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HomeMy WebLinkAboutContracts & Agreements_9-2008_CCv0001.pdf RECORDED REQUEST OF Recorded in Official Records, County of San Bernardino 1/29/2008 LARRY WALKER 4:03 PM WHEN RECORDED, RETURN TO: x Auditor/Controller - Recorder MA R Regular Mail CITY CLERK'S OFFICE CITY OF REDLANDS Dock 2008—0040496 Titles: 1 Pages: 18 PO BOX 3005 Fees 0.00 REDLANDS CA 92373 Taxes 0.00 Other 0.00 PAID $0.00 DEDICATION AGREEMENT (Mt. View Grove) This Dedication Agreement ("Agreement") is made this 18th day of January, 2008 ("Effective Date"), by and between Bixby Land Company, a California corporation (`Bixby") and the City of Redlands, a municipal corporation and general law city organized under the laws of the State of California ("City"). Bixby and City are sometimes individually referred to herein as a "Party" and, together, as the "Parties." RECITALS A. Bixby is the owner of certain real property located in San Bernardino County, California, consisting of approximately fourteen acres and legally described in Exhibit "A" attached hereto (the "Bixby Property"). B. Bixby has developed and sold property adjacent to, or in the close vicinity of, the Bixby Property. On September 7, 2004, the City approved Bixby's proposal to develop an approximately 683,406 square foot warehouse distribution center on such adjacent property pursuant to City's CRA 781 and a related Concept Plan amendment. C. On February 22, 2005, the City's Planning Commission approved the landscape plan for the adjacent property that included Bixby's proposal to plant citrus on the Bixby Property. 384410067MCHOLMSURV\561221.2 01/02/08 1:22 PM D. On June 6, 2006, Bixby offered to donate the Bixby Property to the City and, on that date, the City's City Council accepted Bixby's proposal, subject to certain conditions. E. The City and Bixby now desire to enter into this Agreement to facilitate and ZD provide more specifically for dedication of the Bixby Property to the City, and the development by the City of a citrus grove on the Bixby Property. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Bixby and the City agree as follows: ARTICLE I Construction of the Citrus Grove Dedication to Citv. Within twenty (210) days after the Effective Date of this Agreement, Bixby shall convey the Bixby Property to the City by grant deed ("Deed"), for the purposes, and on the terms and conditions set out herein, including the "Reversionary Right", as defined below. 2. Description of Citrus Grove/Irrigation System. (a) In accordance with the plans of the City, the citrus grove .shall consist of Grapefruit trees, fifty percent (50%) of which shall be of the Star Ruby variety, and fifty percent of which shall be of the Rio variety (the "Citrus Trees"). The City shall cause the Citrus Trees to be planted on the Bixby Property, in a manner reasonably consistent with citrus industry standards and practices for the Redlands area, and in accordance with the plan (the "Plan") provided to the City by Larry Jacinto Farming, Inc. ("Jacinto-). 38441 01102108 1:22 P10 2 (b) In addition to the Citrus Trees, the citrus grove shall be improved with irrigation lines and related facilities providing water from the City's non-potable water system (the "Irrication System"). The Irrigation System shall be designed and installed by the City and shall provide irrigation sufficient to allow. the Citrus Trees to become established and healthy. The approximate location of the Irrigation System shall be as shown on the Plan. 3. Cost Contributions by Bixby. In order to facilitate the development of the citrus grove by the City, and to provide for its maintenance and cultivation by the City, within twenty (20) days after the Effective Date of this Agreement, Bixby shall make the following payments to the City: (a) $139,650.00 for the planting of the Citrus Trees, and the planning and installation of the Irrigation System (b) 5126,600.00 for cultural care, water, and management expenses for the five (5) year period commencing upon the substantial completion of the planting of the Citrus Trees and the Installation of the Irrigation System (the "Maintenance Period"); (c) $62,000.00 as a refundable contingency deposit (the "Contingency Deposit"), which shall be deposited into an escrow account in accordance with the agreement executed by the Parties and attached hereto as Exhibit "B," and pursuant to which the City may draw funds for -Approved Purpose", as defined below, and all interest earned on said account shall be the property of, and distributed to, Bixby. 4. Use and Distribution of the Contingency Deposi . The Contingency Deposit shall be used solely for the replacement of Citrus Trees which, notwithstanding that the City has provided cultural care for the citrus grove (including appropriate maintenance and repairs, if needed, of the Irrigation System) in a manner that is consistent with the usual and customary 22 1,2 01/02108 1:29 Pill 3 practices and standards for the citrus Industry operating in and around the Redlands area (the "Maintenance Standard"), die during the Maintenance Period (the "Approved Purpose"). Prior to drawing on the Contingency Deposit, the City shall provide, i Z7 L- I I e, in writing, reasonable evidence to Bixby that the conditions for the release of funds have been met. Any funds then remaining in the Contingency Deposit account shall be distributed to Bixby on the earlier to occur of(i) reversion of the Bixby Property to Bixby in accordance with the terms hereof, (ii) five (5) years after substantial completion of the installation of the Irrigation System and planting of the trees in the Citrus Grove, or(iii) July 1, 2013. 5. Issuance of Occupancy Permit. Promptly livery following the deto the City of the C'n I I Deed, and the making of all payments described in Paragraph 3, above, the City shall issue an occupancy permit for the approximately 683,406 square foot building occupied as of the date hereof by Ashley Furniture, and (ii) Bixby shall be deemed to have complied with the approved landscape plan submitted by Bixby showing a citrus grove located under the Edison Easement from San Bernardino Avenue to Almond, and to have satisfied all other conditions related to installation of the citrus e with respect to any t o grove, and shall have no other obligation f type 1p same. 6. Installation and Maintenance. The City shall undertake and complete the installation of the Irrigation System and the planting of the Citrus Trees promptly following the execution and delivery of this Agreement by all Parties, and the execution and delivery of the Deed, and the payment of all funds described in Paragraph 3, above, provided that the planting of the trees may be delayed by the City until the first "Planting Season" for citrus trees, following the Effective Date of this Agreement, commences. As used herein, "Planting Season'! shall mean the seasonal period during which, consistent with the usual and customary practices and 38,441,O(Y-7`,MC I I OLIMSIRVV56 1221,2 0 1 IWL'08 1:22 PM 4 standards for the citrus industry operating in and around the Redlands area, citrus trees may be safely (i.e., without unreasonable expectation of' frost or other weather damage) planted. Upon commencement of the work described herein, the City shall proceed with due diligence to complete same, in a good and workmanlike manner. The City shall provide written notice to Bixby of the date that it contends that substantial completion of the installation of the Irrigation System and the planting of the Citrus Trees has occurred. 7. Right of Reverter. Upon acceptance by the City of the Bixby, the City shall be wholly responsible for the cultivation and maintenance of the Citrus Trees in a manner consistent with the Maintenance Standard. In that regard, the City will use reasonable efforts to keep and maintain the Bixby Property as a citrus grove. In the event the City falls to keep and maintain the Bixby Property as a citrus grove in a manner consistent with the terms of this Agreement, the title to the Bixby Property shall, without any cost or expense to Bixby, revert to, and this right of reverter shall be set forth in the Deed. ARTICLE 11 General Provisions 8. Effective Date. This Agreement shall not be effective until it has been fully executed and acknowledged by the Parties. 9. Assignment. The rights, duties and obligations of Bixby hereunder may be delegated or assigned by Bixby only with the prior written consent of the City. The rights, duties and obligations of the City may not be delegated or assigned to any private party, but may be assigned by the City to any agency or commission of the City, for the general good of the City and its residents. 'k8441,0(j()T,A1WH01 MSARV5611221 2 01,102/08 PM 5 10. Running of Benefits and Burdens. All provisions of this Agreement, including its benefits and burdens, run with the land and are binding upon and shall inure to the benefit of and burden the respective successors and assigns of the Parties in whose favor or against who said benefits and burdens are said by this Agreement to run. 11. Successors and Assigns. Subject to the limitations set forth in Section 2 of this Article 11, this Agreement shall be binding on and inure to the benefit of the Parties' respective successors and assigns. 12. Single Point of Contact.. The City appoints its Municipal Utilities Director to serve as the single point of contact with regard to all matters set forth in this Agreement, and Bixby the hereby initially appoints Mark Bixby to serve as the single point of contact with regard to all matters set forth in this Agreement. Either Party may appoint a replacement single point of contact at any time by giving notice to the other Party in the manner provided for giving notices under this Agreement. 13. Notices. Any and all notices required or permitted hereunder shall be given in writing and sent by personal delivery, recognized overnight courier (e.g., UPS, FedEx, Overnight Express) or registered or certified mail, return receipt requested, postage prepaid, addressed as follows: To City of Redlands: Municipal Utilities Department City of Redlands 35 Cajon Street, Suite 15A Redlands, CA 92373 Attn: Chris Diggs Telephone No.: (909) 798-7698 To Bixby Land: Bixby Land Company 2211 Michelson, Suite 500 Irvine, CA 92612 Attn: Mark Bixby Telephone No. (9491336-7000 38441,0(1�-,7\-NlCfl()LN�iS,IRVk56122t 2 01102,108 1:22 PM 6 With a copy to: Western Realco 500 Newport Center Drive, Suite 630 Newport Beach, CA 92660 Attn: Vance C. Mape Telephone No. (949) 720-3787 or at any other address or facsimile number designated by a Party in a written notice sent pursuant to this Paragraph 13, and any such notice shall be deemed to have been given as of the date of receipt, if sent by overnight courier, as of the date of delivery, if hand delivered, or as of two (2) business days after the date of mailing. 9 14. Further Assurances. Each Party shall execute, acknowledge and deliver to the other such other documents, and shall take such other actions, as the other may reasonably request in order to carry out the intent and purposes of this Agreement. 15. Headings. The headings In this Agreement are for reference only and shall not limit or define the meaning of any provision of this Agreement. 16. Time of Essence. Time is of the essence of this Agreement. The foregoing to the contrary notwithstanding, if this Agreement requires any act to be done or action to be taken on a date that falls on a Saturday, Sunday or legal holiday, such act or action shall be deemed to have been timely done or taken if done or taken on the next succeeding day that is not a Saturday, Sunday or legal holiday. 17. Waiver. The waiver by any Party of any right granted under this Agreement shall not be deemed a waiver of any other right granted hereunder, nor shall the same be deemed to be a waiver of a subsequent right obtained by reason of the continuation of any matter previously waived. All waivers, consents and approvals must be in writing and signed by the Party giving the same. 3844 l,f"37\MCfl0t,,.%ISkIRV',561221,2, 01/02/08 1 22 PM 7 18. Entire Agreement. This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof. 19. Amendment. This Agreement may not be altered or amended except pursuant to an instrument in writing signed by the Parties. 20. Construction. This Agreement is the result of negotiations between the Parties. Accordingly, the terms and provisions of this Agreement shall be construed in accordance with their usual and customary meanings, and the Parties hereby waive the application of any rule or law that otherwise might require the construction of this Agreement against the Party who (or whose attorney) prepared the executed Agreement. 21. Attorneys' Fees. In the event of litigation to enforce or interpret any provisions of this Agreement or rights arising hereunder, the prevailing Party, in addition to any costs and other relief, shall be entitled to recover its reasonable attorneys' fees (including fees for the use of In-house counsel by a Party) and costs, including those on appeal. 22. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflict of laws rules applicable in the State of California. 23. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one in the same instrument, which instrument shall be deemed fully executed when one or more counterparts have been executed by the Parties. 24. Third Party, Beneficiaries. There are no third party beneficiaries to this Agreement or to any conveyances hereunder. Further, each Party to this Agreement may enforce 384-€1.i (ti,At{:Ii()I AIS A RVW22 1,2 01102MJ8 1:22 PM 8 only those burdens and benefits under this Agreement or the conveyances hereunder which are granted by this Agreement to said Party. IN WITNESS WHEREOF, the Parties have executed this instrument as of the date first written above. CITY: CITY OF REDLANDS, a California municipal corporation and general law city. By: ion Harrison ATTEST City5j,&rk, Lorr" Po 'zer BIXBY: Bixby Land Company, a California corporation Z By: Its: VIP Suzannep SA. Harris By: Its: Mark L. Bixby 38441 Otj(,7"VICHOL.\IS\IRV',-,611-'�-1.2 01102/08 1:22 PN4 9 ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO SS CITY OF REDLANDS By the authority granted under Chapter 4, Article 3, Section 1181, of the California Civil Code, and Chapter 2, Division 3, Section 40814, of the California Government Code., on January 18, 2008, before me, Teresa Ballinger., Assistant City Clerk., on behalf of Lorrie Poyzer., City Clerk of the City of Redlands, California, personally appeared Jon Harrison, Mayor and Lorrie Poyzer., City Clerk who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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. r LORRIE POYZER, CITY CLERK spop', ffi 1888 ......... By Teresa Ballinger, Assistant Clerk (909)798-7531 ----------------------------------------------------------------------- CAPACITY CLAIMED BY SIGNER(S) Individual(s) signing for oneself/themselves Corporate Officer(s) Title(s) Company Partner(s) Partnership Attorney-In-Fact Principals)'s) Trustee(s) Trust x Other Title(s): Mayor and City Clerk Entity Represented: City of Redlands, a municipal corporation -------------------------------------------------------------- THIS CERTIFICATE MUST BE ATTACHED TOTHE DOCUMENI' DESCRIBED BELOW: 'Title or Type of Document: Dedication Agreement(Mt. View Grove) Date of Document: January 18, 2008 Signer(s) Other Than Named Above: Bixby Land Company, by: Suzanne A. Harris and Mark L. Bixby, Vice-Presidents CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California /y County of r 0 before me, ate Here Ins Name and Title of�officer ' personally appeared N e(s)of Sig r(s r who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that „�.—,r,— he/she/they executed the same in his/her/their authorized BRIE 91M capacity(ies), and that by his/her/their signature(s) on the Cin B 1722M instrument the person(s), or the entity upon behalf of "way Pubic-CamoFrI which the person(s) acted, executed the instrument. onw" C011111110f' Omy Come, Expires Fab 1, 2011 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNE Z� ndand � � I seal. ('face Notary Seal Above Signature Sig ",of b OPTIONAL Though the information below is not required by taw, it may prove valuable to persons retying on the document and could prevent fraudulent removal and reattachment of this form to another document. Descriptio f Attached Document Title or Type of Docu nt: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: igner's Name: _ Ej Individual ❑ ividual 'Ej Corporate Officer—Title(s):p ( ) �Cor ate Officer—Title(s): (.I Partner—17J Limited I,] General , �� « ❑ Partner "] Limited El General AttorneyIn Fact r° ❑Attorney in « II EI Trustee Top of thumb here C!Trustee Top of thumb here C:J Guardian or Conservator ❑Guardian or Conserva Other: ❑Other: Signer Is Representing: Signer Is Representing: 7 National Notary Association•9350 6e Soto Ave_,PO_Box 2402-Chatsworth,CA 91313-2402•www.NafionafNotary.org Item#5907 Reorder:Calf Toll-free 1-800-876-6827 Exhibit "A" LEGAL DESCRIPTION OF BIXBY PROPERTY Parcels Nos. 5 and 12 of Parcel Map 159.11. in the City of Redlands, County of San Bernardino, State of California, as shown by Map on file in Book 200, Pages 85 through 92, inclusive, in the Office of the County Recorder of said County. Exhibit "A" 01/0z"08 1:22 PNI Exhibit "B" ESCROW AGREEMENT ESCROW AGREEMENT FOR CONTINGENCY DEPOSIT This Escrow Agreement ("Agreement") is made and entered into by and between the City of Redlands, a municipal corporation ("City") whose address is 35 Cajon Street, Redlands, California 92373 and Bixby Land Company, a California corporation ("Bixby") whose address is 2211 Michelson, Suite 500, Irvine, California 92612 and ("Escrow Agent") whose address is hereinafter called "Escrow Agent." For the consideration hereinafter set forth, City, Bixby and Escrow Agent agree as follows: ARTICLE I Deposit of Funds 1.1 Within Five (5) days of the effective date of the -Contract", as defined below, Bixby shall deposit into a separate escrow account (the "Escrow Account") the sum of Sixty Two Thousand Dollars ($62,000.00) in cash, certified funds, or by wire transfer(the "Funds") with Escrow Agent. The Funds are the refundable "contingency deposit" to be drawn upon by City for the "approved purpose" as those terms are defined in, and are to be held, and if necessary used, pursuant to the terms of the contract entitled "Dedication Agreement" entered into between City and Bixby dated January 18, 2008 (hereinafter referred to as the "Contract"). 1.2 When Bixby deposits the Funds, Escrow Agent shall notify City within ten (10) days of the deposit. The Funds shall be held by the Escrow Agent solely for the purposes set forth in the Contract, and shall be and remain the property of Bixby until they are rightfully withdrawn from the Escrow Account by the City, in accordance with the terms of the Contract and this Agreement. 1.3 All interest accrued on the Funds shall be the property of Bixby, and may be withdrawn by Bixby at anytime, without the need for any further instructions or consent by, or notice to, City. 1.4 Bixby shall be responsible for paying all fees for the expenses incurred by Escrow Agent in administering the Escrow Account, and the parties shall otherwise pay their own expenses in connection with the Escrow and this Agreement. 1.5 Bixby shall have the right to withdraw all or any part of the principal in the Escrow Account only by written notice to Escrow Agent accompanied by written authorization from City to Escrow Agent that City consents to the withdrawal of the amount sought to be withdrawn by Bixby. 38,44 Exhibit "B" — Page I I I _,%1S'1RVk56121_1,2 01/02105 I 22 P1.1 ARTICLE 2 Investment of Funds 2.1 Escrow Agent shall invest the funds as Bixby may direct from time to time, provided, however, there shall at all times be not less than Ten Thousand Dollars ($1.0,000.00) invested in such a manner as will allow access to said amount within not more than thirty (30) days. All such investments shall be in governmental instruments (e.g., Treasury Notes or Treasury Bills), or in accounts or certificates of deposit which are Federally insured, have terms no longer than six (6) months, and shall be of such a nature that there is no risk of loss of the principal so invested. Bixby shall execute such documents and instruments as may be required from time to time to facilitate the investment of the Funds, or the termination, if required, of an investment in which a portion of the Funds are made. 2.2 Escrow Agent shall, upon request of City made at reasonable times and reasonable intervals, receive a summary of the then current investments, and such written evidence concerning same as the City may reasonably request. vi ARTICLE 3 Use and Withdrawal of Funds 3.1 City shall have a right to draw upon the Funds solely for the replacement of citrus trees during the "Maintenance Period" as defined in, and in accordance with the terms of, the Contract. As and if City from time to time finds it necessary to replace citrus trees, upon not less than seven (7) business days' written notice to Escrow Agent and Bixby (which notice shall set forth with particularity the reason for the requested withdrawal), the City may request the release to the City of all or a specific portion of the funds, for the replacement of citrus trees consistent with the terms of the Contract. Unless Bixby objects in a writing addressed to both Escrow Agent and City prior to the expiration of said seven (7) business day period, Escrow Agent shall immediately disburse the requested amount to City, following which Escrow shall have no responsibility for such funds. Bixby shall have the right to object only if(1) the withdrawal request does not set forth with particularity the reason for the request, (1i) the withdrawal request does not set forth a reason with is consistent with the terms of the Contract and this Agreement, or (iii) Bixbv reasonably believes, based on its review of the condition of the citrus grove and the trees in question, that such trees do not need replacement. Any objection by Bixby must be made in good faith, and be based on their reasonable business judgment. In the event of such an objection, the parties shall promptly meet and confer, in person or telephonically, to attempt to reach an agreement concerning the requested disbursement. If they are unable to do so, they shall submit the matter for resolution to Larry Jacinto and Jacinto Farming, who shall determine if the replacement(s) are necessary, and his determination shall be final. A written copy of his determination shall be submitted to the parties and to Escrow Agent, and if the determination is that the withdrawal would be for a proper purpose, i.e., the replace of dead, diseased, or otherwise non-viable trees, the Escrow Agent is authorized to promptly distribute the funds to the City for the stated purpose. Exhibit "B" — Page 2 12212 01/02/08 1:22 PM ARTICLE 4 Termination of Escrow 4.1 Upon the earlier to occur of(i) the distribution of all of the funds in accordance with the terms hereof, (ii) receipt of written notification from city certifying that the "maintenance period," as defined in the contract, has expired, (ii) the presentation by bixby to the escrow agent of the certification from city required under the contract that the substantial completion of the installation of the irrigation system and planting of the trees in the citrus grove, which certification sets forth a date a substantial completion which is not less than five (5) years prior to the then current date, (iii) the reversion of the property to bixby in accordance with the terms of the contract, or (iv) July 1, 2013, the escrow shall be terminated. Termination shall be accomplished by the payment of all fees of Escrow Agent, following which the Escrow Agent shall release to Bixby any then existing balance of Funds and accrued interest in the Escrow Account. 4.2 The parties shall execute and deliver such documents and instruments as either of them or Escrow Agent may reasonably require in order to effectuate the termination of the Escrow and the release of Escrow agent from any further duty or obligations. ARTICLE 5 Miscellaneous 5.1 Escrow Agent shall rely on the written notifications from City and Bixby, and City and Bixby shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of the Funds and interest as set forth above. 5.2 The names of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Bixby in connection with the foregoing, and exemplars of their respective signatures are as follows: On behalf of City: On behalf of Bixby: City Manager Title Title N. Enrique Martinez Name Name Signature Signature Exhibit "B" — Page 3 38441..0('167,,NIC'IIOf-MSlIR 61221.-2 01 W/08 1:22 P'h`i City of Redlands Bixby Land Company P.O. Box 3005 2211 Michelson, Suite 500 Redlands, CA 92373 Irvine, CA 9261,2 Address Address On behalf of Escrow Agent: Title Name Signature Address 5.3 At the time the Escrow Account is opened, City and Bixby shall deliver to Escrow Agent a fully executed counterpart of this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement by their proper officers on the date first set forth above. Owner Contractor Title Title Name Name Signature Signature Exhibit "B"—Page 4 I 844J,()(,,67,,,Nj(ji0 IA IS A RVV56122 I 01102/08 1:22 P%I Higar Air, Brian J. Beane, NBI General Contractors, William Smith, Leonard Ingalls, William F. Dohr and Inland Aviation Under negotiation: Lease terms and price b. Property: An approximately 1.37 acre parcel that is generally located west of Texas Street and bound by an adjoining, not a part parcel, on the east, AT & SF railroad right-of-way on the north; Redlands Boulevard on the south, and Stuart Avenue on the west; APN 0171-022-13 Negotiating Parties: N. Enrique Martinez, Steve Dukett and Ken Patterson and Coldwell Banker Commercial-Kivett Teeters Under negotiation: Terms and price for possible sale c. Property: An approximately 1.37 acre parcel that is generally located west of Texas Street and bound by an adjoining,not a part parcel, on the east, AT & SF railroad right-of-way on the north Redlands Boulevard on the south, and Stuart Avenue on the west; APN 0171-022-13 Negotiating Parties: N. Enrique Martinez, Steve Dukett and Gardner Construction &Development, Inc. Under negotiation: Terns and price d. Property: APN 0292-166-08 Negotiating parties: N. Enrique Martinez,Ronald C. Mutter and Golden State Management LLC Under negotiation: Price and terms for possible lease of land e. Property: APN 0167-511-12 and 11 Negotiating parties: N. Enrique Martinez, Gary Phelps and Mark Bixby Under negotiation: Terms and price f. Property APNs 0292-044-08, 09, 10, 11 and 12; AP'Ns 0292-071-10, 15, 18, 29, 35, 40 and 43 Negotiating parties: N. Enrique Martinez, Gary Van Dorst and Prologis Under negotiation: Terms and prices for possible property exchange LATE BREAKING ITEM Noting the need to take action was immediate, Councilmember Gilbreath moved to add the following item to the agenda under "Closed Session" which arose subsequent to the agenda being posted: "Conference with legal counsel - Existing litigation- Government Code §54956.9(a): One case - Vincent Bunn v. City of Redlands, San Bernardino Superior Court Case No. SCVSS 140612." Motion seconded by Councilmember Gil and carried unanimously. August 7,2007 Page 11 Agreement - Mountain View Grove - On motion of Councilmember Gilbreath, seconded by Councilmember Gallagher, the City Council unanimously approved a dedication and maintenance agreement with Bixby Land Company for the Mountain View Grove and authorized the flavor to execute, and the City Clerk to attest to, the document on behalf of the City. CDBG - Home..Investment Partnerships Programs - Mayor Harrison asked staff how they would administer the Community Development Block Grant Program and if additional staff would be needed. Interim Redevelopment Agency Director Dukett explained the City of Redlands currently receives its Community Development Block Grant funds through a cooperative agreement with San Bernardino County and 41 percent of our allocation is retained by the County to administer the program on the City's behalf and to fund County-wide programs. City Manager Martinez noted that we may add staff but more ID importantly may transfer duties from the General Fund to the Community Development Block Grant Fund. Councilmember Harrison moved to authorize I participating the City Manager to initiate the procedures necessary to obtain pa icipating jurisdiction status pursuant to the Federal Community Development Block Grant Program and to participate under the State's Home Investment Partnership I s Program. Motion seconded by Councilmember Gilbreath and carried unanimously. Resolution No. 6671 - Terminate Local Emergency - On motion of Councilmember Gilbreath, seconded by Councilmember Gallagher, the City Council unanimously adopted Resolution No. 6671, a resolution of the City Council of the CityofRedlands terniinatint, the local emergency at the Civic Center. COMMUNICATIONS Meeting Attendance - In accordance with Government Code Sections 53232.2 and- 53232.3, Mayor Harrison and Councilmember Aguilar reported on their attendance at I a League of Caliiorma Cities Inland Empire Division meeting held on January 10, 2008, at City expense. Performance Measures - Chief Information. Officer Smith reported that efforts to improve the efficiency and effectiveness of City operations and the provision of services have been underway since April, 2007. The process began with budget goals and implementing strategies to achieve them at the department level. Level of service evaluation and taro-et areas for improving efficiency and effectiveness were the next step and have been the subject of several progress reports to the City Council. In August 2007, the City Manager directed the Interim ChiefInformation Officer and the Finance Director to coordinate the development of a comprehensive set of perfon-nance measures at the department level to be delivered for use in the mid-year budget review and the planning January IS, 2008 Para 7 306 EAST CITRUS AVENUE-P.O.BOX 6 CANA REDLANDS,CALIFORNIA 92373 PHONE:(909)793-2939 FAX:(909)793-9718 Dated Jantlalv2l,2011 T'() REDLANDS ESCROW,INC Fscro,No 20943-DS Noperty Address L'Inkno,,ii ESCROW INSTRUCTIONS in consideration of your acting as escrow holder herein,it is agreed that you shall in no case or event be liable for the failure of any of the conditions of this escrow or damage caused by the exercise of your discretion in arty particular manner,or for any other reason except gross negligence or willful misconduct with reference to the said escrow,and you shall not be liable or responsible for your fnilare to ascertain the terms or conditions or to comply with any of the provisions of,any agreement,contract or other document filed herewith or referred to herein nor shall you be liable or responsible for forgeries or false presentation. It is further agreed that if any controversy arises,between the parties hereto or with any third person with respect to the subject matter of this escrow,its term or conditions,you shall not be required to determine the same or take any action in the premises, but you may await the settlement of any such controversy by final appropriate legal proceeding or otherwise as you may require, notwithstanding anything in the following instructions to the contrary,and in such event you shall not be liable for interest or damage. It is understood that the fee agreed upon for your services hereunder shall be considered compensation for your ordinary services as contemplated by these instructions,and in the event that,the conditions of this escrow are not promptly fulfilled or that you render any service hereunder not provided for in the following instructions,or that there is any assignment of any interest in the subject matter of this escrow or modification hereof,or that any controversy arises hereunder or that you are made a party to,or intervene in,any litigation pertaining to this escrow or the subject matter thereof,you shall be reasonably compensated for such extra ordinary services and reimbursed for all costs and expenses occasioned by such default,delay,controversy or litigation and you shall have the right to retain all documents and/or other thing of value at any time held by you hereunder until such compensation fees,costs and expenses shall be paid,the undersigned jointly and severally promises to pay such sum upon demand ESCROW AGREEMENT FOR CONTINGENCY DEPOSIT referencing the'CONTRACT"dated January 18,2008 entitled "DEDICATION AGREEMENT." which is attached hereto and incorporated as a part of these escrow instructions. Escrow Agent's sole concern is to be the"HOLDER"of the$62,000.00,which funds are the refundable funds outlined in the"Escrow Agreement For Contingency Deposit"said funds shall be drawn upon by City of Redlands for the"approved purpose". Escrow Holder is not to be concerned with the terms and fulfillment of the information contained in the other parts of this agreement only the Escrow Agreement for Contingency Deposit. Other documents referred to in"Escrow Agreement For Contingency Deposit" are not held in the office of Redlands Escrow, Inc.. All parties shall deliver written instructions for monies to be withdrawn from the"Contingency Deposit"in accordance with the attached instructions incorporated herein. Escrow Agent is to follow the attached Escrow Agreement for Contingency Deposit EXCEPT: Article No.2 Paragraph 2.1 Funds delivered to Escrow Agent shall be invested in such a manner as will allow access to said amount within not more than thirty(30)days such as deposited in a Certificate of Deposit with a Federally insured Bank to incur interest during the"Maintenance Period". Bixby herein agrees to pay an escrow holding fee of$500.00,at escrow closing for"Holding Escrow Fee". Escrow Agent is not to be concerned and/or responsible for recording a Grant Deed or any other documents through this escrow. CITY OF E LAN 5 BIXBY LAND COMPANY BY: BY: OF guLilar, Mayor BY: BY: ,.'IGN AND RETURN ESCROW AGREEMENT FOR CONTINGENCY DEPOSIT This Escrow Agreement ("Agreement") is made and entered into by and between the City of Redlands, a municipal corporation ("City") whose address is 35 Cajon Street, Redlands, California 912 373 and Bixby Land Company, a California corporation ("Bixby") whose address is 2211 Michelson Drive, Suite 500, Irvine, California and Redlands Escrow ("Escrow Agent") whose address is 306 E. Citrus Ave., Redlands, CA 92373 hereinafter called "Escrow Agent." C, For the consideration hereinafter set forth, City, Bixby and Escrow Agent agree as follows: ARTICLE I Deposit of Funds 1.1 Within Five (5) days of the effective date of the "Contract", as defined below, Bixby shall deposit into a separate escrow account (the "Escrow Account") the sum of Sixty Two Thousand Dollars ($62,000.00) in cash, certified funds, or by wire transfer (the "Funds") with Escrow Agent. The Funds are the refundable "contingency deposit" to be drawn upon by City for the "approved purpose" as those terms are defined in, and are to be held, and if necessary used, pursuant to the terms of the contract entitled "Dedication Agreement" entered into between City and Bixby dated January 18, 2008 (hereinafter referred to as the "Contract"). 1.2 When Bixby deposits the Funds, Escrow Agent shall notify City within ten (10) days of the deposit. The Funds shall be held by the Escrow Agent solely for the purposes set forth in the Contract, and shall be and remain the property of Bixby until they are rightfully withdrawn from the Escrow Account by the City, in accordance with the terms of the Contract and this Agreement. 1.3 All interest accrued on the Funds shall be the property of Bixby, and may be withdrawn by Bixby at anytime, without the need for any further instructions or consent by, or notice to, City. 1.4 Bixby shall be responsible for paying all fees for the expenses incurred by Escrow Agent in administering the Escrow Account, and the parties shall otherwise pay their own expenses' in connection with the Escrow and this Agreement. 1.5 Bixby shall have the right to withdraw all or any part of the principal in the Escrow Account only by written notice to Escrow Agent accompanied by written authorization from City to Escrow Agent that City consents to the withdrawal of the amount sought to be withdrawn by Bixby. AR HOLNIS'SWDNM558048 ARTICLE 2 Investment of Funds 2.1 Escrow Agent shall invest the funds as Bixby may direct from time to time, provided, however, there shall at all times be not less than Ten Thousand Dollars ($10,000.00) invested in such a manner as will allow access to said amount within not more than thirty (30) days. All such investments shall be in governmental instruments (e.g., Treasury Notes or Treasury Bills), or in accounts or certificates of deposit which are Federally insured, have terms no longer than six (6) months, and shall be of such a nature that there is no risk of loss of the principal so invested. Bixby shall execute such documents and instruments as may be required from time to time to facilitate the investment of the Funds, or the termination, if required, of an investment in which a portion of the Funds are made. 2.2 Escrow Agent shall, upon request of City made at reasonable times and reasonable intervals, receive a summary of the then current investments, and such written evidence concerning same as the City may reasonably request. ARTICLE 3 Use and Withdrawal of Funds 3.1 City shall have a right to draw upon the Funds solely for the replacement of citrus trees during the "Maintenance Period" as defined in, and in accordance with the terms of, the Contract. As and if City from time to time finds it necessary to replace citrus trees, upon not less than seven (7') business days' written notice to Escrow Agent and Bixby (which notice shall set forth with particularity the reason for the requested withdrawal), the City may request the release to the City of all or a specific portion of the funds, for the replacement of citrus trees consistent with the terms of the Contract. Unless Bixby objects in a writing addressed to both Escrow Agent and City prior to the expiration of said seven (7) business day period, Escrow Agent shall immediately disburse the requested amount to City, following which Escrow shall have no responsibility for such funds. Bixby shall have the right to object only if(i) the withdrawal request does not set forth with particularity the reason for the request, (ii) the withdrawal request does not set forth a reason with is consistent with the terms of the Contract and this Agreement, or (iii) Bixby reasonably believes, based on its review of the condition of the citrus grove and the trees in question, that such trees do not need replacement. Any objection by Bixby must be made in good faith, and be based on their reasonable business judgment. In the event of such an objection, the parties shall promptly meet and confer, in person or telephonically, to attempt to reach an agreement concerning the requested disbursement. If they are unable to do so, they shall submit the matter for resolution to Larry Jacinto and Jacinto Farming, who shall determine if the replacement(s) are necessary, and his determination shall be final. A written copy of his determination shall be submitted to the parties and to Escrow Agent, and if the determination is that the withdrawal would be for a proper purpose, i.e., the replace of dead, diseased, or otherwise non-viable trees, the Escrow Agent is authorized to promptly distribute the funds to the City for the stated purpose. AICHO LMYS W D%I S\i i 5 8048 /YIF 1101- ARTICLE 4 Termination of Escrow 4.1 Upon the earlier to occur of(i) the distribution of all of the funds in accordance with the terms hereof, (ii) receipt of written notification from city certifying that the "maintenance period," as defined in the contract, has expired, (ii) the presentation by bixby to the escrow agent of the certification from city required under the contract that the substantial completion of the installation of the irrigation system and planting of the trees in the citrus grove, which certification sets forth a date a substantial completion which is not less than five (5) years prior to the then current date, (iii) the reversion of the property to bixby in accordance with the terms of the contract, or (iv)July 1, 2013, the escrow shall be terminated. Termination shall be accomplished by the payment of all fees of Escrow Agent, following which the Escrow Agent shall release to Bixby any then existing balance of Funds and accrued interest in the Escrow Account. 4.2 The parties shall execute and deliver such documents and instruments as either of them or Escrow Agent may reasonably require in order to effectuate the termination of the Escrow and the release of Escrow agent from any further duty or obligations. ARTICLE 5 Miscellaneous 5.1 Escrow Agent shall rely on the written notifications from City and Bixby, and City and Bixby shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of the Funds and interest as set forth above. 5.2 The names of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Bixby in connection with the foregoing, and exemplars of their respective signatures are as follows: On behalf of City: On behalf of Bixby: City Manager Chief Financial Officer Vice President Title Title Title N. Enrique Martinez James Wolford Michael F. Severson Na Name rgnature Si ature Signature City of Redlands ixby Land Company P.O. Box 3005 2211 Michelson Drive, Suite 500 Redlands, CA 92373 Irvine, CA 92612 .,&%T14 CONT LVL'ED 01VNEXT PAGE HE AICHOLMS.s"DMS',5.558048 3 On behalf of Ecrow Agent: Manager Title Dor!Athv.-..5ke, un NiN T Signature g n 306 East Citrus Avenue Address Redlands, CA 92373 5.3 At the time the Escrow Account is opened, City and Bixby shall deliver to Escrow Agent a fly executed counterpart of this Agreement. IN' WITNESS WHEREOF, the Parties have executed this Agreement by their proper officers on the date first set forth above. On behalf of City On behalf of Bixby: Citv Manager Chief Financial Officer Vice President Title Title Title N. Enrique Martinez James WolfordMichael F. Severson Name/) Name ;gnature Signature Signature City of Redlands " Bixby Land Company P.O. Box 3005 1200 Newport Center Drive, Suite 120 Redlands, CA 92373 Newport Beach, CA 92660 On behalf of Escrow A-ent: Manager Title Dorothy' Skelton Pe Signature 106 Faal—Cilrus Avenue AddressRedlands, CA 92373 Re 4 Escrow # 2094_____3 DS Sanuax_� °011 To. Redlands ESCrOwl Ino* AUTjJOR1ZkTION AND INSTRUCTION FOR DEPOSIT OF FUNDS INTO AN INTEREST -BEARING kCCi3lJTIT. is hereby authorized and instructed to open an interest Redlands Escrow Inc. 62,000-00 deposited by% bearing account for funds in the amount Of 5 Buyer Broker, for buyers credit tSeller Said account shall be in the name of Redlands Escrow, Inc., as Trustee for buyers, and BIXBY LAND COMPANY sellerst in Escrow No.: 20943-DS Type of Account To be opened at; CO UNI savings & loan association name of bank or as 200 EAST CITRUS AVENUE REDLAND A ')37 -T—.U—r .. together with accrued instructed to withdraw said funds' ou deem authorized and trust account, at such time as Y (y) You are into your escrow I that there may interest, and deposit same ow All parties are aware necessary to effect the close of this esc, - d do hereby release awal of said funds a be substantial penalties for early withdx; ti., therewith. escrow holder from any liability in co'nec 9.ccured Interest to be credited as follows t Buyer Seller At the close of escrow to: (o � Seller At cancellation to: eBuyer BIXBY LAND COMPANY CITY OF REDLANDS Signature BY: t ui ar Me or Signature Signature Signature l r 22 Address Address P O. Boy, 3005 G�jty ort Beach, CA-Fe,-� Newport 926 it 92373 PHONE ------ PONE ----------- SiGN AND RETURN GENERAL INSTRUCTIONS If the conditions of this escrow have not been complied with prior to fire date set out in paragraph 3,or any extension thereof,you are nevertheless to complete the escrow as soon as the conditions,except as to time,have been complied with,unless written demand shall have been made upon you not to complete it. Unless otherwise provided,make all adjustments on basis of 30-day month based on the latest available figures in case of taxes, assessments or bonds, principal, and interest on encumbrances of record based on statements by mortgages, beneficiaries or holder of notes for collection,interest on new encumbrances by endorsement on Notes,and rents on basis of statement presented into escrow by Seller and approved by Buyer,and assume Seiler will collect all rents due prior to close of escrow.Assume that insurance premiums alt paid and transfer on behalf of parties hereto any fire insurance policies handed you. Forward such policies,upon elose of escrow to agent with the request that insurer consent to such transfer or attach Loss Payable or Mortgagee's Clause or other additions or corrections,and that Agent thereafter forward such policies to parties entitled thereto. The expression"close of escrow",if written in these instructions,shall mean the date First instrument is filed of record. You shall in no event be liable for forgeries or falx impersonations in connection with these instructions,instruments of record,or those handled in this escrow. You need to make payment to or for or deliver documents to any party only if in your exclusive judgement such may be made without you incurring any liability. if any controversy arises between the panics hereto,or with any third person,you shall not be required to determine the same or take any action but you may await the settlement of any such controversy by final appropriate legal proceedings or otherwise as you may require snd%or file a suite in interpleader and obtain an order from the court requiring the parties to interplead and litigate in court their several claims and rights among themselves,notwithstanding anything in these printed or,typed ittsht c4ions to gte-ism traty, to the event such interpleader shite is brought,you shall ipso facto be fully released and discharged from all obligations to further perform any and all duties or obligations imposed uponyou in this escrow and the parties jointly and severally agree to pay you all costs,expenses and attorney's fees expended or incurred by you, the assistant thereof to be fixed and a judgement thereof to be rendered by the court in such suite. In either event,You shall not be liable for interest or damage. Whenever provision is made herein for the payment of any sums,the delivery of any instrument or the performance of any act"outside escrow"the escrow holder shall have no responsibility therefor and shall not be concerned therewith. You are to cause no examination or report to be made on state,county or city taxes,either real or personal,or state corporation taxes for the year stated on page one prior the date first installment payments are due and payable,and you are to order no special tax report except as herein otherwise specifically instructed. You are to cause,no examination of the title to personal property described herein unless specifically instructed herein. All monies receival in this escrow by you shall be deposited in a bank in an"Escrow Funds"account with other escrow funds,and all such monies received in this and other escrows and deposited into the same"Escrow Funds"account shall constitute one General Escrow Fund. All disbursements shall be made to parties in interest,by your check,and checks and instruments will be mailed to one of the parties entitled thereto,if more than one,to address given. Instruct County Recorder to mail instruments in the same manner. In the event it may be necessary or proper to comply with the conditions and instructions of this escrow,von are authorized to cause to be deposited,during the pendency of this escrow,any funds or documents with any bank,savings and to— association,title company or another escrow agency licensed under the Escrow Act,to be credited to your account upon recordation of the instruments required to be recorded to complete this escrow;said funds aid documents shall be received by you,prior to recordin& If the property involved in this escrow is included in escrow instructions with a bank,savings and loan association,title company or another escrow agency licensed under the Escrow Act,then you are authorized to make such arrangements with such bank,savings and loan association,title company,or licensed escrow agency,as to delivery to it of cash or instruments as will enable you to comply with the instructions in this escrow. Recordation of any instruments delivered through this escrow,if necessary or proper in the issuance of policies of title called for,is authorized,aid in connection therewith,funds/or instruments received in this escrow may be delivered to or deposited into another escrow being handled by you or deposited with any titlecompany,or other escrow agency licensed under the Escrow Act,for the purpose of complying with the terms and conditions of these escrow instructions_ "Che parties to these escrow inshuctions authorize you to destroy these instructions and all other instruments and records in this escrow at any time after 5 years from the date of these instructions. Order search of title. Deliver title policy to parties entitled thereto. Prepare documents for my signature. 1,as buyer and/or borrower,will pay on demand,regardless of the consummation of this escrow,all charges and costs incurred by you for me as buyer and/or borrower,including but not limited to fee for preparing instruments t shall execute,or have executed,fee for recording documents,insurance endorsements,your escrow fee and all other expenses and costs as is in this escrow provided. 1,as seller and/or lender,will pay on demand,regardless of the consummation of this escrow,all charges incurred by you for me as seller.including but not limited to title change;fee for preparing instruments I should execute,your escrow fee,fee for obtaining beneficiaries'statements and demands,and insurance endorsements and all other expenses and costs as in this escrow provided. Each person signing these instruments authorizes you to deduct all their expenses from funds due them. The signing parties hereto jointly and severally agree to pay demand all attorney's fees,costs and damages suffered or incurred by you in case of any controversy or litigation,including but not limited to,a suit in interpleader brought by you,in connection with or arising out of this escrow,plus reasonable compensation for time and expense in preparing for andlor attending court and you are hereby given a lien upon ail rights,titles and interest of each of the undersigned in all escrowed papers and other property or moneys deposited in this escrow,to protect your rights and to indemnify acid reimburse you hereunder. Whenever the context so requires,the masculine gender includes the feminine and neuter,the singular number includes the plural,and the plural number includes the singular. All parties agree that as far as your rights and liabilities are involved,this transaction is an escrow and not any other legal relation and you are.an escrow holder only onthe within..expressed tcrms..and you shall have no responsibility of roti€ging. any of the parties to this escrow of any side,resale,loan;exchange,or other transaction involving any property herein described or of any profit realized by any person,Gem or corporation(broker,agent and parties to this andrbr any other escrow included)in connection therewith,regardless of the fact that such transastion(s)may be handled by you in ibis escrow or in another escrow. These instructions may be executed in counterparts,each of which so executed shalt,irrespective of the date of its execution and delivery,be deemed an original and said counterparts together shalt constitute one and the same instrument.Any amended supplemental or additional instructions given shalt be subject to the forgoing conditions and instructions. SELLER(S)INITIALS:. BUYER(S)INITIALS:,_ SIGN AND RETURN