HomeMy WebLinkAboutContract 1542 S4v
ORIGINAL
AGREEMENT FOR DEPOSIT AND ABATEMENT
OF CODE VIOLATIONS
BY AND BETWEEN
THE CITY OF CATHEDRAL CITY
AND
GREGORY AND ELIZABETH GRANT
THIS AGREEMENT FOR DEPOSIT AND ABATEMENT OF CODE VIOLATIONS
("Agreement") is made and entered into as of January ]/1 , 2013, by and between the
City of Cathedral City, a municipal corporation located in the County of Riverside, State
of California ("City"), and Gregory and Elizabeth Grant, individuals (together, "Grant"),
with the City and Grant sometimes individually referred to as "Party" and together
referred to as the "Parties."
RECITALS
WHEREAS, SS Funding, Inc., a California corporation ("Owner"), as nominee for
numerous investors, currently owns the real property identified as having Assessor's
Parcel Numbers 681-310-031 and 681-310-007, located at 67670 Carey Road,
Cathedral City, California, and all the improvements and fixtures located thereupon,
including, but not limited to, a certain hotel commonly known as The Villa Hotel
(collectively, "Property"), with the real property more particularly described in Exhibit"A,"
attached hereto and incorporated herein by this reference; and
WHEREAS, Owner came into ownership of the Property by initiating and
completing foreclosure proceedings against the Property; and
WHEREAS, Grant has entered into that certain Commercial Property Purchase
Agreement and Joint Escrow Instructions with Owner, dated December 18, 2012, for
acquisition of the Property; and
WHEREAS, the City levied numerous monetary encumbrances (collectively,
"City Fines") against the Property and issued a Notice to Abate dated September 10,
2012 ("Abatement Notice"), a copy of which is attached hereto and made part hereof as
Exhibit "B," for violations of the City's Municipal Code which resulted in public
nuisances, among other things; and
WHEREAS, Grant has agreed to completely abate all violations that are the
bases of the City Fines and abate the conditions described in the Abatement Notice,
except Grant shall not demolish the structures on the Property and return the Property
to bare dirt, immediately upon acquiring title to the Property from Owner; and
WHEREAS, Grant has agreed to make a cash deposit with the City, to be
deposited with and held by the City, in the amount of$40,000 ("Deposit') as security for
completion of all such abatement.
NOW, THEREFORE, in consideration of the covenants, conditions and promises
contained herein and for such other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto hereby agree as follows:
1. Recitals. The Recitals set forth above are true and correct and are hereby
incorporated into this Agreement by this reference, as though set forth in full herein.
2. Cash Deposit. Grant hereby agrees to deposit the Deposit with the City, it
being understood that the Deposit amount shall be separate and apart from the amount
needed to pay off the City Fines which shall be accomplished at the close of escrow for
the acquisition of the Property by Grant from Owner. The Deposit shall be utilized and
released in accordance with Section 3 hereof.
3. Abatement, License and Term. Grant shall engage a contractor to perform
all abatement services ("Abatement Work") that are the basis of the City Fines and
Abatement Notice, except that Grant shall not demolish the structures on the Property
and return the Property to bare dirt. Included in the Abatement Work shall be, among
other things from the Abatement Notice, removal of all concrete, glass, and dead
vegetation from the Property. All such Abatement Work shall be completed by no later
than ninety (90) days following the closing date of Grant's acquisition of the Property
from Owner. Once Grant believes the Abatement Work has been completed, Grant
shall in writing notify Sandra Martinez, the City's Code Compliance Officer, of such
completion and the City shall perform an inspection of the Property within three (3)
business days after receiving notification thereof. The City shall notify Grant within
three (3) business days after the inspection, whether all the Abatement Work has been
completed. In the event all such abatement is completed to the City's satisfaction, in
the City's sole and absolute discretion, the City shall release the Deposit to Grant within
three (3) business days following the City's notice given to Grant of such completion.
However, if the abatement of the Property conditions is not completed to the City's
satisfaction, and Grant should fail to abate the Property conditions as instructed by the
City within fifteen (15) calendar days of receipt of a written notice given by the City,
which notice shall be provided by the City within three (3) business days after the City's
determination that the Abatement Work has not been completed to the City's
satisfaction, the City shall be permitted to engage any contractor of its choice to
complete the Abatement Work and draw from the Deposit for such work, as may be
necessary. In furtherance thereof, Grant hereby grants the City and its officials,
employees, agents and independent contractors ("City Parties"), a license to enter upon
the Property for purposes of completion of all Abatement Work. Grant shall provide the
City Parties with reasonable access to the Property as may be needed. Any Deposit
balance that may remain after completion of the work shall be released to Grant. At all
times any Abatement Work is completed by Grant or Grant's agents, employees or
independent contractors, Grant shall ensure that the Property is properly secured to
minimize the risk of unauthorized access to the Property. For purposes of this Section
3, "business days" shall be defined as any day City Hall is open for business to the
public. This Agreement shall automatically terminate and be of no further force or effect
upon the occurrence of either of the following events: (a) the Deposit or any part thereof
is released to Grant or (b) the amount of the Deposit has been reduced to zero ($0.00)
due to the City's completion of the Abatement Work, as described above.
4. Indemnification. Grant shall defend, indemnify and hold harmless the City,
its officers, officials, agents, employees and volunteers from and against any and all
claims, demands, actions, losses, damage, injuries, and liability, direct or indirect
(including any and all costs and expenses in connection therewith), arising out of any
claim, damage, loss, or injury that may arise from the Abatement Work.
5. Notices. All notices, requests, demands, and other communications
hereunder shall be in writing and shall be delivered in person or sent by registered or
certified mail, postage prepaid, commercial overnight courier with written verification of
receipt or by telecopy. A notice shall be deemed given: (a) when delivered by personal
delivery (as evidenced by the receipt); (b) three (3) days after deposit in the mail if sent
by registered or certified mail; (c) three (3) days after having been sent by commercial
overnight courier as evidenced by the written verification of receipt; or (d) on the date of
confirmation if telecopied. Notices shall be addressed as set forth below, but any
addressee may change its address by written notice in accordance herewith.
City: Sandra Martinez, Code Compliance Officer
City of Cathedral City
68-700 Avenida Lalo Guerrero, Suite B
Cathedral City, CA 92234
Telephone: (760) 202-2452
Facsimile: (760) 328-3902
Email: SMartinez @cathedralcity.gov
Grant: Gregory and Elizabeth Grant
67591 Bolero Road
Palm Springs, CA 92264
Telephone: (360) 224-7253
Email: greggrant @cbbain.com
6. General Provisions.
6.1 Entire Agreement. This Agreement constitutes the entire
agreement and understanding between the Parties with respect to the subject matter
contained herein, and supersedes any prior agreement and understanding about the
subject matter hereof. This Agreement may only be modified or amended by a written
instrument executed by the Parties.
6.2 Time is of the Essence. Time shall be of the essence in the
performance of this Agreement.
6.3 Headings. The subject headings of the sections and paragraphs of
this Agreement are included for purposes of convenience only and shall not affect the
construction or interpretation of any of its provisions.
6.4 Termination. This Agreement may be terminated by the City with
thirty (30) days' written notice given to Grant.
6.5 Counterparts and Facsimiles and Electronic Signatures. This
Agreement may be executed in any number of counterparts each of which shall be
deemed an original and all of which together shall constitute but one and the same
instrument. Facsimile and electronic copies of signature pages shall be treated as
original signature pages.
6.6 Successors and Assigns. Each covenant and condition contained
in this Agreement shall inure to the benefit of and be binding on the parties to this
Agreement and their respective heirs, executors, administrators, personal
representatives, successors and assigns.
6.7 Attorneys' Fees; Costs of Litigation. If any legal action or any other
proceeding is brought for the enforcement of this Agreement, or because of an alleged
dispute, breach, default, or misrepresentation in connection with any of the provisions of
this Agreement, the successful or prevailing party shall be entitled to recover
reasonable attorneys' fees and other costs incurred in that action or proceeding, in
addition to any other relief to which it may be entitled, including the fees and costs
incurred in enforcing any judgment which may be obtained in said action.
6.8 Remedies for Default. Failure by a party to perform any term,
condition or covenant required of the party under this Agreement shall constitute a
"default" of the offending party under this Agreement. Unless otherwise stated
elsewhere in this Agreement in which event the terms thereof shall govern, in the event
that a default remains uncured for more than ten (10) calendar days following receipt of
written notice of default from the other party, a "breach" shall be deemed to have
occurred. Any failure or delay by a party in asserting any of its rights and remedies as
to any default shall not operate as a waiver of any default or of any rights or remedies
associated with a default.
6.9 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California.
6.10 Venue. All proceedings involving disputes over the terms,
provisions, covenants or conditions contained in this Agreement and all proceedings
involving any enforcement action related to this Agreement shall be initiated and
conducted in the applicable court or forum in Riverside County, California.
6.11 Interpretation. As used in this Agreement, masculine, feminine or
neuter gender and the singular or plural number shall each be deemed to include the
others where and when the context so dictates. Wherever the context so permits, the
word "induding" shall be construed as if followed by the words "without limitation." This
Agreement shall be interpreted as though prepared jointly by the Parties.
6.12 Legal and Other Professional Advice. The Parties represent and
warrant to the other party the following: they have carefully read this Agreement, and in
signing this Agreement, they do so with full knowledge of any right which they may
have; they have received independent legal advice from their respective legal counsel
as to the matters set forth in this Agreement, or, have knowingly chosen not to consult
legal counsel regarding such matters; and, they have freely signed this Agreement
without any reliance upon any agreement, promise, statement or representation by or
on behalf of the other party, or its respective agents, employees or attorneys, except as
specifically set forth in this Agreement, and without duress or coercion, whether
economic or otherwise.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on
the date first written above.
City of Cathedral City gregory Grant ,.--.i
' ' te - -
ahlikk
Andy Hall, Ci Manager / 7 .,_. /
)01P Elizabeth Grant
frillif ,t-4
P t Hammers, City Clerk
Approved as to Form:
/ AI' ,
C arles R. Green, City Attorney
P:\APPS\WPDATA\CATH\0012-106 67670 Carey Road(Former Villa Hotel)\DOC\005-Agreement for Deposit and Abatement of
Code Violaitons(01.17.12).doc
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
SEE ATTACHED
Order Number: 0625-4264222
Page Number: 10
LEGAL DESCRIPTION
Real property in the City of Cathedral City, County of Riverside, State of California, described as
follows:
PARCEL 1: (APN: 681-310-007-2)
THE SOUTH 1/2 OF THE NORTH 1/2 OF THE WEST 1/2 OF LOT 19, SECTION 29,TOWNSHIP 4
SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN,AS SHOWN BY MAP OF PALM
VALLEY COLONY LANDS, IN THE CITY OF CATHEDRAL CITY, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA,AS SHOWN BY MAP ON FILE IN BOOK 14, PAGE 652 OF MAPS, IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY.
THIS LEGAL DESCRIPTION IS MADE PURSUANT TO THAT CERTAIN CERTIFICATE OF
COMPLIANCE RECORDED MAY 29, 1987 AS INSTRUMENT NO. 87-152094 OF OFFICIAL
RECORDS.
PARCEL 1A:
TOGETHER WITH A RIGHT OF WAY FOR ROAD PURPOSES, 15 FEET IN WIDTH OVER AND
ACROSS THE SOUTH 1 OF THE WEST 1/2 OF SAID LOT 19, AS CONVEYED BY DEED RECORDED
ON MARCH 11, 1933, IN BOOK 116, PAGE 131, OFFICIAL RECORDS.
PARCEL 2: (APN: 681-310-031-3)
THE SOUTH 1/2 OF THE EAST 1/2 OF THE NORTH 1/2 OF LOT 20 IN SECTION 29,TOWNSHIP 4
SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF CATHEDRAL
CITY, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP OF PALM VALLEY
COLONY LANDS ON FILE IN BOOK 14, PAGE 652 OF MAPS, RECORDS OF SAN DIEGO COUNTY,
CALIFORNIA.
PARCEL 2A:
TOGETHER WITH A VEHICULAR PARKING EASEMENT, 40 FEET BY 150 FEET, LOCATED WITHIN
THE NORTHEASTERLY CORNER OF THE SOUTH ONE-HALF OF LOT 20, SECTION 29,TOWNSHIP
4 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY MAP ON FILE
IN BOOK 14, PAGE 652, AS CONVEYED BY EASEMENT AGREEMENT RECORDED MARCH 1, 1994
AS INSTRUMENT NO. 1994-085803 OF OFFICIAL RECORDS.
First American Title
EXHIBIT "B"
NOTICE OF ABATEMENT
SEE ATTACHED
NOTICE
TO
ABATE
Notice to Abate Property Located at 67670 Carey Road,
Cathedral City, California
Riverside County Assessor's Parcel Number: 681-310-007
The City of Cathedral City has determined that the conditions
currently existing on this property constitute a public nuisance and
pose an immediate threat to the public health, safety and general
welfare and to any occupants of the property. Said conditions
violate Section 17920.3 of the California Health and Safety Code
(attached) because each of these conditions endanger the life, limb,
health, property, safety, or welfare of the public and/or the occupants
thereof:
(X) There are dead and dying date palm trees throughout the
property, which constitute a fire hazard. (Health and
II
Safety Code section 17920.3(j); see also Cathedral City
Municipal Code sections 13.80.030; 13.80.035;
13.80.045; 13.80.115).
(X) All structures on the property are abandoned and have
not been adequately secured, and have been continually
accessible to juveniles and vagrants for unlawful and
hazardous use. Although there is a chain link fence
around the property, there is evidence that it is continually
breached by persons either cutting through the fence or
jumping over the fence, rendering the fence useless in
avoiding unauthorized access. The continued presence
of unauthorized persons constitutes a threat to the health,
safety, and welfare of those unauthorized occupants
because the property lacks utilities, contains numerous
unsafe conditions such as piles of rubble, and is currently
unfit for human occupancy. Such presence and failure to
properly secure the property also constitutes a threat to
the health, safety and welfare of the community and the
public because such vagrants may engage in
unauthorized or criminal activities on the property.
(Health and Safety Code section 17920.3(c); see also
Civil Code sections 3479 and 3480; Cathedral City
Municipal Code sections 13.80.080; 13.80.025;
13.80.140).
(X) The property contains large piles of rubble visible from the
public right-of-way which constitute an attractive
nuisance, a potential rodent and insect harborage, and a
visual blight. (Health and Safety Code section
17920.3(c); see also Cathedral City Municipal Code
sections 13.80.025, 13.80.070, and 13.80.115).
Pursuant to Section 17980(a) et. seq. of the Health and
Safety Code, the conditions on your property constitute a nuisance.
2
Toward that end, you are directed to take the following action within
the specified period:
• Apply for and obtain a demolition permit within ten (10) days.
• Demolish all structures on the property and return the property
to bare dirt within ninety (90) days.
• Remove all dead and dying date palm trees and any other
dead or dying vegetation within ninety (90) days.
• Remove all trash, junk, and debris from the property within
ninety (90) days.
Failure to rectify these conditions on your property within
the specified period will result in institution of proceedings to appoint
a receiver in order to prevent, restrain, correct, or abate the violation
with costs of abatement including attorney's fees payable by you.
Please be advised that the lessor cannot retaliate against
a lessee pursuant to Section 1942.5 of the Civil Code.
If you have any questions, please contact Code
Compliance Officer Sandra rtinez at (760) 202-2452.
Dated: C 11� :CO /14 ?
Sandra Martine
Code Compliance Officer
City of Cathedral City
68-700 Avenida Lalo Guerrero
Cathedral City, California 92234
(760) 202-2452
PAAPPSIW PDATA\CATH10012-106 67670 Carey Road(Former Vilra HOtel)1DOC■004-Notice to Abate(06.23.12).doc
3