HomeMy WebLinkAboutContracts & Agreements_48-2019 MODEL HOME AGREEMENT
Tentative Tract No. 20126
This Agreement is made and entered into this 19th day of March 2019 by KB Home
Coastal, Inc, whose business address is 36310 Inland Valley Drive, Wildomar, CA 92595,
("Builder") and the City of Redlands, a municipal corporation ("City").
RECITALS
WHEREAS, Builder is the developer of certain real property for which Tentative Tract No.
20126 has been approved and which is more particularly shown in Exhibit "A," attached hereto
and incorporated herein by this reference ("Property"); and
WHEREAS, Builder desires to construct three (3) model homes on the Property, on Lot
No. 99, Lot No. 100, and Lot No. 101, and an associated parking lot on Lot No. 98, prior to the
recordation of a final map for Tentative Tract No. 20126; and
WHEREAS, Builder agrees to provide security to assure Builder's perfonnance under this
Agreement, in the form of a surety bond from an approved insurance company ("Surety") and in a
form acceptable to City;
NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, the City of Redlands and KB Home Coastal, Inc. hereby agree as follows:
AGREEMENT
Section 1. Model Homes. Builder may construct three (3) model homes on the Property
which shall be used solely for the purpose of display and sale of similar dwelling units to be
constructed within Tentative Tract No. 20126. Such model homes shall not be sold or occupied
for residential purposes until a final map is recorded creating a separate legal lot for each model
home.
Section 2. Builder's Obligations. Builder shall convert the sales office of the model
homes into a residential garage, prior to, and as a condition of, City's issuance of a certificate of
occupancy for the model homes on Lots No. 99, 100,and 101 of the Property. Builder shall further
demolish and remove the associated parking lot prior to, and as a condition of, City's issuance of
a building permit for a single family residence on Lot No. 98 of the Property.
Section 3. Security and SurpV Consent. The amount of security for the performance of
this Agreement is Sixty Thousand Dollars ($60,000) in the form of a corporate surety bond
approved by City. It is understood that by providing security for this Agreement, Surety consents
in advance to any written extension of time as may be given by City to Builder and waives notices
of such extensions. The making of an application for an extension of time by Builder shall, upon
granting of the application by City, constitute a waiver by Builder and by Surety of all defenses of
laches, estoppel, statutes of limitation, and other limitations of action in any action or proceeding
filed by City within the period of four years immediately following the date to which the time of
perfonnance was extended.
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Section 4. City Remedies.
A. If Builder and Surety fail to demolish and remove the model homes as required by
this Agreement, or fail to comply with any other obligation contained herein, they shall be jointly
and severally liable to City for any administrative expenses, costs and attorney's fees incurred in
obtaining compliance with this Agreement and such expenses, costs and fees incurred in
processing any action for damages or for any other remedies permitted by law.
B. Upon default of any obligation hereunder, and at any time after any such default, City
may make written demand upon Builder or Surety, or both, to immediately remedy the default or
complete the demolition of the model home and removal work. If the remedial activities or
completion of work are not commenced within seven days after such demand is made and are not
thereafter diligently prosecuted to completion and fully completed within thirty days after the
making of such demand (or such other time as may be contained in the demand), City may then
complete or arrange for completion of all remaining work or conduct such remedial activity as in
the sole judgement of City may be required, all at the full expense and obligation of Builder and
Surety and all without the necessity of giving any further notice to Builder or Surety before City
performs or arranges for the performance of any remaining work and whether or not Builder or
Surety have done any of the required work at the time. In the event City elects to complete or
arrange for completion of the remaining demolition and removal work, the Development Services
Director, upon such election, may require all work by Builder or Surety to cease in order to permit
adequate coordination by City for completing the remaining work.
C. For the purpose of City or its contractor demolishing and removing the model homes
and other improvements, Builder hereby grants an irrevocable right of entry to City, its officers,
employees, agents and contractors to enter upon the Property and to demolish and remove the
model homes and access paving.
Section S. Compliance with law. It is agreed that all work done pursuant to this
Agreement shall conform to the rules and regulations of City at the time work is actually
done. Demolition permits shall be obtained prior to the demolition of any model home.
Section 6. Attorneys' Fees. In the event any action is commenced to enforce or interpret
the terms or conditions of this Agreement the prevailing party shall, in addition to any costs and
other relief, be entitled to the recovery of its reasonable attorneys' fees.
Section 7. Entire Agreement/Amendment. This Agreement represents the entire
agreement of the parties hereto with respect to its subject matter. Any amendment to this agreement
shall be in writing and executed by the parties.
Section S. Governing Law. This Agreement shall be governed by and constructed in
accordance with the laws of the State of California.
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IN WITNESS WHEREOF Builder and City have caused this Agreement to be executed
the day and year first written above.
CITY OFREDLANDS KB HOME COASTAL, INC
................ .............�,j
(—,-. ........................................................ or c .................... ..............................................
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Paul W, Foster, May ott Hansen
Vice President
ATTEST:
.................=._2
Ye–q— e Donaldson, City"Clerk ----
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Bond No:30060625
Premium:$360.00
FAITHFUL PERFORMANCE BOND
KNOW ALL PEOPLE BY THESE PRESENTS that we, KB Home Coastal, Inc. whose
place of business is 36310 Inland Valley Drive, Wildomar, CA 92595, as Principal, and the The
Continental Insurance Company, a corporation organized and doing business under and by virtue
of the laws of the State of Pennsylvania, and duly licensed by the State of California for the
purpose of making, guaranteeing or becoming sole surety upon bonds of undertakings required
or authorized by the laws of the State of California, as Surety, are held and firmly bound unto the
City of Redlands, California, in the just and full sum of Sixty Thousand and 00/100 Dollars
($60,000.00) lawful money of the United States of America for the payment of which, well and
truly to be made, we hereby bind ourselves, and each of our heirs, executors, administrators,
successors and assigns,jointly and severally, firmly by these presents.
WHEREAS, the Principal has applied for building permits for three model homes to be
located on certain real property for which Tentative Tract No. 20126 has been approved in
accordance with the laws of the City of Redlands and subject to the conditions of approval of the
City Council of the City of Redlands; and
WHEREAS, the Principal has executed an Agreement herewith, a copy of which is
attached hereto for the purpose of identification only, whereby the Principal promises the City of
Redlands to immediately demolish and remove the model homes if a final subdivision map
creating a separate lot for each model home is not recorded within the time period specified in
said Agreement.
NOW, THEREFORE, if the Principal shall comply with all of the provisions of said
Agreement in accordance with the laws of the City of Redlands, then this obligation shall be null
and void, and otherwise,to remain in full force and effect.
The Surety and Principal agree that the liability of the Principal, and the Surety upon this
bond shall be in effect from the date hereof and remain in effect until completion, to the
satisfaction of the City of Redlands of the performance of all of the terms and conditions of said
Agreement. Such completion shall be evidenced by a statement thereof, signed by the
Community Development Director of the City of Redlands.
The Surety hereby expressly consents to any extension or extensions of time to complete
the performance of the terms and conditions of the Agreement as may be granted to the Principal
by the City of Redlands, and hereby expressly consents to the waiver of the defenses of statutes
of limitation, laches and estoppel in the event said extension or extensions are granted.
The Surety and Principal further agree that in the event performance of the terms and
conditions of the Agreement are not completed within the time allowed by the Agreement, or any
extension of extensions thereof as may be granted by the City of Redlands, the City of Redlands
may, at its option, and in addition to any other remedies available by law, complete or arrange
for completion of the performance of the terms and conditions, and all costs and expenses
therefore shall become a debt due and owning the City of Redlands, as set forth in the
Agreement.
The Surety, by executing this Faithful Performance Bond, warrants and alleges that it has
read the Agreement or by signing this bond shall be deemed to have read the Agreement and
knows the contents and all provisions therein contained, and shall be bound by each and every
tern, condition and provision contained therein.
IN WITNESS WHEREOF, the Principal and the Surety have caused this Faithful
Performance Bond to be duly executed this February 13,2019
KB HOME COASTAL, INC
By:
Scott Hansen
Vice President
The ontine al Insurance Company
urety
Y:
Brenda Wong,Attorney-in-Fact
POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT
now All Men By These Presents,That The Continental Insurance Company,a Pennsylvania insurance company,is a duly organized and existing
,ince company having its principal office in the City of Chicago,and State of Illinois,and that it does by virtue of the signature and seal herein
fed hereby make,constitute and appoint
Tenzer V Cunningham,Brenda Wong,Kari Davis,Martha Gonzales,Individually
of Los Angeles,CA,its true and lawful Attomey(s)-in-Fact with full power and authority hereby conferred to sign,seal and execute for and on its behalf
bonds,undertakings and other obligatory instruments of similar nature
-In Unlimited Amounts-
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and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all
the acts of said Attorney,pursuant to the authority hereby given is hereby ratified and confirmed.
This Power of Attorney is made and executed pursuant to and by authority of the By-Law and Resolutions,printed on the reverse hereof,duly
adopted,as indicated,by the Board of Directors of the insurance company.
In Witness Whereof,The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be
hereto affixed on this 21 st day of June,2017.
The Continental Insurance Company
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Paul .Bru at ArVice President
State of South Dakota,County of Minnehaha,ss:
On this 21 st day of June,2017,before me personally came Paul T.Bruflat to me known,who,being by me duly swom,did depose and say: that he
resides in the City of Sioux Falls,State of South Dakota;that he is a Vice President of The Continental Insurance Company,a Pennsylvania insurance
company,described in and which executed the above instrument;that he knows the seal of said insurance company;that the seal affixed to the said
instrument is such corporate seal;that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he
signed his name thereto pursuant to like authority,and acknowledges same to be the act and deed of said insurance company.
6?M J.MOHR
SOUTH DAKOTA SEA $$
My Commission Expires June 23,2021 J.Mohr Notary Public
CERTIFICATE
I,D.Johnson,Assistant Secretary of The Continental Insurance Company,a Pennsylvania insurance company,do hereby certify that the Power of
Attorney herein above set forth is still in force,and further certify that the By-Law and Resolution of the Board of Directors of the insurance company
printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said insurance
company this day of . FEB 1 _Q 7 0 i q
• ��LINSV,�.• The Continental Insurance Company
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Now_ .
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Form F6850-4/2012 D.Johnson Assistant Secretary