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Item 4.1 - Dispostion & Development Agreement with Bruce & Eileen Carey, Chrysler Plymouth Dealership {( tl 1 of 84 AGENDA REPORT CITY OF POW A Y TO: Chairman and Members of the Redevelopment Agency Honorable Mayor and Members of the City Council 'p James L. Bowersox, city Manager/Executive DirectorQt ~ FROM: INITIATED BY: John D. Fitch, Assistant city Manager/Assistant Executive Director Pamela Colby, Management AnalystfC- 0" DATE: september 4, 1990 SUBJECT: Disposition and Development Agreement with Bruce A. and Eileen L. Carey and Report on the Acquisition and Sale of Property by the Redevelopment Agency for the Development of a Chrysler Plymouth Automobile Dealership. ABSTRACT: It is recommended that the Redevelopment Agency/City council approve a Disposition and Development Agreement for the development of a Chrysler Plymouth automobile dealership on property currently owned by the Redevelopment Agency. BACKGROUND: During the past month, staff has been working with the developer, Bruce Carey, and his legal counsel to finalize a mutually acceptable Disposition and Development Agreement (DDA) for the development of a Chrysler Plymouth automobile dealership to be located adjacent to the existing poway Dodge dealership. FINDINGS: Minor changes have been made to the Disposition and Development Agreement (DDA) since it was distributed to the City Council/ Redevelopment Agency for their regular meeting of August 7, 1990. These changes include corrections and clarifications to provisions already within the DDA. No substantive changes have been made as it relates to the Agency I s participation in this proj ect. The information in the original staff report on this item continues to be valid as it outlines the major provisions of the DDA (Attachment ACTION: SEl' 4 1990 ITEM 4.' Agenda Report September 4, 1990 Page 2 FISCAL IMPACT: Additional annual sales tax revenues estimated at $129,000.00 Additional annual tax increment revenues estimated at $17,000.00. One time cost to Agency of $116,053.00 for land write-down relating to the disposition of the subject property. RECOMMENDATION: It is recommended that the Redevelopment Agency/City Council approve the following resolutions: A. A Resolution of the City of poway Approving a Disposition and Development Agreement with Bruce A. and Eileen L. Carey. B. A Resolution of the poway Redevelopment Agency Approving a Disposition and Development Agreement with Bruce A. and Eileen L. Carey. Attachments: 1. Staff Report from August 7, 1990 2. Acquisition and Sale Report Exhibit "A" - Disposition and Development Agreement 3. Resolution "A" 4. Resolution "B" A:\DDA94.REP 2 of 84 SEP 4 1990 ITEM 4.1 {( ~ f II ATTACHMENT 1 /:.urtu.lu/;1i;I r-1~tJ (,\'\i OF rlGENDA REPORT CITY OF POW A Y TO: Honorable Mayor and Members of the city council Honorable Chairman and Members of the Redevelopment Agency James L. Bowersox, city Manager/Executiv~ct~r~ John D. Fitch, Assistant City Manager/Assistan~)~ Executive Director 0 Pamela R. Colby, Management Analyst~ August 7, 1990 FROM: INITIATED BY: DATE: SUBJECT: Disposition and Development Agreement with Bruce A. and Eileen L. Carey and Report on the Acquisition and Sale of Property by the Redevelopment Agency for a Chrysler Plymouth Automobile Dealership to be located on the South Side of poway Road, Immediately Adjacent to 13655 poway Road, and Continuing 184 Feet in a Westerly Direction (APN# 317-190-44). ABSTRACT It is recommended that the City Council/Redevelopment Agency approve a Disposition and Development Agreement for the development of a Plymouth Automobile Dealership on property owned by the Redevelopment Agency. BACKGROUND Since incorporation in December 1980, the financial viability of the City of poway has been and continues to be an important issue. At that time, the City of poway had sales tax receipts of only $900,000 per year which equated to the second lowest per capita figure in the County. Sales tax is one of the few major sources of revenues that the City can have an impact on. It is also a funding source which is flexible enough to meet many of the increasing demands for public services and facilities in this community. ACTION: SEP 4 1990 HEM AUG 2" 1990 ITEM 3 of 84 A..,.... 1nnn ITCU ~ ...--:::: ~ 4./ 5~ Agenda Report August 7, 1990 Page 2 This situation has improved in the past few years, due in part to the concerted efforts being made to attract businesses which produce high taxable sales. The sales tax figures for fiscal year 1989-90 are expected to be $2,994,600. Achieving this number would rank the City's per capita sales tax revenues at 13 out of the 18 cities in the County. with this progress comes the knowledge that more improvement is still necessary to maximize the City's sales tax base. Automobile dealerships have and continue to produce one of the highest taxable sales on a per square foot basis, while doing so in a manner which complements the existing businesses along poway Road. It is being recommended that the City Council consider approval of a Disposition and Development Agreement (DDA) with Bruce A. and Eileen L. Carey for the development of a full-service Chrysler Plymouth automobile dealership (Exhibit A of Attachment 1). Mr. Carey is the operator of the recently opened Dodge/Dodge Truck dealership at 13655 poway Road. The proposed Plymouth dealership would be located on 72,745 square feet of undeveloped, Agency owned property immediately west of the existing Dodge dealerShip. In 1987, the City Council authorized the purchase of this site as part of a 4.5 acre parcel for $814,000. The Agency has since completed extensive drainage improvements to this property. These improvements included the installation of a triple 10' x 12' reinforced box culvert which effectively enclosed poway Creek through the property. The total cost of Agency improvements to the proposed Plymouth dealership site which included all grading and channel improvements is approximately $469,580. The total cost to the Agency for purchasing and improving the site was $10.59/square foot. FINDINGS: The Agency is proposing to sell 1.67 acres of property to Bruce L. and Eileen A. Carey for $654,705, or $9. OO/square foot. The difference between the sales price of $654,705 and the total cost of acquiring and improving the property is $116,053. The difference between these numbers is an inducement offered initially to encourage development of the site. However, when the Plymouth dealership opens, new property taxes (tax increment) of $17,000 and increased sales taxes of $129,000 annually are estimated to be paid by this development. As noted when the Dodge dealership project was before this City Council in 1987, the additional benefit of protecting the adjacent residential neighborhood to the south of poway Creek from periodic flooding is accomplished at virtually no cost. 4 of 84 S€~ 4 1990 niM 4.1 AUG ? 11 1990 ITEM 5 AUf, 7 1990 ITEM t; Agenda Report August 7, 1990 Page 3 The Scope of Development and Schedule of Performance within the proposed Disposition and Development Agreement (DDA) provide for the development of a full-service automobile dealership within three years of the signing of the DDA. The Agreement allows the developer to operate the Plymouth dealership from the existing Dodge dealership facility with an extension of the Conditional Use Permit for a period of up to three years. Prior to the expiration of the three years, the developer would be required to construct a new car showroom and automobile service area. Once the building permits are pulled for the construction of the Plymouth showroom and service area (within two years of the signing of the DDA), a separate Conditional Use Permit would be required for the Plymouth dealership. All City required improvements, however, such as masonry walls and landscaping, would be completed prior to the business opening. The Disposition and Development Agreement with Bruce A. and Eileen L. Carey contains the following major provisions: 1. Requires that a full-service Chrysler Plymouth automobile dealership be built, with the Agency granting the Agency owned site to the developer once the project is assured (Section 2.02). 2. Requires that the developer adhere to a development schedule which requires that the Chrysler Plymouth dealership be open in a timely manner (Section 3.01). It further provides that the developer will not speculate on the land (Section 3.04). 3. Provides for the termination of the Agreement in the event of default by either party (Section 5.05). 4. Ensures that the Agency has the right to repurchase the site should the developer default on the Agreement (Section 5.06). In conclusion, subject to the public hearing, City Council/ Redevelopment Agency approval of the Development and Disposition Agreement, listed as Exhibit A to Attachment 1 of this report, will formalize the relationship between the developer, Bruce A. and Eileen L. Carey, and the poway Redevelopment Agency. FISCAL IMPACT Additional annual sales tax revenues estimated at $129,000. Addi tional annual tax increment revenues estimated at $17,000. One time cost to Agency of $116,053 for land write-down relating to the disposition of the subject property. 5 of 84 5EP 4 1990 ITEM 4.1 AUr. ? R 1990 ITEM 5 AUt; 7 1990 ITEM 5 Agenda Report August 7, 1990 Page 4 RECOMMENDATION It is recommended that the City Council/Redevelopment Agency approve the following resolutions: A. A Resolution if the City of poway Approving a Disposition and Development Agreement with Bruce A. and Eileen L. carey. B. A Resolution of the poway Redevelopment Agency Approving a Disposition and Development Agreement with Bruce A. and Eileen L. carey. A: \DDA2 .REP 6 of 84 SfP 4 1990 ITEM 4.1 AUG 9.1l1990 ITEM 5 AUG 7 1990 ITEM " ATTACHMENT 2 POWAY REDEVELOPMENT AGENCY REPORT ON ACQUISITION AND SALE OF PROPERTY OWNED BY THE POWAY REDEVELOPMENT AGENCY BACKGROUND section 33433 of the State of California Health and Safety Code requires that a report be prepared prior to the acquisition and sale of property by a redevelopment agency when the transaction is to be financed directly or indirectly by tax increment. The sale of the property must be approved by the City Council prior to the transaction occurring. FINDINGS Attached as Exhibit "A" is the Disposition and Development Agreement (DDA) with Bruce A. and Eileen L. Carey, herein after referred to as Developer. This agreement contains terms under which the Developer will gain the right to approximately 1.67 acres of commercially zoned property owned by the poway Redevelopment Agency. The following is a summary of the provisions of the Disposition and Development Agreement: 1. Cost of the Aareement to the Redevelopment Aaencv: The property described within the Agreement was acquired by the poway Redevelopment Agency as part of a larger 4.5 acres site in 1987. The cost to the Agency for this 1.67 acre portion of the property is calculated to be $301,180, based on a pro-rated share of the cost of the entire 4.5 acre parcel in 1987. The cost of on-site improvements to the property were $469,580. This amount totals the pro-rated share of all actual costs associated with drainage, fill, grading, and enclosing poway Creek with a cement box culvert. The total cost to the Redevelopment Agency for the fully improved site is $770,758. The property will be sold for $654,705, therefore the cost to the Agency is $116,053. 2. Estimated Value of Propertv to be Conveved: The value of the property to be conveyed is approximately $301,180, based upon a pro-rata share of the original purchase price. 3. Purchase Price to be Paid bv the Developer: The Developer will be required to purchase the property for $654,705. Upon close of escrow, the Agency will receive the full disposition price of $654,705 in cash. There are no additional finance costs associated with this agreement. While the value of the land ...."." ;, .'"7" -: .. ~ J J __ , "./ 7 of 84 Acquisition Report Page 2 (approximately $770,758) exceeds the cost to the Developer ($654,705), this consideration is necessary to obtain the desired use for the property at this time for the following reasons: a. The desired criteria of maximum sales tax, major tenancy, and unique characteristics of the location limit the type and number of projects which could be placed on the site. b. The development, by necessity of the subject property, required extensive site work to be completed by the Redevelopment Agency. Site work included the lot grading, straightening and widening of poway creek, and the installation of a cement box culvert through the property to accommodate creek flows. c. The state of California does not permit automobile dealerships to locate within a 10-mile radius, for reasons of competition. Realizing that there are Plymouth dealerships in Kearny Mesa and Escondido, poway falls just outside the 10-mile restrictions imposed for the dealerships, resulting in a logical and appropriate decision to locate in the City of Poway. d. The development of a Plymouth automobile dealership will generate approximately $129,000 in sales tax revenue for the city of poway annually. Further, the property, when developed, will have an assessed value of approximately $1.7 million greater than present value. This will provide a tax increment of $17,000 to the Agency which will "amortize" the difference in price to the developer and value of the property in less than 1 year with the additional consideration of the sales tax revenues. e. without the assistance of the poway Redevelopment Agency, the project would not be developed in a manner as directed by the Redevelopment Plan. f. The drainage work was necessary irrespective of the dealership development in order to protect the residential neighborhood on the south side of poway Creek from periodic flooding. A:\SECTION.REP , '. ,0)";,.. ':j; ., '"'"'U M.. 'nt, '" d~."" 4.\ 8 of 84 DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN POWAY REDEVELOPMENT AGENCY, Agency AND BRUCE A. CAREY AND EILEEN L. CAREY Developer * * Revised: 8/30/90 9 of 84 * SEP 4 1990 lIE.M. 4.i DISPOSITION AND DEVELOPMENT AGREEMENT POWAY AUTO CENTER THIS AGREEMENT ("Agreement") dated, for reference purposes only, as of the ____ day of , 1990 by and between POWAY REDEVELOPMENT AGENCY ("Agency") and Bruce A. Carey and Eileen L. Carey ("Developer"). The Agency and the Developer agree as follows: ARTI CLE I SUBJECT OF AGREEMENT Section 1.01 Purpose of the Agreement The purpose of this Agreement is to effectuate the Redevelopment Plan (the "Redevelopment Plan") for the paguay Redevelopment Project (the "Project") by providing for the development of a retail automobile sales and service site in a portion of the area included within the boundaries of the Project (the "Project Area"). This Agreement is entered into for the purpose of developing a retail automobile sales and service site and not for speculation in land holding. Agency represents that the development of the retail auto site pursuant to this Agreement, and the fulfillment generally of the Agreement, are in the vital and best interests of the City of Poway ("City") and the health, safety, and welfare of its residents, and in accord with public purposes and provisions of applicable Federal, State, and local laws and requirements. The Redevelopment Plan was approved and adopted by the City Council of the City of Poway by Ordinance No. 117: said Ordinance and the Redevelopment Plan as so approved and amended are incor- porated herein by reference. -1- 10 of 84 SEP 4 1990 ITEM 4.1 Section 1.02 The Site The "Site" is defined as that portion of the Project described as approximately 1.67 gross acres of land and improvements thereon, and described as the "Legal Description of the Site" in Exhibit "A-I" to this Agreement and depicted on the "Site Map" attached as Exhibit "A-2" to this Agreement. The Site is currently owned by the Agency. Section 1.03 Parties to the Agreement (A) Agency "Agency" as used in this Agreement is Poway Redevelopment Agency, Poway, California. Agency is a public body, corporate and politic, exercising governmental functions and powers and organized under the Community Redevelopment Law of the State of California (Health & Safety Code Section 33000 et seq.). The office of Agency is located at City Hall, 13325 Civic Center Drive, Poway, California. "Agency," as used in this Agreement, included the poway Redevelopment Agency and any assignee of or successor to its rights, powers and responsibilities. (B) Developer Developer is Bruce A. Carey and Eileen L. Carey, a married couple, whose principal address for purposes of this Agreement is 13655 Poway Road, Poway, California, 92064. -2- 11 of B4 SEP 4 1990 ITEM 4.1 12 of 84 The individual parties comprising the Developer agree that, for all purposes of this Agreement, Bruce A. Carey (lithe Authorized Representat i ve") sha 11 be the Authori zed Representative of each of said individual parties and the Developer hereunder. The Authorized Representative is hereby authorized to take all actions required to be taken by the Developer hereunder and under any related agreements. The Agency shall be entitled to rely upon any notice, communication or other action taken by the Authorized Representative as having been taken, made or done on behalf of the Developer. Any notice or other communication given by the Agency to the Authorized Representative shall be deemed effective as against the Developer and each individual party comprising the Developer if given to the Developer in care of the Authorized Representative at the address set forth for the Developer in Section 1.03 hereof. No further notice or communication shall be required of the Agency to satisfy any obligations for notice or communication required by this Agreement. The Developer may designate another Authorized Representative to act on its behalf pursuant to a written notice to the Agency signed by each indivi- dual party comprising the Developer. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure to the benefit of Developer and the successors and assigns of the Developer, but only such successors and assigns as are permitted pursuant to Section 1.05 -3- sr:p 4 1990 ITEM 4.\ hereof. Whenever the term "Developer" is used herein, such term' shall include only such other permitted successors and assigns as herein provided. Section 1.04 Representations by Developer Developer represents and warrants to Agency as follows: (a) Each person comprising the Developer intends to bind his interest in the community property arising from his marriage in executing this Agreement. (b) Developer has duly executed and delivered this Agreement and any and all other agreements and documents required to be executed and delivered by Developer in order to carry out, give effect to, and consummate the transactions contemplated by this Agreement. . (c) Developer does not have any material contingent obligations or any material contractual agreements which could materially adversely affect the ability of Developer to carry out its obligations hereunder. (d) There are no material pending or, so far as it is known to Developer, threatened, legal proceedings to which Developer is or may be made a party or to which any of its property is or may become subject, which has not been fully disclosed in the material submitted to Agency which could materially adversely affect the ability of Developer to carry out its obligations hereunder. -4- 13 of 84 StP 4 1990 ITEM 4.[ 14 of 84 (e) There is no action or proceeding pending or, to the Developer's best knowledge, threatened, looking towards the liquidation of Developer, and there is no action or proceeding pending or, to Developer's best knowledge, threatened by or against Developer which could affect the validity and enfor- ceability of the terms of this Agreement, or materially and adver- sely affect the ability of Developer to carry out is obligations hereunder. (f) Developer has performed all of its obligations to be per- formed at or prior to this date in accordance with the Schedule of Performance and is not in default hereunder. (g) Developer will operate and maintain on the Site a "Full-Service Automobile Dealership" (as hereinafter defined in the Scope of Development). (h) Each person comprising the Developer understands and intends that he/she is individually bound by each and every agreement and obligation of the Developer under this Agreement. Each of the foregoing items (a) to (h), inclusive shall be deemed to be an ongoing representation and warranty. Developer shall immediately advise Agency in writing, prior to the issuance to a Certificate of Completion, if there is any change pertaining to any matters set forth or referenced in the foregoing items (a) to (h), inclusive. -5- StP 4 1990 ITEM 4.1 ~ Section 1.05 Prohibition against Change in Ownership, Management and Control of Developer The qualifications and identity of Developer are of particular importance to City and Agency. It is because of those qualifica- tions and identity that Agency has entered into this Agreement with Developer. No voluntary or involuntary successor in interest of Developer shall acquire any rights or powers under this Agreement except as expressly set forth herein. Developer shall not assign all or any part of this Agreement or any rights or duties hereunder without the prior written approval of the Agency. Agency shall not unreasonably withhold its appro- val of any assignment, provided that: (1) the assignee shall expressly assume the obligations of Developer pursuant to this Agreement in writing satisfactorily to Agency: (2) the original Developer shall remain fully responsible for the performance and liable for the obligations of Developer pursuant to this Agreement; (3) any guarantees provided to assure the performance of Developer's obligations under this Agreement shall remain in full force and effect: and (4) the assignee is financially capable, in the reasonable judgement of the Agency, of performing the duties and discharging the obligations it is assuming. Developer shall promptly notify Agency in writing of any and all changes what- soever in the identity of the person(s) in control of Developer and the degree thereof. -6- 15 of 84 Sf? 4 1990 ITEM 4.i 16 of 84 Developer shall not sell, transfer, conveyor assign the Site or any portion of the Site prior to the issuance of a Certificate of Completion pursuant to Section 3.06 hereof without the prior written approval of the Agency. Developer shall not subdivide the Site for the duration of the Redevelopment Plan without prior con- sent of Agency. Agency shall not unreasonably withhold its appro- val of a sale. transfer, conveyance or assignment of its interest in the Site to any transferee or assignee meeting the requirements of subparagraphs (1) through (4) above. In the event of death or incapacity of Developer, Agency may, at its option, elect to terminate this Agreement and accept a recon- veyance of the Site, if title to the Site has been transferred to Developer in accordance with the terms of this Agreement, or may accept an assignment of this Agreement; provided that the assignee meets the conditions set forth in subparagraphs (1) and (4) above and, unless otherwise agreed to by Agency, such entity is also the entity thenceforth owning the Site. In the event that, contrary to the provisions of this Agreement, Developer does sell, transfer, conveyor assign any part of the Site or the buildings or structures thereon prior to the issuance of a Certificate of Completion for this Site, Agency shall have the option to terminate this Agreement and additionally to seek all remedies available at law or in equity, including but not limited to the re-entry and revesting provisions of Section 5.06 herein. -7- SI;P 4 1990 ITEM 4.1 r Notwithstanding any other provision hereof, Developer reserves the right in his discretion to join and associate with other entities in joint ventures, partnerships or otherwise for the purpose of developing the Site as a Full Service Automobile Dealership and the Developer shall not be required to seek the approval of the Agency as to any such financing arrangement; provided that Developer will retain complete operational and managerial control under any such arrangement and will remain fully responsible to Agency as provided in this Agreement until the recordation of a Certificate of Completion in accordance with Section 3.06 hereof. In the absence of specific written agreement by Agency, no such transfer, assignment or approval by Agency shall be deemed to relieve Developer or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure to the benefit of Developer and the permitted successors and assigns of Developer. Whenever the term "Developer" is used herein, such term shall include any other permitted successors and assigns as herein provided. Section 1.06 Good Faith Deposit Developer has, prior to or simultaneously with the execution of this Agreement by Agency, delivered to Agency a good faith deposit in the amount of Twenty-Five Thousand Dollars ($25,000) (the "Good Faith Depos it"), in the form of a cashi er' s check or cert i fi ed check or a cer- tificate of deposit (in form acceptable to Agency), as security for the -8- 17 of 84 s~p 4 1990 ITEM 4ci performance of the obligations of Developer to be performed pursuant to this Agreement, or its retention by Agency as liquidated damages in accordance with this Section 1.06 and 2.03(D) of this Agreement. Agency shall have no obligation to earn interest on the Good Faith Deposit. Any interest earned on the Good Faith Deposit shall be credited to the party entitled to the retention or return of the Good Faith Deposit, whichever is applicable. DEVELOPER AND AGENCY AGREE THAT IN THE EVENT THIS AGREEMENT IS TERMINATED, AGENCY WILL SUSTAIN SUBSTANTIAL DAMAGES WHICH ARE IMPRACTICAL OR INFEASIBLE TO ASCERTAIN, INCLUDING LOSS OF REDEVELOPMENT OPPORTUITIES ASSOCIATED WITH THE SUBJECT PROPERTY AND THE COSTS OF PREPARING THIS AGREEMENT AND RELATED DOCUMENTS. PARTIES AGREE THAT THE GOOD FAITH DEPOSIT REPRESENTS A REASONABLE AMOUNT AS LIQUIDATED DAMAGES AND THAT, IN THE EVENT OF TERMINATION OF THIS AGREEMENT FOR WHATEVER CAUSE, THE AGENCY SHALL BE ENTITLED TO RETAIN THE GOOD FAITH DEPOSIT. DEVELOPER INTIITAL HERE AGENCY INITIAL HERE If this Agreement has not sooner been terminated, the Good Faith Deposit shall be returned to Developer concurrent with the conveyance of the Site to Developer or, at the discretion of Developer, applied as a credit against payment of the "Disposition Price" (as hereafter defined in Section 2.02). -9- 18 of 84 SI;P 4 1990 ITI!M 4., , ARTICLE II DISPOSITION OF THE SITE Section 2.01 Compliance with Environmental Laws Agency represents that all necessary environmental reviews of the pro- posed development of the Site as provided herein have been made and that the Board of the Agency will approve on July 31, 1990 a Negative Declaration relating to the proposed development of the Site in accordance with the California Environmental Quality Act, Section 21000 et ~. of the California Resources Code. Section 2.02 Sale and Purchase: Disposition Price In accordance with and subject to all the terms, covenants and con- ditions of this Agreement, Agency agrees ~~-sell to Developer the Site and Developer agrees to purchase the Site for $654,705 ($9/square foot based on a gross area of 72,745 square feet) ("Disposition Price"). The Disposition Price shall be payable as follows: At the open of escrow, the Good Faith Deposit of $25,000 shall be deposited with the escrow company by Agency, if so requested by Developer pursuant to Section 1.06 hereof. The full amount of the Disposition Price, including any amount of the Good Faith Deposit credited against the Disposition Price, shall be paid in cash by Developer not later than three days prior to the close of escrow to escrow company. Developer and Agency shall, subject to the provisions of Section 6.04, proceed under this Agreement to acquire, construct and develop on the Site improvements required to be provided by the Developer in the Scope of Development attached to this Agreement as Exhibit "E" (the Developer Improvements") in accordance with the "Schedule of Performance" attached hereto as Exhibit "B." -10- 19 of 84 SEP 4 1990 ITEM 4.1 In order to make harmonious use of the Site together with adjacent par- cels, the parties recognize that there shall be reserved over the Site an easement for the benefit of the Burdened Property (the "Reserved Easement"), all as more particularly described in the Grant Deed attached hereto as Exhibit "C," and that there shall be granted an easement over a portion of the Burdened Property for the benefit of the Site. all as more particularly described in the Grant Deed (the "Granted Easement"). The Burdened Property is that certain property described on Exhibit "A-3" hereto and is subject to certain covenants and conditions set forth in the Grant Deed for the benefit for the Site. Section 2.03 Escrow Agency agrees to open an escrow ("Escrow") with Chicago Title Insurance Company ("Title Company") or any other escrow company ("Escrow Agent") approved by Agency and Developer, as escrow agent in California, within the time established in the "Schedule of Performance". The escrow described in thi s Sect i on 2.03 shall be referred to as "Escrow," and the conveyance pro- vided for in this Section 2.03 shall be referred to as the "Agency Conveyance." Escrow Agent shall accompl i sh the recordation of the Grant Deed attached to this Agreement as Exhibit "C" and the Memorandum Option to Repurchase attached to this Agreement as Exhibit "D," all as more par- ticularly set forth herein. This Agreement constitutes the joint escrow instructions of Agency and Developer and a duplicate original of this Agreement shall be delivered to Escrow Agent upon the opening of Escrow. Agency and Developer shall provide such additional escrow instructions as shall be necessary and consistent with this Agreement. Escrow Agent is hereby empowered to act under this Agreement and shall carry out its duties as Escrow Agent hereunder. -11- 20 of 84 SEP 4 1990 IIEM 4.1 J (A) Deposits by Developer into Escrow (1) Oeveloper shall deposit the Disposition Price with Escrow Agent in accordance with the provisions of Section 2.02 of this Agreement. (2) Developer shall deposit with Escrow Agent the following documents, fees, charges, and costs promptly after Escrow Agent has notified Developer of the amount of such fees, charges, and costs, but not earlier than ten (10) days prior to the scheduled date for the close of Escrow: (a) One-half of the Escrow fee; (b) The portion of the premium for the title insurance policy to be paid by Developer as set forth in this Agreement: (c) Taxes and assessments prorated as hereinafter set forth: and (d) The Memorandum Option to Repurchase in substan- tially the form set forth as Exhibit "C" hereof. (B) Deposits by Agency into Escrow (1) Agency shall timely and properly execute, acknowledge and deliver (a) the Grant Deed substantially in the form attached hereto as Exhibit "D" into Escrow, conveying to Developer title to the Site in accor- dance with the requirements of this Agreement; and (b) an estoppel cer- tificate certifying that Developer has completed all acts (except deposit -12- 21 of 84 S~~ 4 1990 ITEM 4.\ of Disposition Price) necessary to entitle Developer to such conveyance, if such be the fact; and (c) the Memorandum Option to Repurchase described in Section 5.06 into Escrow. (2) Agency shall pay into Escrow to Escrow Agent, the following fees, charges, and costs promptly after Escrow Agent has notified Agency of the amount of such fees, charges, and costs, but not earlier than ten (10) days prior to the scheduled date for close of Escrow. (a) One-half of the Escrow fee: (b) Any State, County, or City Documentary Stamps: (c) All Transfer Taxes; (d) Cost of drawi ng the Deed: (e) Recording fees; (f) Notary fees; (g) The portion of the premi um for the title insurance policy to be paid by Agency as hereinafter set forth in this Agreement: (h) Taxes and assessments prorated as hereinafter set forth. (C) Responsibilities of Escrow Agent Escrow Agent shall record the Grant Deed and the Memorandum Option to Repurchase when all conditions to the close of Escrow have been fulfilled, title can be vested in Developer in accordance with the terms and provi- sions of this Agreement and the Title Company is prepared to issue a title insurance policy in accordance with the terms of this Agreement. Escrow -13- 22 of 84 SI:P 4 1990 ITEM 4.1 . Agent shall buy, affix and cancel any transfer stamps required by appli- cable law, and pay any transfer tax required by law. Any insurance poli- cies governing the Site are not to be transferred. (1) Escrow Agent is authorized to: (a) Disburse funds and deliver the Grant Deed and other documents to the parties entitled thereto when the Conditions to Close Escrow have been fulfilled by Agency and Developer: and (b) Record any instruments delivered through Escrow if necessary or proper to vest title in Developer in accordance with the terms and provisions of.this Ag reement. All funds received in Escrow shall be deposited by Escrow Agent with other Escrow funds of Escrow Agent in a general escrow account or accounts with any State or National bank doing business in the State of California. Such funds may be transferred to any other such general escrow accounts or accounts. All prorations shall be made on the basis of a 30-day month and a 360-day year. (D) Conditions to Close of Escrow Close of Escrow and the obligation of any party to purchase or sell property pursuant to this Agreement is conditioned upon: -14- 23 of 84 SEP 4 1990 iTEM 4.1 (1) Written approval of Chrysler Motors Corporation ("Chrys I er") or such other manufacturer of automoblles as may be selected by the Developer pursuant to Section 4.01 hereof for the placement at the Site of a Chrysler-Plymouth Motors ("Plymouth") or other dealership (as allowed by Section 4.01 hereof) and the receipt by Agency of satisfactory evidence thereof: which approval shall be unconditional or subject only to such conditions as are approved in writing by Agency: and (2) Receipt by Agency of satisfactory evidence that: (a) there are no motor vehicle dealerships within a ten (10) mile radius of the Site (the "Relevant Market Area") where the Plymouth or such other line-make as selected by the Developer pursuant to Section 4.01 hereof, is represented: or (b) Developer has notified the New Motor Vehicle Board and any franchisee of Chrysler in the Plymouth or such other line-make within such ten (10) mile radius of the proposed new franchise and no protest was filed with the New Motor Vehicle Board within 20 days of such franchisee's receipt of such notice or within any permitted 10-day extensions of time to file a protest; or -15- 24 of 84 Sf? 4 1990 ITEM 4./ I (c) Any protest filed by a franchisee with the New Motor Vehicle Board has been overruled by the Board and such decision overruling the protest has become final and no longer subject to appeal. (3) The fulfillment of items 1 through 10 of the Schedule of Performance; and (4) Developer's written approval of title as hereinafter described in Section 2.06 and the issuance of a title insurance commitment as hereinafter described in Section 2.08: and (5) Developer's written approval of the soil conditions of the Site as hereinafter described in Section 2.12; (6) Developer's satisfaction that no Hazardous Substance, as hereinafter defined, was disposed of, on, in, or at the Site; which satisfaction may be based in whole or in part on Developer's inquiry into the previous ownership and use of the Site as hereinafter described in Section 2.12: (7) Receipt by Developer of all governmental permits and approvals necessary for the development of the Site of a Full-Service Automobile Dealership and the granting of such permits and approvals having become final and no longer subject to appeal, provided, however, that Developer need not have secured a building permit for the auto showroom to be constructed on the Site prior to and as a condition to close of escrow: -16- 25 of 84 SEP 4 1990 ITEM 4"f (8) Receipt by Agency of all governmental permits and appro- vals necessary for the work to be performed by Agency pursuant to Section 3.01 and the granting of such permits and approvals having become final and no longer subject to appeal; (9) Approval by Agency of all of Developer's plans, specifi- cations and drawings required to be approved by Agency pursuant to this Agreement: (10) The zoning of the Site has not been changed from "cc" and no proceeding or other action has been commenced to change the zoning of the Site or the uses permitted in the "cc" zoning classification. The foregoing items (1) through (10) -are hereinafter referred to as the "Conditions to Close of Escrow." Any amendment of these escrow instructions shall be in writing and signed by both Agency and Developer. At the time of any amendment, Escrow Agent shall agree to carry out its duties as Escrow Agent under such amend- ment. All communications from Escrow Agent to Agency or Developer shall be directed to the addresses and in the manner established in this Agreement for notices, demands, and communications between Agency and Developer. Liability of Escrow Agent under this Agreement is limited to perfor- mance of the obligations imposed upon it under this Article II. Neither Agency nor Developer shall be liable for any real estate com- missions, brokerage fees, or finders fees which may arise herefrom. Agency -17- 26 of 84 SEP 4 1990 ITEM 4,1 and Developer each represent to the other that it has engaged no broker, agent, or finder in connection with this transaction, and each agrees to defend and hold the other harmless with respect to any claims for such com- missions or fees made through the indemnifying party. If Escrow has not closed within 180 days after the signing of this Agreement, either party not in breach is its obligations under this Agreement may, in writing, terminate this Agreement and demand the return of its money, papers, or documents. In the event of termination, Agency would sustain damages by reason thereof which would be uncertain. Such damages would involve such variable factors as the delay or frustration of tax revenues therefrom to City and Agency, the delay or failure of Agency to further the implementation of the Redevelopment Plan, and loss of opportunity to engage in other potential transactions, resulting in damage and loss to Agency. It is impracticable and extremely difficult to fix the amount of such damages to Agency, but the parties are of the opinion, upon the basis of all information available to them, that such damages would approximately equal the amount of the Good Faith Deposit (with any interest thereon), and such amount shall be retained by Agency upon termination as the total of all liquidated damages for any and all such defaults and not as a penality. In the event that this paragraph should be held by a court of law to be void for any reason, Agency shall be entitled to the full extent of damages otherwise provided by law. -18- 27 of 84 SEP 4 1990 ITEM 4. \ Developer and Agency specifically acknowledge and accept this liquidated damages provision by their signatures below: DEVELOPER AGENCY If the Agreement has not sooner been terminated and Developer has completed all of its undertakings required pursuant to this Agreement, the Good Faith Deposit shall be returned upon completion of Developer Improvements, as reasonably determined by Agency. Section 2.04 Delivery of Possession Possession shall be delivered to Developer concurrently with the con- veyance of title, except that limited access may be permitted before con- veyance of title as permitted in this Agreement. Section 2.05 Form of Grant Deed Agency shall convey to Developer title to the Site by grant deed substantially in the form of the Grant Deed attached to this Agreement as Exhibit "D" hereof. Section 2.06 Condition of Title Agency shall convey to Developer fee simple merchantable title to the Site free and clear of all recorded or unrecorded liens, encumbrances, assessments, leases and taxes except those which are set forth as excep- tions to coverage on the ALTA extended coverage preliminary title report that is issued by Title Company covering the Site (the "ALTA Title Report") and are approved by Developer ("Permitted Exceptions"). Agency shall deliver the ALTA Title Report and copies of all instruments referred to therein to Developer on or before execution of this Agreement by Agency. -19- 28 of 84 SEP 4 1990 ITEM 4..' Agency shall also deliver to Developer a CLTA Title Report (the "CLTA Title Report") with respect to the Burdened Property and copies of all instru- ments referred to therein on or before execution of this Agreement by Agency. Developer shall review the condition of title to the Site and shall not unreasonably withhold its approval as to any matters which do not restrict the development or use of the Site as comtemplated by this Agreement. Developer shall deliver to Agency its approval or disapproval of the condition of title within forty-five (45) days of Developer's receipt of the ALTA Title Report and the CLTA Title Report and such copies. If Developer disapproves the title, Agency shall have until thirty (30) days from the date of receipt of Developer's disapproval of title to either agree to cure the title or terminate this Agreement. If Agency elects to cure, such cure shall be by causing the disapproved item to be eliminated as a matter which affects title. Section 2.07 Time for and Place of Delivery of Deed Subject to any mutually agreed upon extension of time, Agency shall deposit the Grant Deed with Escrow Agent on or before the date established for the conveyance of the Site in the Schedule of Performance. Section 2.08 Payment of Disposition Price and Recordation of Grant Deed Developer shall deposit the Disposition Price with Escrow Agent not less than three days prior to the date set forth in the Schedule of Performance for Agency Conveyance, provided that Escrow Agent shall have notified Developer in writing that the Grant Deed properly executed and acknowledged by Agency, has been delivered to Escrow Agent. that the Agency has paid into escrow all amounts requried to be paid by it in accordance -20- 29 of 84 SEP 4 1990 ITEM 4.1 with the provisions of this Agreement and provided that all other . Conditions to Close of Escrow pursuant to Section 2.03(D) of this Agreement have been fulfilled. When the Conditions to Close of Escrow pursuant to this Agreement have been fulfilled, Escrow Agent shall remit the Disposition Price to Agency and concurrently therewith, shall issue to Developer a title insurance policy with a 116.1 endorsement (such endorsement to refer to an ALTA survey prepared for and approved by Developer) and an unqualified 124.1 endorsement as to the covenants and conditions contained in the Grant Deed with respect to the Burdened Property, subject only to these matters in the CLTA Title Report approved by Developer insuring title in conformity with this Agreement and shall promptly file the Grant Deed and the Memorandum Option to Repurchase for recordation among the land records in the Office of the County Recorder for San Diego County. Section 2;09 Title Insurance Concurrently with recordation of the Grant Deed conveying title to the Site, Developer shall be entitled to receive an ALTA extended coverage title insurance policy in the amount of the Disposition Price issued by Title Company with 116.1 and 124.1 endorsements as described in Section 2.08, insuring that the title is vested in Developer in accordance with the approved ALTA Title Report and the approved CLTA Title Report. Title Company shall provide Agency with a copy of the title insurance policy. Agency, as of the Agency Conveyance, shall be entitled to receive and shall pay only for that portion of the title insurance premium attributable to, a C.L.T.A. standard form pOlicy of title insurance in the amount of the Disposition Price. Developer shall pay for all other premiums for title insurance coverage or special endorsements. -21- 30 of 84 SEP 4 1990 ITEM 4.1 Section 2.10 Taxes and Assessments; Liens and Other Encumbrances Ad valorem taxes and all other property taxes and assessments, if any, shall be prorated as of the close of Escrow based on a 3D-day month and a 360-day year. Allocation of taxes to the Site if a part of a larger tax parcel shall be based upon surface area of land covered by the tax bill, excluding the value of any improvements. Prior to the issuance of a Certificate of Completion pursuant to this Agreement, Developer shall not place on the Site or any part thereof, any mortgage, deed of trust, encumbrance or lien unless approved in writing by Agency not less than fifteen (15) days prior to the recordation of any such mortgage, deed of trust, encumbrance or lien. Agency agrees not to unreasonably withhold any approval of any encumbrance or lien necessary to finance the construction of Developer Improvements on the Site. Agency further agrees to give its approval to any conveyance for purposes o~-financing Developer Improvements on the Site or the permanent financing thereof so long as the entity pro- posing to provide the financing is a responsible financial or lending institution, as determined in the reasonable judgement of Agency. Developer shall remove or have removed any levy or attachment made on any of the Site or any part thereof, or assure the satisfaction thereof within a reasonable time but in any event prior to a sale thereunder. Section 2.11 Occupants of the Site The Site shall be conveyed free of any possession or right of possession except that of Developer and the easements of record. -22- 31 of 84 SE?" 1990 ITEM 4.\ Section 2.12 Condition of the Site Agency assumes no responsibility for any demolition and clearance of the Site. Agency makes no representations or warranties concerning the Site, its suitability for the use intended by Developer, or the surface or subsurface conditions of the Site. If the soil or other surface or subsurface conditions of the Site are not in all respects entirely suitable for the use or uses to which the Site will be put as of the con- veyance of the Site, then it is the sole responsibility and obligation of Developer to take such action as may be necessary to place the Site in a condition entirely suitable for the development of Developer Improvements. After the close of Escrow, Developer agrees to indemnify and defend City and/or Agency for any future claims which may be asserted against City and/or Agency under the Comprehensive Environmental Response and Compensation and Liability Act; as amended, (42 U.S.C. S9601 et. ~.) ("CERCLA") and/or any other remedial environmental legislation which claims are based on the fact that City or Agency held title to the Site. Section 2.13 Preliminary Work by Developer Prior to the conveyance of title, representatives of Developer shall have the right of access to the Site at all reasonable times for the pur- pose of obtaining data and making surveys and tests, including soils tests, necessary to carry out this Agreement. Developer shall have access to all data and information on the Site available to Agency. -23- 32 of 84 SE:P 4 1990 ITEM 40 \ ARTI CLE I II PREPARATION AND DEVELOPMENT OF THE SITE Section 3.01 Development of the Site by Developer (A) Scope of Development The Site shall be developed by Developer within the limitations established in the Scope of Development and in accordance with the Schedule of Performance. Developer acknowledges that the foregoing sentence is not by inference a waiver by Agency on behalf of City of the requirements of the poway Municipal Code. Developer shall promptly begin and thereafter diligently prosecute to complete the construction of Developer Improvements. with all construction commencing and being completed within the time specified therefor in the Schedule -of Performance. All construc- tion and acquisition of Developer Improvements shall be done in accordance with the Poway Municipal Code, the Specified Plan relating to the Site and the Redevelopment Plan. Developer shall develop on the Site a building or buildings of approximately 20 thousand square feet of gross leasable area, suitable for operation of a Full-Service Automobile Dealership, as defined in the Scope of Development. The Developer Improvements shall be constructed on the Site in one phase. Developer agrees to commence construction not later than two (2) years from the date of execution hereof and cause the Full-Service Automobile Dealership to be fully operational not later than three (3) years from the date of execution hereof. -24- SEP 4 1990 iTEM 4.1 33 of 84 (B) Drawings and Related Documents By the respective times set forth therefor in the Schedule of Performance attached as Exhibit B, the Developer shall submit to the Agency for its approval Basic Concept (Schematic) Plans, Preliminary Plans, including landscaping and finish grading plans, and full Final Construction (Working) Drawings and related documents containing the overall plan for development of the Site substantially in accordance with the Scope of Development. The Site shall be developed as established in this Agreement and all such construction, plans and documents, except as changes may be mutually agreed upon between the Developer and the Agency. Any such changes shall be within the limitations of the Scope of Development. During the preparation of all drawings and plans, Developer and Agency shall hold regular progress meetings to coordinate the preparation of, sub- mission to, and review of construction plans and related documents by Agency. Agency and Developer shall communicate and consult informally as frequently as is necessary to ensure that the submittal of any construction documents to Agency can receive prompt consideration. (C) Agency Approval of Plans, Drawings and Related Documents Subject to the terms of this Agreement, Agency shall have the right of architectural review of all plans and submissions described in Section 3.01(B) of this Agreement, including any changes therein. Agency shall approve or disapprove the plans, drawings and related documents referred to in Section 3.01(B) of this Agreement within 30 days of receipt thereof, unless a different time period is specified in the Schedule of Performance. Any disapproval shall state in writing the -25- 34 of 84 SEP 4 1990 ITEM 4,/ reasons for disapproval and the changes which Agency requests be made. Such reasons and such changes must be consistent with the Scope of Development and any itemswpreviously approved hereunder by Agency. In the event the Developer does not approve the changes proposed by Agency, Developer shall have the right to either terminate this Agreement, or sub- mit proposed changes to Agency. If Agency and Developer fail to agree upon the plans, drawings, or related documents, either party shall have the right to terminate this Agreement. (D) Cost of Construction Costs of developing ,the Site and constructing all of Developer Improvements thereon shall be borne by Developer other than those costs specifically identified in this Agreement as the responsibility of Agency. (E) Schedule of Performance After the conveyance of title to the Site. Developer shall, in accordance with the Schedule of Performance, construct Developer Improvements and develop the Site. Developer shall begin and complete all construction and development within the times specified in the Schedule of Performance subject to the provisions of Section 6.04. (F) Indemnification; Bodily Injury and Property Damage Insurance Developer shall defend, assume all responsibility for and hold Agency, its officers and employees, harmless from, all claims or suits for and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Developer'S activities under this Agreeement, whether such activities or performance thereof be by Developer or anyone directly or indirectly -26- 35 of 84 s~p 4 1990 ITEM 4,1 employed or contracted with by Developer and whether or not such damage shall accrue or be discovered before or after termination of this Agreement. Developer shall take out, for the period eommencing with the date of the signing of this Agreement and ending upon issuance of a Certificate of Completion under this Agreement a comprehensive liability policy. including contractual liability, as shall protect Developer, City and Agency from claims for such damages and naming City and Agency as addi- tional insurreds under the policy in the following amounts: Bodily Injury Liability $ 500,000 each person $2,000,000 aggregate Property Damage Liability $ 5DO;000 each occurrence Any insurance required of Developer hereunder may be carried under a blanket pOlicy or policies maintained by Developer or Developer's subsidiaries or affiliates and with such deductible provisions acceptable to Developer, provided that such blanket policy complies with this Section 3.01(F), and such deductible provisions shall not reduce Developer's obligations to Agency. Developer shall furnish a certificate of insurance counter signed by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name City and Agency as additional insureds under the policy. The insurance coverage provided hereunder shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance pOlicy or the certificate of insurance shall contain a waiver of -27- 36 of 84 S€P 4 1990 lTEM 4.1 subrogation for the benefit of City and Agency. The certificate by the insurance carrier shall contain a statement of obligations on the part of the carrier to notify City and Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of ter- mination. Developer shall deliver the required certificate prior to com- mencement of any development, activities on Site by Developer, including any activities commenced in accordance with Section 2.12 hereof. Developer shall also furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom Developer has contracted for the performance of any work on the Site or otherwise pursuant to this Agreement carries worker's compensation insurance as requried by law. (G) City and Other Governmental Agency Permits: Parcel Map Prior to the close of Escrow Developer-shall, at Developer's expense, apply in compliance with the Poway Municipal Code for any and all approvals and permits which may be required by City or any other governmental agency necessary for the Developer Improvements to be constructed by Developer as contemplated by this Agreement. Developer agrees to (A) apply to the City for, and use its best efforts to secure, an extension of the conditional use permit applicable to the Dodge automobile dealership operated by it on the parcel adjacent to the Site, and to secure such permit prior to com- mencing operations on the Site, and (B) not later than the date upon which the Developer secures building permits for construction of the automobile showroom, to apply for and secure a conditional use permit applicable to the Site. In the event the issuance of any approvals or permits is subject to conditions or fees imposed by the City or other governmental agency, Developer shall have the right to disapprove such conditions or fees and terminate this Agreement. -28- SEP 4 1990 ITEM 4~1 37 of 84 (H) Rights of Access Representatives of Agency and City shall have the reasonable right of access to the Site without charges or fees, at normal construction hours during the period of construction for the purposes of this Agreement, including but not limited to the inspection of the work being performed in constructing improvements. Such representatives of Agency or City shall be those who are so identified in writing to Developer by the Executive Director of Agency. (I) Applicable Laws Developer shall carry out the construction of the improvements in conformity with applicable laws. (J) Antidiscrimination During Construction Developer for itself and its successors and assigns. agrees that in the construction of Developer Improvements provided for in this Agreement, Developer will not discriminate against any employee or applicant for employment because of race, color, creed, marital status, religion, age, handicap, sex, ancestry or national origin. Section 3.02 Use of Interim Showroom Developer agrees that, prior to completion of Developer Improvements and upon receipt by Developer of all manufacturer and/or line-make permits and all governmetal permits authorizing Developer to sell automobiles on the Site, Developer shall use his existing Dodge Dealership showroom adja- cent to the Site for the sale of Plymouth automobiles. Agency agrees that -29- 38 of 84 SEP 4 1990 ITEM 4.\ Developer shall be permitted, subject to receipt of any necessary City per- mits, to use and operate a mobile unit on the Site as a temporary sales/administrative office for a period of not to exceed three years; pro- vided, however, that Developer shall, in all events, comply with the Schedule of Performance attached hereto as Exhibit B. Section 3.03 Taxes, Assessments, Encumbrances and Liens Developer shall pay when due all real estate taxes and assessments assessed and levied for any period subsequent to a conveyance of title to Developer which arise from any action of Developer. Developer shall not place or allow to be placed on the Site any mortgage, trust deed, encumbrance or lien unauthorized by this Agreement. Nothing herein con- tained shall be deemed to prohibit Developer from contesting the validity or amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to Developer in respect thereto. Covenants of Developer set forth in this Section shall remain in effect only until a Certificate of Completion of construction has been fur- nished as hereinafter provided. Section 3.04 Restrictions on Transfer of Site, the Buildings or Structures and Assignment of Agreement Prior to the recordation by Agency of a Certificate of Completion of construction, as provided hereinafter, Developer shall not, except as permitted by this Agreement, sell, transfer, convey, assign or lease the whole or any part of the Site or the buildings or structures on the Site without the prior approval of Agency: Developer shall have the right to -30- 39 of 84 Sf? 4 1990 ITEM 4.1 lease or sell the Site to any Plymouth dealer, provided however Developer receives approval of Agency. After the recordation of a Certificate of Completion of construction, but prior to the expiration of the IS-year covenant pursuant to Section 4.01 of this Agreement, Developer shall obtain written Agency approval prior to the sale or lease of the Site to any person or entity other than a Plymouth dealer or other dealer approved by the Developer pursuant to Section 4.01 hereof. The above-described pro- hibition shall also not be deemed to prevent the granting of easements or permits to facilitate the development of the Site or any transfer or lease of the Site to an entity affiliated with Developer. In the absense of specific written agreement by Agency when required by this Agreement or except as otherwise expressly provided in this Agreement, no such transfer, assignment or approval by Agency shall be deemed to relieve Developer or any other party fronf'~a:riy obligations under this Agreement. Section 3.05 Right of Agency to Satisfy Other Liens on the Site After Title Passes After the conveyance of title and prior to the recordation of a Certificate of Completion for construction and development of the Site, and after Developer has had a reasonable time to challenge, cure or satisfy any liens on the Site, Agency shall have the right to satisfy any such liens, provided, however, that nothing in this Agreement shall require Developer to payor make provision for the payment of any tax, assessment, lien or charge so long as Developer in good faith shall contest the validity or amount thereof, and so long as such delay in payment shall not subject the Site to forfeiture or sale. -31- 40 of 84 SEP 4 1990 l:reM 401 Section 3.06 Certificate of Completion After completion of all construction and development to be completed by Developer upon the Site, Agency shall furnish Developer with a Certificate of Completion substantially in the form of the Certificate of Completion attached hereto as Exhibit "F," upon written request therefore by Developer. Agency shall not unreasonably withhold any such Certificate of Completion. Such Certificate of Completion shall be, and shall so state, a conclusive determination of satisfactory completion of construction required by this Agreement to be performed by Developer upon the Site, of full compliance by Developer with the terms hereof. After issuance of such Certificate of Completion, any party then owing or thereafter purchasing, leasing or otherwise acquiring any interest therein shall not (because of such ownership, purchase, lease or acquisition) incur any obligation or liability under this Agreement. A Certificate of Completion of construction for the entire improvement and development of the Site shall be in such form as to permit it to be recorded in the Recorder's Office of San Diego County. If Agency refuses or fails to furnish a Certificate of Completion for the Site after written request from Developer, Agency shall, within thirty (30) days of the written request, provide Developer with a written statement of the reasons Agency refused or failed to furnish a Certificate of Completion. The statement shall also contain Agency's opinion of the action Developer must take to obtain a Certificate of Completion. If Agency shall have failed to provide such written statement within said thirty (30) day period, Developer shall be deemed entitled to the Certificate of Completion. If City issues a Certificate of Occupancy -32- 41 of 84 SEP 4 1990 iTEM 40' covering the Site, Agency shall be obligated to issue the Certificate of Completion. In the event Agency does not deliver the Certificate of Completion to Developer and Developer believes that it has fulfilled all of the requirements for delivery of the Certificate of Completion, either party may institute and maintain any appropriate action or proceeding which it deems necessary to assert or enforce its rights or remedies hereunder. Such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any holder of a mortgage, or any insurer of a mortgage securing money loaned to finance the improvements, or any part thereof. Such Certificate of Completion is not notice of completion as referred to in the California Civil Code, Section 3093. ARTICLE IV USE OF THE SITE Section 4.01 Uses For 15 years from the close of Escrow, the Site may only be used for the construction and operation of a Plymouth dealership franchise or such other automobile dealership franchisees) as may be approved in writing by Developer and Agency, to sell new and used vehicles and automobile service facilities and for uses incidental thereto. The Agency agrees that it shall not withhold its consent to any automobile dealership francise pro- posed by the Developer so long as said franchise is a nationally recognized manufacurer of automobiles. -33- 42 of 84 SEP4 1990 ITEM 4.i Section 4.02 Obligation to Refrain From Discrimination Developer covenants by and for itself, and any successors in interest, that there shall be no discrimination against or segregation of any person, or group of persons, on account of sex, race, color, religion, creed, mari- tal status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy tenure or enjoyment of the Site, nor shall Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Site. The foregoing covenants shall run with the land. Section 4.03 Form of Nondiscrimination and Nonsegregation Clauses Developer shall refrain from restricting the rental, sale or lease of the Site on the basis of sex, race, color, creed, religion, marital sta- tus, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following non- discrimination or nonsegregation clauses: (A) In deeds: "The grantee herein covenants by and for himself, his heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of sex, race, color, creed, reli- gion, marital status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, -34- 43 of 84 SF.P 4 1990 M!eM 4.1 44 of 84 tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selec- tion, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein con- veyed. The foregoing covenants shall run with the land." (B) In leases: "The lessee herein covenants by and for himself, his heirs, executors, administrators and assigns, and all persons claiming under or through him, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons on account of sex, race, color, creed national origin or ancestry, in the leasing, subleasing, transferring, use, or enjoyment of the land herein leased nor shall the lessee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occu- pancy, of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." (C) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of sex, race, color, creed, religion, marital status, handicap, national origin or ancestry in the sale, lease, sublease, -35- SEP 4 1990 lTEM i.i transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee himself or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." Section 4.04 Maintenance Developer shall maintain Developer Improvements on the Site and the landscaping and grounds of the Site in good condition and shall keep those areas free from any accumulation of debris or waste materials. Developer shall be responsible for the enforcement of maintenance on the Site, including parking lots, lighting, trash enclosures and other common facili- ties. Issuance of a Certificate of Compli!tfon by Agency shall not effect Devefoper's obligations under this Section. If at any time, Developer fails to maintain said landscaping and grounds and said condition is not corrected after expiration of thirty (30) days from the date of written notice from Agency to Developer, Agency may (but shall not be obligated to) perform the necessary landscape and grounds maintenance and Developer shall pay such costs as are reasonably incurred for such maintenance. Section 4.05 Effect and Duration of Covenants Covenants against discrimination shall remain in perpetuity. Developer, and any successor to Developer, shall only be responsible for -36- 45 of 84 SEP 4 1990 iTEM 4.\ and liable for the performance of the provisions of Sections 4.01, 4.02, 4.03 and 4.04 and the provisions of the Grant Deed as hereinafter defined during such period of time as it shall be the owner of the Site. ARTICLE V DEFAULTS, REMEDIES AND TERMINATION Section 5.01 Defaults - General Subject to the extensions of time set forth in Section 6.04, the following shall constitute an event of default under this Agreement (an "Event of Default"): (a) any representation of Developer under Section 1.04 of this Agreement shall, prior to the issuance of the Certificate of Completion become untrue or false, or shall be determined by the Agency to have been false or untrue when made, or (b) failure or delay by either party to perform any term or provision of this Agreement. The injured party shall give written notice of the Event of Default to the party in default, specifying the default complained of by the injured party. Defaulting party shall have 30 days from the date it receives notice of default in which to cure such Event of Default; provided, however, that if such Event of Default is not capable of being cured within such time period, if defaulting party has made a good faith effort to commence to cure such Event of Default within such time period and is diligently proceeding to cure such Event of Default, defaulting party shall have a reasonable period of time within which to complete its cure of such Event of Default. If such Event of Default is not cured or is not capable of -37- 46 of 84 sr:p <1 1990 HEM iJ. ,,\ being cured within 30 days or defaulting party has not commenced to cure such Event of Default within 30 days as described hereinabove, the injured party may exercise such further rights and remedies as are provided for herein. Any failure or delay by either party in asserting any of its rights or remedies as to any Event of Default shall not operate as a waiver of any Event of Default or of any such rights or remedies or deprive such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. Section 5.02 Institution of Legal Actions In addition to any other rights or remedies, either party may institute a legal action to cure, correct or remedy__a~y Event of Default, to recover damages for any Event of Default or to obtain any other remedy consistent with the purpose of this Agreement. Section 5.03 Selection of Form Any legal action instituted pursuant to Section 5.02 hereof or other- wise. must be instituted in the Superior Court of the County of San Diego, State of California, in an appropriate municipal court in such county, or in the federal district court for the Southern District of California. Section 5.04 Rights and Remedies are Cumulative Rights and remedies of the parties, including any right to terminate this Agreement, are cumulative. and the exercise by either party of one or -38- 47 of 84 SEP 4 1990 ITEM 4,1 more of such rights or remedies shall not preclude the exercise by it, at the same time or different times, of any other rights or remedies for the same Event of Default or any other Event of Default by the other party. Nothing set forth in this Agreement shall be construed to impair or affect the rights or obligations of Agency or Developer to specific performance. Section 5.05 Remedies and Rights of Termination Prior to Conveyance (A) Termination by Developer In addition to Developer's rights to terminate this Agreement as otherwise provided herein, Developer shall also have the right to terminate this Agreement prior to the close of Escrow in the event that Agency commits an Event of Default. In the event Agency commits an Event of Default prior to the close of Escrow and fails to cure such Event of Default within thirty (30) days after the receipt by Agency of written demand by Developer, then this Agreement shall, at the option of Developer, be terminated by written notice thereof to Agency, provided, however, the exercise by Developer of its right to terminate the Agreement shall not preclude the exercise by it of any other rights or remedies available at law or in equity. (B) Termination by Agency Should Developer commit an Event of Default prior to close of Escrow and fails to cure such Event of Default within thirty (30) days after the receipt by Developer of written demand by Agency, then the -39- 48 of 84 SEP 4 1990 ITEM ~,I Agreement and any rights of Developer or any assignee or transferee per- taining thereto or arising therefrom with respect to Agency shall, at the option of Agency, be terminated by Agency by written notice thereof to Developer; provided, however, the exercise by Agency of its right to ter- minate this Agreement shall not preclude the exercise by it of any other rights or remedies available at law or in equity. Termination under this section shall not impair Agency's right to retain the Good Faith Deposit pursuant to Section 1.06 of this Agreement. Section 5.06 Option to Repurchase, Re-enter and Repossess Agency shall have the right at its option to repurchase, re-enter and take possession of the Site, prior to the recordation of the Certificate of Completion, subject to th~~.rovisions of Section 6.04, if Developer (or its successors in interest) transfers the Site or any interest therein, without the approval of the Agency as required hereby, or transfers or assigns its interest in this Agreement, without the approval of the Agency as required hereby, or fails to commence and complete construction of Developer Improvements contemplated by this Agreement in accordance with the Schedule of Performance. Agency shall have the right to repurchase, re-enter and take possession of the Site under this Section 5.06 only after delivering to the Developer thirty (30) days written notice of Agency's intent to exercise its rights under this Section and Developer's failure to commence construction or complete construction within such 30-day period, as the case may be. The purchase price for the repurchase of the Site by Agency shall be an amount equal to the sum of the Disposition Price, plus the amount expended by Developer for construction of any improvements on the Site, -40- 49 of 84 SEP 4 1990 ITEM ~,I including architects and engineering fees as verified by the Developer to the Agency by invoices of other evidence of cost. The right to repurchase, re-enter and take possession of the Site shall not be subject to or limited by and shall not be defeated, rendered invalid or limited by: (a) any mortgage or deed of trust or other security interest: so long as the secured loan documents provide that any default under this agreement shall also be a default under such loan documents and so long as, in the event of such cross-default, such secured lender pro- ceeds to either complete the improvements on the Site or to exercise its remedies under the loan documents with due diligence to foreclose the lien on the Site and re-sell the Site; or (b) any rights or interests pro- vided for the protection of the holders of any mortgage or deed of trust or other security interest. In the event title to the Site or any part thereof is revested in Agency as provided in this Section, Agency shall, pursuant to its respon- sibilities under law, use its best efforts to resell the Site or any part thereof as soon and in such manner as Agency shall find feasible and con- sistent with the objectives of law and of the Redevelopment Plan, to a qualified party or parties, as determined by Agency, who will assume the obligation of making or completing the improvements or such other improve- ments in their stead as shall be satisfactory to Agency in accordance with the uses specified for the Site or part thereof in the Redevelopment Plan. Upon such resale of the property, the proceeds thereof shall be applied by Agency: (i) first, to reimburse Agency, on its own behalf or on the behalf of the City of Poway, for all costs and expenses incurred by the Agency, including but not limited to, salaries of personnel engaged in the repossession, management and resale of the Site or any part thereof, less -41- SEP 4 1990 ITEM i.1 50 of 84 any income derived by Agency from the Site or part thereof: and all taxes, assessments and other governmental charges with respect to the Site: any payments made or necessary to be made to discharge any encumbrances or liens existing on the Site or part thereof at the time of revesting of title thereto in Agency or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of Developer, its successors or transferees; and any expenditures made or obligations incurred in respect to the making or completion of Developer Improvements or any portion thereof on the Site and any amounts otherwise owed to Agency by Developer. and/or its successor or transferee, and (ii) second. to reimburse Developer, its successor or transferee, up to the amount equal to the sum of (a) the Disposition Price paid to Agency by Developer, for the Site, or allocable to the part thereof: (b) the unreim- bursed costs incurred for the development of the Site and for Developer Improvements existing on the Site at the time of re-entry and repossession. as verified by the Agency by invoices of the Developer not included in the purchase price upon retaking the Site; less (c) any gains or income withdrawn or made by Agency from the Site or Developer Improvements thereon. Any balance remaining after such reimbursement shall be retained by Agency. In the event that this right of reverter is construed by a court to involve a forefeiture of property, the parties agree that this right is to be interpreted in light of the fact that Agency has conveyed the Site to Developer for the purpose of development therof and not for speculation in a developed land. -42- SEP 4 1990 ITEM 4.1 51 of 84 ARTICLE VI GENERAL PROVISIONS Section 6.01 Notices, Demands and Communications Between Parties Any notices, demands and communications between Agency and Developer required or authorized by this Agreement shall be sufficiently given if hand delivered or dispatched by registered or certified mail, postage paid, return receipt requested, to the principal offices of Agency and Developer, but shall not be effective until received. Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time-to-time desigate by notice as provided in this Section. Section 6.02 Conflict of Interest No member, official or employee of Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. Developer warrants that it has not paid or given, and will not pay or give, any third person any money or other consideration for obtaining thi s Agreement. -43- 52 of 84 SEP 4 1990 ITEM 4.J Section 6.03 Nonliability of Officials and Employees No member, official or employee of Agency shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by Agency or for any amount which may become due to Developer or its successor or on any obligations under the terms of this Agreement. Section 6.04 Enforced Delay: Extension of Times of Performance In addition to specific provisions of this Agreement, delay in perfor- mance by either party hereunder shall be excused where such delays are due to war: insurrection; strikes; lock-outs: riots; floods; earthquakes: fires; casualties; acts of God: acts of the public enemy; epidemics; quarantine restrictions; freight embargos; lack of transportation; govern- mental restrictions or priority: litigation; unusually severe weather: ina- bility to secure necessary labor, materials-or tools; delays of any contractor, subcontractor or supplier: acts of the other party: acts or failure to act of any public or governmental agency or entity (other than that, acts or failures to act of Agency shall not excuse performance by Agency) or any other causes beyond the control or without the fault of the party Claiming an extension of time to perform. An extension of time for any such cause shall only be for the period of the enforced delay. which period shall commence to run from the time of the commencement of the cause. If, however, notice by the party claiming such extension is sent to -44- 53 of 84 SE? 4 1990 ITEM 4.\ the other party more than thirty (30) days after the commencement of the cause, the period shall commence to run only thirty (30) days prior to the giving of such notice. Times of performance under this Agreement may also be mutually extended in writing by Agency and Developer. Section 6.05 Inspection of Books and Records Agency has the right, upon not less than seventy-two (72) hours notice, at all reasonable time to inspect the books and records of Developer pertaining to the Site as pertinent to the purposes of this Agreement: provided, however, Agency shall not have the right to inspect any privileged communications between counsel and Developer. The right of the Agency to inspect such books and records shall be applicable only until the Agency has issued a Certificate of Completion pursuant to Section 3.06 but shall also be applicable thereafter in the event of any dispute involving the Agency relating to this Agreement. Section 6.06 Plans and Data Should Developer not proceed with the purchase and development of the Site, and this Agreement is terminated pursuant to Section 5.05 hereof for any reason, Developer shall deliver to Agency without cost to Agency any soil reports obtained by Developer and the survey of the Site obtained by Developer. Section 6.07 Approvals Wherever this Agreement requires Agency or Developer to approve any contract, document, plan, specification, drawing or other matter, such approval shall not be unreasonably withheld or delayed. -45- 54 of 84 SEP 4 1990 ITEM 4.1 Section 6.08 Governing Law This Agreement and the interpretation and enforcement thereof shall be governed by the laws of the State of California. ARTICLE VI I SPECIAL PROVISIONS Section 7.01 Submission of Documents to Agency for Approval Whenever this Agreement requires Developer to submit plans, drawings or other documents to Agency for approval, they shall be deemed disapproved if not acted on in writing by Agency within thirty (30) days after submission to Agency, or within any 'longer time period expressly provided by this Agreement for Agency review. -46- 55 of 84 SEP 4 1990 ITEM 4. i ARTICLE VI I I ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS This Agreement is executed in three (3) duplicate originals each of which is deemed to be an original. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the sub- ject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of Agency and Developer, and all amendments hereto must be in writing and signed by the appropriate authori- ties of Agency and Developer. "DEVELOPER" "AGENCY" Bruce A. Carey By: Name (Print) Cha i rman ATTEST: Eileen L. Carey Secretary APPROVED AS TO FORM STRADLING, YOCCA, CARLSON & RAUTH Attorneys for Poway Redevelopment Agency By: Name (Print) Date: , 1990 -47- (6/G/CAREYl - CAREY48) SEP 4 1990 lTiM 4. j 56 of 84 EXHIBIT A-l LEGAL DESCRIPTION OF THE SITE Parcell of Parcel Map No. 15255 in the City of Poway, County of San Diego, State of California recorded in the office of the County Recorder of San Diego County on June 6, 1990. 57 of 84 SI::P 4 1990 ITEM 4.1 c:ci -II .0: ':i: : 58 of 84 i , 01 0:1 0, Zf' t EXHIBIT A-2 SITE MAP POWA Y RD. 0" ~ . g ". -, 5i;; Ow " VI.RIES o J ~ 5 i " I ~ I J. i -1--- I i -----;ei"6~.----1---- ! (i5~~;;;\;" ( b ~ /~ II '" "";G. ~ l' -- ~f~ I 13' 615' /~_1. /" // ' \ II (I~01'PE"-ROS'027" ,//.........::='1- '.!36~' ./ ~ ;:J '--- ~ ~-- -- ___J_' '7-:"'- II. II".OG '" \ I ("~':;:';,, I ROS 1027.) Ne9'~'.J'W PCRT1.~:l or (XI$Tt.(f C<J:ICF(TE BLC'CK eUIL(;I:m DKROACH[ ~.~ ~ ~1-. .~ 1:) :n ~p Ih .~ '" '0 . ,wg ZOO " " ow .:., o ... o ~ -~ \ J..PP~0X. LIMIT ________ OF 100 ~tAR --:;5"'6',4)'W __ FLOO:;) LIl;r CITY OF POW A Y "- - - -",. - - -....-1 t; ........ "'!./ r/) \ 2" . '\v yo \10' .':,~E ~I\AItU.GE EASE~'E!-H I o~o --= ;C:lJCA'T!O TO TI-lE OTY OF FOf.,l..,. HEF(ON. e!~;~ \ // \ - ~ - - - - - - S""Ci":67'- -1- - - - - - - - _.1. - -- I PARCEL 2 10' \'IIC( L,l,~~CSCkFE E.~EI.lENT Oe01CA Ttil TO THE CITY OF PO~"A.Y H(F<EON. .~ ~6e 215' I ('.es-ctl 30'1'( '615 ~4' Ft~ ",CS ""2;4)1 _____ JC"ES' _ _---,___1 _____ ~ __::I_________"l - ~ -' 11"-~9,li/ '- / (tiO.OO' P(1l: 1\ ti\~.~ti' Il,l.;> E5SC) I , 1 ~ 9 4_ f 7' ! (~5~.OO' ~ER I ~"P ti5~0) SEP 4 1990 ITEM POR710N or po""", '( DEDIC"" TED kER(ON JO' ~OE: ROAD e:A ::0' v.-1OE RO"''' tA ~ ~ o o . . ~. .~ "'" '0.., o ~. ~ :;:'" o ~ g .~ \ 6...L-.; -. \!~ ~-~ \\; ~ , ~ ~ ~ ~ ~ ~ 4.1 EXHIBIT A-3 Leqal Description of the Burdened Property The easterly 25.00 feet of the Northerly 200.00 feet of Parcell, Parcel map No. 15255. 59 of 84 SEP4 1990 ITEM 4.i EXHIBIT B SCHEDULE OF PERFORMANCE Action 1. Execution of Agreement by Agency. The Agency and City Council shall hold a public hearing and author- ize execution of the Agreement and execute and deliver Agreement to Developer. 2. Submission of Developer's Basic Concept Plans and Drawings. The Developer shall prepare and submit to the Agency for approval the Basic Concept Plans and Drawings and related documents for development of the Site. 3. Approval of Basic Concept Plans and Drawings. The Agency shall approve or disapprove the Basic Concept Plans and Drawings. 4. Submission-Preliminary Plans and Drawings, Land-. scaping and Grading Plan. Developer shall prepare and submit to the Agency Prelim- inary Plans and drawings, outline specifications and landscaping and grading plan for improvements on the Site. 5. Approval-Preliminary Plans and Drawings, Land- scaping and Grading Plan. Agency shall approve or disapprove the Preliminary Plans and drawings, outline specifications and landscaping and grading plan for the Site. 6. Deposit of Grant Deed and Dispo- sition Price. Agency shall deposit the Grant Deed into Escrow and Developer shall deposit Disposition Price into Escrow. 08/28/90 60 of 84 33n/2345/00 B-1 Date Within 45 days after the Developer signs this Agreement and delivers it to the Agency. Within 90 days after execution of Agreement by Agency. Within 50 days after receipt by the Agency. Within 30 days after approval of Basic Concept Plans. Within 30 days after receipt by the Agency. Not earlier than ten (10) days prior to the date set for close of Escrow. SEP 4 1990 ITeM 4.1 7. Receipt by Developer of Approvals. The Developer shall obtain all necessary building permits and approvals for the Developer's construction of Developer Improvements (other than auto showroom). 8. Opening of Escrow. Agency and the Developer shall open the Escrow for the Agency Conveyance. 9. Satisfaction of All Conditions to Close of Escrow. Developer shall satisfy all conditions to Close of Escrow for Agency Conveyance. 10. Close of Escrow. Agency shall convey title to the Developer and Developer shall accept conveyance of the Site. 11. Commencement of Developer Improvements. Developer shall commence construction of improvements on the Site (other than auto showroom). 12. Completion of Developer Improvements. Developer shall complete construction of Developer Improvements (other than auto showroom) on the Site. 13. Dealership Opens. Developer opens on the Site a Full-Service Automobile Dealership. 61 of 08/28/90 B4 33n/2345/00 B-2 Prior to Close of Escrow, and not later than , 1990. Within days after execution of the Agree- ment by the Agency and within days after receipt of building permit and approvals for Developer Improvements (other than auto showroom) . Not later than 1990. W{thin 15 days after fulfillment of all Conditions to Close of Escrow set forth in the Agreement, but in no event later than , 1990. Within 30 days following close of Escrow, and in no event later than 1990. Within 180 days follow- ing commencement of Developer's construction of Developer Improvements (other than auto show- room) . Within fifteen (15) days following completion of Developer Improvements (other than auto show- room) . SEP 4 1990 ITEM 4./ 14. Commencement of Construction of Showroom. Developer commences construction of auto showroom on the Site. In no event later than , 1992 [2 years after execution date of this Agreement] 15. Completion of Showroom. Developer completes and opens auto showroom on the Site. In no event later than ,1993 [3 years after execution date of this Agreement. ] 62 of 08/28/90 M13n/2345/00 84 B-3 SEP 4 1990 ITEM 4.1 EXHIBIT C RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO AND MAIL TAX STATEMENTS TO: ) ) ) ) Bruce A. Carey/Eileen L. Carey ) [Address] ) ) ) Space above this line for Recorder's use GRANT DEED For a valuable consideration receipt of which is hereby acknowledged, The Poway Redevelopment Agency, a public body, corporate and politic, of the State of California, herein called "Grantor" acting to carry out that certain Redevelopment Plan (herein called "Redevelopment Plan") for the paguay Redevelopment Project, herein called "Project", under the Community Redevelopment Law of California, hereby grants to Bruce A. Carey and Eileen L. Carey, a married couple, herein collectively called "Grantee", the real property hereinafter referred to as "Property," described in Exhibit A attached hereto and incorporated herein, subject to the existing easements, restrictions and covenants of record. Section 1. Uses For 15 years from the date of recordation of this Deed, the Property may only be used for the construction and operation of a manufacturer-approved new and used automobile dealership and service facilities and for uses incidental thereto, as further authorized and permitted, and subject to the limitations of, that certain Disposition and Development Agreement dated as of 1, 1990 between Grantor and Grantee (the "DDA") and the Redevelopment Plan and the Specific Plan. Grantee covenants, further, that (A) there shall be operated on the Property a manufacturer-approved full service automobile dealership for the sale of new and used automobiles and services in connection therewith, for a period of at least fifteen years from the date hereof, (B) he shall take no action which may cause the Property to cease to be the point of sale of automobiles sold by Grantee, with respect to payment of sales taxes, and (C) he shall operate the Property and the uses thereon, in conformity with all applicable federal, state and local laws. 08/28/90 9293n/2345/00 63 of 84 C-1 SEP 4 1990 ITEM 4. i Section 2. Obligation to Refrain From Discrimination The Developer covenants by and for itself, and any successors in interest, that there shall be no discrimination against or segregation of any person, or group of persons, on account of sex, race, color, religion, creed, marital status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property. Section 3. Form of Nondiscrimination and Nonsegregation Clauses The Developer shall refrain from restricting the rental, sale or lease of the Property on the basis of sex, race, color, creed, religion, marital status, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (A) In deeds: "The grantee herein covenants by and for himself, his heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of sex, race, color, creed, religion, marital status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or any person claiming under or through him, establish or permit any such practice or practices of discrimination of segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (B) In leases: "The lessee herein covenants by and for himself, his heirs, executors, administrators and assigns, and all persons claiming under or through him, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons on account of sex, race, color, creed, national origin or ancestry, in the leasing, subleasing, transferring, 64 of 08/28/90 M'l3n/2345/00 84 C-2 SEP 4 1990 ITEM 4.i use, or enjoyment of the land herein leased nor shall the lessee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy, of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." (C) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of sex, race, color, creed, religion, marital status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee himself or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." Section 4. Effect and Duration of Covenants Grantee, and any successor to Grantee, shall only be responsible for and liable for the performance of the provisions of Sections 1, 2, 3 and 13 during such period of time as it shall be the owner of the Property. Section 5. Covenants for the Benefit of Grantor All covenants set forth in Sections 1, 2, 3, 12 and 13 of this Deed without regard to technical classification or designation shall be binding for the benefit of the Grantor, and such covenants shall run in favor of the Grantor for the entire period during which such covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land or interest therein to which such covenants relate. The Grantor, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. Section 6. Grant and Reservation of Easements Grantor hereby reserves to itself and its successors a perpetual easement over and across a strip of land twenty-five (25) feet in width, and one hundred twelve (112) feet long, more particularly described on Exhibit B hereto as the "Reserved Easement." Grantor hereby grants to Grantee a perpetual easement over and across a strip of land twenty-five 08/28/90 65 of 84 -~93n/2345/00 C-3 SEP 4 1990 ITEM 4.) (25) feet in width, and one hundred twelve (112) feet long, more particularly described in Parcel 2 on Exhibit A hereto and referred to herein as the "Granted Easement." Grantor shall cause the Granted Easement to be exclusively used only for ingress and egress to and from the Property and the Burdened Property. Grantee shall cause the Reserved Easement to be exclusively used and reserved for ingress and egress to and from the Property and the Burdened Property. Section 7. Maintenance of Easement Grantee shall maintain any paving, improvements, and landscaping located on the Reserved Easement, and Grantor shall maintain any paving, improvements and landscaping located on the Granted Easement. In the event either Grantor or Grantee fails to perform its maintenance obligations under this Section, the other party may perform those obligations at the breaching party's expense, the breaching party being obligated to reimburse for all expenses incurred to cure such breach within ten (10) days of demand. Section 8. Covenants Run with Land The covenants, conditions and restrictions contained in Sections 6 and 7 of this Grant Deed shall be covenants running with the Property and the Burdened Property and are for the benefit of the Property and the Burdened Property and are binding upon and inure to the benefit of Grantee and Grantor and their respective successors and assigns in the Property and the Burdened Property for the benefit of the Property and the Burdened Property. Grantee and Grantor and their respective successors and assigns in the Property and the Burdened Property, respectively, shall only be bound by the terms, covenants, conditions and restrictions set forth in Sections 6 and 7 of this Deed so long as they own any portion of the Property or the Burdened Property. Section 9. Mortgage Protection No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust, provided, however, that any subsequent owner of the Property shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. Section 10. Amendments Both Grantor, its successors and assigns, and Grantee and the successors and assigns of Grantee in and to all or any part 08/28/90 66 of 84 13n/2345/00 C-4 SEP 4 1990 ITIM 4. I of the fee title to the Property shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements or restrictions contained in this Grant Deed without the consent of any tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust or any other person or entity having any interest less than a fee in the Property. The covenants contained in this Grant Deed, without regard to technical classification shall not benefit or be enforceable by any owner of any other real property. Any amendments to the Redevelopment Plan which change the uses or development permitted on the Property, or otherwise change any of the restrictions or controls that apply to the Property, shall require the written consent of Grantee or the successors and assigns of Grantee in and to all or any part of the fee title to the Property, but any such amendment shall not require the consent of any tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust or any other person or entity having any interest less than a fee in the Property. Section 11. No Forfeiture of Title The covenants contained in this Grant Deed are not conditions which might result in forfeiture of title. Section 12. Right to Re-purchase and Re-vest Title to Property Reference is made to those provisions of the DDA granting to Grantor the right to re-purchase and re-vest title to the Property in the Grantor, all of which provisions are incorporated herein by reference. Section 13. Sales or Transfer of Property Grantee covenants that he shall not make any sale, transfer, conveyance or assignment of the Property or any part thereof or any interest therein without the prior written consent of Grantor, in accordance with the DDA. 08/28/90 67 of 84 13n/2345/00 C-5 SED 4 1990 ITIM 4. \ IN WITNESS WHEREOF, the Grantor and Grantee have caused this instrument to be executed by the persons named below as of this day of , 1990. POWAY REDEVELOPMENT AGENCY By: Chairman "AGENCY" ATTEST: By: Secretary BRUCE A. CAREY AND EILEEN L. CAREY By: Bruce A. Carey By: Eileen L. Carey "DEVELOPER" 08/28/90 68 of 84 3n/2345/00 C-6 StP 4 1990 1T!M' 4. i EXHIBIT A LEGAL DESCRIPTION OF THE SITE Parcell of Parcel Map No. 15255 in the City of Poway, County of San Diego, State of California recorded in the office of the County Recorder of San Diego County on June 6, 1990. 69 of B4 SEP 4 1990 iTEM 4.1 EXHIBIT D RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) ) Bruce A. Carey/Eileen L. Carey ) [Address] ) ) ) Space above this line for Recorders's use MEMORANDUM OF OPTION TO REPURCHASE This Memorandum of Option to Repurchase is entered into this day of , 1990, between BRUCE A. CAREY and EILEEN L. CAREY, a married couple ("Grantor"), and the POWAY REDEVELOPMENT AGENCY, a redevelopment agency organized under the laws of the State of California ("Grantee"). Grantor hereby grants to Grantee an option to purchase the real property described on Exhibit "A" hereto pursuant to and upon the terms set forth in that certain Disposition and Development Agreement dated , 1990, entered into between Grantee and Grantor. Said terms are more particularly set forth in Section 5.06 of said Agreement. The option shall terminate in accordance with the terms of Section 5.06 of said Agreement, such termination to be confirmed of record by recordation of a Certificate of Completion as provided for in Section 3.06 of said Agreement. IN WITNESS WHEREOF, the parties hereto have entered into this Memorandum of Option to Repurchase as of the date first set forth above. BRUCE A. CAREY , By: EILEEN L. CAREY By: POWAY REDEVELOPMENT AGENCY By: Its: 70 of 84 08/28/90 '3n/2345/00 D-1 SEP 4 1990 ITEM 4.i EXHIBIT A LEGAL DESCRIPTION OF THE SITE Parcell of Parcel Map No. 15255 in the City of poway, County of San Diego, State of California recorded in the office of the County Recorder of San Diego County on June 6, 1990. SEP 4 1990 ITEM 4.1 71 of 84 EXHIBIT E SCOPE OF DEVELOPMENT I. DEVELOPER IMPROVEMENTS The Site shall be designed and developed as a manufacturer-approved new automobile dealership for Plymouth automobiles or such other make of automobiles as may be selected by the Developer, so long as the requirements of Section 2.03(D) and all other provisions of this Agreement shall be applicable thereto (the "Full-Service Automobile Dealership"). The Full-Service Automobile Dealership shall be conducted initially, after the close of Escrow, in an "auto lot" to be prepared and developed by Developer upon the Site. The Developer shall construct on the Site, commencing not later than two years from the date of execution of the Disposition and Development Agreement and to be completed not later than three years from the date of execution thereof, an automobile showroom, comprised of abuilding or building of approximately 20,000 square feet, and other related facilities for an automobile dealership franchised to sell new automobiles, except auto body and painting facilities which are expressly prohibited. The Developer shall also acquire, construct and install all public improvements required by the City to be installed on the Site, including water, sewer and drainage facilities and such off-site improvements as are required by the City and necessitated by the development of the Site. The Developer and its architect, engineer and contractor shall work closely with the staff and planning consultants of the Agency and the City to coordinate design, parking, color, open space, landscaping, and other details. The Developer shall perform all final grading pursuant to grading plans submitted to and approved by the Agency as provided in the Agreement. The Developer, at its sole expense, shall make any and all street repairs for damage caused by Developer's construction activities. These repairs shall be constructed in accordance with the technical specifications, standards and practices of the City. All of the foregoing shall, collectively, constitute the "Developer Improvements". 08/28/90 33n/2345/00 E-l SEP 4 1990 iTEM 4.i 72 of 84 II. BASIC CONCEPT PLANS AND DRAWINGS The Basic Concept Plans and Drawings represent the proposed general development program and are commensurate with "schematic" drawings. The Basic Concept Plans and Drawings shall be prepared and submitted for review during the time provided in the Schedule of Performance. The following constitutes Basic Concept Plans and Drawings: A. Site Plan (colored). Illustrates schematic components of site development for each parcel, including building(s) footprint, site improvements, landscaped areas (hardscape and live plant materials), on-site pedestrian and vehicular access and circulation associated with building(s) including parking structure(s). A tabular summary of proposed gross and net square footage, proposed use, open space, and parking space allocation shall be included. B. Building Elevations. Schematic illustrations of an appropriate scale showing all sides of proposed building(s). Proposed exterior design and general materials program should be identified. Any alternate material being explored or range of materials being studied, if applicable, should also be identified. C. Floor Plans. Schematic illustrations of an appropriate scale which identify and describe ground floor and typical floor spaces. Building entries, lobby, core area, elevator access, and other user circulation or any proposed extraordinary floor plan conditions should be identified. D. Landscape Concept. A general landscape concept which illustrates proposed location of landscape improvements, including hardscape and live plant material. Proposed pedestrian circulation, building access, and any seating space or areas designated for other activities (exhibit space, etc.) should also be shown. 08/28/90 M-'n/2345/00 73 of 84 E-2 SEP 4 1990 ITEM 4,i I I I. PRELIMINARY PLANS Preliminary Plans represent a level of detail beyond the Basic Concept Plans and Drawings, and are commensurate with "Design Development" drawings. Preliminary Plans also represent an intermediate level of review and approval prior to the preparation of full Final Construction (Working) Drawings. The Preliminary Plans are due at the times set forth in the Schedule of Performance. The following constitutes the Preliminary Plans: A. Site Plan (colored). Full dimensioned plans which identify all building setbacks, vehicular delivery areas, parking spaces, access drives and on-site pedestrian amenities. B. Building Elevations (colored). All sides of building identified and described. Building design components including all proposed exterior materials, finish types, and other descriptive information. C. Floor Plans. Full dimensioned plans which identifies location and size of lobby area, building core (elevators, rest rooms, equipment storage, stairways, etc.) and discrete floor areas. D. Roof Plan. Identifies full roof area at a scale consistent with floor plans. The roof plan shall illustrate roof area proposed for any equipment installation (i.e., AC units, ducting, vents, etc.) and shall identify the method and construction of the complete screening and coloring of roof equipment and coverings. E. Color and Materials Palette. Samples of proposed materials (stone, glass, etc.) and colors for building exterior, sample interior materials (flooring, wall coverings, paint, elevator area details, etc.). Material and color samples should be attached and properly labeled on an appropriate board or backing for presentation, convenient carry, transport and storage. F. Landscape Plan - colored. Full-dimensioned, colored plan which illustrates location, size, height, and type of all proposed landscape materials (trees, shrubs, ground cover, pavers, lighting, or other materials) with details illustrating typical application. G. Signage/Graphics. A comprehensive planned signage and graphics program which identifies proposed building and site signage, and directional graphics including proposed location, size, materials, colors, and method of illumination, if 08/28/90 13n/2345/00 74 of 84 E-3 SEP 4 1990 ITEM 4.i applicable. The approved signagejgraphics program will be the basis for future sign submittals/approvals in advance of required City permits or other discretionary approvals. H. Preliminary Grading Plan. A grading plan indicating proposed site grading shall be included. I. Preliminary Building Specifications and Finish Schedule. Written description of building construction and details including structural system, plumbing, HVAC, elevators, and fire protection shall be submitted. A Finish Schedule (produce specification summary) must be included which identifies and describes all proposed construction detail features and items. The Schedule will be a tabular description to include quantity, price, and other data sufficient in detail to analyze estimated project costs. IV. FINAL CONSTRUCTION (WORKING) DRAWINGS Final Construction (Working) Drawings, representing the final plans and having all the elements of the Preliminary Plans, are to be submitted for building permit plan check and staff review by the time required in the Schedule of Performance. 08/28/90 o"93n/2345/00 75 of 84 E-4 SEP 4 1990 ITEM 4.; EXHIBIT F Recording Requested by ) and When Recorded Return to ) and Mail Tax Statements to: ) ) Bruce A. Carey/Eileen L. Carey ) [Address] ) ) ) Space above this line for Recorders's use CERTIFICATE OF COMPLETION FOR CONSTRUCTION AND DEVELOPMENT WHEREAS, by Grant Deed dated and recorded on as No. of the official records of the County Recorder of the County of San Diego, California, the poway Redevelopment Agency, a public body, corporate and politic, hereinafter referred to as "Agency", conveyed to Bruce A. Carey and Eileen L. Carey, a married couple, hereinafter collectively referred to as the "Developer" certain real property situated in the City of Poway, California described in Exhibit "A" attached hereto and made a part hereof; and WHEREAS, the Agency and Developer are also parties 'to that certain Disposition and Development Agreement dated, for reference purposes only, as of May 1, 1990, providing for the acquisition and construction of certain improvements on the Property, defined as the "Developer Improvements" therein; and WHEREAS, as referenced in said Agreement, the Agency shall furnish the Developer with a Certificate of Completion upon completion of construction and development of the Developer Improvements, which certificate shall be in such form as to permit it to be recorded in the Recorder's Office of San Diego County; and WHEREAS, such certificate shall be conclusive determination of satisfactory completion of the construction and developement required by the Agreement on the Site; and WHEREAS, the Agency has conclusively determined that the construction and development on the above described real property required by the Agreement on the Site has been satisfactorily completed; 76 of 84 07/28/90 Bn/2345/00 F-l SEP 4 1990 ITEM 4.l NOW THEREFORE, 1. As provided in said Agreement, the Agency does hereby certify that the construction and developement of the Developer Improvements on the Site has been fully performed and completed. Any requirements for operation pursuant to the Agreement which is on file with the Agency as a public record an incorporated herein by reference, shall remain enforceable according to their terms. 2. Nothing contained in this instrument shall modify in any other way any other provisions for said Grant Deed or any executory provisions of the Agreement. IN WITNESS WHEREOF, the Agency has executed this certificate this day of , 19 POWAY REDEVELOPMENT AGENCY By: Executive Director ATTEST: By: Secretary 07/28/90 ~M\n/2345/00 77 of 84 F-2 SEP 4 1990 IRM 4.1 EXHIBIT A LEGAL DESCRIPTION OF THE SITE Parcell of Parcel Map No. 15255 in the City of Poway, County of San Diego, state of California recorded in the office of the County Recorder of San Diego County on June 6, 1990. 78 of 84 Sf:? 4 1990 ITEM 4.i ATTACHMENT 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY APPROVING THE SALE BY POWAY REDEVELOPMENT AGENCY OF REAL PROPERTY IN THE PAGUAY REDEVELOPMENT PROJECT A.~A,~~ING FINDINGS OF ENVIRO~~NTAL IMPACT ~~ AUTHORIZING THE EXECUTION OF A DISPOSITION A.~ DEVELOP~~NT AGREEMENT wnEREAS, the poway Redevelopment Agency (hereinafter referred to as the "Agency"), under the provisions of the California Community Redevelopment Law, is engaged in activities necessary far the execution of the Redevelopment Plan for the Faguay Redevelopment Project Area (hereinafter referred to as the "Project Area"); and WHEREAS, in order to effectuate the orovisions of that Redevelopment Plan, the Agency proposes to sell certain property owned by the Agenoy within the Project Area _ (hereinafter referred to as the "Site"), generally described and depicted on the attached "Site ~lap"; and l,riEREAS, Bruce Carey and Eileen L. carey (hereinafter referred to, collectively, as the "Developer") have submitted to the Agency a written offer in the form of a Disposition and Development Agreement (hereinafter referred to as the "Agreement") to purchase the Site at a price less than the fair value of the Site, for uses in accordance with the Redevelopment ~lan; and WHEREAS, the proposed Agreement contains all the provisions, terms and conditions, includes all obligations required by State and local law, and Developer possess'es the qualifications and financial resources necessary to acquire and insure development of the Site in accordance-with the purposes and Objectives of the Redevelopment Plan for~the Project; and WHEREAS, the Agency and the City Council of the city of poway held a joint public hearing on the proposed sale of the Site pursuant to published notice as required by law; and WHEREAS, the Agency has duly considered all terms and conditions of the Drooosed sale and believes that the development of the-Site pursuant to the subject Agreement is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements; and 79 of 84 S~D 4, '22C I....': ~.~ 4 I . NOW, THEREFORE, the city Council of the City of Poway does hereby find, determine, order and resolve as follows: Section 1. The recitals hereof are true and correct and are incorporated herein by reference. Section 2. The sale of the real property by the Poway Redevelopment Agency to the Developer by the Agency as described in the Agreement is hereby approved. PASSED, AP~ROVED and ADOPTED this day of 19 Hayor ATTEST City Clerk 0485U/2345.00 SEP 4 1990 iTEM 4. \ 80 of 84 -2- {( I I , cii a:' 0, zt ~i ...JI -01 ;~: 81 of 84 - - - - C'~6~' - - - -1- --- '.. I / S!:ARCl-.EO. ( / II (~iT':,~~f,. .~ Ji __ .//~~ I 1;!U!l' ~1 /, I \ I {1~07'F<:RROS~02;1; /~~- 'e~t-..}'~ ~, , ;:.J '-- # I~- ---- - -nc,- : II''': ~ I \ I' ("~':,,,;,, I I P.CS j027~) "es'~'...y'H r 0- ~ ~ S HE i~AP ?0)1il.~:l or (XISr::~G C":K~t"'t e~Oc.K .eulLCI:I~ (:iC?:OACl".C:'" --- A,P;>iOOX, V.IIT ____... or 1~::l ~'E,l.,~ --::;;.C-6....YW FLODJ ll:':; g ::.~ ;;::: ". Ow . ~ ;... I I _L-___ , , ! CITY OF POW A Y .~ ,wg ,,0 ::: g:;: ~ ",,;;;,[S 4' ~ " e ~ g " " w. .~ ..... b '" '" 100;' <:. ~'" ~ c. g ~ .i . " ~ 65'>:;200' ':'t'.'FC?:"~Y C"'R SIC.;='::;:; (ASH~[NT IiES!:R\'t:D H[l'<rcr.l .C~ ?...."CELl. _/\ , "- - - -,r - - -1~~ '\ ~./ (../~ \ :J'" . -\v ,'0' ~:,c:: C"....It."GE ("'SE~'::'~T I ('2S~..J~:'> .--: JC)ICAT'tCl TO ,,..,( CITY' Of FOM.Y ,"E~::O'~ f,!l'C;V / \ // \ - ~ - - - - - - ~C.~t;7'- -1- - - - - - - - - 1. - -- 10' 1'.'.:'( ~"':':'SColJ=E E"::'[~'.[la I \ 6~' D[OIC....'7LO 10 i",.;[ CITY OF ' POWAY Ht~~CN, S! \ !.J:....;: '.", I '1 - (< .~ L!!!.4' =i:ll. =CS .~27L) \:: ~ _ .:c.~:.~ _ = ~ - ~ ::___ ::_~)d=--.: \ -' .{I'-""/ \---- I I (~C~' =U': 6.9.i6' I.'./..? !S~C) I . '~L,t7' : (~~~,OO' ~~" , II}o.P 6~:>O:) c:~D 4; 1QQC \1"~M 4.1 ATTACHMENT 4 RESOLUTION NO. A RESOLUTION OF THE POWAY REDEVELOPMENT AGENCY APPROVING THE S.~E OF REAL PROPERTY IN THE PAGUAY REDEVELOPMENT PROJECT ~_REA, ~~ING FINDINGS OF ENVIRO~ffiNTAL IMPACT ANlD AUTHORIZING THE RXECUTION OF A DISPOSI1ION ~~ DEVELOPMENT AGREEMENT WrlEREAS, the poway Redevelopment Agency (hereinafter referred to as the "Agency"), under the provisions of the California Community Redevelopment Law, is engaged in activities necessary for the execution of the Redevelopment Plan for the Paguay Redevelopment Project Area (hereinafter referred to as-the "Project Area"); and ~rnEREAS, in order to effectuate the provisions of that Redevelopment Plan, the Agency proposes to sell certain property owned by the Agency within the Project Area _ (hElreinafter referred to as the "Site"), generally described and depicted on the attached "Site Hap"; and WHEREAS, Sruce Carey and Eileen L. Carey (hereinafter referred to, collectively, as the "Developer") have submitted to the Agency a written offer in the form of a Disposition and Development Agreement (hereinafter referred to as the "Agreement") to purchase the Site at a price less than the fair value of the Site, for uses in accordance with the Redevelopment Plan; and WHEREAS, the proposed Agreement contains all the provisions, terms and conditions, includes all obligations required by State and local law, and Developer possesses the ~a1ifications and financial resources necessary to acquire and lnsure development of the Site in accordance with the purposes and objectives of the Redevelopment Plan for the Project; and h~EREAS, the Agency and the City Council of the City of Poway held a joint pUblic hearing on the proposed sale of the Site pursuant to the published notice required by law; and hMEREAS, the Agency has duly considered all terms and conditions of the proposed sale and believes that the development of the Site pursuant to the subject Agreement is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements; and .......-, .......... .:;: i~:,;,\i J....- '] ; ;:'J'/- .-.1 82 of 84 \~riEREAS, the Agency has received and considered the report of Agency staff on the proposed development to be carried out pursuant to said Agreement and the Negative Declaration on such proposed development, and as a result of its consideration and evidence presented at the hearing on the same matter, this Agency has determined that said project will not have any sianificant effect on the environment other than as identified in "the Environmental Assessment (Initial Study) prepared for the subject project; NOW, THEREFORE, the poway Redevelopment Agency does hereby find, determine, order and resolve as follows: Section 1. The Enviro~~ental Determination (Negative Declaration) pcepared for this project indicates that the proposed development will not have a significant effect on the environment, and such is hereby certified. Section 2. The sale of the real property by the poway Redevelopment Agency to the Developer as described in the_ ~i6position and Development Agreement, and the form of said Disposition and Development Agreement presented to this meeting, are hereby approved. Section 3. The Agency finds and determines that a sale of the Site at less than fair market value is justified based upon (i) the substantial nature of the proposed development; (ii) the competitiveness in existing market conditions with regard to automobile dealerships; (iii) the upgr~ding influence the proposed development will have on the Project Area and the ~ommunity; and (iv) enhanced revenues expected to be deri~ed by the Agency and the community from the proposed use of the Site. Section 4. subject to the City Council approval, the Chairman is hereby authorized to execute the Agreement and, upon satisfaction of all conditions preceden~ set forth therein. to take all steps and to execute and-deliver all documents and instruments including, but not limited to, the grant deed to oarry out the Agreement on behalf of the Agency. PASSED, APPROVED and ADOPTED this day of 19 Chairman ATTEST: secretary A'85u/2345.00 83 of 84 ceo" ~ .^^,.. .I ..' J :'.1 -2- ?CFtTlON Of' po"......,.. \, \ ~ ,)C:01CA'TtO HERtel. SET LEAD k T,l.C S1'\.lPO. ~ ~ e-.--- " "" 'N "O( W<LK POW A Y RD. ,,'''0' RD'" (. r. 0:-1 F~RC(L tlll( EX-. !'eS1lS"o'W I \Jue":/.' 8A5lS Of'St,l.iWICS (~:'O' ....lDE ROAj t,l. ;(tlc(t;)tlCil.'TH(RLY~OO~ -,,: //4 ~I ~.\'>-~-- _ _ _ _ ~"~~,.".,, "o,~"'~ "'0) (' I~j'/; ~.. (16e~' t05000( -- 2CJS4' -/- :~_,,~,~_:~~44 /__ :~',',C9~''''w ""~;~o" "_~o~, uU_ uJ_ ~'-'<: ---l ~- l;~~~~50i~'':1 J~, \----.- ~e~.63' &5.('0"". D- 11Z,1"~5~ -=.::7 ~~..:.lS IV...;:;I(S J I . 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