Loading...
Item 11.1 - Agreement btwn. City & RDA Poway Royal Estates Mobilehome Park -AGENDA REPORT SUMMARY ~ I .TO: Honorable Mayor and Members of the City Counc il ~, ~- .i~ Honorable Chairman and Members of the Redevelopment Agency ~~ FROM: James L. Bowersox, City Manager/ Executive Director ^ INITIATED BY: John D. Fitch, Assistant City Manager/Assistant Execu~irecto~)t Warren H. Shafer, Director of Redevelopment Services ~ Pamela R. Colby, Redevelopment Project Administrator~~ DATE: June 20, 1995 SUBJECT: Agreement Between the City and Redevelopment Agency for the Acquisition of an Affordability Covenant on Poway Royal Estates Mobilehome Park ABSTRACf On December 16, 1993,the City Council/Redevelopment Agency directed staff to bring back a report to request authorization to refinance the Certificates of Participation issued to acquire Poway Royal Estates Mobilehome Park (the "Park") and to acquire an affordability covenant on a specified number of spaces in the Park using the Agency's Low- and Moderate-Income Housing Fund. Since that time, the bond market has been monitored closely and it has been determined that it would now be advantageous to effect the bond refinancing which is being considered by separate action on this date. This report considers and recommends the acquisition of an affordability covenant on 50 mobilehome spaces in the Park. The effect of the covenant would be to guarantee - that a minimum of 50 spaces at the Park are occupied by low or moderate income households paying affordable housing costs for at least 30 years. ENVIRONMENTAL REVIEW This item is not subject to CEQA review. FISCAL IMPACT The acquisition of an affordability covenant on Poway Royal Estates Mobilehome Park would require an appropriation of $2.1 million in tax increment monies from the Redevelopment Agency's Low- and Moderate-Income Housing Fund. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE A copy of this report was hand delivered to the Poway Royal Mobilehome Owners Association. RECOMMENDATION It is recommended that the City Council/Redevelopment Agency adopt the attached Joint Resolution of Agreement approving the acquisition of an affordability covenant on Poway Royal Estates Mobilehome Park and that the Redevelopment Agency appropriate $2.1 million for the subject acquisition. ACTION .lUN 2 0 1995 nElI 11 . 1 1 of 13 ~ AGENDA REPORT CITY OF POW A Y TO: Honorable Mayor and Members of the City Council Honorable Chairman and Members of the Redevelopment Agency FROM: James L. Bowersox, City Manager/Executive Director ~ INITIATED BY: John D. Fitch, Assistant City Manager/Assistant Exec~~ DirectofP\ Warren H. Shafer, Director of Redevelopment service~l Pamela R. Colby, Redevelopment Project Administrator - DATE: June 20, 1995 SUBJECT: Agreement Between the City and Redevelopment Agency for the Acquisition of an Affordability Covenant on Poway Royal Estates Mobil ehome Park BACKGROUND At their December 16, 1993 meeting, the City Council/Redevelopment Agency directed staff to report back at a later date to request authorization to refinance the Certificates of Participation issued by the Redevelopment Agency (the "Agency") to acquire Poway Royal Estates Mobilehome Park (the "Park") and to acquire an affordability covenant on a specified number of mobilehome spaces in the Park. The refinancing issue is the subject of a separate agenda report on this date. This report considers the acquisition of an affordability covenant on a specified number of spaces at the Park. The Agency's acquisition of the Park in 1991 resulted in the overall stabilization of rents at the Park. While it is believed that this action has improved the economic status of many Park residents, the Agency's acquisition did not assure that housing costs are affordable. The overwhelming majority of Park residents are very- low, low or moderate income households and many of these residents may have been unable to continue to pay the significant rent increases imposed by previous ownership. The current rent structure provides the option to residents of either a flat 5% annual space rent increase or an annual increase tied to the Consumer Price Index, not to exceed 5%. This rent structure will not change as a result of the covenant acquisition. While these actions have improved Park affordability, concerns regarding housing affordability at the Park remain. In response to this concern, the City Council/ Redevelopment Agency directed staff to evaluate means of using the Agency's Housing Fund to guarantee affordability of a specified number of mobilehome spaces through the application of an affordability covenant. ACTION: UN 2 0 1995 2 of 13 - - Agenda Report - June 20, 1995 Page 2 FINDINGS It is being proposed that the Agency acquire an affordability covenant that would provide a minimum number of spaces at the Park as affordable housing. This program would be structured much like a typical affordable housing transaction with a private mobilehome park owner. The Agency would pay $2.1 million for a guarantee that a minimum of 50 mobilehome spaces are reserved as affordable housing for a period of 30 years. Housing affordability is defined by State statute and is generally defined as housing related expenses not exceeding 30%, and in some cases 35%, of total household income. The recorded affordability covenant would require that at least 50 spaces in the Park would be occupied by low or moderate income households, paying an affordable housing cost for the full 30 year term. This Agency "buy-down" assistance is equivalent to $1,400 per space annually, or just under $117 per space per month, over the 30 year term of the covenant. Once the funds are expended by the Agency, through a transfer to the City, the affordability covenant would be recorded against the Park property at the San Diego County Recorder's Office. The City would place the funds in a separate Park account, only to be used to pay a portion of the debt service payments for the Park bonds and for other operations and maintenance costs directly related to the Park. The affordability covenant would require the City to ensure that at least 50 spaces at the Park are occupied by income eligible households paying an affordable housing cost through the 30 year term of the covenant. To ensure compliance with this requirement, the Agency's Resale Agreement generally requires that all participants, in the event of sale, sell their mobilehome to an income qualified household. In order to ensure that at least 50 spaces meet the affordability test, while allowing these homeowners the flexibility to sell to non- qualified buyers if they comply with repayment provisions, it is advantageous to have as many households participating in the Resale Agreement program as possible. After initial certification of income eligibility and affordability of housing costs, subsequent verification would occur not less frequently than at the time of change of ownership of a unit owned by a resale agreement participant. Recertification of income eligibility and housing affordability would also be undertaken if it appears, based upon the initial income and expense data, that rent increases have potent i ally caused housi ng costs to become "unaffordabl e" as defi ned by redevelopment law. The Agency's Resale Agreement requires each participant to provide income and expense information to the Agency which would allow the recertification process as may be warranted. To date, the Agency has not used any Agency monies, General or Housing Fund, for the Park. However, the authority for redevelopment agencies to use Housing Fund monies for affordable housing in mobilehome parks is specifically provided for in the law. Section 33334.2(e)(10) of the California Health and Safety Code allows redevelopment agencies to use Housing Fund monies for the purpose of "maintaining the community's supply of mobilehomes." The proposed acquisition was included in the Agency's 5 year affordable housing program outlined in the AB 1290 Redevelopment and Housing Implementation Plan as adopted by the Redevelopment Agency on November 29, 1994. Prior to that approval, .1UK 2 0 1995 no 11 . 1 3 of 13 ---.- Agenda Report June 20, 1995 Page 3 the Redevelopment and Housing Advisory Committee reviewed and recommended the approval of the proposed covenant acquisition. The Committee requested that the acquisition be structured to have the least impact on the Agency's other affordable housing projects and programs. As a result, the Housing funds that would be used for the proposed acquisition are not being pulled from other approved projects and programs. At that time, the proposed acquisition was anticipated to cost $3.1 million to guarantee the affordability of 44 mobilehome spaces. Since that time it has been possible to improve the terms of the acquisition, due in part to the restructuring of the bonds. The Committee further suggested that it would be advantageous if the Housing Fund could ultimately be repaid the cost of the covenant acquisition. Because of a number of unknown variables impacting the ability of the Park to repay the assistance, it is not be structured as a loan at this time. However, the City may elect to repay the assistance from Park revenues at some future date to through a contribution(s) to the Agency's Housing Fund. In conclusion, the combination of the Park's current two-tiered rent structure, the bond refinancing, and the acquisition of an affordability covenant would result in the stabilization of Park finances, the maintenance of the City's supply of mobilehome units, and the guarantee of affordability of at least 50 mobilehome spaces in the Park to low and moderate income households for at least 30 years. The acquisition of an affordability covenant is critical to the Park's financial stabil i ty. Without it, the affordability of this local housing resource would be at significant risk of being lost. ENVIRONMENTAL REVIEW This item is not subject to CEQA review. FISCAL IMPACT The acquisition of an affordabilty covenant on the Park would require an appropriation of $2.1 million in tax increment funds from the Agency's Low- and Moderate-Income Housing Fund. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE A copy of this report was hand delivered to the Poway Royal Mobilehome Owners Association. RECOMMENDATION It is recommended that the City Council/Redevelopment Agency adopt the attached Joint Resolution of Agreement approving the acquisition of an affordability covenant on Poway Royal Estates Mobilehome Park and that the Redevelopment Agency appropriate $2.1 million for the subject acquisition. Attachment: "1" - City Council/Redevelopment Agency Joint Resolution of Agreement. C:\POWROYAL\62095.RPT JUN 2 0 1995 ITEM 11 . 1 4 of 13 - - - RESOLUTION NO. - JOIl'.. RESOLUTION OF AGREEMENT OF THE CITY COUNCIL OF THE CITY OF POWAY AND THE POWAY REDEVELOPMENT AGENCY RELATING TO THE ACQUISITION OF '\''1 AFFORDABLE HOUSING COVENANT (pOWAY ROYAL MOBILEHOME PARK) WHEREAS, the Poway Redevelopment Agency (the" Agency") is a redevelopment agency organized under the provisions of the Community Redevelopment Law (Health and Safety Code ~ 33000 et. seq.) (the "Law"); WHEREAS, pursuant to 9 33334.2 of the Law, the Agency is obligated to use at least twenty percent (20 %) of its tax increment funds for the purpose of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost, and the Agency maintains a Low and Moderate Income Housing Fund pursuant to 9 33334.3 of the Law to hold the amounts so dedicated, until used; WHEREAS, the Agency is authorized to expend monies held in the Low and Moderate Income Housing Fund to maintain the community's supply of mobilehomes for the purposes of Section 33334.2 of the Law, to provide subsidies to or for the benefit of persons and families of - low or moderate income to the extent those households cannot obtain housing at affordable housing cost on the open market and to pay principal or interest on indebtedness; WHEREAS, the City of Poway (the "City") controls the Poway Royal Estates Mobilehome Park ("Poway Royal"), a 399 space mobilehome park located generally at Metate Lane and Community Road in the City of Poway, pursuant to a financing lease agreement between the Agency and the City; WHEREAS, the Agency may use monies in its Low and Moderate Income Housing Fund outside the Paguay Redevelopment Project Area (the "Project Area") upon a fmding of the City Council and the Agency that the use of such funds will be of benefit to the Project Area; WHEREAS, the City is authorized to lease, own and operate Poway Royal and to assist the Agency with respect to its affordable housing responsibilities; WHEREAS, the Agency and the City wish to assure that a minimum number of mobilehome spaces at Poway Royal are occupied by and available to persons and families of lOw or moderate income at an affordable housing cost within the meaning of and for the purposes of ~ 33334.2 of the Law, and to this end the Agency wishes to purchase and the City wishes to sell the Affordability Covenant more particularly defined below, and to provide all administrative services in connection with the administration and maintenance of such Affordability Covenant; and - WHEREAS, the parties wish to set forth the terms and conditions of such acquisition herein. JUN 2 0 1995 ITEM 11.1 5 of 13 Attachment 1 Resolution No. Page 2 NOW THEREFORE, BE IT RESOLVED BY THE CITY COCNCIL OF THE CITY OF POWAY AI'ID THE POWAY REDEVELOPME.'.1' AGENCY JOI.'.1'LY AS FOLLOWS: Section 1. The foregoing Recitals are true and correct. Two Million, Section 2. In consideration of the payment by the Agency to the City of One Hundred Thousand dollars ($ 2,100,000 ), the City shall maintain not fewer than ftfty (50) mobilehome spaces at Po way Royal as Affordable Housing Units (defined below), at Affordable Housing Cost (defined below) for the Affordability Term (defined below). The undertaking set forth in this Joint Resolution of Agreement shall be referred to herein as the "Affordability Covenant". For purposes of this Agreement the following terms shall have the following meanings: a. "Affordable Housing Unit" shall mean a mobilehome space occupied pursuant to an agreement by the owner/occupant of a mobilehome which occupants shall be persons and families of low or moderate income as detined by California Health and Safety Code 9 50093 and Regulations promulgated thereunder. b. "Affordable Housing Costs" shall have the meaning set forth in California Health and Safety Code 9 50052.5 for owner occupied housing for moderate income households (or at the City's option, lower income households or very low income households). The Agency and the City hereby find and determine that application of the definition of owner occupied housing is appropriate for mobilehome parks such as Poway Royal based upon, among other considerations, the Regulations promulgated by the California Department of Housing and Community Development which specify that housing costs for purposes of calculating affordability of owner occupied housing include, together with other factors, space rent if the housing unit is situated on rented land (Title 25 CCR 9 6920). In the event the Agency reasonably determines, based on the advice of counsel, that a different standard of Affordable Housing Cost shall be applied to this Agreement to maintain compliance by the Agency with its obligations for proper expenditure of monies in the Low and Moderate Income Housing Fund, the City shall upon wrinen notice thereof apply such different standard and the Affordability Term shall be extended, as appropriate, provided the Agency bears the full additional cost of such different standard, if any, reasonably borne by the City in complying therewith. c. "Affordability Term" shall mean the period from the payment by the Agency of the amount described in Section 2 hereof through and includ ing August 1, 2025, a period of approximately _ thirty _ ClQ) years. JUN 2 0 1995 ITEM 11 . 1 6 of 13 - - Resolution No. Page 3 - Section 3. a. The City and the Agency shall execute and shall cause to be recorded a Memorandum of Affordable Housing Covenants in the Offices of the Recorder of San Diego County as a lien against the entire Poway Royal project, substantially in the form attached hereto as Exhibit" A, subject to such prior encumbrances as may exist in connection with the retlnancing of outstanding lease payment obligations of the City for Poway Royal. The Agency hereby finds and determines, based upon the advice of the City's financial Advisor, that no economically feasible alternative means of financing is available on substantially comparable terms and conditions, without subordination to the City's financing documents. b. The City shall cause each occupant of a mobilehome space which it proposes to count as an Affordable Housing Unit pursuant hereto to enter into the City's Resale Restriction Agreement, or such other agreement approved in writing by the Agency designed to protect the Agency's investment hereunder. The City shall assure the enforceability of this restriction against occupants of Affordable Housing Units, and their mobilehomes, pursuant to a valid lien or other enforcement mechanism, statutory or otherwise, under applicable law. Section 4. a. The City shall be responsible for the administration and implementation of the Affordability Covenant and may charge the Agency for the reasonable costs thereof. The City shall keep full and complete records of its administration of the Affordability Covenant and shall provide, at least annually (more frequently at the written request of the Agency), regular reports of Affordable Housing Units and occupants assisted, to the full extent required to assure compliance with this Joint Resolution of Agreement, and such further - documentation as the Agency may reasonably request to assure the Agency that the Affordability Covenant is being administered consistently with the Agency's requirements for expenditure of monies from the Low and Moderate Income Housing fund. Specifically, the City shall verify and reverify the incomes of residents of Affordable Housing Units as frequently as may be required to assure ongoing compliance with the Law, but in no event less frequently than at the time of original occupancy and any change in occupancy. b. Except as set forth in this paragraph or otherwise as required by the Law, once a mobilehome space is determined to be an Affordable Housing Unit occupied at an Affordable Housing Cost, such mobilehome space shall continue to be so treated until a change in occupancy occurs. The City shail not otherwise be required to recertify the Affordable Housing Unit determination or Affordable Housing Cost for specific mobilehome spaces. Notwithstanding the foregoing, to the extent space rents are increased for Affordable Housing Units to a level which would cause such Affordable Housing Unit not to be available at Affordable Housing Cost to such occupant (as applied to the occupancy as if such rent existed at the time of original occupancy)) the City shail either: (1) recertify the income eligibility of the occupant as a person or family of low or moderate income and the Affordable Housing Cost for such Affordable Housing Unit, or (2) if necessary to comply with the Affordability Covenant herein, replace such Affordable Housing Unit in accordance with subparagraph (c) below. c. In the event at any time by reason of changes in occupancy or recertification of Affordable Housing Units pursuant to (4)(a) or 4(b) above, the City maintains fewer than fifty <2Q) Affordable Housing Units available at Affordable Housing Cost, it shall - not be in default hereunder so long as it achieves such compliance within the next twelve (12) months or with the next space becoming available for occupancy after such twelve (12) month period. .1UN 2 0 1995 ITEM 11 . 1 7 of 13 Resolution No. Page 4 Section 5. a. The Agency and City Council hereby find and determine that the Agency's payment under Section 2 hereof will preserve and is reasonably necessary to preserve the community's supply of mobilehomes available to persons and f=ilies of low or moderate income at affordable housing cost within the meaning of g 33334.2 of the Law, and anything to the contrary herein notwithstanding, the Agency may waive any default of the City hereunder upon request of the City so long as at least fifty (2Q) spaces at Poway Royal are occupied by persons or families of low or moderate income at affordable housinlZ COSt within the meanin" of - 0 g 33334.2(a) of the Law. . b. The Agency and the City Council hereby find and determine that (I) the provision of assistance pursuant to this Joint Resolution of Agreement is of benefit to the Project Area, (2) the Affordability Covenant will assure the availability of Affordable Housing Units for the Affordability Term, and (3) that the City's administration of the Affordability Covenant for the Affordability Term will benefit households which cannot Obtain housing at affordable cost on the open market within the meaning and contemplation of California Health and Safety Code g 33334.2(e)(8). c. The Agency and City hereby find that the requirements of Section 33334.3(1) of the Law are inapplicable to this Joint Resolution of Agreement because new or substantially rehabilitated housing units are not developed or assisted pursuant to this Agreement. Section 6. The City hereby subjects Poway R,oyal to the Affordability Covenant set forth herein. The City and the Agency hereby declare their express intent that the covenants set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the City's successors in interest to Po way Royal: provided, however, that at the end of the Affordability Term said covenants shall expire. Each and every contract, deed or other instrument executed after the commencement of the Affordability Term covering the Poway Royal project shall conclusively be held to have been executed, delivered and accepted subject to the Affordability Covenant, regardless of whether such covenants are set forth in such contract, deed or other instrument. The City and the Agency hereby declare their understanding and intent that the burden of the Affordability Covenant set forth herein touches and concerns the land. Furthermore, the City and the Agency declare their understanding and intent that the benefit of such Affordability Covenant touches and concerns the land by enhancing and increasing the enjoyment and use of the project by persons and families of low or moderate income, and by furthering the public purposes of the Agency and the City. Notwithstanding the foregoing, the City and the Agency hereby declare their express understanding and intent that no third party shall have any rights pursuant to this Joint Resolution of Agreement, that no third party beneficiaries are created hereunder, and that no third party, including residents of Poway Royal or others, shall have any right whatsoever, pursuant to this Joint Resolution of Agreement, to enforce the provisions hereof. The City and the Agency further declare their express understanding and intent that the assistance provided hereunder be used to increase and preserve the long term availability of the community's supply of affordable housing, specifically mobilehomes, as specified herein. To that end, in the event of default of this Agreement by the City, the parties agree that it would be impracticable, extremely difficult to fix, and in contradiction to the purposes set forth herein to establish monetary damages. The City shall not be liable in damages to the Agency, or to any assignee, transferee or successor in interest, and the Agency covenants not to sue for or claim ~UN 2 0 1995 ITEM 11 . 1 8 of 13 - - Resolution No. Page 5 - any damages against the City for default hereunder. The parties further agree that the Agency's sole and exclusive remedy hereunder shall be specific performance to correct any default or noncompliance, to ensure adequate performance prospectively from the date of default and to require an extension of the Affordability Term as deemed necessary and appropriate by the Agency to secure for the Agency the substantially full benefit and consideration bargained for in exchange for the Agency assistance. Section 7. The Agency shall pay the amount described in Section 2 hereof to the City on or before August 1, 1995 and the City shall apply such amount to or for the benefit of the Poway Royal project either by prepaying its lease payments, depositing funds with the trustee under the City's Trust Agreement to pay annual amounts under the Certificates of Participation or otherwise applying said monies to the reduction in the annual payments of the outstanding Certificates of Participation relating to the financing of the Poway Royal project, in such manner as the City Manager shail determine based upon the advice of the City's Financial Advisor. The Agency hereby finds and determines that the benefit of the subsidy to Poway Royal provided hereunder will be passed on to occupants of Affordable Housing Units in the form of lower housing costs over the Affordability Term. Section 8. If any provision of this Joint Resolution of Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. - Section 9. This Joint Resolution of Agreement shall take effect immediately. Section 10. The City Clerk and Agency Secretary shall certify to the adoption of this Resolution and shall cause a certified Resolution to be filed in the office of the City Clerk/Agency Secretary. PASSED and ADOPTED this day of , 1995. Chairman, Poway Redevelopment Agency ATTEST: Marjorie K. Wahlsten, Secretary Poway Redevelopment Agency - .1UN 2 0 1995 ITEM 11.1 9 of 13 EXHIBIT "A" RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) ) Poway Redevelopment Agency ) P. O. Box 789 ) Poway, California 92064 ) Attention: Agency Secretary ) This document is exempt from a recording fee pursuant to GoV!. Code Section 6103. MEMORANDUM OF AFFORDABLE HOUSING COVENANTS THIS MEMORANDUM OF AFFORDABLE HOUSING COVENANTS ("Memorandum"), dated for identification purposes as of , 1995, is entered into by and between the POWAY REDEVELOPMENT AGENCY, a public body corporate and public ("Agency"), and CITY OF POWAY, a municipal corporation ("City"). 1. Joint Resolution of Agreement. Agency and City have executed a Joint Resolution of Agreement of the City Council of the City of Poway and the Poway Redevelopment Agency Relating to the Acquisition of an Affordable Housing Covenant ("Agreement"), dated as of , 1995, which concerns and is binding upon the City, its successors and assigns and future owners of that certain real property commonly known as the Poway Royal Estates Mobilehome Park located in the City of Poway, County of San Diego, State of California and more particularly described in Attachment No.1 attached hereto and incorporated herein by this reference (the "Property"). The Agreement imposes certain obligations and restrictions on the use of the Property for affordable housing purposes. The Agreement is available for public inspection and copying at the offices of the Poway Redevelopment Agency, 13325 Civic Center Drive, Poway, California. All of the terms, conditions, provisions and covenants of the Agreement are incorporated in the Memorandum by reference as though written out at length herein, and the Agreement and this Memorandum shall be deemed to constitute a single instrument or document. 2. Purpose of Memorandum. This Memorandum is prepared for recordation purposes only, and in no way modifies the terms, conditions, provisions and covenants of the Agreement. In the event of any inconsistency between terms, conditions, provisions and covenants of the Memorandum and the Agreement, the terms, conditions, provisions and covenants of the Agreement shall prevail. EXHIBIT "A" Page 1 of 2 10 of 13 JUN 2 0 1995 ITEM 11.1 - - - The parties have executed this Memorandum of Affordable Housing Covenants on the dates specified immediately adjacent to their respective signatures. AGENCY: POWAY REDEVELOPMENT AGENCY, a public body, corporate and politic Dated: .1995 By: Chairman ATTEST: Secretary - CI1Y: City of Poway, a municipal corporation Dated: .1995 By: Mayor ATTEST: City Clerk - EXHIBIT "A" (Page 2 of 2) .1UN 2 0 1995 ITEM 11.1 11 .....-F 1':1. TTACHMENT NO.1 TO EXHIBI' ." LEGAL DESCRIPTION OF PROPERTY PARCEL 1: Allor the South ffalr of the Southwest Quarter of Section 13, Township 14 South, Range 2 West, San Bernardino Meridian, in the County of San Diego, State or California, according to the Official Plat thereof (including that portion of the Southwest Quarter or the Southwest Quarter of said Section 13 known as Parcel 'A' or the Map of Reversion to Acreage of a portion of RUSS ESTATES UNIT NO. 2, according to Map thereof No. 5027, filed in the Office of the County Recorder of San Diego County, August 30, 1962. EXCEPTING THEREFROM that portion of the Southeast Quarter of the Southwest Quarter of Section 13, lying Northerly and Northwesterly of the following described line: CO~~NCING at the Southeast corner of the Southeast Quarter of the Northeast Quarter of the Southwest Quarter of Section 13; thence along the Easterly line of said Southwest Quarter, North 010 54' 40' East, 366.45 feet to the center line of the Poway Creek Channel as located in March, 1971; thence along said center line as follows: South 890 52' 00" West., 115.28 feet to the beginning of a tangent 115.28 foot radius curve, concave Southeasterly; Southwesterly along the arc of said curve through a central angle of 440 38' 02' a distance of 155.80 feet and tangent to said CUrve South 450 13' 58" West, 213.31 feet to the Westerly line of the Easterly 400.00 feet of said Southeast Quarter of the Northeast Quarter of the Southwest Quarter and being the TRUE POINT OF BEGINNING; thence continuing along said center line as follows: South 450 13' 58' West, 466.38 feet to the beginning of a tangent 250.00 foot radius curve, concave Northwesterly; Southwesterly along the arC of said curve through a central angle of 440 38' 02', a distance of 194.75 feet and tangent to said curve South 890 52' 00' West 443.00 feet to the Westerly line of the Southeast Quarter of the Southwest Quarter of Section 13. ALSO EXCEPTING THEREFROM that portion of the Southeast Quarter of the Southwest Quarter of Section 13, Township 14 South, Range 2 West, San Bernardino Meridian, in the County of San Diego, State of California, according to the Official Plat thereof lying Southeasterly of the center line of Road Survey No. 1587-3 as described in deed to County of San Diego, recorded August 24, 1971 as File No. 189667 of Official Records. ALSO EXCEPTING THEREFROM that portion conveyed to the County of San Diego by deed recorded April 13, 1976 as File No. 76-108156 of Official Records, described as follows: BEGINNING at a 3/4 inch iron pipe marking the Northeast corner of said Southwest Quarter of the Southwest Quarter of Section 13, according to Record of Survey Map No. 4195; thence along the Northerly line of said Southwest Quarter of the Southwest Quarter, North 890 09' 25' West, 1,338.34 feet to the Northwest corner of said Southwest Quarter of the Southwest Quarter; thence South 000 49' 00' West, 868.18 feet along the Westerly line of said Section 13; thence leaving said Westerly line, North 770 40' 53' East, 17.97 feet to the beginning of a tangent 227.00 foot radius curve, concave Northwesterly; thence Northeasterly along the arc of said curve, through a central angle of 410 10' 53', a distance of 163.16 ATIACHMENT NO.1 TO EXHIBIT "A" (Page 1 of 2) 12 of 13 JUN 2 0 1995 ITEM 11 . 1 - - - feet; thence tangent to said curve, North 36. 30' O?' East, 20.31 feet to the beginning of a tangent 73.00 foot radius curve, concave Southeasterly; thence Northeasterly along the arc of said curve, through a central angle of 30. 04' 00', a distance of 38.31 feet; thence tangent to said curve, North 66. 34' 00' East, 871.70 feet to the beginning of a tangent 373.00 foot radius curve, concave Southeas~erly; thence Northeasterly along the arc of said curve, through a central angle of 23. 18' 00' a distance of 151.68 feet; thence tangent to said curve, North 89. 52' OQ' East, 201.86 feet to a point on the Easterly line of said Southwest Quarter of the Southwest Quarter of Section 13; thence North 010 21' 50' East, along said Easterly line, 340.14 feet, more or less, to the Point of Beginning. PARCEL 2, An easement and right of way for public road purposes over and across the Westerly 40.00 feet of the Northwest Quarter of the Southeast Quarter and the Westerly 40.00 feet of the Northwest Quarter of the Southwest Quarter of the Southeast Quarter of Section 13, Township 14 South, Range 2 West, San Bernardino Meridian, in the County of San Diego, State of California, according to Official Plat thereof. - -- ATTACHMENT NO.1 TO EXHIBIT "A" (Page 2 of 2) 13 of 13 J\lN 2 () 1995 ITEM 11.1