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COMPLIANCE AGREEMENT <br />This Compliance Agreement (hereinafter "Agreement") is made and entered into on this <br />___ day of November 2021 (`Effective Date") by and between CITY OF SANTA ANA, a <br />charter City and municipal corporation, and THE PEOPLE OF THE STATE OF CALIFORNIA, <br />by the City Attorney for the City of Santa Ana (hereinafter "City"), and 99 SOUTH MLK LLC, <br />a Nevada limited liability company (hereinafter "Buyer"), City and Buyer are also collectively <br />referred to as "the Parties" herein <br />RECITALS <br />WHEREAS, the City of Santa Ana has determined the property located at 938 E. 2""Street, <br />Santa Ana, California, identified as Assessor's Parcel Number 398-473-10 (the "Property") to be <br />a public nuisance and is being maintained in violation of the Santa Ana Municipal Code <br />("SAMC"), requiring immediate rehabilitation and/or repairs; and <br />WHEREAS, on October 20, 2020, the City filed an action against the property owner, <br />Flag Trucking, Inc., and its executive officers, Jack McClure and Dolores McClure <br />(collectively ("Defendants") in the Superior Court of the State California, County of Orange, <br />Central Justice Center District known as CITY OF SANTA ANA, et at, v, FLAG TRUCKING, <br />INC., ct al., Case No. 30-2020-01166481-CU-MC-NJC (the "Action"), The City's complaint in <br />the Action includes a prayer for injunctive relief, civil penalties, attorneys' fees and costs, and other <br />equitable relief against Settling Defendants; and <br />WHERE AS, Defendants intend to sell the Property to Buyer. Buyer understands and <br />agrees that it will assume all liabilities and claims associated with the Action; and <br />WHEREAS, Buyer acknowledges that the Property contains multiple Santa Ana <br />Municipal Code ("SAMC") violations and understands and acknowledges that these violations <br />constitute a nuisance and must be abated in order for the Property to be in compliance with the <br />SAMC; and <br />WHERE AS, the Parties seek to enter into this Agreement to ensure that Buyer will bring <br />the Property into compliance with State laws and SAMC; and <br />WHEREAS, concurrently with this Agreement, Defendants have entered into an <br />agreement with City to settle the Action as set forth in Exhibit "A" and incorporated herein by this <br />reference ("Settlement Agreement"); and <br />WHEREAS, this Agreement is a condition precedent to settle all disputes with Defendants <br />with respect to the Action; and <br />WHEREAS, City acknowledges that there are no liens or other encumbrances against the <br />Property which have been established, generated, or created by City or for the benefit of City, other <br />than the Notice of Pendency of Action filed at the Orange County Clerk Recorder's Office against <br />the Property on February 2, 2021, <br />