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HomeMy WebLinkAboutAG RPTS 2006 1115 RDA SPCESTABLISHED k++ 11.1ost �'r►' OF NOTICE AND CALL OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK TO THE MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK: NOTICE IS HEREBY GIVEN that a Special Meeting of the Redevelopment Agency of the City of Moorpark is hereby called to be held on Wednesday, November 15, 2006, commencing at 6:50 p.m. Said meeting will convene in the Community Center located at 799 Moorpark Avenue, Moorpark, California. Said Special Meeting shall be for the purpose of considering the following: 1. CALL TO ORDER: 2. ROLL CALL: 3. PUBLIC COMMENT: 4. PRESENTATION /ACTION /DISCUSSION: A. Consider Resolution Amending the Fiscal Year 2006/07 Budget for Acquisition of APNs 513 -0- 024 -105 and 513 -0- 024 -135 and Accept the Grant Deed for Recordation. Staff Recommendation: 1) Adopt Resolution No. 2006- , amending the FY 2006/07 Budget by $578,000.00; 2) Authorize the Executive Director to execute all documents necessary to this transaction; and 3) Authorize the Agency Secretary to accept and consent to the recordation of any deed. ROLL CALL VOTE REQUIRED (Staff: David Moe) B. Consider Property Acquisition Agreement and Escrow Instructions; Resolution Authorizing Purchase of 450 East High Street; and Accepting the Grant Deed for Recordation. Staff Recommendation: 1) Adopt Resolution No. 2006- ; 2) Approve Property Acquisition Agreement, subject to final language approval of Executive Director and Agency Counsel, and authorize Agency Chair to execute; 3) Authorize Executive Director to execute all documents necessary to this transaction; and 4) Authorize the Agency Secretary to accept and consent to the recordation of any deed. ROLL CALL VOTE REQUIRED (Staff: David Moe SPECIAL MEETING NOTICE — Redevelopment Agency November 15, 2006 Page 2 S. CLOSED SESSION: A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Subdivision (b) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Subdivision (c) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) 6. ADJOURNMENT: Dated: November 14, 2006. Deborah S. Traffenstedt, y Clerk Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or a Presentation /Action /Discussion item. Speakers who wish to address the Agency concerning a Public Hearing or Presentations /Action/ Discussion item must do so during the Public Hearing or Presentations /Action /Discussion portion of the Agenda for that item. Speaker cards must be received by the City Clerk for Public Comments prior to the beginning of the Public Comments portion of the meeting and for Presentation /Action /Discussion items prior to the beginning of the first item of the Presentation /Action /Discussion portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Presentation/ Action /Discussion item speaker. A limitation of three to five minutes shall be imposed upon each Public Hearing item speaker. Written Statement Cards may be submitted in lieu of speaking orally for open Public Hearings and Presentation /Action /Discussion items. Copies of each item of business on the agenda are on file in the office of the City Clerk and are available for public review. Any questions concerning any agenda item may be directed to the City Clerk at (805) 517 -6223. In compliance with the Americans with Disabilities Act, if you need special assistance to review an agenda or participate in this meeting, including auxiliary aids or services, please contact the City Clerk's Division at (805) 517 -6223. Upon request, the agenda can be made available in appropriate alternative formats to persons with a disability. Upon advance notification of the need for disability- related modification or accommodation, reasonable arrangements will be made by City staff to provide accessibility to the meeting (28 CFR 35.102 - 35.104; ADA Title II). STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss CITY OF MOORPARK ) AFFIDAVIT OF POSTING I, Maureen Benson, declare as follows: That I am the Deputy City Clerk of the City of Moorpark and that a notice for a Special Meeting of the Redevelopment Agency of the City of Moorpark will be held Wednesday, November 15, 2006, commencing at 6:50 p.m. at the Moorpark Community Center, located at 799 Moorpark Avenue, Moorpark, California. A copy of said Notice was posted on November 14, 2006, at a conspicuous place at the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California. I declare under penalty of perjury that the foregoing is true and correct. Executed on November 14, 2006. Maureen Benson, Deputy City Clerk CITY OF MOORPARK, CALIFORNIA Redevelopment Agency Meeting of ACTION:_C�oy� a��{ Aa nMM 4. A. MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT To: Honorable Agency Board of Directors From: David C. Moe II, Redevelopment Manager Date: November 3, 2006 (Special Agency Meeting of 11/15/06) Subject: Consider Resolution Amending the Fiscal Year 2006/07 Budget for Acquisition of APNS 513 -0- 024 -105 and 513 -0- 024 -135 and Accept the Grant Deed for Recordation BACKGROUND AND DISCUSSION The Granary Square, Inc. has recently entered into escrow to acquire the property located on Princeton Avenue (APNS 513 -0- 024 -105 and 513 -0- 024 -135) and is prepared to sell it to the Agency immediately following the close of escrow. The Agency would exchange the Princeton Avenue property for the property located at 450 East High Street, which is currently the subject of a separate escrow and related agreement. Staff has determined that the acquisition of the Princeton Avenue property by the Redevelopment Agency is consistent with the goals and objectives in the Moorpark Redevelopment Plan. The total cost to the Agency for the property is $578,000.00 ($575,000.00 purchase price and $3,000.00 for escrow fees). A budget appropriation from the MRA Area 1 — Operations fund (tax increment) in the amount of $578,000.00 is required for the purchase. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) 1. Adopt Resolution No. 2006 — amending the Fiscal Year 2006/07 Budget by $578,000.00; 2. Authorize the Executive Director to execute all documents necessary to this transaction; and 3. Authorize the Agency Secretary to accept and consent to the recordation of any deed. Attachment "A" Resolution No. 2006 - RESOLUTION NO. 2006 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2006/2007 BUDGET BY APPROPRIATING $578,000 FROM THE MRA AREA I - OPERATIONS (2902) FUND FOR ACQUISITION OF APN Nos. 513 -0- 024 -105 AND 513 -0- 024 -135 WHEREAS, on June 21, 2006, the Moorpark Redevelopment Agency Board of Directors adopted the Moorpark Redevelopment Agency budget for Fiscal Year 2006/2007; and WHEREAS, the Redevelopment Agency of the City of Moorpark desires to purchase property known as APN Nos. 513 -0- 024 -105 and 513 -0- 024 -135 in the City of Moorpark, for the purpose of exchanging the properties for 450 East High Street; and WHEREAS, the Board of Directors of the Redevelopment Agency of the City of Moorpark now wishes to amend the adopted budget to reflect the cost to purchase of APN Nos. 513 -0- 024 -105 and 513 -0- 024 -135, for the acquisition cost of $575,000, plus $3,000 for estimated escrow costs, for a total cost of $578,000 from the MRA Area I — Operations Fund. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the total amount of $578,000 from the MRA Area I - Operations Fund, with $575,000 for Land Acquisition and $3,000 for Special Professional Services, as more particularly described in Exhibit "A ", attached hereto, is hereby approved. SECTION 2. The Agency Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 15th day of November, 2006. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary Exhibit "A" — Budget Amendment Detail I ' `' 1 ;1 EXHIBIT A BUDGET AMENDMENT FOR MRA AREA 1 - OPERATIONS FY 2006 -07 FUND ALLOCATION FROM: Fund Account Number Amount MRA Area 1 - Operations 2902 -5500 $ 578,000.00 $ 3,000.00 $ 3,000.00 2902.2410.5033.9610 Total $ 575,000.00 $ 578,000.00 DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS: Account Number Current Budget Revision Amended Budget 2902.2410.5033.9103 $ - $ 3,000.00 $ 3,000.00 2902.2410.5033.9610 $ - $ 575,000.00 $ 575,000.00 Total $ - $ 578,000.00 $ 578,000.00 Approved as to Form: tV00 s f;2 JTV OF MOORPARK, CALIFORNIA ITEM ReHeveiopment Agency Meeting ACTION: MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT To: Honorable Agency Board of Directors From: David C. Moe II, Redevelopment Manager Oo✓ Date: November 13, 2006 (Special Agency Meeting of 11/15/06) Subject: Consider Property Acquisition Agreement and Escrow Instructions; and Resolution Authorizing Purchase of 450 East High Street; and Accepting the Grant Deed for Recordation BACKGROUND AND DISCUSSION The Redevelopment Agency of the City of Moorpark ( "Agency ") has negotiated an agreement with The Granary Square, Inc. for the acquisition and redevelopment of 450 East High Street ( "Acquisition Parcel'). The Granary Square, Inc. has entered into escrow to purchase a vacant property located on Princeton Avenue (APNS 513- 0 -024- 105 and 513 -0- 024 -135) ( "Substitute Parcel'). Upon closing of escrow, The Granary Square, Inc. is prepared to sell the Substitute Parcel to the Agency. The Agency would exchange the Substitute Parcel for the Acquisition Parcel to provide a site to relocate the existing fueling station ( "Improvements "). The Agency will give the Granary Square, Inc. a one year option to enter into a Disposition and Development Agreement with the Agency for the construction of a retail and office development on the Acquisition Parcel. James Clark, owner of the Acquisition Parcel and the Improvements, has reviewed the attached Property Acquisition Agreement ( "Attachment B "). Mr. Clark agrees to exchange the Acquisition Parcel for the Substitute Parcel and relocate his Improvements. Mr. Clark will be eligible for relocation assistance as he will be displaced due to an Agency project. Therefore, the Agency will need to finance the relocation of the Improvements onto the Substitute Parcel. The Agency will also secure, at its sole cost, the entitlements for development of the Improvements on the Substitute Parcel on behalf of Mr. Clark. Mr. Clark will not be required to relocate or cease his business operation immediately following the close of escrow with the Agency. The Agency has offered to lease back the Acquisition Parcel to Mr. Clark while the entitlements are secured from the City of Moorpark and during the construction of the Improvements on the Substitute Parcel. Honorable Agency Board of Directors November 14, 2006 Page 2 This will allow Mr. Clark to continue his operation at the Acquisition Parcel and cause minimal disruption to his business activities. The estimated total cost to the Agency for the project is $1,278,000.00. The purchase of the Substitute Parcel is estimated at $578,000.00 and relocating the Improvements is estimated to be $700,000.00. The acquisition and redevelopment of the Acquisition Parcel by the Redevelopment Agency is consistent with the goals and objectives in the Moorpark Redevelopment Plan and Five Year Implementation Plan. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) 1. Adopt Resolution No. 2006 — ;and 2. Approve Property Acquisition Agreement subject to final language approval of Executive Director and Agency Counsel and authorize Agency Chair to execute; and 3. Authorize the Executive Director to execute all documents necessary to this transaction; and 4. Authorize the Agency Secretary to accept and consent to the recordation of any deed. Attachment "A" Resolution No. 2006 - Attachment "B" Property Acquisition Agreement ATTACHMENT A RESOLUTION NO. 2006 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING ACQUISITION OF 450 EAST HIGH STREET AND ACCEPTANCE OF GRANT DEED WHEREAS, the City Council of the City of Moorpark, adopted the Redevelopment Plan for the Moorpark Redevelopment Project ( "Plan ") on July 5, 1989, by Ordinance No. 110, in accordance with the California Community Redevelopment Law (CCRL; Health and Safety Code Section 33000 et seq.); and WHEREAS, CCRL Section 33342 provides that redevelopment plans may include authority for the Agency to acquire by gift, purchase, lease or condemnation, all or part of real property in the Project Area; and WHEREAS, the Redevelopment Agency of the City of Moorpark desires to purchase property known as 450 High Street in the City of Moorpark, for the purpose of furthering the goals and objectives in the Plan. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Agency Secretary shall accept and consent to the recordation of the grant deed. SECTION 2. The Agency Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 15th day of November, 2006. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary I �(,),0f,,',6 ATTACHMENT B PROPERTY ACQUISITION AGREEMENT AND ESCROW INSTRUCTIONS This PROPERTY ACQUISITION AGREEMENT ( "Agreement ") is made as of this day of November, 2006 by and between the MOORPARK REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency "), GRANARY SQUARE, INC. (referred to herein as "Developer "), and JE CLARK II CORP. (the "Seller "), on the terms, and subject to the conditions, set forth below. The Agency, Developer, and the Seller are sometimes referred to herein collectively as the "Parties," and either individually as a "Party." RECITALS A. The Agency desires to encourage and effectuate the redevelopment of certain real property, identified as 450 East High Street, (the "Site "), that is depicted on the map attached hereto as Exhibit "A." As depicted on Exhibit "A ", a portion of the Site contains an existing fueling station. B. This Site lies within the Moorpark Redevelopment Project Area ( "Project Area "), and is subject to the Project Area's governing redevelopment plans. C. The Developer proposes to determine the feasibility of developing the Site as a commercial development comprised of retail and office uses (the "Project "), and enter into a Disposition and Development Agreement (the "DDA ") on or before December 8, 2007 with the Agency. D. Development of the Site will require acquisition of two parcels, which includes the Site (the "Acquisition Parcel ") and relocation of the existing fueling station from the Acquisition Parcel to a substitute location (APN Nos. 513 -0- 024 -105 and 513- 0- 024 -135) (the "Substitute Parcel "). In addition to establishing a framework for negotiation of the DDA, this Agreement is also intended to establish the framework for acquisition and financing of the Acquisition and Substitute Parcels and relocation of the existing fueling station. E. Developer has Substitution Parcel in a separate escrow and agrees to sell Substitution Parcel to Agency, and Agency agrees to purchase the Substitution Parcel from Developer. The terms and conditions of this sale are set forth in a separate agreement between the Agency and Developer. -1- LA 114817- 0023 -3217 v1 AGREEMENT The terms and conditions of this Agreement and the instructions to Chicago Title Company ( "Title Company" and "Escrow Holder ") with regard to the escrow ( "Escrow ") created pursuant hereto are as follows: PROPERTY EXCHANGE. For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller agrees to exchange the Acquisition Parcel with the Agency for the Substitution Parcel, together with Relocation Funds, as defined hererin (provided Developer completes its sale of the Substitution Parcel to the Agency), upon the terms and conditions herein set forth. 2. EXCHANGE VALUE. (a) EXCHANGE OF PROPERTY: The total exchange value ( "Exchange Value ") for the Acquisition Parcel and Substitution Parcel shall be $1,000,000, consisting of the value of the Acquisition Parcel to be conveyed by Seller and the value of the Substitution Parcel to be conveyed and the Relocation Funds per 2. (b) to be delivered by Agency. It is contemplated that there would be no further consideration as the value of the Acquisition Parcel and the combined value of the Substitution Parcel and the Relocation Funds are equal. (b) RELOCATION FUNDS: Agency shall pay to Seller, as RELOCATION FUNDS, a cash payment in lieu of relocation assistance for the reconstruction of the existing fueling station of approximately the same equipment, size and square footage. RELOCATION FUNDS are payable as tax free relocation payments under the provisions of Title 49 of the Code of Federal Regulations Part 24, Chapter 16 of the California Government Code, Section 7260, et. seq., or similar source and character. Such funds shall be in the amount determined by submission of plans to the City of Moorpark before Closing, but will be supplemented by such as additional amounts as are required to comply with modifications to the plan required by the City of Moorpark, the County of Ventura, the State of California or any other public agency with legal jurisdiction for submitting a fueling station, as a condition for the approval, construction, equipment installation or operation of the fueling station on the Substitute Parcel. After the Agency has obtained a Commercial Planned Development ( "CPD ") Permit and a Conditional Use Permit ( "CUP ") (collectively "Project Approval ") on behalf of the Seller, Agency will pay Seller the Relocation Funds. Upon acceptance of Relocation Funds by Seller, Seller waives any further rights to additional relocation assistance arising out of the acquisition of the Acquisition Parcel by the Agency. -2- LA #4817 - 0023 -3217 vl x 3. ESCROW. (a) Opening of Escrow. Within one (1) business day following the Effective Date hereof, Developer shall deliver an executed copy of this Agreement to Escrow Holder. For purposes of this Agreement, the Escrow shall be deemed opened on the date Escrow Holder shall have received said executed Agreement or copy. Escrow Holder shall notify Parties, in writing, of the date Escrow is opened and the Closing Date. In addition, Parties agree to execute, deliver and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder or other instruments as may reasonably be required by Escrow Holder in order to consummate the transaction contemplated by this Agreement. Any such supplemental instructions shall not conflict with, amend or supersede any portions of this Agreement. If there is any inconsistency between such supplemental instructions and this Agreement, this Agreement shall control. (b) Close of Escrow. For purposes of this Agreement, the "Close of Escrow" or "Closing" shall be defined as the date the Grant Deed conveying the Acquisition Parcel to Agency and Grant Deed conveying the Substitution Parcel to Seller are recorded in the Official Records of Ventura County, California. The "Closing Date" shall be December 8, 2006. Unless otherwise subsequently agreed to in writing signed by the Parties, if Close of Escrow fails to occur by the Closing Date, the Close of Escrow shall occur as soon thereafter as possible unless one party gives written notice to the Escrow Holder and the other party to cancel the escrow. Cancellation of the escrow, as provided in this Section, shall be without prejudice to whatever legal or equitable rights Agency or Seller may have against each other arising from this Agreement or otherwise. 4. TITLE - (a) Promptly following the full execution of this Agreement, Escrow Agent shall cause Chicago Title Company ( "Title Company ") to issue to Agency (with a copy to Seller) a preliminary title report for the Acquisition Parcel, setting forth all liens, encumbrances, easements, restrictions, conditions, pending litigation, judgments, administrative proceedings, and other matters affecting Seller's title to the Acquisition Parcel ( "Preliminary Report"), together with copies of all documents relating to title exceptions referred to in the Preliminary Report (b) Agency shall approve or disapprove each exception shown in the Preliminary Report and each encroachment, overlap, or boundary line dispute, or any other matter that affects title to the Site or that violates any law, rule, or regulation reflected therein (each an "Exception ") within three (3) days following the receipt of the Preliminary Report. The Seller shall correct, to the Agency's satisfaction, any Exception not approved by the Agency. If the Seller fails or refuses to correct an Exception, the Agency has the right to terminate the escrow. -3- LA #4817 - 0023 -3217 v ¢�� r 5. Title Policv. (a) Title Policy for Acquisition Parcel. Agency shall cause the Title Company to issue its Standard CTLA Owner's form Policy of Title Insurance ( "Acquisition Title Policy ") in the amount of FIVE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ($575,000.00) showing good and marketable title to the Acquisition Parcel vested in Agency. (b) Title Policy for Substitute Parcel. Agency shall cause the Title Company to issue its Standard CTLA Owner's form Policy of Title Insurance ( "Substitue Title Policy ") in the amount of One Million Dollars ($1,000,000) showing good and marketable title to the Substitute Parcel vested in Seller. The Substitution Title Policy amount mentioned in this section shall only be for the purpose of this Agreement. 6. SELLER'S DELIVERIES AND CONDITIONS TO CLOSING. Prior to the Close of Escrow, Seller shall deposit or cause to be deposited into Escrow for delivery to Agency at closing the following: (a) A duly executed and acknowledged Grant Deed for the Acquisition Parcel in the Title Company's usual form; (b) Seller agrees to deliver to Agency a clear and fully transferable title of the Acquisition Parcel. (c) Any other document provided for herein or reasonably required by Escrow Holder. (d) Seller agrees to produce an itemized budget to reconstruct fueling station currently located at the Acquisition Site and relocate it onto the Substitution Site, and enter into an agreement with Agency for a one time cash payment in lieu of relocation assistance, referenced in Section 2(a), above, as the RELOCATION FUNDS, for the reconstruction of the existing fueling station of approximately the same equipment, size and square footage. (e) Seller agrees to grant access on the Acquisition Parcel by the Agency, or their representatives, for the purpose of conducting any required environmental inspection. (f) Seller agrees to pay any cost over Forty Thousand Dollars ($40,000.00) to abate contamination on the Acquisition Parcel. Seller also agrees to cooperate and use his best efforts to make available for the abatement of contamination on the Acquisition Parcel such funds as are available to Seller under the terms of the California Underground Storage Tank Cleanup Fund, or similar benefit available to Seller, before requiring the Agency to satisfy such costs otherwise required under Section 7(e), below. However, contamination abatement or remediation efforts on the -4- LA #4817- 0023 -3217 v Acquisition Parcel for which the Seller may be liable shall only be initiated with the consent of the Seller, as lessee or otherwise, after determining availability of such benefits, coverage or assistance under the California Underground Storage Tank Cleanup Fund, or similar benefit available to Seller. Only if it is determined that no such benefits, coverage or assistance is available will such contamination abatement or remediation efforts on the Acquisition Parcel be initiated without the consent of Seller. Seller shall secure such benefits, coverage or assistance under the California Underground Storage Tank Cleanup Fund, or similar benefit available within One Hundred and Eighty (180) days from the date notification from Agency. (g) Seller agrees to enter into a lease agreement with Agency, as described in Section 8(a), below, to allow continual operation of the existing fueling station during the construction of the new fueling station on the Substitution Parcel to be completed no later than December 30, 2008. (h) Seller does not wish to undertake an Owner Participation Agreement with Agency to redevelop the Acquisition Parcel in conformance with the Downtown Specific Plan. (i.) Seller grants Agency, with the exception of a sale or transfer to a family member, a first right of refusal to repurchase the Substitution Parcel. 0.) Seller guarantees to utilize the Substitution Parcel as a fueling station for a period of five years from the date Seller completes the construction of the replacement fueling station on Substitution Parcel. (k). Upon Project Approval, Seller agrees to maintain Substitution Parcel in good condition. (1) Upon Project Approval, Seller agrees to not utilize Substitution Parcel for storage facilities or truck parking not authorized by the City of Moorpark. 7. AGENCY'S DELIVERIES AND CONDITIONS TO CLOSING. Prior to the Close of Escrow, Agency shall deposit or cause to be deposited into Escrow to be delivered to Seller the following: (a) A duly executed and acknowledged Grant Deed for the Substitution Parcel in the Title Company's usual form. (b) Agency agrees to enter into an agreement with Seller for a one time cash payment in lieu of relocation assistance for the reconstruction of the existing fueling station of approximately the same equipment, size and square footage on the Substitution Parcel. (c) Any other document provided for herein or reasonably required by Escrow Holder. -5- LA #4817- 0023 -3217 v ` ti BB � .S pp_ (d) Agency Agrees to pay any cost up to Forty Thousand Dollars ($40,000.00) to abate contamination on the Acquisition Parcel. (e) Agency shall obtain Project Approval from the City of Moorpark on the behave of the Seller. Agency will hire an Architect and Engineer, approved by Seller, to process the Project Approval. The Agency will also expedite and pay all fees required to process and obtain Project Approval, which will not be unreasonably withheld by the City of Moorpark. (f) Agency agrees to enter into a lease agreement with Seller, as described in Section 8(a), below, to allow continual operation of the existing fueling station during the construction of the new fueling station on the Substitution Parcel. (h) Agency will be financially responsible for Seller's required on and off site improvements associated with the development of the Substitution Parcel consistent with the Project Approvals and applicable building codes. 8. SELLER'S AND AGENCY'S JOINT DELIVERIES AND CONDITIONS TO CLOSING. Prior to and as a condition of Closing, Seller and Agency shall jointly deposit or cause to be deposited in Escrow, to be delivered to both: (a) Lease Agreement between Agency, as Lessor, and Seller, as Lessee, leasing the Acquisition Parcel to Seller for the amount of $1 per year for a period ending on the earlier of December 30, 2008 or the completion of the Relocation Improvements, and the permitting, licensing and issuance of all required operational authorization for the operation of a fuel station at the Substitute Parcel, whichever occurs first. Attached to this Agreement is a general lease agreement (Exhibit B) which shall be used as a foundation for the lease agreement between Agency and Seller.; (b) Written confirmation that any and all coverage and benefits available to Seller under the California Underground Storage Tank Cleanup Fund, or similar benefit available to Seller remain in effect and available as a lessee of the Acquisition Parcel; (c) Plans for installation of Relocation Improvements on the Substitute Parcel, together with budget for acquisition, installation and construction of such improvements; -6- LA #4817- 0023 -3217 v1 Q l f "' 9. AUTHORIZATION TO RECORD DOCUMENTS AND DISBURSE FUNDS. Escrow Holder is hereby authorized and directed to record the documents and disburse the funds and documents called for hereunder, provided each of the following conditions have been or will concurrently with the Close of Escrow be fulfilled; (a) Title Company has committed to issue to Agency the Acquisition Title Policy in accordance with Section 5 above. (b) Title Company has committed to issue to Seller the Substitute Title Policy in accordance with Section 5 above. (c) Seller shall have deposited in Escrow the Grant Deed required of it hereunder. (d) Agency shall have deposited in Escrow the Grant Deed required of it hereunder. (e) Escrow Holder is authorized to record any instrument delivered through this Escrow if necessary or proper for the issuance of the Title Policy referred to above. (f) The Seller has delivered SELLER'S DELIVERIES AND CONDITIONS TO CLOSING as set forth in Section 6, above (g) The Agency has delivered AGENCY'S DELIVERIES AND CONDITIONS TO CLOSING, as set forth in Section 7, above. (h) The Seller and the Agency have delivered SELLER'S AND AGENCY'S JOINT DELIVERIES AND CONDITIONS TO CLOSING, as set forth in Section 8, above. 10. COSTS AND EXPENSES. The cost and expense of the Title Policy, the escrow fee, and all documentary transfer taxes payable in connection with the recordation of the Grant Deed and all of Escrow Holder's customary charges for Closing, document drafting, recording and miscellaneous charges shall be paid by Agency. 11. PRORATION. The following proration shall be made between Agency and Seller by Escrow Holder at the Close of Escrow, computed as of the closing date: LA #4817 - 0023 -3217 v 1 7 (a) Taxes. Real property taxes, special taxes, and assessments shall be prorated as of the Close of Escrow based upon the latest available tax information. Seller shall be responsible for all special taxes and assessments accrued against the Acquisition Parcel to and including the day prior to the Close of Escrow based upon payment of such assessments in installments to the greatest extent permitted. Unless any special tax or assessment payment or installment specifies the time period for which such payment is owed, it shall be presumed that such payment is for the full year immediately preceding the day upon which such payment is due. 12. DEVELOPMENT OPTION Developer shall have one year from the Close of Escrow to enter into a DDA, of which terms and conditions shall be set forth in a separate agreement between the Agency and Developer, with the Agency as part of consideration to Developer for development of the Acquisition Parcel. The Parties hereto have executed this Agreement as of the date and year first appearing above. Dated: GRANARY SQUARE, INC Dated: By: JE CLARK II, CORP. Dated: By: MOORPARK REDEVELOPMENT AGENCY Date: By: ATTEST: Deborah Traffenstedt, Agency Secretary Patrick Hunter, Chairman -8- fi a 1 @ -.1. LA #4817- 0023 -3217 vl EXHIBIT A Site Map -9- LA #4817- 0023 -3217 v EXHIBIT B STANDARD LEASE AGREEMENT LA #4817 - 0023 -3217 v