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Home My WebLink AboutOrdinance 1546 N.C.S. 06/06/19835�VE DATE ()f ,RD-1140"ICECE JUL -- 61983 ORDINANCE NO. 1546 N.C.S. Introduced by Councilman Balshaw Seconded by Councilman Cavanagh AN ORDINANCE AUTHORIZING THE PURCHASE OF REAL PROPERTY LOCATED IN MADISON MANOR SUBDIVISION UNITS I AND II BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. The City Manager is hereby authorized to enter into a purchase agreement and option to buy certain real property consisting of a total of 20 lots located in Madison Manor Subdivision Units I and II, in the City of Petaluma. The exact descr-iption of the property and the terms and conditions of the purchase and ,;option to buy are set forth in the Purchase Agreement and Option to Buy, which is attached hereto as Exhibit A and incorporated herein by reference. Section 2. The City Clerk is hereby directed to �bhf/publish this ordinance for the period and in the manner required by the City Charter. INTRODUCED and ordered published this I6th day of May, 1983. ADOPTED this 6th day of June , 1983 by the following vote: AYES: BALSHAW/BATTAGLIA/BOND/CAVANAGH/HARBERSON/MAYOR MATTEI NOES: VICE -MAYOR PERRY A C-T+TTT _ Ord. 1546 NCS PURCHASE AGREEMENT AND OPTION TO BUY This agreement made and entered into this day of 1983, by' and between Madison Manor Associates, hereinafter referred to as Owner, and the City of Petaluma, a municipal corporation, hereinafter referred to as ,City. WHEREAS, Owner owns a total of twenty lots, of which eight lots are known as Madison Manor -Subdivision Unit I (called the "eight lots") and twelve lots are known as Madison Manor Unit. II (called the "twelve lots") all located within the City of Petaluma; and, WHEREAS, City is desirous of purchasing the eight (8) lots in Unit I and four (4) lots in Unit II at this time, and entering into an option agreement with Owner to purchase the additional eight lots, or any increment thereof, at a later date, NOW, THEREFORE, it is agreed as follows: 1. The City shall purchase lot numbers 1., 2, 3, 4, 6, 7, 8, and 9 of Madison Manor Subdivision, Unit I and lot numbers 1, 2, 5, and 11 of Madison Manor Unit II from Owner at a cost of $25, 000 per lot for a total sum of $300,000. 2. Escrow shall be opened by City with Transamerica Title Company upon execution of this agreement by both parties. Failure of escrow to close within 30 days of release of funds by HUD as per paragraph twenty-one shall result in a complete termination of all rights and obligations of both parties to this contract. 3. City shall deposit said $300, 000. purchase price in escrow prior to the close thereof and upon notice from the escrow holder. Owner shall deposit all necessary documents, including deeds, into said escrow as required by the escrow holder. 4. City shall- immediately obtain a preliminary title report on said twelve lots and advise owner within 15 days from opening of escrow, as to the status of title;. If City objects to any indicated exceptions to the title, the Owner shall use diligent efforts to remove said .exception(s) from the title. In the event owner is, unable to remove said exception (s) , at City's option this agreement may be declared null and void. and of no further force and effect. 5. In consideration for all options granted herein, City shall pay $5,000 for each of the eight lots. Said monies shall be deposited into the escrow account referred to in paragraph two above and .shall be paid to the Owner upon close of escrow as provided in said paragraplf. (1) 6. City shall exercise any option or options granted herein by providing Owner written notice thereof. At the time of said notice, City shall open an escrow account with Transamerica Title Company and shall immediately order a preliminary title report and shall advise Owner within 15 days from the opening of said escrow as to the status of title,. If City has valid objection to any stated exception to title, Owner shall again use diligent efforts to remove said exception(s) from title. In the event Owner is unable to remove said exception, at City's option, the City will not be required to purchase said lots and Owner shall refund to City $2, 500 for each of said lots. 7. The First Option. City shall have an option to purchase the eight lots from Owner, said lots to be selected by City, prior to the end of the option period, from the' lots in Madison Manor Subdivision Unit II. In the event City does exercise the option to purchase two or more of the lots prior to December 31, 1983, Owner shall credit $2, 500 each, toward $25, 000 purchase price, which price shall then be $22, 500 for each lot. Said option can be exercised, either simultaneously as to all lots or as to a minimum of two lots, but in any event the first option shall expire if not exercised by December 31, 1983. 8. The Second Option. City shall have an option to purchase an additional eight (8) lots in Madison Manor Subdivision Unit II from Owner as follows: In the event City does exercise the second option to purchase two or more of the lots, Owner shall credit $1,600 each, toward a $25,000 purchase price, which price shall then be $24,000 for each lot. In further consideration, the City will complete public improvements to one lot of the Owner. As to the additional eight (8) lots, this second option shall expire, if not exercised by City, on or before September 30, 1984. 9. The Third Option. City shall have an option to purchase an additional four or more of the remaining lots in Madison Manor Subdivision Unit II from. Owner as follows: . In the event City does exercise the third option to purchase four or more of the lots, City shall pay Owner. an additional $1,000 per lot, toward the purchase price,, which total price shall then be $26, 000 for each lot. In further consideration, the City will complete public improvements to an additional three lots of the Owner. As to the then remaining lots, this third option shall expire if not exercised by City on or before September 30, 1985. (2) 10. The Fourth Option. City shall have a fourth option to purchase all remaining lots in Madison Manor Subdivision Unit II from Owner as follows: In the event City does exercise the option to purchase all remaining lots, City shall pay Owner an additional $2, 500 per lot toward the purchase price, which total price shall then be $27,500 for each lot. As to the remaining lots, this option shall expire, if not exercised by City on or before September 30, 1986. 11. In further consideration, the City will complete public improvements for all lots within Madison Manor Units I and II after the purchase of the fourteenth lot by City, whether or not additional lots are purchased by City. 12. In further consideration, City will also pay for any required engineering and changes to improvement plans necessary to revise the Final Subdivision Map for Madison Manor Unit II to conform to the latest approved Tentative Map currently on file with the City Clerk, at such time as the City or Owner deems necessary. 13. Upon close of escrow on the twelfth (12) lot purchased by the City, City will release Owner from the requirement to carry public improvement bonds on said subdivision. 14. As to any of the lots acquired by the City, City shall install or pay for its proportionate share of the total cost of public improvements within the subdivision as shown on the approved improvement plans on file with the City Engineer. Such proportionate share shall be determined by the number of lots City acquires relative to the total number of lots. 15. In the event City does not exercise its option as to any of the lots described herein, City shall participate in the construction of the public improvements adjacent to lots owned by the City before or at the same time the Owner furnished improvements to lots on which the option was not exercised. 16. This agreement, upon execution shall be recorded in the official records of Sonoma County and shall be binding upon the heirs, successors and assigns of the parties hereto. 17. City shall pay property taxes on all lots under option and held by Owner until purchase by City or expiration of the option period. 18. City shall deposit $1,000 with P.G. & E. towards engineering costs of non -City owned public utilities upon close of escrow. (3) 19. Nothing in this :agreement shall be construed to require Owner to sell or convey to City more than the total of twenty (20) lots" currently owned by Owner. 20. If suit is brought to enforce any of the terms of this agreement, the prevailing party shall be entitled to recover from the losing party all costs of suit, including reasonable attorney's fees. 21. Performance of this agreement by the City is expressly conditioned upon and subject to the formal release, by the U.S. Department of Housing and Urban Development, of the community block grant funds heretofore allocated and approved for the relocation program of the City of Petaluma. In the event funds are not released by HUD by July 15, 1983 the seller may elect to terminate all rights and obligations of both parties to this contract. APPROVED_ AS TO FORM.: Finant Director uditor planl Madison Manor OWNER: Madison Manor Associates, a limi artnership 3y Pa 1 illeshei General Partner CITY: City of Petaluma, a Municipal Corporation (4) STATE OF CALIFORNIA ss COUNTY OF, SONOMA On th i sf day of UUA- .4- ,19 before me, WILLIAM A. LIE'B.EL, JR.',.a Notary-yublic. in and for said , Co.u.nty and State, personally appeared ROBERT L. SHARPS, known to me to be the ACTING. CITY MANAGER of, the Ci ty of PetalOma,. and knownto me to -be th'e Person who executed th"e within instrument on behalf of said City pf''Petajuma, a municipal corpora . tilon,, and acknldged to. me that s,uch, City of Petaluma executed the samy-1,0 Y, —1001 "101 PFFICTATISML WM. A..-LIEBEL,JR. 'NOTARY, PUBLIC = CALIFORNIA ORNIA SONOMKC0 ' UNtY myl ifty.23,1986 in . an.d for the of Califo�rbi`a. r volic , State sEc® TITLE INSURANCE STATE OF CALIFORNIA COUNTY OF Sonoma ss. On this the 13 th day of May 19 83 , before me, the undersigned, a Notary Public in and for said State, personally appeared P a u l H 111 P sh e* m , personally known to me or proved to me on the basis of satisfactory evidence to be tt pprsor� who executed the within instrument as Genera I F'arLner of partners of the partnership that executed the within instrument, and acknowledged to me that such partnership executed the same. WITNESS my Fjano and official seal. Signat �' 1y FOR NOTARY SEAL OR STAMP OFFICIAL SEAL ARDEN M. BARRON NOTARY PUBLIC-CAI.IrORNIA PRINCIPAL OFFICE IN SONi)MA COUNTY My Commission Expires Jan. 27, 1984