands have no less than a 13.3% equity interest in the Project ; and (ii) Hotel LLC will have at least a 75% majority and controlling interest in the Project; and (iii) Hotel LLC is the manager of the project and the managers of Hotel LLC are Metrovation LLC, a California Limited Liability Company and Piazza Hotel Management LLC, a California Limited Liability Company; and (iv) the Copelands continue to provide construction and pre- opening management services, including without limitation working as the primary liaison with the City, and the Copelands deliver to the City satisfactory evidence of such ownership and management. 6.07 Attachment of Exhibit B — Legal Description A copy of the legal description for the Palm Development Site is attached as Exhibit "B" and incorporated by this reference. 6.08 Effect of Amendment. Any and all terms and provisions of the Agreement are hereby modified wherever necessary, and even though the same may not be specifically addressed herein, so as to conform to the amendment(s) set forth in the preceding paragraph(s) hereof. 7. Address for Notices to Hotel Developer. If to Hotel SLO, LLC: Metrovation, LLC its Manager 580 Second Street, Suite 260 Oakland, CA 94607 With a copy to: Resolution No. 10688 (2016 Series) EXHIBIT 1 Delphi CRE Funding LLC c/o ACORE Capital Mortgage, LP 80 E. Sir Francis Drake Blvd., Suite 2A Larkspur, CA 94939 Attn: Stew Ward, Managing Partner If to Sutter Tustin SLO, LLC: Louis Lipset, its Manager 2590 Pacific Avenue San Francisco, CA 94115 With a copy to: Steven D. Seiler Seiler Epstein Ziegler & Applegate, LLP 601 Montgomery Street, Suite 2000 San Francisco, CA 94111 With a copy to: Delphi CRE Funding LLC c/o ACORE Capital Mortgage, LP 80 E. Sir Francis Drake Blvd., Suite 2A Larkspur, CA 94939 Attn: Stew Ward, Managing Partner 8. Miscellaneous. Page 8 Authorization. The person executing this Amendment on behalf of Copelands and Hotel Developer hereby warrant and represent to City that all necessary legal prerequisites to that party's execution of this Amendment have been satisfied and that he or she is fully authorized to do so and to bind the party of whose behalf he or she signs. The person executing this Amendment on behalf of City claims to do so to the extent the authority to do so has been duly delegated to that person by the City Council of the City in accordance with applicable law. Counterparts. A counterpart of this Amendment with separate but fully executed signature pages attached thereto shall have the full force and effect of an original executed instrument. [signature blocks begin on next page] Resolution No. 10688 (2016 Series) EXHIBIT 1 Page 9 This Amendment is executed by the parties as of the date first written above. SLO CHINATOWN, LLC, a California limited liability company By: James C. Copeland Its: Manager HOTEL SLO, LLC, a California limited liability company By: Metrovation, LLC, a California limited liability company, its Manager Mark Seiler, Manager By: Piazza Hotel Management, LLC, a California limited liability company, its Manager Paolo Patrone, Manager SUTTER TUSTIN SLO, LLC, a California limited liability company By: Sutter Tustin, a California limited liability company, its Manager By: Louis Lipset CITY OF SAN LUIS OBISPO, a municipal corporation and Charter City By: Katie Lichtig, City Manager Approved as to Form: By: City Attorney Resolution No. 10688 (2016 Series) Exhibit B to EXHIBIT 1 Palm Development Site PSA Page 10 LEGAL DESCRIPTION Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows: PARCEL ONE THAT PORTION OF BLOCK 14 OF THE MAP OF THE TOWN OF SAN LUIS OBISPO, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED FOR RECORD MAY 01, 1878, IN BOOK A, PAGE 168, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTHERLY LINE OF MONTEREY STREET, IN SAID CITY, DISTANT THEREON, NORTH 54° 06' EAST, 109.31 FEET FROM THE NORTHEASTERLY CORNER OF CHORRO AND MONTEREY STREET, THENCE NORTH 35° 54' WEST, 80.00 FEET TO A POINT; THENCE NORTH 540 06' EAST 12.67 FEET TO A POINT; THENCE NORTH 351 54' WEST, 34.17 FEET TO A POINT; THENCE NORTH 330 02' WEST, 148.54 FEET TO A POINT; THENCE NORTH 360 22' WEST, 86.50 FEET TO A POINT ON THE SOUTHERLY LINE OF PALM STREET AS SHOWN ON SAID MAP; THENCE ALONG SAID SOUTHERLY LINE NORTH 530 38' EAST, 12.00 FEET TO A POINT; THENCE SOUTH 360 22' EAST, 70.25 FEET TO A POINT; THENCE SOUTH 810 22' EAST, 8.13 FEET TO A POINT; THENCE NORTH 530 38' EAST 36.75 FEET TO A POINT; THENCE NORTH 8° 38' EAST, 8.13 FEET TO A POINT; THENCE NORTH 361 22' WEST, 12.75 FEET TO A POINT; THENCE NORTH 500 13' EAST, 38.16 FEET TO A POINT; THENCE SOUTH 351 54' EAST, 148.56 FEET TO A POINT; THENCE SOUTH 541 06' WEST, 45.75 FEET TO A POINT; THENCE SOUTH 351 54' EAST, 146.00 FEET TO A POINT ON THE NORTHERLY LINE OF SAID MONTEREY STREET, THENCE ALONG SAID LINE SOUTH 540 06' WEST, 72.44 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED IN THE DEED TO SLO CHINATOWN, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, RECORDED JULY 31, 2012, IN INSTRUMENT NO. 2012042357, OF OFFICIAL RECORDS. PARCEL TWO: THAT PORTION OF BLOCK 14 OF THE MAP OF THE TOWN OF SAN LUIS OBISPO, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED FOR RECORD MAY 01, 1878, IN BOOK A, PAGE 168, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTHERLY LINE OF MONTEREY STREET, IN SAID CITY, DISTANT NORTH 540 6' EAST, 227 FEET 6 INCHES FROM THE NORTHEASTERLY CORNER OF CHORRO AND MONTEREY STREETS; THENCE RUNNING NORTH 540 6' EAST ALONG SAID NORTHERLY LINE OF MONTEREY STREET, 52 FEET AND 6 INCHES TO THE SOUTHWESTERLY CORNER OF THE LOT FORMERLY OWNED BY MRS. N. E. CALL; THENCE NORTH 331 22' WEST ALONG THE WESTERLY LINE OF SAID LOT OF MRS. N. E. CALL, 351 FEET TO THE SOUTHERLY LINE OF PALM STREET; THENCE SOUTH 530 38' WEST ALONG SAID SOUTHERLY LINE OF PALM STREET, 107 FEET TO THE NORTHWESTERLY CORNER OF THE LOT FORMERLY OWNED BY B. BRIZZOLARA; THENCE SOUTH 360 22' EAST ALONG THE WESTERLY LINE OF SAID BRIZZOLARA LOT, 56.36 FEET TO A POINT; THENCE NORTH 530 38' EAST AND PARALLEL WITH THE SOUTHERLY LINE OF PALM STREET, 38.08 FEET TO THE EASTERLY LINE OF A LOT CONVEYED BY NATHAN AND ISSAC GOLDTREE TO W. J. OAKS, BY DEED DATED AUGUST 21, 1882 AND RECORDED IN BOOK 0, PAGE 431 OF DEEDS AND FOLLOWING; THENCE SOUTH 350 54' EAST ALONG THE EASTERLY LINE OF SAID OAKS LOT, 296 FEET TO THE NORTHERLY LINE OF MONTEREY STREET AND THE POINT OF BEGINNING. First American Tit /e Insurance Company Resolution No. 10688 (2016 Series) Exhibit B to EXHIBIT 1 Palm Development Site PSA Page 11 EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED IN THE DEED TO SLO CHINATOWN, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, RECORDED JULY 31, 2012, IN INSTRUMENT NO. 2012042357, OF OFFICIAL RECORDS. PARCEL THREE: THAT PORTION OF LOTS 2 AND 3 OF THE MAP OF THE SUBDIVISION OF PART OF BLOCKS 14 & 18, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED IN BOOK 1, PAGE 43 OF RECORD OF SURVEYS, DESCRIBED AS A WHOLE AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF LOT 1 OF SAID BLOCK; THENCE SOUTH 530 38' WEST ALONG THE NORTHWESTERLY LINE OF LOTS 1 AND 2, 89.65 FEET TO THE TRUE POINT OF BEGINNING; WHICH POINT BEARS NORTH 530 38' EAST, 0.35 FEET FROM THE MOST WESTERLY CORNER OF SAID LOT 2; THENCE SOUTH 330 23'50" EAST, 100.1 FEET TO A POINT IN THE SOUTHEASTERLY LINE OF SAID LOT 3, SAID POINT BEING NORTH 530 38' EAST, 0.56 FEET FROM THE MOST SOUTHERLY CORNER OF SAID LOT 3; THENCE SOUTH 530 38' WEST ALONG THE SOUTHEASTERLY LINE OF SAID LOT 3, 0.56 FEET TO THE MOST SOUTHERLY CORNER OF SAID LOT; THENCE NORTH 330 16'30" WEST ALONG THE SOUTHWESTERLY LINE OF SAID LOTS 3 AND 2, 100.14 FEET TO THE MOST WESTERLY CORNER OF SAID LOT 2; THENCE NORTH 530 38' EAST ALONG THE NORTHWESTERLY LINE OF SAID LOT 2, 0.35 FEET TO THE TRUE POINT OF BEGINNING. PARCEL FOUR: LOTS 4 AND 10 OF THE MAP OF THE SUBDIVISION OF PART OF BLOCKS 14 & 18, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF FILED IN BOOK 1, PAGE 43 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL FIVE: INTENTIONALLY DELETED PARCEL SIX: LOTS 1, 2 AND 3 OF THE MAP OF THE SUBDIVISION OF PART OF BLOCKS 14 & 18, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF FILED IN BOOK 1, PAGE 43 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED IN THE DEED TO C. A. MAINO, ET UX, RECORDED APRIL 07, 1953 IN BOOK 704, PAGE 439 OF OFFICIAL RECORDS. PARCEL 7: ALL THAT PART OF BLOCK 14 OF THE CITY OF SAN LUIS OBISPO, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED MAY 01, 1878 IN BOOK A, PAGE 168 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTHWESTERLY LINE OF SAID BLOCK, DISTANT THEREON NORTH 53° 38' EAST, 143.33 FEET FROM THE MOST WESTERLY CORNER OF SAID BLOCK, SAID POINT BEING THE MOST NORTHERLY CORNER OF THE PROPERTY CONVEYED TO FERDINANDO First American Title Insurance Company Resolution No. 10688 (2016 Series) Exhibit B to EXHIBIT 1 Palm Development Site PSA ge 12 CHIESA BY DEED DATED JULY 01, 1912 IN BOOK 93, PAGE 136 OF DEEDS; THENCE SOUTH 360 22' EAST, 70.25 FEET TO THE MOST WESTERLY CORNER OF THE PROPERTY CONVEYED TO SERAFINO J. MARTINELLI AND CARMEL MARTINELLI BY DEED DATED FEBRUARY 08, 1966 AND RECORDED APRIL 01, 1966 IN BOOK 1391, PAGE 479 OF OFFICIAL RECORDS; THENCE SOUTH 810 22' EAST, 8.13 FEET TO A POINT; THENCE NORTH 530 38' EAST, 36.75 FEET TO A POINT; THENCE NORTH 80 38' EAST, 8.13 FEET TO A POINT; THENCE NORTH 360 22' WEST, 70.25 FEET TO THE SOUTHERLY LINE OF PALM STREET; THENCE ALONG THE SOUTHERLY LINE OF PALM STREET SOUTH 530 38' WEST, 48.25 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION THEREOF INCLUDED WITHIN THE PRESENT LINES OF PALM STREET. APN(S): 002 - 416 -031, 002 - 416 -035 and 002 - 416 -038 (new # 002 - 416 -040) First American Tit /e Insurance Company Resolution No. 10688 (2016 Series) Exhibit F -1 EXHIBIT 1 to Palm Development PSA Page 13 When recorded return to: Steven D. Seiler, Esq. Seiler Epstein Ziegler & Applegate LLP 601 Montgomery Street, Suite 2000 San Francisco, CA 94111 GRANT DEED For valuable consideration, the receipt of which is hereby acknowledged, Grant CITY OF SAN LUIS OBISPO, a municipal corporation and a chartered city organized and existing under the Constitution of the State of California ( "Grantor "), hereby grants to HOTEL SLO, LLC, a California limited liability company, as to a 79.2% undivided interest, and SUTTER TUSTIN SLO, LLC, a California limited liability company, as to a 20.8% undivided interest, as tenants -in- common (collectively, the "Grantee "), certain real property (herein called "Palm Development Site ") specifically described on the attached Exhibit A incorporated herein by this reference, on the terms and conditions set forth herein. The Palm Development Site is conveyed to carry out the public purposes of that certain Agreement of Purchase and Sale —Palm Development Site (as amended, the "Agreement "), a public document in the records of the Clerk of City of San Luis Obispo, dated December 19, 2011, which was amended by that certain First Amendment to Agreement of Purchase and Sale -- Palm Developments Site, dated as of January _, 2016. The Agreement was approved by the City Council of the City of San Luis Obispo on December 13, 2011. Palm Development Site Restrictions and Conditions Until the Project (as that term is defined in the Agreement has been substantially completed in the time and manner required by the Agreement or as otherwise provided herein, the terms set forth in this paragraph and the following paragraphs numbered 1 through 8 (hereinafter, the "Palm Development Site Restrictions ") shall govern the ownership and use of the Palm Development Site. Grantor, upon request of the owner of the Palm Development Site and submission to Grantor of evidence reasonably satisfactory to Grantor that the Project has been substantially completed in accordance with the Agreement, shall deliver the Certificate of Completion in substantially the form attached hereto as Exhibit B (the "Certificate of Completion "), which is suitable for recordation in the Official Records and the terms of these Palm Development Site Restrictions shall automatically cease and terminate. Grantor and Grantee agree as follows: Resolution No. 10688 (2016 Series) Exhibit F -1 EXHIBIT 1 to Palm Development PSA Page 14 1. Prior to the date Grantor is required to issue the Certificate of Completion, Grantee hereby covenants for itself, its successors, its assigns and every successor in interest to the Palm Development Site or any part thereof that: a. The Palm Development Site shall not be used for any purpose other than the construction, development and operation of the Project; b. Grantee shall commence construction of the Project as required by the Agreement and shall diligently pursue such construction to completion thereafter as required by the Agreement. The Grantee shall be deemed to be in default: (a) if Grantee does not obtain all of the permits required to construct the Project within twelve (12) months of the Closing Date and (b)if Grantee does not commence work on the Project in accordance with any of the Permits (as that term is defined in the Agreement) within six (6) months of the Closing Date; or (c) if construction is commenced but construction is not diligently pursued by Grantee to Substantial Completion (defined below) within twenty -four (24) months of the Closing Date, or within such additional period of time to which the City may consent in writing upon demonstration by Grantee of diligence and good cause, including time diligently spent in archaeological review and remediation, such consent not to be unreasonably withheld. "Substantial Completion' shall be deemed to have occurred when the Project is complete in accordance with the construction contract the Permits and Project approvals, including the exterior shell(s) roofed, exterior windows and doors installed, final exterior siding/stucco with finishes applied, all public improvements including, but not limited to, sidewalks, relocated parking and driveways, required by the Permits or Project approvals, have been accepted by the City or other applicable public entity, and all debris, construction fencing ,materials or equipment that encroach in the right of way removed. Substantial Completion does not include, and excepts, interior improvements, a final punch list of construction items related to the above work and a final issuance of a Certificate of Occupancy. C. Grantee shall have no power to make, and shall not make or attempt to make, any total or partial sale, transfer, conveyance, encumbrance, lease or assignment of the Palm Development Site or any part thereof without the prior written consent of Grantor, except for (i) any mortgage, deed of trust, sale and leaseback or other form of conveyance or encumbrance for financing, including without limitation the lien created by that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement, and Fixture Filing dated as of January [___], 2016 and recorded on or about the date hereof ( "Deed of Trust ") by Grantee for the benefit of Delphi CRE Funding LLC, a Delaware limited liability company (together with its successors and assigns, the "Lender ") together with any other deed of trust or mortgage (collectively, "Mortgage "), for the purpose of securing loans whose proceeds shall only be used for financing the direct and indirect costs (including, without limitation, financing costs, tenant improvement allowances, interest and commissions) of designing, constructing and developing the Project, (ii) the sale or conveyance of the Palm Development Site or any portion thereof pursuant to the exercise of its remedies by Lender or another lender under a Mortgage (each, a "Mortgage Lender ") under the relevant loan documents or a deed given in lieu of the exercise of such remedies; (iii) the conveyance or dedication of any portion of the Palm Development Site to the City, or other appropriate governmental City or municipal corporation; (iv) the granting of easements or permits to facilitate the construction, development or operation of the Project, including without limitation, utility easements; and (v) the leasing of space in the ordinary course of business in the Project for occupancy by retail, restaurant, office or other commercial Resolution No. 10688 (2016 Series) Exhibit F -1 EXHIBIT 1 to Palm Development PSA Page 15 businesses following completion of the Project.. In the absence of specific written agreement by Grantor, no such unauthorized sale, transfer, conveyance or assignment of the Palm Development Site shall be deemed to relieve Grantee or any other party from any obligations under these Palm Development Site Restrictions; d. Grantee shall not place or suffer to remain undischarged on the Palm Development Site for more than sixty (60) days after notice from Grantor any lien or encumbrance other than a Mortgage unless such lien or encumbrance, or the amount thereof, is being contested in good faith by appropriate proceedings diligently conducted; e. Grantee shall pay prior to delinquency all real property taxes and assessments assessed and levied on or against the Palm Development Site subsequent to the conveyance of the Palm Development Site to Grantee by Grantor unless such tax or assessment is being contested in good faith by appropriate proceedings diligently conducted; f. Grantee shall remove, or shall have removed, any levy or attachment made on the Palm Development Site, or shall assure the satisfaction thereof within a reasonable time but in any event prior to a sale thereunder unless such levy or attachment, or the amount thereof, is being contested in good faith by appropriate proceedings diligently conducted; g. If Grantee shall fail perform or observe any term or covenant in any loan document or other obligation secured by the Mortgage, Grantee shall cure such failure within sixty (60) days after notice thereof to Grantee from the Mortgage Lender; h. Grantee, its successors and assigns, and any successor -in- interest to the Palm Development Site shall hold the Palm Development Site as one parcel and shall not subdivide the Palm Development Site without the prior written consent of Grantor; and i. Grantee shall cure any violation of the provisions of this paragraph 1 within 60 days after the date of receipt of written notice of such violation by Grantor to Grantee, or, if such violation is of a nature that it cannot be cured within 60 days, then Grantee shall have commenced to cure such violation within 60 days after the date of receipt of written notice of such violation and shall diligently continue to act to cure such violation. Grantor shall provide Mortgage Lender with notice of the breach or default by Grantee hereunder (the "Default Notice "). After Mortgage Lender receives a Default Notice, Mortgage Lender shall have a period of thirty (30) days beyond the time available to Grantee hereunder or the Agreement (whichever is longer) in which to cure the breach or default by Grantee. Mortgage Lender shall have no obligation to cure (and shall have no liability or obligation for not curing) any breach or default by Grantee, except to the extent that Mortgage Lender agrees or undertakes otherwise in writing. In addition, as to any breach or default by Mortgage Lender the cure of which requires possession and control of the Palm Development Site, Mortgage Lender's cure period shall continue for such additional time as Mortgage Lender may reasonably require to either: (i) obtain possession and control of the Palm Development Site with due diligence and thereafter cure the breach or default with reasonable diligence and continuity; or (ii) obtain the appointment of a receiver and give such receiver a reasonable period of time in which to cure the default. The foregoing shall not be construed to limit or modify Section 5 below. Resolution No. 10688 (2016 Series) Exhibit F -1 EXHIBIT 1 to Palm Development PSA Page 16 2. Prior to the date Grantor is required to issue the Certificate of Completion and subject to the Deed of Trust, Grantor hereby reserves and shall retain for exercise at its option, the additional right and power of termination of the estate conveyed by this Grant Deed and to re -enter and take possession of the Palm Development Site hereby conveyed with all improvements thereon, and to terminate Grantee's ownership interest in, and revest in Grantor, the Palm Development Site (the "Power of Termination ") in the event that Grantee is in violation of any subparagraph of paragraph 1 of these Palm Development Site Restrictions and such violation is not cured by Grantee in a timely manner. 3. The Power of Termination of Grantor with respect to the Palm Development Site shall be interpreted in light of the fact that Grantor would not have agreed to the Purchase Price and Palm Parking Mitigation Payment (each as defined in the Agreement) for the Palm Development Site and would not have agreed to convey the Palm Development Site to Grantee except for the covenant and promise of Grantee to construct and develop the Project on the Palm Development Site and the trust and confidence placed by Grantor in the good faith intent and abilities of the Grantee, and that Grantor hereby conveys the Palm Development Site to Grantee for development of the Project to benefit and enhance the planning goals of the City of San Luis Obispo for the benefit of its citizens, and not for speculation in undeveloped land. 4. In the event title to the Palm Development Site conveyed by Grantor to Grantee by the Grant Deed is revested in Grantor by reason of the exercise by Grantor of its Power of Termination as provided in these Palm Development Site Restrictions: (i) Grantee shall have delivered to Grantor a quitclaim deed in recordable form for the Palm Development Site naming Grantor as the grantee; (ii) a land title insurance company satisfactory to Grantor shall commit to issue a title insurance policy to Grantor as the insured, showing fee title vested in Grantor subject to no liens, encumbrances or third party claims incurred by or through Grantee, its successors and assigns, except for a Mortgage or as otherwise allowed by these Palm Development Site Restrictions (the "Allowable Exceptions "), with coverage in a reasonable amount to be determined by Grantor; and (iii) Grantee shall reimburse Grantor for any payment made or necessary to be made to discharge or prevent any current or delinquent taxes, encumbrances, liens, levies or attachments or third party claims incurred by or through Grantee, except for the Allowable Exceptions, from attaching to the title at the time it is revested in Grantor by the exercise of its Power of Termination. 5. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in these Palm Development Site Restrictions, or exercise of any Power of Termination, shall defeat or render invalid or in any way impair the lien or charge of any Mortgage permitted by these Palm Development Site Restrictions and made in good faith and for value. For the avoidance of doubt, the Mortgage is a first priority lien and the Power of Termination is subordinate to the Mortgage in all respects. Further, the terms of these Palm Development Site Restrictions shall automatically cease and terminate ninety (90) days after a Mortgage Lender has provided Grantor with written notice of a default (the "Mortgage Default Notice ") in the obligations under any agreement secured by the Mortgage, if such default has not been cured within such ninety (90) day period, as to Mortgage Lender or any owner of the Palm Development Site who has acquired the Palm Development Site pursuant to a Mortgage Lender's exercise of its remedies under the relevant loan documents or pursuant to a deed given in lieu of the exercise of such remedies (a "Successor Owner "). Further, Grantor shall forbear from exercising its rights and remedies to enforce the Power Resolution No. 10688 (2016 Series) Exhibit F -1 EXHIBIT 1 to Palm Development PSA Page 17 of Termination from the time Grantor has received the Mortgage Default Notice and thereafter during the time that Mortgage Lender is diligently enforcing Mortgage Lender's rights and remedies against Grantee under the Mortgage and other loan documents, including without limitation, sending default notices, efforts to enter into a loan workout or modification, acceleration of the loan, foreclosure or deed in lieu of foreclosure and defending Mortgage Lender's rights under Grantee's bankruptcy proceedings. Upon the transfer of title to the Mortgage Lender or any Successor Owner and the resulting termination of these Palm Development Site Restrictions pursuant to this paragraph, the Grantor agrees to execute and record in the Official Records a notice that these Palm Development Site Restrictions have been terminated in form and substance reasonably satisfactory to then owner of the Palm Development Site. Nothing contained herein shall be deemed to obligate the holder of the Mortgage, its successors or assigns, or any Successor Owner to undertake the construction and development of the Project. Notwithstanding the foregoing, if a Successor Owner subsequently undertakes to construct the Project, then such Successor Owner shall diligently pursue such construction to completion. 6. Grantor, in the event of any breach of any covenant in these Palm Development Site Restrictions, shall have the right to exercise all the rights and remedies, and to maintain any action at law or suits in equity or other proper proceedings to enforce the curing of such breach. 7. The covenants contained in these Palm Development Site Restrictions shall be interpreted without regard to technical classification or designation, and shall not benefit or be enforceable by any person, firm, or corporation, public or private, except Grantor and Grantee and their respective successors and assigns. 8. In the event any action is brought to enforce, modify or interpret the provisions of these Palm Development Site Restrictions, neither party shall be entitled to attorneys' fees or court costs in connection with such action. If any clause, sentence or other portion of these Palm Development Site Restrictions shall be or become illegal, unenforceable or void for any reason, the remaining portion shall continue in full force and effect. [remainder of page intentionally left blank] Resolution No. 10688 (2016 Series) Exhibit F -1 EXHIBIT 1 to Palm Development PSA Page 18 F.xPni 4inn IN WITNESS WHEREOF, Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers thereunder duly authorized, as of this day of ,20—,. GRANTOR: City of San Luis Obispo, a municipal corporation and charter city By: ayor APPROVED AS TO FORM AND LEGAL EFFECT: U811 My– Attorney Dated: GRANTEE: Hotel SLO, LLC, a California limited liability company By: Metrovation, LLC, its co- manager By: ___ __ ar Seiler, Its: Manager By: Piazza Hotel Management, LLC, its co- manager By: Paolo Petrone, manager Sutter Tustin SLO, LLC, a California limited liability company By: Sutter Tustin, [ ,C, a California limited liability company, it Manager By: Louis Lipset, Manager Resolution No. 10688 (2016 Series) Exhibit F -1 EXHIBIT 1 to Palm Development PSA Page 19 Exhibit A Legal Description of the Palm Development Site Resolution No. 10688 (2016 Series) Exhibit EXHIBIT 1 to Palm Development PSA Page 20 Exhibit B Certificate of Completion RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Certificate of Completion City of San Luis Obispo, a municipal corporation and a chartered city organized and existing under the Constitution of the State of California ( "Grantor "), hereby certifies with respect to Section 7.01 of that certain Agreement of Purchase and Sale — Palm Development Site, dated as of December , 2011, which was amended by that certain First Amendment to Agreement of Purchase and Sale -- Palm Developments Site, dated as of January _, 2016, executed by Hotel SLO, LLC, a limited liability company and Sutter Tustin SLO, LLC, a California limited liability company, as tenants -in- common (collectively, the "Grantee ") in favor of Grantor, and that certain Grant Deed recorded in the Official Records of the County of San Luis Obispo County on 200_, as document number _ with respect to the real property more specifically described in Exhibit 1 attached hereto (collectively, the "Palm Development Site Restrictions "), as follows: 1. The Project has been substantially completed in accordance with the Permits; and 2. All covenants and obligations of Grantee and its successors and assigns under the Palm Development Site Restrictions, including without limitation the right of reverter and power of termination of Grantor, have ceased and terminated. All capitalized terms not otherwise defined in this Certificate of Completion shall have the meaning given in the Palm Development Site Restrictions. This Certificate of Completion has been duly executed by an authorized person on behalf of Grantor as of .200-.. GRANTOR: CITY OF SAN LUIS OBISPO, a municipal corporation and Charter City By: Its: APPROVED: City Attorney City of San Luis Obispo :A Resolution No. 10688 (2016 Series) EXHIBIT I Exhibit 2 to Palm Development PSA Page 21 Exhibit B Certificate of Completion RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Certificate of Completion City of San Luis Obispo, a municipal corporation and a chartered city organized and existing under the Constitution of the State of California ( "Grantor "), hereby certifies with respect to Section 7.01 of that certain Agreement of Purchase and Sale — Palm Development Site, dated as of December , 2011, which was amended by that certain First Amendment to Agreement of Purchase and Sale -- Palm Developments Site, dated as of January _, 2016, executed by Hotel SLO, LLC, a limited liability company and Sutter Tustin SLO, LLC, a California limited liability company, as tenants -in- common (collectively, the "Grantee ") in favor of Grantor, and that certain Grant Deed recorded in the Official Records of the County of San Luis Obispo County on , 200_, as document number , with respect to the real property more specifically described in Exhibit l attached hereto (collectively, the "Palm Development Site Restrictions "), as follows: 1. The Project has been substantially completed in accordance with the Permits; and 2. All covenants and obligations of Grantee and its successors and assigns under the Palm Development Site Restrictions, including without limitation the right of reverter and power of termination of Grantor, have ceased and terminated. All capitalized terms not otherwise defined in this Certificate of Completion shall have the meaning given in the Palm Development Site Restrictions. This Certificate of Completion has been duly executed by an authorized person on behalf of Grantor as of -,200—. GRANTOR: CITY OF SAN LUIS OBISPO, a municipal corporation and Charter City By: Its: APPROVED: City Attorney City of San Luis Obispo Resolution No. 10688 (2016 Series) Exhibit EXHIBIT 1 to Palm Development PSA Page 22 LEGAL DESCRIPTION Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows: PARCEL ONE: THAT PORTION OF BLOCK 14 OF THE MAP OF THE TOWN OF SAN LUIS OBISPO, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED FOR RECORD MAY 01, 1878, IN BOOK A, PAGE 168, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTHERLY LINE OF MONTEREY STREET, IN SAID CITY, DISTANT THEREON, NORTH 54° 06' EAST, 109.31 FEET FROM THE NORTHEASTERLY CORNER OF CHORRO AND MONTEREY STREET, THENCE NORTH 35° 54' WEST, 80.00 FEET TO A POINT; THENCE NORTH 540 06' EAST 12.67 FEET TO A POINT; THENCE NORTH 350 54' WEST, 34.17 FEET TO A POINT; THENCE NORTH 33° 02' WEST, 148.54 FEET TO A POINT; THENCE NORTH 360 22' WEST, 86.50 FEET TO A POINT ON THE SOUTHERLY LINE OF PALM STREET AS SHOWN ON SAID MAP; THENCE ALONG SAID SOUTHERLY LINE NORTH 530 38' EAST, 12.00 FEET TO A POINT; THENCE SOUTH 360 22' EAST, 70.25 FEET TO A POINT; THENCE SOUTH 811 22' EAST, 8.13 FEET TO A POINT; THENCE NORTH 530 38' EAST 36.75 FEET TO A POINT; THENCE NORTH 80 38' EAST, 8.13 FEET TO A POINT; THENCE NORTH 360 22' WEST, 12.75 FEET TO A POINT; THENCE NORTH 50° 13' EAST, 38.16 FEET TO A POINT; THENCE SOUTH 350 54' EAST, 148.56 FEET TO A POINT; THENCE SOUTH 54° 06' WEST, 45.75 FEET TO A POINT; THENCE SOUTH 35° 54' EAST, 146.00 FEET TO A POINT ON THE NORTHERLY LINE OF SAID MONTEREY STREET, THENCE ALONG SAID LINE SOUTH 540 06' WEST, 72.44 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED IN THE DEED TO SLO CHINATOWN, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, RECORDED JULY 31, 2012, IN INSTRUMENT NO. 2012042357, OF OFFICIAL RECORDS. PARCEL TWO: THAT PORTION OF BLOCK 14 OF THE MAP OF THE TOWN OF SAN LUIS OBISPO, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED FOR RECORD MAY 01, 1878, IN BOOK A, PAGE 168, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTHERLY LINE OF MONTEREY STREET, IN SAID CITY, DISTANT NORTH 540 6' EAST, 227 FEET 6 INCHES FROM THE NORTHEASTERLY CORNER OF CHORRO AND MONTEREY STREETS; THENCE RUNNING NORTH 541 6' EAST ALONG SAID NORTHERLY LINE OF MONTEREY STREET, 52 FEET AND 6 INCHES TO THE SOUTHWESTERLY CORNER OF THE LOT FORMERLY OWNED BY MRS. N. E. CALL; THENCE NORTH 330 22' WEST ALONG THE WESTERLY LINE OF SAID LOT OF MRS. N. E. CALL, 351 FEET TO THE SOUTHERLY LINE OF PALM STREET; THENCE SOUTH 53° 38' WEST ALONG SAID SOUTHERLY LINE OF PALM STREET, 107 FEET TO THE NORTHWESTERLY CORNER OF THE LOT FORMERLY OWNED BY B. BRIZZOLARA; THENCE SOUTH 360 22' EAST ALONG THE WESTERLY LINE OF SAID BRIZZOLARA LOT, 56.36 FEET TO A POINT; THENCE NORTH 530 38' EAST AND PARALLEL WITH THE SOUTHERLY LINE OF PALM STREET, 38.08 FEET TO THE EASTERLY LINE OF A LOT CONVEYED BY NATHAN AND ISSAC GOLDTREE TO W. J. OAKS, BY DEED DATED AUGUST 21, 1882 AND RECORDED IN BOOK 0, PAGE 431 OF DEEDS AND FOLLOWING; THENCE SOUTH 351 54' EAST ALONG THE EASTERLY LINE OF SAID OAKS LOT, 296 FEET TO THE NORTHERLY LINE OF MONTEREY STREET AND THE POINT OF BEGINNING. First American Title Insurance Company Resolution No. 10688 (2016 Series) Exhibit F -2 EXHIBIT 1 to Palm Development PSA Page 23 EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED IN THE DEED TO SLO CHINATOWN, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, RECORDED JULY 31, 2012, IN INSTRUMENT NO, 2012042357, OF OFFICIAL RECORDS. PARCEL THREE: THAT PORTION OF LOTS 2 AND 3 OF THE MAP OF THE SUBDIVISION OF PART OF BLOCKS 14 & 18, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED IN BOOK 1, PAGE 43 OF RECORD OF SURVEYS, DESCRIBED AS A WHOLE AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF LOT 1 OF SAID BLOCK; THENCE SOUTH 530 38' WEST ALONG THE NORTHWESTERLY LINE OF LOTS 1 AND 2, 89.65 FEET TO THE TRUE POINT OF BEGINNING; WHICH POINT BEARS NORTH 5311 38' EAST, 0.35 FEET FROM THE MOST WESTERLY CORNER OF SAID LOT 2; THENCE SOUTH 331 23'50" EAST, 100.1 FEET TO A POINT IN THE SOUTHEASTERLY LINE OF SAID LOT 3, SAID POINT BEING NORTH 53° 38' EAST, 0.56 FEET FROM THE MOST SOUTHERLY CORNER OF SAID LOT 3; THENCE SOUTH 530 38' WEST ALONG THE SOUTHEASTERLY LINE OF SAID LOT 3, 0.56 FEET TO THE MOST SOUTHERLY CORNER OF SAID LOT; THENCE NORTH 330 16'30" WEST ALONG THE SOUTHWESTERLY LINE OF SAID LOTS 3 AND 2, 100.14 FEET TO THE MOST WESTERLY CORNER OF SAID LOT 2; THENCE NORTH 530 38' EAST ALONG THE NORTHWESTERLY LINE OF SAID LOT 2, 0.35 FEET TO THE TRUE POINT OF BEGINNING. PARCEL FOUR: LOTS 4 AND 10 OF THE MAP OF THE SUBDIVISION OF PART OF BLOCKS 14 & 18, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF FILED IN BOOK 1, PAGE 43 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL FIVE: INTENTIONALLY DELETED PARCEL SIX: LOTS 1, 2 AND 3 OF THE MAP OF THE SUBDIVISION OF PART OF BLOCKS 14 & 18, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF FILED IN BOOK 1, PAGE 43 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED IN THE DEED TO C. A. MAINO, ET UX, RECORDED APRIL 07, 1953 IN BOOK 704, PAGE 439 OF OFFICIAL RECORDS. PARCEL 7: ALL THAT PART OF BLOCK 14 OF THE CITY OF SAN LUIS OBISPO, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED MAY O1, 1878 IN BOOK A, PAGE 168 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTHWESTERLY LINE OF SAID BLOCK, DISTANT THEREON NORTH 530 38' EAST, 143.33 FEET FROM THE MOST WESTERLY CORNER OF SAID BLOCK, SAID POINT BEING THE MOST NORTHERLY CORNER OF THE PROPERTY CONVEYED TO FERDINANDO First American Tit /e Insurance Company Resolution No. 10688 (2016 Series) Exhibit F -2 EXHIBIT 1 to Palm Development PSA ge 24 CHIESA BY DEED DATED JULY 01, 1912 IN BOOK 93, PAGE 136 OF DEEDS; THENCE SOUTH 360 22' EAST, 70.25 FEET TO THE MOST WESTERLY CORNER OF THE PROPERTY CONVEYED TO SERAFINO J. MARTINELLI AND CARMEL MARTINELLI BY DEED DATED FEBRUARY 08, 1966 AND RECORDED APRIL 01, 1966 IN BOOK 1391, PAGE 479 OF OFFICIAL RECORDS; THENCE SOUTH 810 22' EAST, 8.13 FEET TO A POINT; THENCE NORTH 530 38' EAST, 36.75 FEET TO A POINT; THENCE NORTH 80 38' EAST, 8.13 FEET TO A POINT; THENCE NORTH 360 22' WEST, 70.25 FEET TO THE SOUTHERLY LINE OF PALM STREET; THENCE ALONG THE SOUTHERLY LINE OF PALM STREET SOUTH 530 38' WEST, 48.25 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION THEREOF INCLUDED WITHIN THE PRESENT LINES OF PALM STREET. APN(S): 002 - 416 -031, 002 - 416 -035 and 002- 416 -038 (new # 002 - 416 -040) First American Title Insurance Company