HomeMy WebLinkAboutReso RDA 9-1999 RESOLUTION NO. 9-99
REDEVELOPMENT AGENCY BOARD, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION APPROVING A PURCHASE AND SAI JE AGREEMENT
FOR THE ACQUISITION OF RESIDENTIAL RENTAL PROPERTY
LOCATED AT 339-341 COMMERCIAL AVENUE AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE SAME.
WHEREAS, at its meeting of February 24, 1999, the Agency Board authorized Agency
Counsel to make an offer to acquire the property located at 339-341 Commercial Avenue, based
on appraised value, which offer was made and accepted; and
WHEREAS, the property contains four units of rental housing that are in need of repairs
and can be rehabilitated to clean up blighted conditions and provide permanent affordable
housing; and
WHEREAS, the property could also be used as temporary housing for families relocated
during the rehabilitation of Willow Gardens; and
WHEREAS, the Agency will use money from its Low and Moderate Income Housing
Fund to provide the initial funds for the acquisition, a portion of which may be reimbursed by
funds from the HOME Program.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency Board of the
City of South San Francisco hereby approves the Purchase and Sale Agreement between the
Redevelopment Agency of the City of South San Francisco and Christina Pei Hou Lee, attached
hereto as Exhibit A;
BE IT FURTHER RESOLVED that the Executive Director is authorized to execute the
Agreement on behalf of the Agency and record the Certificate of Acceptance.
I I ;' I I
' I hereby certify that the foregoing Resolution was regularly introduced and
adopted by the Redevelopment Agency Board of the City of South San Francisco at a
Regular meeting held on the 14th day of April, 1999 by the following vote:
AYES: Boardmembers Jospeh A Femekes, Eugene R. Mullin, and John R.
Penna, Vice Chair Karyl Matsumoto, and Mayor James L. Datzman
NOES: None
ABSTAIN: None
ABSENT: None
Clerk(J
APR-12-1999 12:26 P.D2/ll
?URCI-IASE AND SALE AGtLEEMENT
This Purchase and Sale Agreement is made as of the Day of
I999 by and between CHKISTINA PEI HOU LEE, an unmarried person ("Seller"),
and THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN
FRANCISCO, a public body, corporate and politic CBuyer"), who agree as follows:
ARTICLE I , GENERAL
1.01. The _P.rovertv. Subject to and on the terms and conditions of this
Agreement, Seller shall sell to Buyer and Buyer shall purchase from Seller all of the
following (collectively, the "Property"):
A. Land. The real property commonly known as 339-341
Commercial Avenue, South San Frandsco, California, which is more particularly
described as follows:
Lot 18 in Block 122, as shown on that certain map entitled
"PLAT NO. 2, SUBDMSION OF BLOCKS 98, 99, 119 AND 122,
SOUTH SAN FRANCISCO, CAL.", filed in the office of the CounW
Kecorder of San Mateo County, Sate of California, on November 10,
1900 in Book "D" of Maps at page 62, and a copy entered in Book 3 of
Maps at Page 4.
Together with all privileges, rights, easements and appurtenances thereto.
B. Improvements. Any and all structures, systems, facilities, fixtures
and improvements located on the Land.
C. Personal Propexxy. All of Seller's right, title and interest in and to
any personal property located on the Land, including without limitation, all
appliances and machinery.
D. Leases. The lessor's interest in and to all the leases encumbering
the Land.
, .. E. Enddements. Ail tangible and intangible assets of any nature
relating to the Land, the Improx~ements, the Personal Property or the Leases.
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1.02. Effective_ Date. The effective date of flxis Agreement shall be the date
the last of Seller or Buyer executes this Agi'eement.
ARTICLE 2 - PURCHASE AND SklY_.
2.01. Price. The purchase price for the Property shall be $430,000.00.
2.02. Deposit. Buyer has deposited with Escrow Holder (defined in Section
4.01 ) a deposit of $1,000.00. The deposit shall be applied against the purchase price.
If this transaction should fail to dose for any reason, Seller shall be entitled to the
deposit as liquidated damages.
2.03. Payment of the Purchase Price. Buyer shall pay $430,000.00 in
cashier's or certified check, on dose of escrow.
ARTICLE 3 - BUYER'S CONDITIONS TO CLOSE OF ESCROW
3.01. General. The provisions of this Article are conditions precedent to the
dose of the e_sca'ow described in Artide 4 and, where provided expressly or by contexx,
are covenants.
3.02. Title. Seller shall have caused tide to the Property to be conveyed to
Buyer by grant deed subject only to current property taxes and other exceptions
approved by Buyer pursuant to section 3.03.
3.03. Removal of En.cumbrances. Seller hereby agrees to remove all monetary
encumbrances fi-om the tide, including without limitation, that certain deed of trust
securing an original indebtedness of $250,000.00 and recorded on March 28, 1996 at
No. 96037012 of the Official Recot'ds of San Marco County, California.
3.04. Delivery of Documents. Before the dose of escrow, Seller shall deposit
with the Escrow Holder a current rent roll, certified by Seller to be accurate and
complete, describing each Lease, the name and address of each tenant, die
commencement and expiration dates of each Lease, the anaount of rent, the date on
which rent is payable, the last date on which rent has been paid, the amount of any
security deposit or prepaid rent (and whether lessor is obligated to pay interest on the
same), and any other information germane to the Leases. Seller shall also deliver
copies of all Leases.
3.05. Buver.'s Contingencies. The purchase of the Property by Buyer is
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contingent upon the approval of this transaction by the Buyer's governing board and
compliance with applicable law governing the acquisition of real property by Buyer. If
the foregoing contingency is not satisfied by the ex~etaded Closing Date provided for
in Section 4.03, this Agreement shall terminate unless the pm-ties agree to extend the
Agreement to allo~v Buyer additional time to satisfy the contingency.
ARTICLE 4 - ESCROW
4.01. Opening. The purchase and sale of the Property shall be consummated
by means of an escrow that has been opened at First American Tide Company
("Escrow Holder"), 151 - 87dx Street, Daly City, California 94015.
4.02. Instructio_ns. The escrow instructions shall be consistent with the terms
of this Agreement and, as between the parties, the terms of this Agreement shall
prevail if there is any inconsistency.
4.03..Cl. osing, Date. Escro~v shall dose on April 16, 1999, The Closing Date
may be e~ended upon mutual agreement of Buyer and Seller. Buyer may extend the
Closing Date for an additional period of 30 days if Buyer's cont_fixgencies specified in
Section 3_05 have not been satisfied by the scheduled Closing Date. Buyer shall send
written notice to Seller of sudx extended date.
4.04. Closing Costs. The premium for an owner's polic3, of title insurance and
escrow fees daarged by Escrow Holder shall be paid by Buyer. Trm~fer taxes, ff mx.v,
shall be paid by Seller. All other charges and expenses incurred in this transaction
shall be paid according to the custom in San Mateo County as determined by the
Escrow Holder.
4.05. Prorations. Ail receipts and disbursements of the Property will be
prorated as of the Closing Date. Buyer shall be entitled to all rentals paid or accrued
on or after the Closing Date, and Seller shall be entitled to all rentals paid or accrued
prior to the Closing Date. At the Closing, Buyer shall receive a credit against the
purchase price equal to the reftmdable security deposits, if any, previously paid to
Seller by tenants of the Property. All teal and personal property ad valorem taxes and
special assessments, if any, shall be prorated to the Closing Date, based on the latest
available tax rate and assessed valuation. All utility charges shall be prorated as of the
Closing Date and Seller shall obtain a final billing therefor. All utility security
deposits, if any, shall be retained by Seller.
4.06. Seller's Deposit of Documents and Funds Into Esc._row: Seller shall
deposit into esaow the following documents:
Purchase anti Sale Agmemem - 339-341 Commercial Avenue
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A. A &fly executed and acknowledged grant deed;
B. A duly executed bill of sale in the form of Exhibit A;
C. A duly executed and acknowledged assignment, in the form of Exhibit B
assigning to Buyer all of Seller's interest as lessor in all the Leases;
D. The rent roll and original Leases, as i'equixed by Section 3.04;
E. Letters signed by Seller and addressed to each tenant notifying them of
the change of ownership;
F. A reconveyance to Seller of that certain deed of trust securing an
original indebtedness of $250,000.00 and recorded on Ma~ch 28, 1996 at No.
96037012 of the Official Records of Sma Marco County, California
G. The costs of dosing to be paid by Seller;
H. Such additional documents, indudiaig written escrow instructions
consistent with this Agreement, as may be necessary or desirable £o5 conveyance of
the Property in accordance with this Agreement.
4.07. Buyer's Deposit of Documents and Ftmds Into Escrow. Buyer shall
deposit into escrow:
A. The purchase price, plus or minus prorations as provided in Section
4.05, by cashier's or certified check to Escrow Holder, on or before the Closing Date;
and
B. Sudi additional doctunents, including written escrow instructions
consistent with this Agreement, as may be necessary or desirable for conveyance of
the Property in accordance with this Agreement.
4.08. Closing Procedures. When Escrow Holder has received all documents
and funds identified in Sections 4.06 and 4.07, has received written notification from
Buyer and Seller that all conditions to Closing to be satisfied outside of escrow have
been satisfied or waived and tide company is irrevocably committed to issue the Title
Polic3r, then, and only then, Escrow Holder shall:
A. Record the reconveyance of the deed of trust referenced in Section
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4.06.F. and the Grant Deed, in that order;
B. Cause the title company to issue the Title Policy to Buyer;
C. Deliver the purchase price to Seller: and
D. Deliver the tenant notices to Buyer.
4.09. Possession. Seller shall deliver exclusive right of possession of the
Property subject to the Leases to Buyer on the Closing Date.
ARTICLE 5 - REPRESENIATIONS
5.01. Representations and Warranties by Seller. Seller hereby makes and
reaffirms at the close of escrow the following representations, covenaa~ts and
warranties and acknowledges that the execution of this Agreement by Buyer has been
made and the acquisition by Buyer of the Purchase Property will have been made in
material reliance by Buyer on such covenants, representations and warranties:
A. There is presently no claim, litigation, proceeding or governmental
investigation ending or, to Seller's knowledge, threatened against or relating to the
Property or the transaction contemplated hereby.
B. No uncured notice of violation of any applicable zoning regttlation or
ordinance or other law, order, ordinance, permit, rule, regulation or requirement, or
any covenants, conditions or restrictions affecting or relating to the use or occupant-3,
of the Property has been given to Sellex by any governmental agency having
jurisdiction or by any other person entitled to enforce the same.
C. All water, sewer, electric, telephone and drainage facilities, and all other
urdlities required by law or by the normal operation of the Property are connected to
the Property and improvements thereon with valid permits and adequate to serve the
Property so as to permit full compliance with all existing requirements of law and
normal usage of the improvements.
D. There are no outstanding contracts entered into by Seller relating to the
use, occupancy (including without limitation, leasing commission agreements), or
maintenance of, or otherwise relating to, the Property.
ARTICLE 6 - MISCELLANEOUS
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6.01. Notices. Notices shall be personally delivered or sent by f~rst class mail,
return receipt requested, or sent by overnight delive~.-y, or sent by fax with a copy sent
by one of the foregoing methods, addressed as follows:
Seller: Ms. Christina Pei Hou Lee
309 Airport Boulevard
South San Francisco, Ca. 94080
Buyer: The Redevelopment Agency of the
City of South San Francisco
Arm: Norma Fragoso
400 Grand Avenue, P.O. Box 711
South Stol Francisco, Ca. 94083
Fax: (650) 829-6623
6.02. No Brokers. Each party represents that it has dealt with no brokers
with respect to this transaction, and that no broker or person is entitled to any
commission, finder's fee oa' other similar compensation by virtue hereof. Each party
hereby defends and indemnifies the other against any and all claims, losses, liability
a~d damages, including reasonable attorneys' fees, in connection with any
commissions, finder's fees or other similar compensation sought, based upon some
obligation of the indenmifymg party with respect to this transaction.
6.03. Interpretation. This Agreement has been executed by Buyer and Seller
in California and shall be governed by the laws of the State of California. The
captions used in this Agreement are fox convenience only.
6.04. Time of Essence. Time is of the essence of this Agreement and of the
escrow provided for herein.
6.05. Integration. This Agreement contains the entire agreement of the
parties and supersedes any prior written or oral agreements between them concenxing
the subject matter contained herein. There are no representations, agreements,
arrangements or understandings, oral or written, relating to the subject matter which
are not fully expressed herein.
6.06. Additional Documents.. From time to time prior to and after the dose
of escrow, each party shall execute and deliver such instrmnents of transfer and other
documents as may be reasonably requested by the other party to carry out the
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purpose and intent of this Agreement.
6.07. Dependency and Smvival of Provisions. The respective warranties,
representations, covenants, agreements, .obligations and undertakings of each party
hereunder shall be construed as dependent upon and given in consideration of those
of the other party,, and shall survive the dose of escrow and delive .ry of the deed.
6.08. Waiver. Any of the terms or conditions of this Agreement may be
waived at any time by the party entitled to the benefit thereof, but no sudi waiver
shall affect or impair the right of the waiving parry, to require observance,
performance or satisfaction either of that term or condition as it applies on a
subsequent occasion or of any other term or condition hereof.
6.09. Severabflity. If any proxqsion of this Agreement is held by a court of
competent ]urisdiction to be invalid or unenforceable, the remainder of the
Agreement which can be given effect without the invalid provision shall continue in
full force and effect and shall in no aray be impaired or invalidated.
6. I 0. Exhibits. The following exhibits are attached to this Agreement.
A. Form of Bill of Sale
B. Form of Assignment of Lease
BUYER:
REDEVELOPMENT AGENCY OF THE
CITY OF SOUTH SAN FRANCISCO
Date signed: Title:
Approved as to roma:
Purchasc and Sale Agreement- 339-341 Commerdai Avenue
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Attest:
Agency Secretary
SELLER:
CHRISTINA PEI HOU LEE
Date Signed:
Purchase and Sale Agreement - :339-341 Commercial
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EXHIBIT A
Bill of Sale
This Bill of Sale is made as of ,1999, by
CHRISTINA PEI HOU LEE, an unmarried person ("Transferor").
For valuable consideration, as set forth in that certain Purchase and Sale
Agreement dated , 1999 ("Agreement"), Trmlsferor hereby
sells, transfers, assigns and delivers to the REDEVELOPMENT AGENCY OF THE
CITY OF SOUTH SAN FRANCISCO ("Transferee"), any and all Personal Property
located within that certain improved real property commonly known as 339-341
Commercial Ave., South San Francisco, California, more particularly describect as
follows:
Lot 18 in Block 122, as shown on that certain map entitled
~PLAT NO. 2, SUBDIVISION OF BLOCKS 98, 99, 119 AND 122,
SOUTH SAN FRANCISCO, CAL_", filed in the office of r_he County
Recorder of San Mateo County, Sate of California, on November 10,
1900 in Book "D' of Maps at page 62, and a copy entered in Book 3 of
Maps at Page 4.
DATED: , 1999.
TRANSFEROR:
CHRISTINA PEI HOU LEE
Purchase anti Sale Agreement - 339-341 Commercial
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EXHIBIT B
Assignment of Leases
This Assignment of Leases ("Assignment") is made as of ,
1999 by CHRISTINA PEI HOU LEE, an tmmarried person ("Assignor").
For valuable consideration, as set forth in that certain Purchase and Sale
.Agreement dated , 1999 ("Agreement"), Assignor hereby
assigns and transfers to the REDEVELOPMENT AGENCY OF THE CITY OF
SOUTH SAN FRANCISCO ("Assignee"), all leases for occupancy (collectively,
the "Leases") of the real property commonly known as 339-341 Commercial Ave.,
South Sma Francisco, California, more particularly described as follows:
Lot 18 in Block 122, as shown on that certah~ map entitled
"PLAT NO. 2, SUBDIVISION OF BLOCKS 98, 99, 119 AND 122,
SOUTH SAN FRANCISCO, CAL.", filed in the office of the County
Recorder of San Marco County, Sate of California, on November i0,
1900 in Book "D" of Maps at page 62, and a copy entered in Book 3 of
Maps at Page 4.
This Assignment includes, without limitation, all rents and monies to become
due under the Leases on and after the Date of Closing as such is determined
according to the ternis of die Agreement.
This Assignment shall not supersede the Agreement and, in the event of
conflict between this Assignment and the Agreement, the Agreement shall control.
IN WITNESS WHEREOF, Assignor has executed this Assignment as of the
date first above written.
ASSIGNO~
CHRISTINA PEI HOU LEE
~rchase snd Sale Agreemenx - $39-341 Comrncrcial Avemu¢
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