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Item 11 - Amendment to Purchase and Sale Agreement with Santana Green Development, LLC
Public Works Agency www.santa-ana.org/public-works Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 3, 2024 TOPIC: Purchase and Sale Agreement for 2235 South Bristol Street AGENDA TITLE Amend Purchase and Sale Agreement with Santana Green Development, LLC to Extend the Deadline to Open Business at 2235 South Bristol Street by 18 Months RECOMMENDED ACTION Authorize the City Manager to execute the first amendment to the agreement with Santana Green Development, LLC to extend the deadline to open for business to the public a drive-thru restaurant or fuel station with integrated electric vehicle charging station at 2235 South Bristol Street by 18 months (Agreement No. A-2024-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On December 21, 2021, the City Council authorized the City Manager to execute a purchase and sale agreement for the sale of remnants at 2235 South Bristol Street (Exhibits 1 and 2) to Santana Green Development, LLC (Developer). The deed transferring the property from the City to the developer was recorded on July 1, 2022. The purchase and sale agreement (PSA) included a provision in Section 6.24 to ensure the timely development of the remnant property as a drive-thru restaurant or fuel station with an integrated electric vehicle charging station. This provision, referred to as the "Opening Covenant", allowed for the City to buy back the property in the event the proposed development was not open for business within 30 months following close of escrow. The Opening Deadline, pursuant to the provisions of the PSA, would be January 1, 2025. Although City staff and the Developer have worked diligently and cooperatively to advance the project, the current status of the development indicates that the intended opening date will not be met due to project refinements lengthening the development timeline. The proposed agreement amendment (Exhibit 3) extends the allowable timeframe in the Opening Covenant from 30 months to 48 months, an increase of 18 months. This extension would provide sufficient time to complete the project entitlements process, Purchase and Sale Agreement for 2235 South Bristol Street December 3, 2024 Page 2 prepare and approve construction documents, finish construction, and open the business to the public. The project, including its conditional use permit, variance, and minor exception applications (CUP No. 2024-13, VA No. 2024-04, and ME No. 2024- 03), is scheduled for Planning Commission consideration at the next regularly scheduled meeting, as recommended by staff. In light of the project site's unique complexities stemming from its irregular shape and position at the corner of two major arterial roadways, and the timeframe required to draft construction -level drawings for plan check, undergo the plan check process, and complete the construction process (Exhibit 4), staff recommends approval of the Recommended Action to extend the deadline to open the business to the public by 18 months, changing the opening deadline to July 1, 2026. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Purchase and Sale Agreement — December 15, 2021 2. Location Map 3. Agreement Amendment 4. Project Site Plan and Evaluations Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Alvaro Nunez, City Manager INSURANCE NOT REQUIRED WORK MAY PROCEED CLERK OF COUNCIL DATES w EXHIBIT 1 PURCHASE AND SALE AGREEMENT A-2021-247 T-., THIS PURCHASE AND SALE AGREEMENT ("Agreement") is made and entered into T this K- day of aC�/y%� , 2021 ("Effective Date"), by and between Santana Green Development LLC, a California limited liability company ("Buyer"), and the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("Seller" or "City"). As used herein, Buyer and Seller may be referred to collectively as the "Parties," and each individually as a "Party." RECITALS A. City is the fee simple owner of that certain real property consisting of approximately 17,415 square feet, located at 2235 S. Bristol Street (APN No. 015-19440), and 1211 W. Warner Street (APN No. 015-194-37) Santa Ana, California, legally described in Exhibit "A" attached to this Agreement and incorporated into this Agreement in its entirety by this reference (the "Property"). B. On April 21, 2020, the Santa Ana City Council adopted Resolution No. 2020-032 declaring the Property as surplus land and directing the City Manager to comply with the requirements of California Government Code Section 54220 et seq. ("Surplus Land Act") for the disposition of the Property. C. On April 27, 2020, the City released a Notice of Availability ("NQA"} of surplus property for the Property for a period of sixty days. This NOA was sent out to all " local public entities," as defined in Health and Safety Code section 50079, within whose jurisdiction the surplus land is located, and to "Housing Sponsors" that have notified the California Department of Housing and Community Development ("HCD") of their interest in surplus land. The NOA was also sent to local parks agencies and school districts. D. The Property was among those for which either no responses were received by entities receiving the notices of availability or for which responses were received and good faith negotiations ended after a period of not less than 90 days without agreement to price and terms. E. On December 10, 2020, the City issued Request for Proposal 21-159, by which it sought Proposals for the development of various vacant properties in the City of Santa Ana, including the Property that is the subject of this Agreement. F. Evaluation and negotiations have concluded, and the City has otherwise complied with all applicable requirements of the Surplus Land Act prior to the sale of the Property. G. City now desires to sell the Property to Buyer, and Buyer desires to purchase the Property from City, in accordance with the provisions of this Agreement. -1- AGREEMENT NOW THEREFORE, incorporating the foregoing. Recitals and in consideration of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 1. Incorporation ofBecitals. The recitals of fact set forth above are true and correct and are incorporated into this Agreement in their entirety by this reference. 2. Puroh_ase and Sale; P rehase Price. 2.1 Purchase and Sale. Seller shall sell the Property to Buyer, and Boyer shall purchase the Property from Seller, subject to the terms and conditions set forth in this Agreement. 2.2 Purchase Price. The purchase price of the Property shall be Nine Hundred Thousand Dollars ($900,000.00). 3. Escrow. 3.1 Escrow Instructions. Within severe (7) days following the execution of this Agreement by the Parties, Buyer will open an escrow ("Escrow") with. Commonwealth Land Title Company, 41.00 Newport Place Drive, Suite 120, Newport Beach, CA 92660, Attn: Grace Kim ("Escrow Holder") for the purchase and sale of the Property. The "Opening of Escrow" shall mean the date on which a fully executed copy of this Agreement has been delivered to Escrow Holder. Escrow Holder shall confirm the Opening of Escrow to the Parties in writing. This Agreement constitutes joint escrow instructions to Escrow Holder. The Parties agree to execute such additional instructions consistent with thee- provisions of this Agreement, which may be required by Escrow Folder. As between the Parties, Buyer and. Seller agree that, if there is any conflict between the terms of this Agreement and any Escrow Instructions required by Escrow Holder, the terms of this Agreement shall control. Buyer and Seller shall each furnish Escrow Holder with their respective Federal. Tax Identification Numbers and such other information as is reasonably required by Escrow Holder. 3.2 Payment ofkurchase Price. The Purchase Price for the Property shall be payable at Closing. If Seller has deposited into Escrow all documents and amounts required of Seller to close Escrow, including without limitation, the "Grant Deed" (as defined in Section 3.10 below), and complied with all of Seller's other obligations under this Agreement, then on or before the "Closing Date" (as defined Section 3._3 below) so as not to delay the "Close of Escrow" (as defined Section 3.3 below), Buyer shall deposit into Escrow the following in Acceptable Funds: (a) the Purchase Price and (b) the Escrow closing costs pursuant to the preliminary Escrow Closing statement furnished by Escrow Holder as provided below. 33 Close of Escrow. Subject to Sections 3.3.1 and 3.1.2, Escrow for the .sale of the Property shall close on a date that is no later than thirty (30) days after the opening of Escrow ("Closing Date'), subject to reasonable extension as necessary in order to satisfy the conditions precedent and other requirements for the Close of Escrow. As used in this Agreement, "Close of Escrow" shall mean the date on -which the "Grant Deed" conveying fee title to the Property to Buyer is recorded in the Orange County Recorder's Office. M cedent (:o Buyer Obli ate ion t er s obligation to close Escrow .. Conditions p're Close. Buy g ow and purchase the Property is expressly conditioned on the satisfaction of the conditions listed in this Section 33.1. If any such condition is not satisfied or waived by Buyer at or prior to the Close. of Escrow, for any reason other than a default by Buyer, Buyer may; in its sole discretion and without limiting any of Buyer's legal remedies or remedies under this Agreement, terminate this Agreement by written notice to Seller. (1) Title Policy. Escrow Molder has issued or is irrevocably comrri tted to issue to Buyer the '7itle Volley" (as defined in Section 3& below) showing fee title vested in Buyer subject only to "Permitted Exceptions" (as defined in Section 3.5 below). (2) Re esentatio is and Warranties. Each of Seller's representations and warranties in this Agreement are -materially true and accurate as of tine Close of Escrow. (3) Seller pbligg ons. Seller is not in material default under this Agreement and each material obligation of Seller to be performed prior to the Close of Escrow, has been performed as required, including, without limitation the delivery of all documents required of Seller under this Agreement. (4) Possession. Seller is able, at the Close of Escrow to deliver exclusive possession of the Property to Buyer in accordance with this Agreement and does so, 3.3.2 Conditio s iecedent to Seller Obligation to Close. Seller's obligation, to close Escrow and sell the Property is expressly conditioned upon the satisfaction of the conditions listed in this Section 3.3.2. If any such condition is not satisfied or waived by Seller prior to the Close of Escrow :For any reason other than a default by Sellers Seller may, in its sole discretion and without limiting any of Seller's legal remedies or remedies under this Agreement, terminate this Agreement by written notice to Buyer. (1) Re resentations a d. Ww nties. Each of Buyer's representations and warranties set forth in this Agreement are materially true and accurate as of the Close of Escrow. (2) Bu er's Obli ations. Buyer is not in material default under this Agreement, and each makxial obligation of Buyer to be performed prior to the Close of Escrow hereunder has been performed as required. 3.4 Escrow Cancellation, 3.4.1 Charges. (1) Seller's Default. If Escrow fails to close due to seller's default, Seller shall pay all Escrow cancellation charges, "Escrow cancellation charges" means all fees, charges and expenses charged or passed on to the Parties by Escrow Holder, including all -3- title expenses. Buyer shall be entitled to terminate this Agreement or bring an action against Seller for specific perfornnance as its sole and exclusive remedies. (2) Bier's Default. If Escrow fails to close due to Buyer's default, Buyer shall pay ail Escrow cancellation charges and Seller shall be entitled to terminate this .Agreement as its sole and exclusive remedy, (3) No 11efau . If Escrow fails to close and this Agreement is terminated for any reason other than a default by one of the Parties, Buyer and Seller shall evenly split any Escrow cancellation charges. 3.5 Permitted Ex e lions to Title. As soon reasonably possible after the Opening of Escrow, Escrow Holder shall cause Commonwealth Land Title Company; in its capacity as title insurer (" Title Company"), to deliver to Buyer and Seller a current preliminary title report ("Title Report") together with legible copies of all underlying documents referenced therein (together with the Title Report, the "Title .Documents"). The term "Permitted Exceptions" as used in this Agreement shall mean all, of the. following: (a) the Grant Deed; (b) the Affordable Housing Covenant; (c) non -delinquent real property tars and assessments; (d) items and exceptions created by or with the written consent of Buyer, including documents to be recorded pursuant to this Agreement, and (e) the title exceptions shown on the Title Report but excluding any (i) "Disapproved Exceptions" as defined below that Seller, in its sole discretion, agrees to remove prior to the Close of Escrow as provided below and (ii) all monetary liens and monetary encumbrances on the Property, other than non -delinquent real property taxes and assessments which will be removed (meaning removal from title and not the issuance of an endorsement in connection therewith by the "Title Company) from title by Seller at its sole cast and expense prior to the Close of Escrow. If Buyer objects to any title exceptions in its sole and absolute discretion ("Disapproved Deceptions"), Buyer shall deliver written notice ("Objection Notice") of same to Seller within ten (10) business days of delivery of the initial Title Report to Buyer. Seller shall act in good faith and reasonably to resolve any title exception in the Objection Notice. if }Buyer fails to deliver an Objection Notice but delivers a "Notice of Approval", Buyer shall be deemed to Have approved title to the Property subject to the Permitted .Exceptions. If Buyer delivers an Objection Notice regarding a title exception and Seller, by delivery of written notice to Buyer within five (5) business days following receipt of the Objection Notice elects not to remove a material Disapproved Exception (Seller's failure to respond to a Buyer Objection Notice shall be deemed such an election), Buyer's sole remedies shall be with respect to the delivery of a Notice of Approval or delivery or deemed delivery of a Notice of Termination. 3.6 Title Insurance, Seller shall cause the Title Company to commit to issue to Buyer at the Close of Escrow a standard coverage ALMA Owner's policy of title insurance with mechanics lien endorsement (Seller shall provide, any indemnity or other agreement required by the Title Company as a condition to the issuance of the mechanics lien endorsement) ("Title Policy") insuring fee title to the Property vested in Buyer subject only to the Permitted Exceptions, with coverage in an amount equal to the Purchase Price. If Buyer requires an extended coverage A.LTA, Owners policy of title insurance, Buyer shall prey the difference in cost between the standard and extended coverage and the cost of any endorsements (other than a mechanics lien endorsement issued in connection with the standard coverage Title Policy which shall be at the cost of Seller) ("Buyer Title Costs"), Seller shall only be responsible for that portion of the cost of the Title Policy equal to the cost of a standard coverage title policy ("Seller Title Casts"), M 3.7 Possession, Seller shall deliver possession of the Property to Buyer at the Close of Escrow subject only to the Permitted Exceptions; and free of any tenancies and/or third patty claims of use or ownership, 3.8 Taxes Assessments and Prorations. 3.8.1 Taxes. Only to the extent the Seller pays any property taxes or assessments on the Property, all current general and special taxes and assessments on the Property shall be prorated by Escrow Holder based upon the latest available information as shown in the tax statements provided to Escrow Molder by Seller, using customary escrow procedures in Orange County. Seller shall provide Buyer with written evidence of the payment or satisfaction of such taxes. Should the Property be part of a larger tax parcel ("assessment Parcel") which as of the Close of Escrow remains unsegregated on the County Tax Assessor's Roll for the ensuing fiscal year, Escrow Holder shall charge Buyer and. credit Seller for taxes and assessments allocated to the Property (based on unimproved value) leased on the percentage of the total acreage of the Assessment Parcel located on the Property, which acreage figures for allocation purposes shall be fairly and equitably determined and supplied to Escrow Holder by Buyer and Seller, Buyer and Seller shall cooperate in good faith to cause the Property to be separately assessed and segregated in Buyer's name on the current tax roll. Any real property taxes or assessments levied under the Supplemental Tax Roll as a result of the sale of the Property to Buyer, shall be the responsibility of Buyer. Any real property taxes or assessments levied under the Supplemental Tax Roll as a result of traritsfers, improvements or other occurrences before the Close of Escrow shah be the responsibility ofSeller. 3..82 General. All pro rations provided for herein shall be on an "actual dray„ basis and, a three hundred sixty-five (365) day year. The provisions of this ,Section shall survive Close of Escrow. if either Party rails to pay its pro rata share of taxes or other expenses by the times herein provided, interest shall accrue on all unpaid amounts from when owing until paid at the maximum rate allowed by law. Any errors or omissions made in calculating adjustments and prorations shall be corrected promptly upon the discovery thereof If any estimations are made at the Close of .Escrow regarding adjustments or prorations, the Parties shall make the appropriate collection promptly when accurate information becomes available. Any corrected adjustment or proration shall be paid to the Party entitled thereto within thirty (30) days after written request therefor and if not so paid interest shall accrue and be payable on same at the maximum rate allowed by law. 3.9 Closing Costs. Buyer shall pay the cost of the Title Policy, the Escrow Pees and any applicable documentary transfer fees (considering Seller is a City) and recording fees, and all other costs and expenses incurred related to the purchase of the Property by Buyer, If required by Buyer's Iender, .Buyer shall also pay for the appraisal cost of the Property (collectively, "Closing Costs"). As soon as reasonably possible following the Close of Escrow, Escrow Holder shall deliver a copy of the final Escrow closing statement to Buyer and Seller. 52 3,10 Grant Deed. The transfer of ownership of the Property shall be documented through a Grant Deed in the form attached hereto as Exhibit "B""B" and incorporated herein by ref"ere:nce, conveying the Property to Buyer ("Grant .Deed") 3.10..1 .Affordable .Housin Cove ant in the Event of Residential bevel Wit. In accordance with California Government Cade Section 54233, if 10 or more residential units are developed on the Property, not less than 15 percent of the total number of residential units developed on the Property shall be sold or rented at affordable housing cost, as defined in Section, 50052,5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and ,Safety Code, to lower income households, as defined in Section 50079,5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be. subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (e) of Section 65915 of the Government Code. Buyer expressly agrees and consents that the requirements ofthis section shall be contained in a covenant or restriction recorded against the Property prior to land use entitlement of the project, and the covenant or restriction shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the entities described in subdivisions (a) to ( fl, inclusive, of Section 54222,5 of the Government Code, 3.11 Recordation 4—nd--D--clivery of DociMients. No later than the business day immediately prior to the Closing Bate, Buyer and Seller, as applicable, will deposit into Escrow the following documents (with the documents that are to be recorded in the following order and delivered as provided below): 111.1 Grant Deed. One (1) fully executed and acknowledged copy of the Grant Heed conveying the Property to Buyer. Conformed copies of the: recorded Grant Deed ;shall be returned to Buyer and Seller as scion as possible. 3.11.2 Withholding Exem tio11 Certificates. One (1) completed and executed copy of the following: Non -foreign Transferor Declaration.; Preliminary Change in Ownership Report, Internal Revenue Service Form 1099-5,. and California Franchise Tax Board Form 593 and any other applicable state tax withholding forms, as applicable. 3.11.3 DisburseLnggnt of ClogpjKjocuanci . As soon as reasonably possible following the Close of Escrow, Escrow Holder shall deliver copies of all closing documents, including, without limitation, those listed above, the Title Policy, any additional escrow instructions and the finial Escrow closing statement, to Seller's counsel and Buyer's counsel, ..6_ 3.12 Seller's. Proceeds. At the Close of Escrow, subject to section 3. L3 below, Escrow Holder is directed to wire funds representing Seller's cash proceeds through Escrow to Seller' s accoutlt as. directed in separate written instructions to be provided by Seller. 3.13 Calwl_):RPTA Withholdi g, Unless this transaction is exempt udder California Revenue and Taxation Code Sections 18805 and 26131, Escrow Holder shall be the "withholding agent" and withhold from proceeds due Seller any amounts required under the above code sections to be withheld by Buyer and pay ,same to the California Franchise 'pax Board or Internal Revenue Service in accordance with applicable law. 3.14 Additional DpPrrients. Seller and Buyer shall execute and deliver to Escrow any other documents reasonably required by Escrow Holder including, without limitation,. Seller' s affidavits or statements regarding mechanics liens and /or tenants or parties in possession. 3.15 Term' at'ozr of Pro eit Contras s. Seller shall terminate any service contracts or similar agreement relating to the Property that the Buyer does not expressly elect in writing to assume which termination shall be effective as of the Close of Escrow. 4. Real Estate Brokerage T ommission. Buyer and Seller each represent and warrant. to each other that they have not employed, dealt with or incurred] any obligation to any broker, agent or finder in connection with the Property, and that they have not incurred any obligation to pay any other real estate brokerage or other commission or fee in connection with the conveyance of the Property to Buyer. Buyer and Seller agree to indemnify, defend and hold each other free and harmless from and against all costs and Iiabilities, including without limitation reasonable attorneys' fees and the costs and expenses of litigation, for causes of action or proceedings in any way related to or resulting from a breach of the foregoing representation and warranty or arising out of any action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the indemnifying Party, respectively, in connection with this transaction. S. sections•. ASJS Condition of Property 5.1 Naive of Ins ection— Buyer and Seller agree that Buyer unequivocally waives any right to conduct independent investigations concerning (i) Buyer's proposed use, sale, development or suitability for development of the Property; (ii) the condition and all other attributes of the Property, including, without limitation all improvements located thereon; (iii) applicable laws, statutes, rules, regulations, ordinances, limitations, restrictions or requirements concerning the use, density, location or suitability of the Property or any existing or proposed development or condition thereof, including but. not limited to zoning, subdivision and other regulations; (iv) the necessity or availability of any specific plan or general amendments, rezoning, zone variances, conditional use permits, building permits, environmental impact reports, subdivision ;maps, public reports issued by the California Bureau of ]teal Estate and all other governmental permits, approvals or acts; (v) the necessity and existence of all dedications, fees, charges, costs or assessments which may be imposed by any Governmental Authority in connection with the proposed development of the Property; (vi) the value of the Property; (vii) the availability or adequacy of access to the Property, or of water, sewage, gas, electrical or other utilities serving the Property and (viii) the presence or adequacy of infrastructure or other improvements on, near or concerning the Property. Ira 5,2 No Tte resentations or Warranties. Seller makes no representation or warranty, express or implied, to the Buyer relating to the condition of the Property or suitability of the Property for any intended use or development by the Buyer. 5.3 Acceptance of Property "AS48." Buyer shall accept all conditions of the Property, without any liability of the Seller whatsoever, in the Property's AS -IS., WHERE -IS, SUBJECT TO ALL FAULTS CONDITION, WITHOUT WARRANTY AS TO QUALITY, CHARACTER, PERFORMANCE OR CONDITION, and with full knowledge of the physical condition of the Property, the nature of the Seller's interest in and use of the. Property, all laws applicable to the Property and of any and all conditions, restrictions, encumbrances and all matters of record relating to the Property. the .Property is being acquired by Buyer as a result of its own knowledge of the Property and riot as a result of any representation(s) made by the Seller or any employee, official, consultant or agent of the Seller relating to the condition of the Property, unless such statement or representation is expressly and specifically set forth in this Agreement. Seller hereby expressly and specifically disclaims any express or implied warranties regarding the Property, unless expressly and specifically set forth in this Agreement,. 6. Warranties. 6.1 Seller's Warranties. In consideration of Buyer entering into this Agreement and as an inducement to Buyer to purchase the Property from Seller, Seller makes the following representations and warranties which shall be true and correct as of the Effective Date and the Close of Escrow and each of which is :material and. being relied upon by Buyer. For all purposes of this Agreement, including. Seller's representations and warranties contained herein, the phrase "to the best of Seller's knowledge" shall mean the current actual knowledge of Seller. If prior to the Close of Escrow, Buyer has actual Knowledge, that any ;representation or warranty of Seller is untrue, inaccurate or incomplete in any material respect (and without waiving any of Buyer's rights or remedies hereunder at law or in equity with: respect to any material untruth, incompleteness or inaccuracy existing on, the Effective Date, that was known of or should have been known of by Seller), Buyer may give Seller written notice of same and Seller shall have seven (7) days from the date of receipt of Buyer's notice (and the Closing Date shall be extended to permit the running of such seven (7) day period) ("Seller Cure Period") to correct any factor or circumstance that makes such representation or warranty materially untrue or inaccurate to Buyer's reasonable satisfaction. If Seller fails to make such correction within the Seller Cure Period, then Buyer by written notice to Seller within three (3) days after the expiration of the Seller Cure Period (and the Closing Date shall be extended to permit the running of auch three (3) day period) shall be entitled (a) to terminate this Agreement, or (b) continue this .Agreement in full force and effect with no change in terms, but without waiving any legal, equitable or other remedies it may have against Seller. The foregoing is not a waiver or release of any of Buyer's rights or remedies for any material untruth, incompleteness or inaccuracy in a representation or warranty of Seller of which Buyer obtains knowledge after the Close of Escrow. 6.1. l Authorization. Seller has full power and authority to enter into this Agreement and to perform all its obligations hereunder, and has taken all action required by law, its governing instruments or otherwise to authorize the execution, delivery and performance of this Agreement by Seller. Each individual or entity who has executed this Agreement on behalf of Seller has the right, power, legal capacity and authority to execute, deliver and perforrrr this Agreement on behalf of Seller. 12 6.1.2 Conflicting Agreements, Neither the execution or delivery of this Agreement, nor the consum nation of the transaction contemplated herein, will conflict with, or result in a breach of, any contract, license or undertaking to which Seller is a party or by which Seller or any of the Property is bound, or constitute a default thereunder. In addition, with respect to any agreements that affect the Property, neither Seller nor any other party or parties to such agreements are in default thereunder nor are there any facts that currently exist which with the passage of time would result in any such default. To the best of Seller's knowledge, the Property is not subject to any prescriptive easements, claims of adverse possession, encroachments or similar rights or claims, The Property is not subject to any leases, options or other similar rights or claims in favor of any third parties. The Property is not subject to a Williamson Act contract or any similar agricultural agreement. 6.1.3 Proceedings, To the best of Seller's knowledge, no legal or administrative proceeding is pending or threatened against Seller or the Property nor are there any other facts or circumstances which would adversely affect (i) ,Seller's right to convey title to the Property to Buyer as contemplated in this Agreement, or (ii) Buyer's ability to own, develop and/or :market the Property in the manner disclosed by Buyer to Seller. To the best of Seller's knowledge, there are no condemnation or eminent domain proceedings pending or threatened with respect to the Property. 6,1.4 Binding, Agreement. This Agreement constitutes a legal, valid and binding obligation. of Seller enforceable against. Seller in accordance with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the rights of contracting parties generally. 6, l,5 Violations of Law, On the Effective Date and Close of Escrow neither this Agreement nor the Property shall be in violation of any law, ordinance, rule regulation, or administrative or judicial order. 6.1.6 Hazardous Materials. Seller has not stored or released, caused to be stored or released or approved the storage or release on. the Property, of any "hazardous materials" (as defined below). To the best of Seller's knowledge, (a) no prior owner ofthe Property has stored or caused to be ,stored any hazardous materials on the Property; (b) no hazardous materials now exist in, on or under the Property in violation of any "environmental law" (as defined below); (e) there are no underground tanks on the Property nor have there ever been any underground storage tanks on the Property; (d) no use of or operations on the Property have occurred which use or operation has violated any applicable environmental law; and (e) the Property is not on. any "Surperfund" list under any applicable environmental law. As used herein, "environmental law" shall mean any and all present federal, state or local laws (whether cortunon law, statute, rule, regulation or otherwise), permits, orders and any other requirements of Governmental Authorities relating to the environment u to ally "hazardous materials" (as defined below) (including without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. §§ 9601 et seq.) as amended from time to time and the applicable provisions of the California Health and Safety Code and California Water Code). As used herein, "hazardous materials" shall mean any (a) chemical, compound, material, mixture or substance that is now defined or listed in, or otherwise classified pursuant to any environmental law as a "hazardous substance," "hazardous material," "hazardous waste," "extremely hazardous waste," "infectious waste," "toxic waste," "toxic pollutant" or any other formulation intended to define, list or classify substances by reason of deleterious properties or effect and (b) petroleum, petroleum by. products, natural gas, natural gas liquids, liquefied natural gas, synthetic gas usable :For fuel (or mixtures of natural gas in such synthetic gas), ash, municipal solid waste steam, drilling fluids, produced waters and other wastes associated with the exploration, development and production of crude oil, natural gas or geothermal resources, 6.1.7 Na Ass med Obligations. There are no obligations or responsibilities of Seller with respect to the property or otherwise of any kind that are assumed by Buyer, 6.1.8 l pdangered S ecics. To the best of Seller's knowledge, (a) there are no endangered or threatened species of animals, plaits or insects on the Property, and (b) there are no environmental or biological characteristics of the Property or adjacent property, which under existing law will adversely affect Buyer's ability to own, develop and/or market the Property or the coat thereof 6.1.9 Own. rship of Pranerty. Seller is the sole and. only .party that owns or holds any interest in the Property. 6.1.10 Property Documents. To the best of Seller's knowledge, the Property Documents and all other documents and information provided by Seller or its agents or consultants to Buyer are complete, true and accurate and do not omit any material fact, and there are no other documents, materials, studies, surveys or other information in the possession or control of Seller that would have a material and adverse effect on Buyer's ability to own., develop and/or market the Property. 6.1.11 Other .A.gxeeinents. Except as set forth in the Properly Documents and this Agreement, Seller has not made any commitment or representation to or entered into any agreement of any kind with any government authority, or any adjoining or surrounding property owner, group or other third party, which would in any way be binding On Buyer or all or any portion of the Property or would interfere in any way with Buyer's ability to own, develop, improve and/or market the Property, and will not make any such representations or warranties or enter into any such agreements which would -10- affect the Property or any portion thereof prior to the Close of Escrow, without Buyer's written consent. 6.1.12 Access. There is full and unobstructed direct access to the Property from public streets, highways or roads that are adjacent to the Property. 6.1.13 Baia m tcy. No "Bankruptcy Evejw' (as defined below) has occurred with respect to Seller nor any member or manager of Seller. There is not pending or threatened any case, proceeding or other action seeking reorganization, arrangement, adjustment, liquidation, dissolution or re - composition of Seller or any member or manager of Seller or seeking appointment of a receiver, trustee, custodian or similar official for Seller or any member or manager of Seller for all or any substantial part of its or their assets. "Bankruptcy Event" means (a) the making by a person of general assignment for the benefit of such person's creditors, (b) the admission in writing by a person of its inability to pay its or their debts as they mature, (e) an attachment, execution or other judicial seizure of any property interest which remains in effect, or (d) the failure to have taken or submission to any action indicating a general inability by a parson to meet its financial obligations as they accrue. 6A A Material Qgg e. Seller shall promptly notify Buyer if Seller obtains information that would make any of the representations or warranties contained herein materially inaccurate or misleading. 6.2 .Buyer's Warranties. In consideration of Seller entering into this Agreement and as an inducement to Seller to sell the Property to Buyer, Buyer makes the following representations and warranties which shall be true and correct as of the Effective Date and the Close of Escrow and each of which is material and being relied upon by Seller, For all purposes of this Agreement, including Buyer's representations and warranties contained herein, time phrase "to the best of Buyer's knowledge" shall mean the current actual knowledge of Buyer. If prior to the Close of Escrow Seller determines that any representation or warranty of Buyer is untrue, inaccurate or incomplete in any material respect (and without waiving any of Seller's rights or remedies hereunder at law or in equity with respect to any material untruth, incompleteness or inaccuracy existing on the Effective Date, that was .known of or should have been known of by Buyer), Seller may give Buyer written notice of same and Buyer shall have seven (7) days .from the date of receipt of Seller's notice (and the Closing Date shall be extended to permit the running of such seven (7) day period) ("Buyer Cure Period") to correct any fact or circumstance that makes such. representation or warranty materially untrue or inaccurate to Seller's reasonable satisfaction. If Buyer fails to make such correction within the Buyer Cure Period, then Seller by written notice to Buyer within three (3) days after time expiration of the Buyer Cure period (and the Closing Date shall be extended to permit the running of such three (3) day period) shall be entitled (a) to terminate this Agreement or (b) continue this Agreement in full force and effect with no change in terms, but without waiving any legal, equitable or other remedies it may have against Buyer. The foregoing is not a waiver or release of any of Seller's rights or remedies for any material untruth, incompleteness or inaccuracy in a representation or warranty of Buyer of which Seller obtains knowledge after the. Close of Escrow. -11- 6.2.1 Authorization. Buyer is a limited liability company duly formed in the State of California and validly existing under the laws of the State of California and is qualified to transact business in the State of California, Buyer has full power and authority to enter into this Agreement and to perform all of its obligations hereunder, and has taken all action required by law, its governing instruments or otherwise to authorize the execution, delivery and performance of this Agreement. Each individual who has executed this Agreement on behalf of Buyer has the right, power, legal capacity and authority to execute, deliver and perform this .Agreement on behalf of Buyer. 6.12 Bindin A reernent, This Agreement constitutes a legal, valid and binding obligation of Buyer enforceable against .Buyer in accordance with its terms, except to the extent that such. enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or hiniting the rights of contracting parties generally. 6,2.3 Conlignce with Law. Buyer is required to carry out the development of the Project in conformity with all applicable laws, including all applicable building, planning and zoning laws, including any historic property regulations and environmental laws. 6.2A Repurchase Right. Buyer hereby represents and guarantees that, subject to Permitted. Delay (as defined herein), Buyer shall open for business to the public on the Property as a drive-thru restaurant or fuel station with integrated electric vehicle charging station (the "Opening Covenant") on or before the date that is thirty (30) months following Close of Escrow (tire "Opening Deadline"). If Buyer has not satisfied the Opening Covenant on or before the Opening Deadline, Seller may, at its sole and exclusive remedy, elect to repurchase die Property :from Buyer (the "Repurchase Right") pursuant.to the terms and conditions below. Seller shall provide written notice to Buyer of its exercise (the "exercise Notice") within sixty (60) days following the Opening Deadline ("the Exercise Window"). The Exercise Notice shall propose a date for closing that is no less than forty-five (45) days, nor more than sixty (60) days, following the date of the Exercise Notice, with such closing then occurring on a date mutually convenient to both the Seller and Buyer (the "Repurchase Closing Date"). If (a) Seller fails to deliver its Exercise Notice to Buyer within the Exercise Window, or (b) Buyer satisfies the Opening Covenant after receipt of the Exercise Notice but prior to the Repurchase Closing Date, their. the Repurchase Right shall automatically terminate and be of no further force and, effect. The repurchase deed shall be identical in form to the deed by which title to the Property was conveyed by Seller to Buyer and shall be. free and clear of any and all .mortgage liens or other evidence of indebtedness. The purchase price to be paid to Buyer by Seller for the Property shall be equal to eighty percent (80%) of the Purchase Price paid by Buyer to Seller under this Agreement, Seller's exercise of the Repurchase Right shall be Seller's sole and exclusive remedy for Buyer's failure to satisfy the Opening Covenant prior to the Opening Deadline. Notwithstanding anything to the contrary set forth herein, if Seller -12- elects to exercise its Repurchase Right, in no event may any consideration be paid. to Buyer be in a form other than cash, As used herein, the term "Permitted Delay" shall refer to any delay resulting from acts of Gad; fire; earthquake; Flood; explosion; action of the elements; war; invasion; insurrection; riot; snob violence; sabotage; malicious mischief, inability (notwithstanding good faith and diligent efforts) to procure (or general shortage of) labor, equipment, facilities, :Materials, or supplies in the open market; failure of transportation; strifes (other than any strike resulting from acts of Buyer); lockouts; action of labor unions; condemnation laws; requisition or order ofgovermment or civil or ;military or naval authorities; or any other similar cause to those stated above, not within. a Buyer's reasonable control. Notwithstanding anything to the contrary contained herein, in no event shall financial inability constitute Permitted Delay. 625 Apanovals. Buyer shall obtain all final approvals, including, without limitation, the building permit and all related municipal approvals (the "Approvals") necessary for developing the Property in substantial conformance with the site plan that was included with the Buyer's proposal for the Property submitted in response to City's Request for Proposal No, 20-159 (a copy of which is attached as Exhibit "C", the "Intended Improvements") appropriate for the operation of a restaurant (the "Intended. Use"), such that immediately following the acquisition of the Approvals, Buyer shall be entitled to commence construction of the Intended Improvements, Nothing in this agreement shall constitute Approvals by Seller, and Buyer acknowledges that it must comply with all of Seller's development standard's, guidelines and procedures that are applicable to the Intended Improvements and the Intended Use. 6.3 N r:al Ha and Zone Disclosure. No later than. seven (7) business days prior to the Property Approval hate, the Seller will, at its sole cost and expense, provide Buyer with a Natural Hazard Zone Disclosure required by applicable law. 6.4 Buyer and Seller Cooperation. Buyer shall submit plans for the Project to Seller, and. Seller, in its capacity as the City within which the Project is located, will make the determination as to the required entitlements based upon. Buyer's proposed plans. Buyer may then process and obtain the Project Entitlements through Seller in its capacity as the City within which the Project Entitlements is located, Nothing in this Agreement shall be deemed to be a prejudgment or commitment with respect to exercise of governmental discretion with regard to such items, nor a guarantee that such approvals or permits will be granted at all or within any particular time or with or without any particular conditions. 7. Dest ctio Condemnation of Property.. Other Notices, In the event that all or any portion of the property is damaged or destroyed by any casualty under the provisions of applicable law after the Effective Date but prior to the date of Closing, Seller shall give Buyer immediate written notice of the same. -13- 8. Indemnification. 8.1 Obligations. Seller shall Indemnify Buyer and Buyer shall Indemnify Seller against any wrongful intentional act or negligence of the Indemnitor, Buyer shall also Indemnify Seller against any and all of the following: (a) any damage to the Property caused by the Investigations of the Property by Buyer; and (b) any accident, injury or damage whatsoever causedto any person in or on the Property by Buyer prior to the Closing. Notwithstanding anything to the contrary in this Agreement, no Indemnitor shall be required to Indemnify any Indemnitee to the extent of the Indemnitee's wrongful intentional acts or negligence. 8.2 L imitation on LiabilitXof the Seller. Following the Close of Escrow, the Buyer is and shall be responsible for operation of the Property and the Project, and the Seller shall not be liable for any injury or damage to any property (of the Buyer or any other person) or to any person occurring on or about the Property or the Project, except to the extent caused by the Seller's wrongful intentional act or negligence. 8.3 Strict Liability. The indemnification obligations of an Indemnitor shall apply regardless of whether liability without fault or strict liability is imposed or sought to be, imposed on one or more Indemnitees. 8.4 I��deWpndent of TnSLtranc'r C?lligatzonas. Buyer's indemnification obligations Linder this Agreement shall not be construed or interpreted as in any way restricting, limiting, or modifying Buyer's insurance or other obligations under this Agreement and is independent of the Buyer's insurance anti other obligations under this Agreement, Buyer's compliance with its insurance obligations and other obligations under this Agreement shall not in any way restrict, limit, or modify the Buyer's indemnification obligations under this Agreement and are independent of the Buyer's indemnification and other obligations Linder this Agreement. 8,5uryval f I demnification an T)efense abli ations. The indemnity and defense obligations under this Agreement shall survive the expiration. or earlier termination of this Agreement, until all claims against any of the Indemnitees involving any of the indemnified matters are fully, finally, absolutely and completely barred by applicable statutes of limitations. 8.6 Independent Duty to Defend. The duty to defend under this Agreement is separate and independent of the duty to Indemnify, Indemnify, The duty to defend includes claims for which an Indemnitee may be liable without fault or strictly liable. The duty to defend applies immediately upon notice of a claim, regardless of whether the issues of negligence, liability, fault, default or other obligation on the part of the Indemnitor or the Indemnitee have been determined. The duty to defend applies immediately, regardless of whether the Indemnitee has paid any amounts or incurred any detriment arising out of or relating (directly or indirectly) to any claims. It is the express intention of the Parties that an Indemnitee be entitled to obtain summary adjudication or summary judgment regarding an Indem:nitor's duty to defend the Indemnitee, at any stage ofany claim or suit, within the scope of the Indemnitor's indemnity obligations under this Agreement. 8.7 Indemnification Procedures. Wherever this Agreement requires any Indemnitor to Indemnify any Indemnitee: ..14- 8.7.1 roni t Notice. The Indemnitee shall promptly notify the Indemnitor of any claim. To the extent, and only to the extent, that the Indemnitee fails to give prompt Notice of a Claim and such failure materially prejudices the Indemnitor in providing indemnity for such claim, the Indemnitor shall be relieved of its indemnity obligations for such claim. 8.7.2 Selection of Counsel. The Indemnitor shall select counsel reasonably acceptable to the Indemnitee. Counsel to Indemnitor's insurance carrier that is providing coverage for a claim shall be deemed reasonably satisfactory, Even though the Indemnitor shall defend the action, Indemnitee may, at its option and its own expense, engage separate counsel to advise it regarding the claim and its defense. The Indeinnitee's separate counsel may attend all proceedings and weetings. The Indenanitor's counsel shall actively consult with the Indemnitee's separate counsel, The Indemnitor and its counsel shall, however, fully control the defense, except to the extent that the Indemnitee waives its .rights to indemnity and defense for such claim. 9. Miscellaneous. 9.1 Notices. Any notice, request, demand, instruction or other document required or permitted to be given or served hereunder or under any document or instrument executed pursuant hereto will be in, writing and will be delivered personally or sent by United States registered or certified mail, return receipt requested, postage prepaid or by overnight express courier, postage prepaid and addressed to the ,parties at their perspective addresses set forth below, and thesame will be effective upon the date of confirmed dispatch, if by electronic communication receipt if delivered personally or via overnight express courier or on the third Business Day after deposit if mailed. A party may change its address for receipt of notices by service of a notice to such change in accordance herewith. Buyer and Seller hereby agree that notices may be given hereunder by the parties' respective counsel and that, if any comznunication is to be given hereunder by Buyer's'or Seller's counsel, such counsel may communicate directly with all principals as required to comply with the provisions of this Section. If to Buyer: Santana Green Development LLC 714 S. Plymouth Blvd Los Angeles, CA 90005 If to Seller: City of Santa Ana 20 Civic Center Plaza M-30 Santa Ana, CA 92702 A.ttti: Clerk of the Council with a copy to: City of Santa Ana 20 Civic Center Plaza M-21 Santa Ana, CA 92702 AMA: Executive Director of Public Works -15- 9.2 No Third PUly,wBonef'ciaries, Notwithstanding any provision contained in this Agreement to the contrary, this Agreement is intended as and shall be deemed to be an agreement for the sale of assets and none of the provisions hereof shall be deemed to create any obligation or liability of any person that is not a Warty, whether under a third -patty beneficiary theory, laws relating to transferee liabilities or otherwise, buyer shall riot assume and shall not be obligated to discharge or be liable for any debts, liabilities or obligations of Seller including, but not limited to, any (a) liabilities or obligations of Seller to its creditors, shareholders, members; partners, .managers, or owners, (b) liabilities or obligations of Seller with respect to any acts, events or transactions occurring prior to, on or after the Close. of Escrow, (c) liabilities or obligations of Seller for any federal, state, county or local taxes, or (d) any contingent liabilities or obligations of Seller, whether known or unknown by Seller or Buyer. Buyer shall have no. duty whatsoever to tape any action or receive or make any payment or credit arising from or related to any. services provided or costs incurred in connection with the Property prior to the Close of Escrow, including, but not limited to, any matters relating to .cost reports, collections, audits, hearings, or legal action arising therefrom, 9.3 Further Instruments. Each Party will, whenever and as often as it shall be reasonably requested to do so by the other, cause to be executed, acknowledged or delivered any and all such further instruments and documents as may be necessary or proper, in the reasonable opinion of the requesting Marty, in order to carry out the intent and purpose of this Agreement. 9.4 Calc lotion of Time l?eriods Burin s Da Time of essence, Unless otherwise specified, in computing any period of time described herein, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is not a Business Day, in which event the period shall run until the end of the next day which is a Business Day. The last day of any period of time described herein shall 'be deemed to end. at S:00 p.m, local time in the state in which the Real Property is locatod. As used herein, the ternn "Business Day" means any day excluding Saturdays, Sundays and State and National holidays and any day the City is closed. Subject to the foregoing provisions, time is of the essence of this Agreement. 9.5 Entire Agleernent; Arriendinents. This Agreement (including the documents delivered pursuant to this Agreement), constitutes the entire agreement of the Parties pertaining to the subject matter of this Agreement and supersedes all prior agreements or letters of intent of the Parties. This Agreement may not be amended, modified, or supplemented except by a written instrument signed by an authorized representative of each of the Parties. 9.6 Survival. All covenants, agreements, representations, warranties and indeinn.ities contained in this. Agreement shall survive the execution and delivery of this Agreement and the Close of Escrow and the delivery and recordation of all documents or instruments in connection therewith, 9.7 Binding Effect; :En pLnr rnent. The covenants, agreements, representations, and warranties contained herein will be binding upon, be enforceable by and inure to the benefit of the representatives, successors., and permitted assigns of the respective parties hereto. 9.:8 A.ppiieable Law. This Agreement will be construed and interpreted under, and governed and enforced according to, the laws of the State of California applicable to contracts made and to be performed entirely therein. -16- 9.9 Yenue. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be the Superior Court of Orange County and the Parties hereby agree to and do hereby submit to the jurisdiction of such court. 9.10 Attorneys' Fees. If any Party to this Agreement shall bring any action or proceeding for any relief against the other, declaratory or otherwise, in any way arising out of or in connection this Agreement and/or the Property, the losing .Party shall pay to the prevailing Party a reasonable sum for attorneys' fees and costs (including without limitation expert witness fees) incurred in bringing or defending such action or proceeding or enforcing any judgment granted therein, all of which shall be deemed to have accrued upon the commencement of such action or proceeding and shall be paid whether or not such action or proceeding is prosecuted to anal judgment. Any judgment or order entered in such action or proceeding shall contain a specific provision providing for the recovery of attorneys' fees and costs, separate from the judgment, incurred in enforcing such judgment. The prevailing Party shall be determined by the trier of fact based upon an assessment of which Party's major arguments or positions taken in the proceedings could fairly be said to have prevailed over the other Party's major arguments or positions on major disputed issues. For the purposes of this Section, attorneys' fees shall include, without limitation, fees incurred in the following: (1) post judgment motions; (2) contempt proceedings; (3) garnishment, levy and debtor and third party examinations; (4) discovery; and (5) bankruptcy litigation. 9.11 9-m&-u_ction. The provisions of this. Agreement shall not be construed in favor of or against either Party, but shall be construed as if'both panties prepared this Agreement, 9.12 Interpretation. The paragraph and section headings in this Agreement are solely for convenience and will not be deemed to limit or otherwise affect the meaning or construction of any part of this Agreement. Any pronoun used in. this Agreement will be deemed to cover all genders. The terms "Include?" "including," and similar terms will be construed as if followed by the phrase "without being limited to." The term, "or" has, except where otherwise indicated, the inclusive meaning represented by the phrase "axed/or." The words "hereof," "herein," "hereby," "hereunder," and similar terns in this Agreement refer to this Agreement as a whole and not to any particular provision or section of this Agreement. Words in this Agreement importing the singular number will mean and include the plural number, and vice versa. 9.13 No Waiver. No waiver by a Warty of a breach of any of the terirrs, covenants, or conditions of this Agreement by the other shall be construed or held to be a. waiver of any succeeding or preceding breach of the same or any other tern, covenant or condition contained herein. No waiver of ally default by a Party shall be implied from any omission by the other Party to take any action on account of such default if such default persists or is repeated and no express waiver shall affect a default other than as specified in such waiver. The consent or approval by either Party to or of any act by the other requiring the first Party's consent or approval shall not be deemed to waive or render unnecessary the consenting Party's consent or approval to or of any subsequent similar acts by the other Party. 9,14 Severabilitv of Provisions. Wherever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement will be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. -17- 9.15 Inco oration of Exhibits. Except as intentionally omitted, all exhibits attached hereto and referred to herein are incorporated into the Agreement as though fully set forth herein. 9.16 Counterparts. This Agreement may be executed in any number of counterparts and by different Parties to this Agreement in separate counterparts, each of which when so executed and delivered will be deemed original, but all such counterparts, together, will constitute but one and the same instrument. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Agreement will become effective upon the execution and delivery of a counterpart hereof by each Party to this Agreement. A signature of a Party to this Agreement sent by facsimile, electronic mail (including a scanned portable document format copy sent by electronic mail), or other electronic transmission will have the same force and effect as delivery of an original signature of such Party. 9.17 Amendments. This Agreement may not be modified, changed, supplemented, superseded, canceled or terminated, except by written instrument signed by the Parties hereto. IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the Effective Date, ATTEST CITY OF SANTA ANA Daisy Gomez City Clerk APPROVED AS TO FORM Sonia R. Carvalho City Attorney By: Z LOI�t John M. Funk Sr. Assistant City Attorney RECOMMENDED FOR APPROVAL �-1 '- J."Scr *ti Nabil Saba Executive Director Public Works Agency S- istine 'd City Manager SANTANA GREEN DEVELOPMENT, LLC, a California limited liability company By: Title: 0ir1 As- EXHIBIT "K Liz -GAL DES . 02 PTION OF THE PROPE_RTY All right, title and interest of Seller in and to that certain real property located in the City of Santa Ana, Orange County, California, described in the following exhibit A & B. [attached behind this page] EXHIBIT "A" LIEGAL DESCRIPTI04 IN THE CITY OF MANTA ANA, COUNTY OF ORAJYGB, STATE OF CALIFORNIA LOTS 189, 184, 185 AND 186 CP TRACT MAP NO, 1192 AS PER THE MAP FILED IN FUCK $9, PAGE 17 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THBR5.rROM THAT PORTION OP LOTS 184, 186 AND 186 rM RANTm IN r B FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER � � OFFICIAL RECORDS CP SAID COUNTY. CONTAINING A TOTAL AREA OF 17,864 SQUARE PEST. SUBJECT TO EASEMENTS, RESERVATIONS, RESTRICTIONS AND ANY OTHER RIGMT`S OF RECORD, EXHIBIT "B" ATTACHED HERETO AND SY THIS RNF15RENCE MADE A PART HBRWR THIS DESCRIPTION WAS PREPARED BY ME CAR UNDER MY DIRECTION: � �CAVISO PAGE IOF1 m EXHIBIT "B" PLAT TO ACCOMPANY LEGAL. DESCRIPTION ......................... ............................................... . LOT hsa ` ° LOT ,sr ' Of 185ALY LINE L4T tag ' ' i 1.D ,01' NB9'62'10"E 75 -52 IFIE POR. OF 4S LOT 186 x IT' f, Lt POR. OF ' J L2 L[l'T 185 L3 " I 1 PuRIAC STRK41 PER WSTRUWNT HUMS— 1 I WARNER LOT 183 m Spls°52` 70' a POR. OF ` ! LOT 184 AVENUE P,ARCrL LIMITS PAL I C STREET RIW PER INST. NO, D 1 200 0 � curve N0, RA0fl1B XUA 1ai 864.$k' pf°1$ 08" 2t,9V C2 96A.9 Q3° 1 49 Rfl,62' C 1030. 00 1 0 L I NE TAt3LE NO- I BEARU 0lSfANGC rl 9 s 9 0' 4.5 V� 17.. 77' A 59 -19,461 3 t0 ®9°52 E 53.09. L4 N V 9 3 E. D L4 PAGE t OF t GRANT DEEQ r BE EXECUTED) [attached behind this page] EXHLI 1 -C- INTEN ED IMPROVEMENTS [attached behind this page] Proposes Development— Drive-Thru Site Plan Yavio rrmema...�... 1z � .. �MwfaAH�M3aegaau�}Yw�dJwua�R'M>axt .• •=:kYSR ' k 1 G i tns i k�ss� 11©�N i�� O.ul4 L�JiG od 1,800 S,F, "+ 4 l'D R xR1Y� Kikl%rt�cx M44Mrpa� stun, PROJECT SUMMARY, W. WAi3FfEFi AVIM09 � OUIl.DWO ARMI 1ANm S.P. FAFONOPRONpEp 15. LOTAREN SITE PLAN d) glop K617AI1 u�w bWl\p kC SLYYL I� r = + r MOM �61Yrra�tAwe aAvai4PlCk n�et�� � A1 J167 AiiA.C11 trga+u+mrxc MAAO Wrw»a rrsf aK+u�wmaY,w.ael*wa»r�l PARCEL C6�A EXHIBIT 2 N A n.t.s EXHIBIT 3 FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT ("First Amendment") is made and entered into this 3rd day of December 2024 ("Effective Date") by and between SANTANA GREEN DEVELOPMENT, LLC, a California limited liability company ("Buyer" or "Owner") and the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("Seller" or "City"). As used herein, Buyer and Seller may be referred to collectively as the "Parties" and each individually as a "Party." RECITALS A. The Seller and Buyer entered into that certain Purchase and Sale Agreement dated the 151h day of December 2021 ("Agreement") for the sale by the Seller to the Buyer of the City's fee simple interest in that certain real property consisting of approximately 17,415 square feet located at 2235 S. Bristol Street (APN 015-194-40) and 1211 W. Warner Street (APN 015-194- 37), Santa Ana, California, legally described in Exhibit "A" attached hereto and incorporated herein by this reference (the "Property"). B. The close of escrow occurred on July 1, 2022 ("Close of Escrow") and a grant deed was recorded transferring fee simple interest from the Seller to the Buyer, a copy of which is attached hereto as Exhibit "B" and incorporated herein by this reference ("Grant Deed"). C. The Parties now desire to amend the Agreement in connection with certain conditions and covenants that survived the Close of Escrow. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and other good and valuable condition, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Incorporation of Recitals. The Recitals set forth above are true and correct and are incorporated into this First Amendment in their entirety. 2. Repurchase Right. Section 6.2.4 of the Agreement is hereby amended by deleting the first sentence of Section 6.2.4 and substituting the following in lieu thereof: "6.2.4 Repurchase Right. Buyer hereby represents and guaranties that, subject to a Permitted Delay (as defined herein), Buyer's tenant shall open for business to the public on the Property as a drive-thru restaurant or fuel station with an integrated electric vehicle charging 1 8.1.24 CAB station (the "Opening Covenant") on or before the date that is forty-eight (48) months following the Close of Escrow (the "Opening Deadline"). 3. Consistency. Notwithstanding anything contrary contained in this Agreement, to the extent the terms and provisions of this First Amendment are inconsistent with, conflict with or are contrary to the terms and conditions of the Agreement the terms and conditions of this First Amendment shall govern and control. 4. Effect. Except as specifically amended herein, the terms, covenants and conditions of the Agreement are and shall remain in full force and effect and are binding and enforceable against Buyer and Seller. IN WITNESS WHEREOF, the Parties hereto have duly executed this First Amendment as of the date and year first written above. ATTEST Lo Jennifer L Hall City Clerk APPROVED AS TO FORM: By: onathan T. Martinez Assistant City Attorney RECOMMENDED FOR APPROVAL: Digitally signed by Nabil Saba Nabil Saba Date: 2024.11.18 By: 09:43:14-08'00' Nabil Saba Executive Director Public Works Agency 2 8.1.24 CAB CITY OF SANTA ANA By: Alvaro Nunez City Manager SANTANA GREEN DEVELOPMENT, LLC, a California limited liability company By:IY161ZMZ, ru Print Name: Mehrdad Houriani Title: Manager EXHIBIT A LEGAL DESCRIPTION Exhibit "A" Legal Description ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: LOTS 183, 184, 185 AND 186 OF TRACT MAP NO. 1192, AS PER MAP FILED BOOK 39, PAGE 17 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 184, 185 AND 186 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER 2019000448318, OFFICIAL RECORDS OF SAID COUNTY, APN: 015-194-43, (old 015-194-37 & 40) legal rev. (010698) EXHIBIT "B" PLAT TO ACCOMPANY LEGAL DESCRIPTION .......... I ........ .................. .................... ............ LOT'182 ft$p-}Ala.LUT 187 NO Ti1ERLY,LINE LOT 186 75' N69*52'10'E r. I i CD (A cr- I. - co v PORUC STREET PER fNSTRUMENI HUMP- WARNER AVENUE PARCF-L LIMITS PAL IC STREET R/W PER I NST. NO, -Z 12 00 2 L 4/ 6 3 18 CURVE TABLE mb,- R DiUS DELTA L E - N07H ,62 —56 —cr 1030.66" 3. 65T LIME TABLE BE — 5 AME +39.4'6' L 53. OF LA PAGE 7 OF I EXHIBIT B GRANT DEED Recording Requested By: Commonwealth Land Title Company When recorded, please mail this Instrument to: Clerk of the Council City of Santa Ana 20 Civic Center Plaza, M30 Santa Ana, California 92701 Free recording requested by The City of Santa Ana per Govemment Code Section 6103, 27383. USE Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder 16-00 *$ R 0 0 1 3 8 2 7 2 5 5$ 20220002352731:42 pm 07/01/22 340 NC-5 G02 411 495.00 495.00 0.00 0.00 9.00 0.00 0.000.000.00 0.00 SPACE ABOVE THIS LINE FOR RECORDER'S TARES APPROVED AS TO APPROVEDBY I DESCRIPTION DISCIU 11N AT. RV MAP PARCEL FORM BY ATTY. DIRCPOR WRITTEN BY CIIECKTD O.K. NUMBER NUMBER NUMBER 015494-37 & 40 1 1 __ DEED NUMBER 9185203 2235 S. BRISTOL STREET & 1211 W. WARNER AVENUE 8738 I HEREBY DECLARE THE DOCUMENTARY TRANSFER TAX GRANT DEED IS $990.00 /Computed on full value of property conveyed; or, ❑ Computed on full value less liens and encumbrances remaining at the time of sale. / City of Santa Ana OR ❑ Unincorporated Area FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF SANTA ANA, a Charter City and Municipal Corporation duly organized under the Constitution and laws of the State of California hereby GRANT(s) to: Santana Green Development, LLC, the real property in the City of Santa Ana, County of Orange, State of California, described as follows: See Exhibit "A" attached hereto and by this reference made a part hereof, and as shown on Exhibit "B" attached hereto reference only. Dated: 411-!/?2 By: Knsti a Ridge City Manager, City of Santa Ana Attested by: I u" i Dated: By: Daisy Gomez City Clerk, City of S nta Ana ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange ) On January 14, 2022 before me Yesenia Cruz, Notary Public (insert name and title of the officer) personally apgAared Kristine Rid a who proved to me on the basis of satisfactory evidence to be the person�4whose name Is /apsubscribed to the within instrument and acknowledged to me that �he/thp executed he same in /her t authorized capacity( and that by der/them signatureJzf on the instrument the personr the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. *MY YESENIACRUZ Notary Public - California Orange County Commission k 224334L Comm. Expi rres May 21, 2p22 Seal) Exhibit "A" Legal Description ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: LOTS 183, 184, 185 AND 186 OF TRACT MAP NO. 1192, AS PER MAP FILED BOOK 39, PAGE 17 OF MISCELLANEOUS MAPS, OFFICIAL RECORDS OF SAID COUNTY, EXCEPTING THEREFROM THAT PORTION OF LOTS 184, 185 AND 186 GRANTED IN FEE FOR PUBLIC STREET PURPOSES RECORDED AS INSTRUMENT NUMBER 2019000448318, OFFICIAL RECORDS OF SAID COUNTY. APN: 015-194-43, (old 015-194-37 & 40) legal rev. (010698) Ld Ld _J 0 (fi co m EXHIBIT "B" PLAT TO ACCOMPANY l€GAL, DESCRIPTION ......................................................., ........., , �� i Ror Fez COY 1$T f NORTHERLY-,185LINE 18b {� LOT , 1 i 1D 1' N89'62'10"E 75 89'52 1O v C3 b POR. OF w LOT 183 LOT 186 • I 589'92'iQ^W � L t ,p POR. OF v L2 LOT 185 N L3 0 W371 N091ftltgog( I PUB,L,IC�STHEtY PER erKSTRUUENT HUM9ER I I WARNER AVENUE PARCEL LIMITS f POR. OF LOT 184 PURL I G STREET R/W PER I NST. NO, 7.. a l `i on b � � � 3 I B CLtRVE TABLE N0+ R Dl DELTA LENO�H C1 96Q.8A' 01•1 m 21+.93 C2 964.8 —3' 1 55 55,62 C 1030.. 00 0 ssr LINE TABLE BEARINQ DISTANCE 1, S 1-2. 27 e07 8 0 E 53+Q9. A 8 9 3 E. 0+ L4 I PAOE 1 Of 1 INDt�MA�IfUIREMENTS. 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