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HomeMy WebLinkAboutContracts & Agreements_103-2002_CCv0001.pdf RESOLUTION NO. 6050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING A DEPOSIT AND REIMBURSEMENT AGREEMENT WITH BIXBY LAND COMPANY AND MAKING CERTAIN APPOINTMENTS WHEREAS, the City Council (the "City Council") of the City of Redlands (the "City") has received from Bixby Land Company (the "Owner") a request to institute proceedings for the establishment of a community facilities district (the"District"); WHEREAS, under the Mello-Roos Community Facilities Act of 1982 (the "Act"), the City Council is authorized to establish the District; WHEREAS, the City intends to proceed with the formation of the District, provided that the Owner advance certain funds to the City to pay for costs incurred in connection with the District; and WHEREAS, the City must appoint a special tax consultant and an appraiser in connection with the formation of the District; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS DOES RESOLVE,DETERMINE AND ORDER AS FOLLOWS: Section 1. The foregoing recitals are accurate. Section 2. The officers and employees of the City are authorized on behalf of the City to incur certain expenses in connection with the formation of the District; provided that such expenses are paid for from amount deposited by the Owner pursuant to a Deposit and Reimbursement Agreement, dated as of July 2, 2002 (the "Deposit Agreement"), by and between the City and the Owner. The Deposit Agreement, in substantially the form submitted to this meeting, be and the same is hereby approved. The Mayor of the City, and such other members of the City Council as the Mayor may designate, the City Manager of the City and the Finance Director of the City, and such other officers of the City as the City Manager --Pay designate, (the "Authorized Officers") are, and each of them is, hereby authorized and directed, for and in the name of the City, to execute and deliver the Deposit Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Deposit Agreement by such Authorized Officer. Section 3. David Taussig & Associates, Inc is appointed as the Special Tax Consultant for the District and Bruce W. Huff & Associates, Inc. is appointed as the Appraiser for the District. The Mayor of the City is authorized to execute agreements with such firms in substantially the respective forms presented to this City Council. DOCSLAI:421087,1 42149-4 WWB BRUCE W. HULL & ASSOCIATES, INC. REAL ESTATE APPRAISERS &CONSULTANTS June 25, 2002 City of Redlands 35 Cajon Street Redlands, California 92373 Attention: Ms. Bonnie Johnson Finance Director Reference: APPRAISAUCONSULTATION AGREEMENT Property/Location: Proposed Community Facilities District No. 2002-1 "Redlands Business Center" Redlands, California At your request, Bruce W. Hull &Associates, Inc. ("APPRAISER") hereby submits to the City of Redlands("CLIENT")this proposal for an appraisal of the above referenced property. It is our understanding that the appraisal is to be used for a potential bond issue. APPRAISER is prepared to undertake this assignment and provide CLIENT with Two (2)copies of the completed appraisal report, within an estimated time period consistent with the sale of the bonds subject to APPRAISER'S receipt of CLIENT'S signed authorization and/or submission of all requested data, whichever is later. The time period is this best estimate of the APPRAISER and is not a guarantee, although the APPRAISER agrees to use his best efforts to complete the assignment within the given time period. CLIENT agrees to pay APPRAISER, as fee for this report Twenty-Five Thousand Dollars ($25,000); with the full balance due upon delivery of the completed report. Report revisions or amendments, other than those required due to APPRAISER'S error, shall be prepared at an hourly rate of $125.00. Technical studies, as are jointly determined to be necessary, shall by paid by CLIENT. Any additional copies of the completed report, other than the_two (2) copies currently agreed upon, shall be made available at an additional cost to the CLIENT of$100.00 per copy. 1056 E.Meta Street,Suite 202,Ventura,California 93001 - (805)641-3275 - Facsimile(805)641-3278 115 E.Second Street,suite 100,Tustin,California 92780-(949)581-2194-Facsimile(949)581-2198 APPRAISAUCONSULTATION AGREEMENT Ms. Bonnie Johnson City of Redlands June 25, 2002 Page Two In the event that CLIENT desires to cancel this authorization, written notice thereof shall be delivered to APPRAISER, and it is agreed at that the APPRAISER shall receive compensation from CLIENT for all services rendered at the rate of$125.00 per hour for the time actually spent prior to receipt of such written cancellation notice, plus all costs advanced in connection with the appraisal. It is agreed that the fee charged for services performed by the APPRAISER is guaranteed by the CLIENT. All payments due the APPRAISER, under this agreement, shall bear interest at the published prime lending rate from Wells Fargo Bank, commencing sixty (60) days after such payments are due, but not in excess of the maximum rate permitted under California law. In the event that any payment is not paid when due, CLIENT shall pay all expenses of collection, including, but not limited to, court costs and attorney's fees. It is agreed that the APPRAISER is not a necessary party in any inquiry or judicial proceeding, unless agreed upon this Agreement. He will not be called upon for any litigation or other proceeding arising out of his duties in this matter. If he is compelled to incur court costs, attorney's fees, or other out-of-pocket expenses in connection with court proceedings, such costs or expenses, together with APPRAISER'S hourly rate of $200.00 per hour, applicable for his professional services for study, preparation, testimony or travel, will be paid by the party (or parties) who acts to bring any suit requiring a judicial proceeding. The report will be prepared in a Summary Appraisal Report-Complete Appraisal which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP) effective January 1, 2001 for a Summary Appraisal Report. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the APPRAISER'S opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the APPRAISER'S file. The depth of discussion contained in this report is specific to the needs of the CLIENT. The APPRAISER is not responsible for unauthorized uses of this report. The report will be consistent with the format and limiting conditions as detailed on the following pages. APPRAISAL/CONSULTATION AGREEMENT Ms. Bonnie Johnson City of Redlands June 25, 2002 Page Three A. The appraisal will provide an estimate of current market value, which is defined as follows: "The most probable price in terms of money which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and each acting in what he or she considers his/her best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in cash or its equivalent; 5. Financing, if any, is on terms generally available in the community as of the specified date and is typical for the property type in its locale; and 6. The price represents a normal consideration for the property sold, unaffected by special financing amounts and/or terms, services, fees, costs or credits incurred in the transaction." Real Estate Terminology, AIREA, SREA, edited by Byrl N. Boyce, Copyright 1981, Publisher - Ballinger, Page 160. B. The value estimate will reflect the fee simple interest of the subject property, subject to the special tax lien of Community Facilities District No. 2002-1 as of the date of value. APPRAISAUCONSULTATION AGREEMENT Ms. Bonnie Johnson City of Redlands June 25, 2002 Page Four C. The value estimate will reflect actual conditions of the property taking into consideration the improvements and/or benefits of Community Facilities District No. 2002-1. D. The following limiting conditions will be included in the appraisal report: 1. No responsibility is assumed for matters legal in nature; 2. No opinion as to title is herewith rendered, and the property is appraised as though free and clear of all encumbrances and the title marketable; 3. The factual data utilized in our report will be obtained from sources deemed to be reliable; however, no guarantee can be made as to their accuracy; 4. No survey of the boundaries of the property will be prepared. All legal descriptions, areas, and dimensions furnished the APPRAISER are assumed to be correct; 5. The distribution of the total valuation between land and improvements (if any), applies only in the matter of utilization stated in this report. Our reported market value is for the total property as appraised, and no attempt has been made to evaluate any fractional interest, should they exist; 6. Neither all nor any part of the report shall be conveyed to any person or entity,other than the APPRAISER'S client,through advertising, solicitation materials, public relations, news, sales, or other media,without the written consent and approval of the author, particularly as to valuation conclu- sions, the identity of the APPRAISER or firm with which the APPRAISER is connected, or any reference to the Appraisal Institute or MAI. Further, the APPRAISER or firm assumes no obligation, liability, or accountability to any third party. If the report is placed in the hands of anyone but the CLIENT, CLIENT shall make such party aware of all the assumptions and limiting conditions of the assignment; APPRAISAUCONSULTATION AGREEMENT Ms. Bonnie Johnson City of Redlands June 25, 2002 Page Five 7. The submission of this report does not obligate us to give testimony, or to attend any court or governmental or other agency hearing, without prior arrangements having been made for such additional employment; 8. It is agreed that the APPRAISER will be absolved of all personal liability of any type or nature, in connection with this matter; and 9. If all data requested of the CLIENT is not provided, we shall include an additional limiting condition requiring our subsequent review of the items lacking. E. In order for APPRAISER to proceed with the appraisal assignment, it is required that CLIENT provide APPRAISER with the following items: 1. Legal Description and recent Title or Preliminary Title Report; and 2. Name and telephone number of contact for property inspection. A number of items are to be requested from the master developer. Instead of noting them here, a copy of the letter requesting this information will be forwarded to you. This proposal, or acceptance of this proposal, is not contingent upon, or related to, any anticipated value conclusions. APPRAISER'S fee will have been earned in full upon delivery of the completed report. This APPRAISAUCONSULTATION AGREEMENT represents the entire Agreement between CLIENT and APPRAISER, and supersedes all prior negotiations or agree- ments, either written or oral. It shall be binding on the heirs, successors, and assigns of CLIENT and APPRAISER. This APPRAISAUCONSULTATION AGREEMENT shall be governed by the laws of the State of California, In the event any provision of this Agreement shall be determined to be void or unenforceable by any court of competent jurisdiction, such determination shall not affect any other provision of this Agreement and all such other provisions shall remain in full force and effect. APPRAISAL/CONSULTATION AGREEMENT Ms. Bonnie Johnson City of Redlands June 25, 2002 Page Six We thank you for the opportunity of presenting this proposal for your consideration. The terms and conditions of this Agreement shall remain valid for a 10-day period. If the proposal meets with your approval, please execute and return a signed original, together with the requested data. The assignment will be commenced upon receipt in or office of the complete package. Please feel free to contact our office if you have any questions. Respectfully submitted, BRUCE W. HU L & ASSOCIATES, INC. N Bruce W. Hull, MAI BWH:dh Attachment cc: Ms. Sara Oberlies Stone & Youngberg LLC APPRAISAUCONSULTATION AGREEMENT Ms. Bonnie Johnson City of Redlands June 25, 2002 Page Seven APPRAISALICONSULTATION AGREEMENT AUTHORIZATION I hereby agree to the terms and conditions of the APPRAISAL/CONSULTATION AGREEMENT, detailed on the preceding pages, as submitted by Bruce W. Hull, MAI. -7 July 2, 2002 Signature Date Mayor ATTEST: Title CITY OF REDLANDS Lori e Poyzer, Clerk Company Name P. 0. Box 3005 35 Cajon Street Street Address Redlands, CA 92373 City, State & Zip 909-798-7541 (office) 909-335-4735 (fax) Telephone and Facsimile Numbers