HomeMy WebLinkAboutItem 25 - Warner Avenue Street Improvements (Oak Street to Grand Avenue)Public Works Agency
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Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 21, 2021
TOPIC: Warner Avenue Street Improvements (Oak Street to Grand Avenue)
AGENDA TITLE
Authorize a Purchase Agreement in the Amount of $7,200 for Partial Real Property
Acquisition for Warner Avenue Improvements Phase 2 (Property Owner: Gates Warner,
LLC) (Project No. 18-6901) (Non -General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute a purchase agreement with property owner Gates
Warner, LLC, a California limited liability company, for the partial property acquisition and
goodwill (if any) for the real property located at 1301 E. Warner Avenue (APN 014-281-
19) in the amount of $7,200, subject to non -substantive changes approved by the City
Manager and City Attorney.
DISCUSSION
Warner Avenue is classified as an East-West Major Arterial in the City's General Plan
Circulation Element and the County of Orange Master Plan of Arterial Highways.
Improving the one -mile segment of Warner Avenue from Main Street to Wright Street has
been a long-term priority project that is being constructed in several phases.
Improvements include widening the street from a four -lane roadway to a six -lane arterial
to address safety issues, provide adequate vehicular capacity, installing parkways, raised
median landscaping, storm drains, protected bike lanes, sound walls, street lights, and
traffic signals. The City is acquiring properties for the development of Phase 2 of the
Warner Avenue Improvements project, bounded by Oak Street and Grand Avenue.
Construction is anticipated to begin in winter 2021.
The proposed improvements for the project originated as a mitigation measure for the Tustin
Legacy project, which involves the redevelopment of the former Tustin Marine Corps Air
Station as a mixed -use commercial, residential, and industrial project. As such, the City of
Tustin agreed to partially fund the improvements on Warner Avenue between Main Street
and Grand Avenue.
The recommended partial property acquisition (Exhibit 1) is necessary to accommodate
the street improvements for Phase 2. The purchase offer was determined based on the
Real Property Purchase Agreement — Warner Avenue Improvements, Phase 2
September 21, 2021
Page 2
appraised value prepared by a California State licensed appraiser and accepted by the
property owner (Exhibit 2).
ENVIRONMENTAL IMPACT
On September 1, 2015, City Council approved the Warner Avenue Final Environmental
Impact Statement (SCH No. 2012101004).
FISCAL IMPACT
Funds in the amount of $7,200 are budgeted and available in the Warner Avenue
Improvements Project (No. 18-6901) for property acquisition expenditures in FY 2021-22
as follows:
Fiscal
Accounting
Accounting Unit,
Year
Unit —Account
Fund Description
Account No.
Amount
No.
Description
2021-22
03217663-66100
Measure M-
Measure M2 Competitive
$5,400
Street Construction
Street, Land
Select Street
Warner Ave -Tustin
2021-22
05917668-66100
Construction
Community Facilities
$1,800
(City of Tustin
District, Land
Contribution)
TOTAL
$7,200
EXHIBIT(S)
1. Location Map
2. Purchase Agreement — APN 014-281-19
Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency
Approved By: Kristine Ridge, City Manager
EXHIBIT 1
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. 304 WARNER
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MATCHLINE
SEE TOP RIGHT
-SUBJECT PROPERTY
-ACQUIRED PROPERTIES
EXHIBIT 1
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SEE BOTTOM LEFT
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SANTA ANA TITLE:
P W A PURCHASE AGREEMENTS FOR WARNER AVENUE
IMPROVEMENTS (PROJECT NO 18-6901
PUBLIC IIORKS AGENCY NONGENERAL FUND)
EXHIBIT 2
PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY
AND BILATERAL ESCROW INSTRUCTIONS
THIS AGREEMENT (hereinafter "PSA"), entered into on ,2021,
between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized. under the
Constitution and laws of the State of California (hereinafter "City" or "Buyer"), and Gates Warner, LLC, a
California L! miteal Liability Company (hereinafter "Soper"), rega rdle---- of number or gender, -
THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and
subject to the terms, conditions and provisions of this PSA, Seller agrees to sell to City, and City agrees
t6 purchase fr6rh S6116f, th6t d6ftaih e661 Or&06fty rights (hereinafter 661ledtiV61y%aid R661 Pe6p&-tytt)
legally described as follows:
SEE EXHIBIT "A" - Legal Description
and Exhibit "B" - Plat Map
ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF
(Commonly known as 1301 E. Warner Avenue, Santa Ana, CA 92707)
(APN 014-281-19)
Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the
following terms., conditions, promises, covenants, agreements, and provisions, to wit:
Conveyance by Soffer.
A. Seller agrees to convey Said Real Property to City, by Quitclaim Deed, at the office of
Commonwealth Land Title Insurance Company, 4100 Newport Place Drive, Suite 120,
N6Wp6ft 13666h, California, Within sixty (60) dbys fr6m- and after- th6 d;§t6 on Whim th6 City
has approved this Agreement.
B. INTENTIONALLY REMOVED.
2. J11JIe_t2,.b_e...C2py@ M.d. Seller agrees that, except as may hereinafter be otherwise expressly
provided; -Se-i'd-'Kie--al-PF60-6ff-y—s'lialI be conveyed by Seller to City, "As Is, without warranty, and subject to
any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits,
limitations, encumbrances (whether monetary or non -monetary, general or specific, including any and all
leasehold interests), liens, clouds or defects in title including those exceptions shown in Paragraph 15
below.
3. Title Insurance. City is responsible for procuring any title insurance it desires at its own expense.
4. Escrow. City agrees to open an escrow at the office of Commonwealth Land Title Insurance
Company, 4100 Newport Place Drive, Suite 120, Newport Beach, California, (the Escrow Agent) within
five (5) days from and after the date on which the City has approved this Agreement. This Agreement
amstitute.s, the jo.int eac-row instructions of the City and the, Seller and a dualipate original of. this.
Agreement shall be delivered to the Escrow Agent upon the opening of the escrow. Escrow to close
with!.n =ty (60) days of the rcity's- r-4ve-c-ution of thi-- Agreernent. If us -Crow, is not in a condition to close by
the Close of Escrow, and failure to close is due to unforeseen conditions of title or interest of third parties
in the Property that cannot be resolved in Escrow, then buyer may, at its option, request cancellation of
escrow and this Agreement and return of any funds it has deposited into escrow. Thereupon, all
obligations and liabilities of the Parties under this Agreement shall cease and terminate. If no such
request is made, Escrow shall be closed as soon as possible thereafter. Buyer shall be entitled to
possession of the Property immediately upon close of Escrow.
The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance
of this Section 4 and of the General Provisions described in Exhibit "C" attached hereto and incorporated
herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery
ofthin Agreement, L-knil i-orri ru 0 i+n ftflonn no [=no -row A tsnf konmni mrieNr
-- , Zj. -- I —"., �"' y W", .-� " .. -- -- --- 1 .901 11 ..�' �-. I--,.
City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer
taxes, recording fees, cost of title insurance, re -conveyance fees, document preparation fees, escrow
fees and any oth&-,bIbaihg 66,bts indd6nt6l to M d6fiVeyihg of Said R,6;§l W6p6ft-y to City. Nhalms 'For
prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived
pursuant to Civil Code Procedures Section i265.240.
The liability to the Escrow Agent under this Agreement is limited to performance of the obligations
imposed upon it under Section 4, Section 6, Section 8 and Exhibit "C" of the General Provisions of this
Agreement.
Seller is not responsible for payment of any escrow fees, costs or expenses.
5. Properly Taxes. Such real property taxes, if any, on Said Real Property for the fiscal year within
which Said Real Property is conveyed to City as are unpaid at the time of said conveyance shall be,
cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code
Of. the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and
Taxation Code of the State of California for that portion of property taxes on Said Real Property for said
fiscal year which have been paid prior to the date the deed conveying Said Real Property to City is
recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying
Said 14661 Ptbo&fty t6 City is r6d6ed6d 6hd Mode Und-61166tibI6 If Unp6id by r6otohi of S6i)-fiw 5086 6f M
Revenue and Taxation Code of the State of California. To the extent that Seller has prepaid any taxes or
assessments attributable to the Property', Seller shall be solely responsible for obtaining any refund due
thereon from the taxing authority. Upon written request, Buyer shall assist Seller, at Seller's sole cost, in
obtaining said refund, if any; however, in no case shall Buyer credit or otherwise pay Seller for that refund,
if any, through or outside of Escrow.
All unpaid taxes on Said Real Property for any and all years prior to the fiscal year within which said
conveyance is made shall be paid by Seller before conveyance of Said Real Property to City.
6. Payment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City,
as and for the full purchase price for Said Real Property, temporary construction easement, fixtures &
equipment (improvements pertaining to, the realty),, goodwill (if any), and severance damages,, the total
sum of Seven Thousand, Two Hundred and 001100 Dollars ($7,200.00). City agrees to deposit said
purchase price in escrow with the Escrow Agent within SIXTY (60) days from and after the date on which
the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay the same to
Seller upon and after:
(a) 06h;veyah66 6f Said 1116al Property by Geller W Ci'ty as h6e6iha66V6 provided;
(b) Acceptance by City of a Ouitclairn Deed conveying said portion of Said Real Property to City;
(c) Acceptance by City of a Temporary Construction Easement to City;
(d) Delivery to City of the policy of title insurance as hereinabove provided;
(e) Recordation of the Deed conveying said portion of Said Real Property to City.
7. Possession. Seller agrees to deliver to City, on the date the Deed conveying said real property
to City is recorded, quiet and peaceful possession of said property, which shall be made free to. Seller of
all personal property.
8. Rental and Occupancy By Seller. INTENTIONALLY REMOVED.
9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on
th6 06ft of th6 S&II& shWl not 156 &6M6d or h6ld W 156 a waiver of any subsequent or 6th6e- bi;6661) of
said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained
herein.
10. Heirs, Assigns, Successors-lin-Interest. This PSA, and all the terms, covenants and conditions
hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the
respective Partie's -hereto.
11. Time is of the Essence. In all matters and things hereunder to be done and in all payments
hereunder to be made, time is and shall be of the essence.
122. Aunt goMp_9ns,atI2,11; Seller aoKnowledges, and agrees. that said purchase, price is, just
compensation at fair market value for Said Real Property and includes payment for fixtures & equipment
(improvements pertaining to realty), goodwill (if any), and severance damages.
13. Estoppel by Deed Seller and City agree that the conveyance of Said Real Property by Seller
to City, as described in Paragraph 1, shall have the effect of estoppel by deed with respect to the
contiguous real property belonging to Seller that is not the subject of this agreement.
14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box
1086, in the City of Santa Ana 02161, County of Orange, State of California. The mailing address of the
Seller is 15 Dartmouth, Newport Beach, CA 92660.
15. Exceptions. City agrees to accept title to Said Real Property subject to the following: NONE.
16. Entire Agreement. It is mutually agreed that the Parties hereto have herein set forth the whole
of their Agreement. Performance of this PSA by City shall lay at rest, each, every, and all issue(s) that
were raised or could have been raised in connection with the acquisition of Said Real Property by City.
17. As -is Purchase. Buyer is purchasing fee title to the right of way fee acquisition area "as is",
subject to all matters known, unknown and unsuspected. Except as expressly set forth herein, seller
makes no representations or warranties, express or implied, with respect to the title to or condition of said
real property, the suitability of said real property for buyer's intended use, or the presence of any
hazardous substances or materials in any media on said real property. Buyer represents that it has
conducted such Inspections, and testing as it has, deemed appropriate and consulted with its own experts,
and consultants, and has the necessary sophistication in real estate to assume the risk of unknown and
unsuspected matters. This paragraph applies to all conditions of the property including but not limited to
hazardous waste or toxic substances.
18. INTENTIONALLY REMOVED.
19. INTENTIONALLY REMOVED.
20. INTENTIONALLY REMOVED.
21. Contingency. It is understood and agreed between the parties hereto that the completion of this
transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of
the City herein. The execution of these documents and the delivery of same to Escrow Agent constitute
s a I dacceptance and approval.
22. Modification and Amendment. This PSA may not be modified or amended except in writing
signed by the Seller and City.
23. Partial Invalidity. Any provision of this PSA that is unenforceable or invalid or the conclusion of
which would adversely affect the validity, legality, or enforcement of this PSA shall have no effect, but all
the remaining provisions of this PSA shall remain in full force.
24. Cal2tions. Captions and headings in this PSA, including the title of this PSA, are for convenience
only and are not to be comidered in construing this PSA.
L "m_ if n % h h Inwo of
29- 'Goverruing ,% mi, Thie INZA Sh-all. be rgoverned and ionmr, led in n— rdan- wif +
the State of California.
26. No Reliance By One Pa& On The Other. Each party has received independent legal advice from
its attorneys With rC-t§066t to the advisability of executing this PSA and the meaning of th6i provisions h&66f.
The provisions of this PSA shall be construed as to their fair meaning, and not for or against any party based
upon any attribution to such party as the source of the language in question.
27. No Third Party Beneficiary. This PSA is intended to benefit only the Parties hereto and no other
person or entity has or shall acquire any rights hereunder.
28. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other,
execute and deliver such further documents On form and substance reasonably acceptable to the party to
be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate
the terms and conditions of this PSA, without cost.
2.9 ; Applicability of Agreement To A&g1gD-e-9—s. This PSA ahall be binding upon and ahall inure to, the
benefit of the successors and assigns of the Parties to this PSA.
30. Authority to Execute Agreement. Each undersigned represents and warrants that its signature
herein below has the power, authority and right to bind their respective parties to each of the terms of this
PSA, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or
d6ftages to City ih th& &6ht th6t such authority of P&W& is not, in ffidt, h0d by the iMoh.M&Y 6e is Withdi;aWh.
31. Construction Contract and Curative Work.
(a) It is understood and agreed by and between the parties hereto in addition to the compensation
shown in Paragraph 6 hereinabove, the City, its contractors or assigns, shall perform the
following construction contract items at the time of the installation of the proposed project:
L NONE
All work performed under this Agreement shall conform to all applicable building, fire and
sanitary laws, ordinances and regulations relating to such work and shall be completed in a
good and workmanlike manner. All structures, improvements or other facilities, when
removed, and relocated or reconstructed by the City, shall be left in as good condition as
found.
(b) It is understood and agreed by and between the parties hereto that the compensation paid to
Seller through this Agreement includes the value of the cost to remove, relocate, reconstruct
and/or refurbish the following improvements located on the Property:
1. The site improvements (landscaping) will be reestablished and/or restored in kind
as part of construction contract work (CCW).
32. Incorl2oration of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated
as if fully set forth in the body of this PSA.
IN WITNESS WHEREOF, the Parties hereto have executed this Purchase and Sale Agreement on the
date and Year fast written above --
SELLER: Cates Warner, LLC, a California Limited Liability Company
Date:
Tara C. to
Chief Ex ive Officer
Date-
City/Buyer
Ciitu 0f Santa Ana
Date:
Kristine Ridge
City Manager
ATTEST:
Date:
Dai:�sv Gomez
City Clerk
APPROVED AS TO FORM:
Date: 8-9-21
J hn M. Funk
Sr. Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Date:
Nabil Saba, PE, PLS
Executive uirector
Public Works Agency
EXHIBIT "A" (PART TAKE FEE)
LEGAL DESCRIPTION
HUTWOLLARS. ANC., 2603 Moia 51-1 - Sail. 400 1 1rv:ne. CA 92614 4250 1 949 988 5815 phane - 949.988 5820 fax , hum- 11— com
R307513.19
09-20-19
REVISED
02-24-210
EXHIBIT "A"
LEGAL DESCRIPTION
RIGII"r OF WAY FEE ACQUISITION
APN 014-281-19
That portion of Parcel L in the City of Santa Ana, County of Orange, State of California.
as shown on a map filed in Book 12L. Pages 45 through 46, inclusive, of Parcel Iv1aps, in
the office of the County Recorder of said County; described as follows:
Commencing at the Southwest corner of said Parcel l; thence along the Southerly line of
said Parcel 1 South 88029143" East 20.00 feet to the Easterly line of the Southern Pacific
Railway Basement as shown on said Parcel Map also being the TRUE POINT OF
BEGAN-NING; thence continuing South 88°29'43" East 9.57 feet; thence leaving said
Southerly line North 43°2943" West 8.48 feet to a line being parallel with and 6.00 feet
Northerly of said Southerly line; thence along said parallel line North 88" 29'43" West
3.58 feet to the said Easterly line of said easement; thence along said Easterly line South
01 °24'25" West 6.00 feet to the TRUE POINT OF BEGINNING.
Containing an area of 40 square feet, more or less.
Subject to covenants, conditions, reservations, restrictions, rights -of -way and easements,
if any, of record.
All as shown on Exhibit 'B" attached hereto and by this reference made a part hereof.
DAVID W. MACKEY, PL. 8912
/R307513.19i"o21U2 IUlRFF 45 U14-281-19 RC)W DED
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EXHIBIT "B" (PART TAKE FEE)
PLAT MAP
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WARNER A VENUE
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Huitt-ZONars, Inc. Irvine
26M Maln Street, Suite 400, Irvine, CA 926%
Phone (949) 988-5815 Fax (949) 988-5820
APPROWD BY
SKETCH TO ACCOMPANY
A LEGAL DESCRIPTION
EXHIBIT 'B'
RIGHT OF WA Y
FEE ACQUISITION
A.P.N. 014-281-19
REVISED: 212412020
SCALE
1 "= 90"
DRAW BY DWM
CHECKED BY RHH
DAZE 912012019
JOB NO
R307513.19
R: \R30751J 19NCADD\MAPPING\0WG\EX\30751319JEXl0.DWG
EXHIBIT "C" (Commonwealth Land Title Company)
GENERAL ESCROW PROVISIONS
All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited
in one or more of your general escrow accounts with any bank doing business in the Mate of California
and may be transferred to any other general escrow account or accounts. The expression "close of
escrow" means the date on which instruments referred to herein are filed for record. All adjustments are
to be made on the basis of a 30-day month. Recordation of any instruments delivered through this
escrow, if necessary or proper in the issuance of a policy of title insurance called for, is hereby authorized.
Th&6 sh6ll be no pf6f,,Mi6h of any existing insUfafte polidiet, ih this e-S-0--r-O-W.
You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other
documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the
attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys.
Should you before or after close of escrow receive or become aware of any conflicting demands or claims
with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited
herein affected hereby, you shall have the right to discontinue any or all further acts on your part until
such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend
any action or proceedings for the determination of such conflict. The parties hereto jointly and severally
agree to pay all ooata, damages, judgments and emponses, including reasonable attorney's foes, suffered
or incurred by you in connection with, or arising out of this escrow, including, but without limiting the
mnnnrality r% the fr%renf%inri, n ej ii+ in wit in
pm i of —o In. the ovent you filean VNII
you shall ipso facto be fully released and discharged from all obligations imposed upon you in this escrow.
If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable
hi6hthly 6Miirge as custodian th&66f of h6t less thi§h $10.00 per month.
Time is declared to be the essence of these instructions. if you are unable to comply within the time
specified herein and such additional time as is required to make an examination of the official records,
you will return all documents, money or property to the party entitled thereto upon satisfactory written
demand and authorization. Any amendment of and/or supplement to any instructions must be in writing.
The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof.
These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each
of which independently shall have the same effect as if it were the original, and all of which taken together
shall constitute one and the same instruction.