HomeMy WebLinkAbout06 - Sale of City-Owned Property - 412 Carnation Avenue��WPOR� CITY OF
NEWPORT BEACH
C9�IF00.�P City Council Staff Report
Agenda Item No. 6
August 9, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Stephen G. Badum, Public Works Director
949 - 644 -3311, sbadum @newportbeachca.gov
PREPARED BY: David Keely, P.E.
APPROVED: J��n 0,
TITLE: Request to Sell City -Owned Property in Front of 412 Carnation
Avenue
ABSTRACT:
The property owner's of 412 and 412 -1/2 Carnation Avenue are requesting that the City
sell the City -owned property located in front of 412 Carnation Avenue.
RECOMMENDATION:
Conditionally approve the sale of the City -owned property in front of 412 Carnation
Avenue to the property owner's of 412 and 412 -1/2 Carnation Avenue as described in
the agreement for purchase and sale of real property. Authorize the City Manager to
execute the agreement for purchase and sale of real property on behalf of the City.
FUNDING REQUIREMENTS:
An estimated $16,346 from property sales revenue will be added into the General Fund.
DISCUSSION:
Mr. Christiansen is one of the owner's of a 2 -unit condominium complex at 412
Carnation Avenue who approached the City to ask if the City Council would consider an
offer to sell him the City -owned property on the easterly side of the existing Carnation
Avenue in front of his property.
The property in question was dedicated to the City as street right- of -way per the 1904
Corona Del Mar Tract. The map showed that Carnation Avenue would be a straight
street from First Avenue to Bayside Drive. However, due to the slopes in the area,
Carnation Avenue could not be built as a straight street and the City vacated this
section of street right -of -way in 1929. As a result of this vacation, the westerly 25 feet of
1
Request to Sell City -Owned Property in Front of 412 Carnation Avenue
August 9, 2011
Page 2
the vacated portion of Carnation Avenue went to the City -owned Begonia Park which
retained the slope portion of the vacated easement. The easterly 25 feet of the vacated
portion of Carnation Avenue went to the adjoining property owners to the east. In 1963,
the City constructed Carnation Avenue on a new alignment that curved into the Begonia
Park due to the slopes. This new alignment left surplus City -owned land on the east
side of Carnation Avenue. ,
The City -owned parcel that Mr. Christiansen is requesting to purchase lies between his
property and Carnation Avenue and is approximately 1,009 square feet in size. In 1997,
Mr. Christiansen obtained an Encroachment Permit and Encroachment Agreement from
the City to install private improvements in the City -owned parcel. These improvements
consist of an entrance stairway and walkway, a 3 -foot high retaining wall, raised
concrete block planters walls, landscaping and irrigation. The City does not have any
public improvements or utilities on this parcel and has no intent to use this parcel for the
placement of City utilities or to widen Carnation Avenue. Given the size and location of
this lot, staff believes that the only logical buyer would be the owner of the adjacent
property owner to the east, currently owned by Mr. Christiansen.
Mr. Christiansen's property currently has a General Plan Designation of RT, or Two -Unit
Residential. The sale of the subject parcel and subsequent lot merger to the existing
common area of the condominium complex would be consistent with the General Plan.
On February 23, 2010, the request to sell the City -owned property in front of 412
Carnation Avenue and determine a sale price went to the City Council Closed Session
for consideration. City Council agreed upon a sale price of $16,346 for the property with
conditions as recommended by staff. The staff recommended conditions are:
1. The existing private improvements permitted through the Encroachment
Agreement are allowed to remain.
2. No habitable structures shall be allowed to be constructed on the subject parcel.
3. The square footage of this parcel cannot be used to increase the buildable area
allowed on the adjacent parcel.
4. The City makes no guarantees or warrantee related to the stability of the slope
on the subject parcel.
5. The buyer shall pay all transaction costs including escrow and title fees, related
to the property transfer.
6. The subject property shall be merged into the common area of the condominium
complex via a lot line adjustment.
2
Request to Sell City -Owned Property in Front of 412 Carnation Avenue
August 9, 2011
Page 3
Pursuant to Government Code Section 54222 et seq., the City has notice the intent to
dispose of surplus real property on August 17, 2010, and provided that offers be
submitted within sixty (60) days. The notices were sent to the County of Orange and
the California Natural resources Agency. No requests were submitted to staff.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Stephen :.• j 'W.
Public Works Director
Attachments: A. Vicinity Map
B. Agreement For Purchase and Sale of Real Property
C. Property Appraisal and Staff Analysis of Real Estate Appraisal
3
GAP
GP
P
J
P
GO
SUBJECT PROPERTY
BEGONIA PARK JCS,
J
ZT
�O
R,
�e-
G
s
�ayS,oF
ST
csq��4r /c \
I
N
NOT TO SCALE
ATTACHMENT A - VICINITY MAP
J
�P
�P
F
rj
AGREEMENT FOR PURCHASE AND SALE OF REAL
PROPERTY
This AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
( "Agreement ") is entered into by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city (the "City "), KURT P. CHRISTIANSEN,
TRUSTEE OF THE KURT P. CHRISTIANSEN TRUST dated August 1, 2002 ( "the
Christiansen Trust "), owner of the real property commonly known as 412 Carnation,
andNICHOLAS A. SAMIOS and CAROL B. SAMIOS ( "the Samios "'), husband and
wife, owners in joint tenancy of the real property commonly known as 412 '/z Carnation
Avenue. The Christiansen Trust and the Samios' shall be referred to collectively as the
"Buyers." This Agreement is for sale of certain real property owned by City to the
Buyers, and is made on the basis of the following facts, intentions and understandings.
RECITALS
A. Buyers are the present owners of certain real property located in the City of
Newport Beach, County of Orange, California. The Christiansen Trust is the
owner of the parcel of land commonly known as 412 Carnation Avenue, Corona
del Mar, California, 92625, Assessor's Parcel No. 938 - 016 -50. Nicholas A.
Samios and Carol B. Samios (The "Samios "') are the owners of the parcel of land
commonly known as 412 '/2 Carnation Avenue, Corona del Mar, California,
92625. Assessor's Parcel No. 938 -01 -326. For purposes of this Agreement,
Assessor's Parcel No. 938 -01 -325 and Assessor's Parcel No. 938 -01 -326 shall
be referred to collectively as "412 Carnation." A map of 412 Carnation is
attached hereto as Exhibit "A ", which is attached hereto and incorporated
herein by reference.
B. 412 Carnation has been improved with two residential condominium units as
provided for in a Revised Condominium Plan recorded on April 9, 2010 as
Instrument No. 2010000168317 in the Official Records of the Orange County
Clerk- Recorder. One condominium unit is owned by the Christiansen Trust, and
the other is owned by the Samios'.
C. City owns certain real property consisting of a parcel of approximately 1,009
square feet of land, located between the westerly property line of 412 Carnation
and the easterly side of Carnation Avenue (the, "Property "), more particularly
described in Exhibit "B" ( "Legal Description ") which is attached hereto and
incorporated herein by reference.
D. Under the terms of Encroachment Permit No. EP97 -472 and an Encroachment
Agreement between City and Kurt P. Christiansen dated January 5, 1997, and
recorded as Document No. 1998 - 0020393 in the official records of the County of
Orange, the Christiansen Trust has improved the Property with a retaining wall,
concrete entrance stairway, raised concrete block planters, landscaping,
irrigation, garden paths, paved patio areas and appurtenances (the, "Permitted
Improvements ").
fr'7
E. Buyers desire to purchase the Property from City with the intent to merge
Property with 412 Carnation.
F. City desires to sell the Property to Buyers. City agrees to sell, assign and
transfer Property to Buyers on the terms and conditions set forth in this
Agreement.
NOW THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged, the parties agree as follows:
1. Purchase and Sale of Property. Upon the terms and conditions
contained herein, Buyers hereby agree to purchase all of City's right, title and interest in
and to the Property from City and City agrees to sell, assign and convey all of the City's
right, title and interest in and to the Property to Buyer.
2. Purchase Price. The purchase price for the Property shall be Sixteen
Thousand Dollars and no /100 ($16,000.00) ( "Property Purchase Price ").
3. Conveyance. City's conveyance of the Property to Buyers
( "Conveyance ") shall be completed within thirty (30) business days of the satisfaction of
the conditions to Conveyance set forth in Section 4, but in any event not later than 365
days after City and the Buyers have approved this Agreement (the "Outside Date ")
unless the City and Buyers have mutually agreed in writing to an extension of this
Outside Date if necessary. The Conveyance shall occur at a time and place reasonably
agreed upon by the parties. The "Conveyance" shall mean the time and day the
Quitclaim deed is filed for recording with the Orange County Recorder. The
"Conveyance Date" shall mean the day on which the Conveyance occurs.
4. Conditions to Conveyance. The Conditions to the Conveyance are as
follows:
(a) Buyers and City shall apply for a lot line adjustment to incorporate
the Property into 412 Carnation.
(b) Buyers have secured any and all permits and approvals required
for the lot line adjustment by the City or any other government agency including The
California Coastal Commission; and
(c) Buyers have secured any and all approvals interest holder in
property required pursuant to any mortgage deed of trust or other form of conveyance
for financing recorded on 412 Carnation Avenue.
(d) Buyers determining that the condition of the Property is as
represented herein by City; and
(e) Neither Buyers or City are in material default of this Agreement;
and
(f) None of Buyers or City's representations and warranties contained
herein shall be proven materially untrue; and
Agreement For Purchase And Sale Of Real Property
2 6
(g) Satisfaction of all of City's obligations enumerated in Section 5
hereof; and
(h) Satisfaction of all of Buyers' obligations enumerated in Section 6
hereof: and
5. City's Obligations.
(a) City shall Advise Buyers no later than five (5) business days before
the anticipated Conveyance of the instructions to facilitate an electronic transfer of
funds.
(b) City shall deliver to Buyers, no later than 12:00 o'clock noon, one
(1) business day before the anticipated Conveyance, an originally executed and
recordable Quitclaim Deed (the, "Quitclaim Deed ") in substantially the form set forth of
Exhibit "C" incorporated herein by reference.
(c) A certification ( "FIRPTA Certificate ") originally executed by City
under penalty of perjury in substantially the form of Exhibit "D ", setting forth City's
address(es) and social security /tax identification numbers, and certifying that none of
the parties comprising Seller is a "foreign person" for purposes of Section 1445 (as may
be amended) of the Internal Revenue Code of 1986, as amended, and any regulation
promulgated thereunder and City are resident taxpayers in the State of California for
purposes of Revenue and Taxation Code Sections 18805 and 26131.
6. Buyers' Obligations. Buyers shall deliver to City, no later than 12:00
o'clock noon one (1) business day before the anticipated Conveyance, the following:
(a) Buyers shall deliver to City, no later than 12:00 o'clock noon two (2)
business days before the anticipated Conveyance the funds comprising the Property
Price. Delivery of funds shall be via wire transfer pursuant to the instructions set forth in
Exhibit "E"
(b) Prior to Conveyance, Buyers shall apply with City for a lot line
adjustment merging the Property with 412 Carnation, and shall pay all fees required by
City for the processing the lot line adjustment. Buyers shall diligently perform all actions
and submit all plans and other documents necessary for the lot line adjustment,
including but not limited retaining such surveyors, consultants and design professionals
as are necessary to prepare plans, documents and legal descriptions of the Property
and 412 Carnation. Fees for surveyors, design professionals, and /or other consultants
retained to produce such plans, documents and legal descriptions of the Property and
412 Carnation shall be paid entirely by Buyers.
7. Representations and Warranties.
7.1 The Buyers represent and warrant to the City as follows:
(a) Authority. Buyers have full right, power, and lawful authority to
purchase the Property as provided herein; and
Agreement For Purchase And Sale Of Real Property _
_ 3 7
(b) No Conflict. Buyers execution, delivery and performance of its
obligations under this Agreement will not constitute a default or a breach under any
contract, agreement or offer to which Buyers are a party or by which it is bound; and
(c) To the best of the Buyers' knowledge, there are no actions, suits,
material claims, legal proceedings, or any other proceedings affecting this Agreement
thereof, at law, or in equity before any court or governmental agency, domestic or
foreign; and
(d) To the best of the Buyers' knowledge, neither the execution of this
Agreement nor the performance of the obligations herein will conflict with, or breach any
of the provisions of any bond, note, evidence of indebtedness, contract, lease, or other
agreement; and
7.2The City represents and warrants to the Buyers as follows:
(a) The City has full right, power and lawful authority to grant, sell and
convey the Property as provided herein; and
(b) To the best of the City's knowledge there are no other persons who
have a lawful interest in the Property; and
(c) To the best of the City's knowledge, there are no pending or
threatened actions, suits, material claims, legal proceedings, or any other proceedings
affecting the Property or any portion thereof, at law, or in equity before any court or
governmental agency, domestic or foreign; and
(d) Until the Conveyance, the City shall not do anything, or allow any
other person or entity to do anything, which would impair the City's title to the Property
or title to the Property; and
(e) The City agrees to convey by Quitclaim Deed to Buyers title to the
Property.
(f) Until the Conveyance, the City shall, upon learning of any fact or
condition which would cause any of the warranties and representations in this Section
7.2 not to be true as of Conveyance, immediately give written notice of such fact or
condition to Buyers.
8. Release and Waiver. The Property Purchase Price has been determined
based upon negotiations at arm's - length. City waives any right to receive an offer
based on an appraisal, and agrees that the Purchase Price shall be the sole payment
and compensation to the City for the sale of the City's interest in the Property.
9. Condition and Limitations on Use of the Property.
(a) The square footage of the Property cannot be used to increase the
buildable area allowed on 412 Carnation. This restriction shall be recorded with the
Quitclaim Deed substantially in a form set forth in Exhibit "C."
Agreement For Purchase And Sale Of Real Property
4 8
(b) No habitable structures may be constructed or installed on the
Property. This restriction shall be recorded with the Quitclaim Deed. Landscape
features, garden walls, fences, walkways, hardscape and paths and maintenance or
adjustment thereof will be allowed on the Property, subject to Buyersobtaining all
necessary permits that may be required by City or any other governmental agency.
Existing Permitted Improvements may remain on the Property.
(c) "AS IS" Acceptance of the Property. The Property is located on
a slope, and Permitted Improvements have been installed on the Property by the
Buyers. City makes no guarantees, representations or warranties related to the
condition of the Property, or the stability of the slope on the Property. Buyers are
satisfied with the physical condition, quality, quantity and state of repair of the Property
in all respects and by proceeding to Conveyance, Buyers shall be deemed to have
determined that the same is satisfactory to Buyers;
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND EXCEPT FOR
CITY'S REPRESENTATIONS AND WARRANTIES IN SECTION 6.2 OF THIS
AGREEMENT AND ANY WARRANTIES OF TITLE CONTAINED IN THE QUITCLAIM
DEED DELIVERED AT THE CONVEYANCE ( "CITY'S WARRANTIES "), THIS SALE IS
MADE AND WILL BE MADE WITHOUT REPRESENTATION, COVENANT, OR
WARRANTY OF ANY KIND (WHETHER EXPRESS, IMPLIED, OR, TO THE
MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, STATUTORY) BY CITY. AS
A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, BUYERS
AGREE TO ACCEPT THE PROPERTY ON AN "AS IS" AND "WHERE IS" BASIS,
WITH ALL FAULTS, AND WITHOUT ANY REPRESENTATION OR WARRANTY, ALL
OF WHICH CITY HEREBY DISCLAIMS, EXCEPT FOR CITY'S WARRANTIES IN
SECTION 6.2 OF THIS AGREEMENT. BUYERS ACKNOWLEDGE THAT BUYERS
ARE NOT NOW RELYING, AND WILL NOT LATER RELY, UPON ANY
REPRESENTATIONS AND WARRANTIES MADE BY CITY OR ANYONE ACTING OR
CLAIMING TO ACT, BY, THROUGH OR UNDER OR ON CITY'S BEHALF
CONCERNING THE PROPERTY. ADDITIONALLY, BUYERS AND CITY HEREBY
AGREE THAT EXCEPT FOR CITY'S WARRANTIES, BUYERS TAKE THE
PROPERTY "AS IS" WITH ALL LATENT AND PATENT DEFECTS AND THAT
EXCEPT FOR CITY'S WARRANTIES IN SECTION 6.2 OF THIS AGREEMENT,
THERE IS NO WARRANTY BY CITY THAT THE PROPERTY IS FIT FOR A
PARTICULAR PURPOSE. EXCEPT FOR CITY'S WARRANTIES IN SECTION 6.2 OF
THIS AGREEMENT, BUYERS ARE SOLELY RELYING UPON THEIR EXAMINATION
OF THE PROPERTY. BUYERS TAKE THE PROPERTY UNDER THIS AGREEMENT
UNDER THE EXPRESS UNDERSTANDING THAT THERE ARE NO EXPRESS OR
IMPLIED WARRANTIES (EXCEPT FOR THE LIMITED WARRANTIES OF TITLE SET
FORTH IN THE QUITCLAIM DEED AND CITY'S WARRANTIES).
BUYERS' INITIALS
10. Termination. If Buyers' or City's conditions or other obligations under this
Agreement have not been performed prior to the Outside Date, then either party which
Agreement For Purchase And Sale Of Real Property
5 9
has fully performed under this Agreement may, in writing, demand the return of money
including any earned interest or property and terminate this Agreement. Termination of
this Agreement shall be without prejudice as to whatever legal rights either party may
have against the other arising from this Agreement.
11. Loss or Damage. Loss or damage to Property, by fire or other casualty,
occurring prior to the recordation of the Quitclaim deed shall be at the risk of the Buyer.
12. General Provisions.
12.1 Brokers. The Buyers represent and warrant to City that they have
not used any finder, broker or real estate agent in connection with this transaction, and
agrees that it shall indemnify and hold the other harmless from and against all
brokerage commissions or finder's fees and claims therefore, payable in connection
with the disposition of the Property and resulting from the acts or omissions of such
indemnifying party.
12.2 Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the Buyers and the City and their respective heirs,
personal representatives, successors and assigns.
12.3 Attorneys' Fees. In any action between the parties to interpret,
enforce, award, modify or rescind any of the terms or provisions of this Agreement, or
any action otherwise commenced or taken in connection with this Agreement, both
parties shall be responsible for their respective litigation costs and attorneys' fees.
12.4 Approvals and Notices. Any approval, disapproval, demand,
document or other notice ( "Notice ") which either party may desire or be required to give
to the other party under this Agreement must be in writing and may be given by any
commercially acceptable means to the party to whom the Notice is directed at the
address of the party as set forth below, or at any other address as that party may later
designate by Notice. Any Notice given under this paragraph, whether personally or by
mail, shall be deemed received only upon actual receipt by the intended party.
Agreement For Purchase And Sale Of Real Property
6 10
To City: City Manager
City of Newport Beach
3300 Newport Blvd.
P.O. Box 1768
Newport Beach, CA 92658 -8915
Tele: (949)644 -3000
To Buyers: Kurt Christiansen, Trustee
The Kurt P. Christiansen Trust
412 Carnation
Corona del Mar, CA 92625
Nicholas and Carol Samios
P.O. Box 876
Westminster, MD 21158 -0867
12.5 Jurisdiction and Venue. This Agreement shall be construed under
the laws of the State of California in effect at the time of the signing of this Agreement.
The parties consent to the jurisdiction of the California courts with venue in County of
Orange.
12.6 Titles and Captions. Titles and captions are for convenience of
reference only and do not define, describe or limit the scope or the intent of this
Agreement or of any of its terms. Reference to section numbers are to sections in this
Agreement, unless expressly stated otherwise.
12.7 Interpretation. As used in this Agreement, masculine, feminine or
neuter gender and the singular or plural number shall each be deemed to include the
others where and when the context so dictates. The word "including" shall be construed
as if followed by the words "without limitation." This Agreement shall be interpreted as
though prepared jointly by both parties.
12.8 No Waiver. A waiver by either party of a breach of any of the
covenants, conditions or agreements under this Agreement to be performed by the
other party shall not be construed as a waiver of any succeeding breach of the same or
other covenants, agreements, restrictions or conditions of this Agreement.
12.9 Modifications. Any alteration, change or modification of or to this
Agreement, in order to become effective, shall be made in writing and in each instance
signed on behalf of each party.
12.10 Severability. If any term, provision, condition or covenant of this
Agreement or its application to any party or circumstances shall be held, to any extent,
invalid or unenforceable, the remainder of this Agreement, and the application of the
term, provision, condition or covenant to persons or circumstances other than those as
to whom or which it is held invalid or unenforceable, shall not be affected, and shall be
valid and enforceable to the fullest extent permitted by law.
For Purchase And Sale Of Real Property
7 11
12.11 Offer. Any delivery of unsigned copies of this Agreement is solely
for the purpose of review by the party to whom delivered, and neither the delivery nor
any prior communications between the parties, whether oral or written, shall in any way
be construed as an offer by City, nor in any way imply that City is under any obligation
to enter the transaction which is the subject of this Agreement. The signing of this
Agreement by the Buyers constitute an offer to purchase which shall not be deemed
accepted by City unless and until the City has signed this Agreement. This is not a
binding agreement unless and until executed on behalf of City after approval and
adoption of a resolution or minute action by the City's City Council in full compliance
with the City's Charter, ordinances, and regulations.
12.12 Computation of Time. The time in which any act is to be done
under this Agreement is computed by excluding the first day (such as the day escrow
opens), and including the last day, unless the last day is a holiday or Saturday or
Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays
as specified in Section 6700 and 6701 of the California Government Code. If any act is
to be done by a particular time during a day, that time shall be Pacific Time Zone time.
12.13 Legal Advice. Each party represents and warrants to the other the
following: they have carefully read this Agreement, and in signing this Agreement, they
do so with full knowledge of any right which they may have; they have received
independent legal advice from their respective legal counsel as to the matters set forth
in this Agreement, or have knowingly chosen not to consult legal counsel as to the
matters set forth in this Agreement; and, they have freely signed this Agreement without
any reliance upon any agreement, promise, statement or representation by or on behalf
of the other party, or their respective agents, employees, or attorneys, except as
specifically set forth in this Agreement, and without duress or coercion, whether
economic or otherwise.
12.14 Time of Essence. Time is expressly made of the essence with
respect to the performance by the Buyers and the City of each and every obligation and
condition of this Agreement including, without limitation, the Conveyance.
12.15 Cooperation. Each party agrees to cooperate with the other in the
Conveyance of this transaction and, in that regard, to sign any and all documents which
may be reasonably necessary, helpful, or appropriate to carry out the purposes and
intent of this Agreement including, but not limited to, releases or additional agreements.
12.16 Agreement in Total.
(a) Entire Agreement. This Agreement contains the entire
understanding between the parties relating to the transaction contemplated by this
Agreement. The City is entering this Agreement based solely upon the representations
set forth herein and upon the City's own independent investigation of any and all facts
the City deems material. No subsequent agreement, representation, or promise made
by either party hereto, or by or to an employee, officer, agent or representative of either
party shall be of any effect unless it is in writing and executed by the party to be bound
thereby.
Agreement For Purchase And Sale Of Real Property
8 12
(b) Counterparts. This Agreement may be signed in multiple
counterparts which, when signed by all parties, shall constitute a binding agreement.
Agreement For Purchase And Sale Of Real Property
9 13
IN WITNESS WHEREOF, the Buyers and the City have signed this Agreement
on the dates set forth below.
BUYERS:
Kurt Christiansen, Trustee
The Kurt P. Christiansen Trust
Nicholas A. Samios
Date:
Carol B. Samios
CITY:
CITY OF NEWPORT BEACH,
a California charter city and municipal corporation
0
Dave Kiff, City Manager
ATTEST:
in
Leilani Brown, City Clerk
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
B'
Leonie Mulvihill,
Assistant City Attorney
Exhibit A:
Map of 412 Carnation Ave.
Exhibit B:
Property Legal Description
Exhibit C:
Quit Claim Deed
Exhibit D:
FIRPTA Certificate
Date:
Date:
MWAN
Agreement For Purchase And Sale Of Real Property
10 14
]r
EXHIBIT A
MAP OF 412 CARNATION AVE.
15
EXHIBIT "B"
LEGAL DESCRIPTION OF SUBJECT PROPERTY
To Be Inserted
DOCSO C/ 1077240 v3 /22087 -0180
16
EXHIBIT C
QUITCLAIM DEED
A08 -00107
17
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
Kurt P. Christiansen, Trustee
412 Carnation
Corona del Mar, CA 92625
WITH A CONFORMED COPY TO:
Nicholas and Carol Samios
P.O. Box 876
Westminster, MD 21158 -0867
And;
City of Newport Beach
3300 Newport Blvd.
PO Box 1768
Newport Beach, CA 92658 -8915
Attn: City Clerk
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
QUITCLAIM DEED
For valuable consideration, receipt of which is hereby acknowledged, CITY OF
NEWPORT BEACH, a California municipal corporation and charter city, hereby grants
to KURT P. CHRISTIANSEN, Trustee of the KURT P. CHRISTIANSEN TRUST, dated
August 1, 2002 and NICHOLAS A. SAMIOS and CAROL B. SAMIOS, husband and
wife, as joint tenants, [need owner's preferred vesting
designation, city cannot provide this legal advise to buyers], that real property in the City
of Newport Beach, County of Orange, state of California, described as follows:
See Exhibit 1 attached hereto.
SUBJECT TO, easements and rights of way of record or apparent and the restrictions
contained in Exhibit 2, attached hereto and incorporated by reference.
RESERVING UNTO GRANTOR, its successors and assigns, the right to use said land
for any purpose, that will not in any way interfere with the use by Grantee of this
easement, including, but not limited to, the Grantee's right to construct, relocate, repair,
maintain, piping and appurtenances, in, on, over, across, under and along said land.
Grantee shall not be obligated to relocate its facilities to accommodate any exercise of
the rights retained herein by Grantor; except that Grantee may, in its discretion, permit
such relocation provided the expense is borne by Grantor or others.
A08 -00107
18
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
GRANTORS:
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
Dated:
Leonie Mulvihill,
Assistant City Attorney
ATTEST:
0
Leilani I. Brown,
City Clerk
State of California
County of ORANGE )
CITY OF NEWPORT BEACH,
A California Municipal Corporation
and charter City
Dated:
David Kiff,
City Manager
On , 2011 before me, , Notary Public, personally
appeared DAVE KIFF, who proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged to me that he executed the same in his
authorized capacity(ies), and that by his signature on the instrument the person, 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.
Signature
A08 -00107
19
Exhibit 1
Legal Description to Be Inserted
A08 -00107
20
Exhibit 2
PERMANENT RESTRICTIONS
1. No habitable structures shall be constructed on the parcel. Landscape features,
garden walls, retaining walls, irrigation equipment, fences, paths and patios will
be allowed.
2. The square footage of the Property cannot be used to increase the buildable
area allowed on the adjacent parcel.
3. "AS IS" Acceptance of the Property. The Property is located on a slope, and
Permitted Improvements have been installed on the Property by the Buyer.
Seller makes no guarantees, representations or warranties related to the
condition of the Property, or the stability of the slope on the Property.
21
EXHIBIT D
TRANSFEROR'S CERTIFICATION OF NON - FOREIGN STATUS
To inform the KURT P. CHRISTIANSEN, Trustee of the the KURT P.
CHRISTIANSEN TRUST dated August 1, 2002 and NICHOLAS A. SAMIOS and
CAROL B. SAMIOS ( "Transferee ") that withholding of tax under Section 1445 of the
Internal Revenue Code of 1986, as amended ( "Code ") will not be required upon the
transfer of certain real property described as Assessor's Parcel No.
located in the City of Newport Beach, County of Orange in the State of California to the
Transferee by CITY OF NEWPORT BEACH, a California municipal corporation and
charter city (the "Transferors "), the undersigned hereby certify the following:
1. We am /are not a nonresident alien for purposes of United States income
taxation;
2. My /our United States taxpayer identifying number (Employer Identification
Number is 95- 6000751.
3. My /our address is: City of Newport Beach
3300 Newport Blvd.
PO Box 1768
Newport Beach, CA 92658
Transferor understands that this Certification may be disclosed to the Internal Revenue
Service by the Transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.
Under penalty of perjury, we declare that we have examined this Certification and to the
best of my /our knowledge and belief it is true, correct, and complete, and we further
declare that we have authority to sign this document on behalf of the Transferor.
"TRANSFEROR"
Dated:. By:
Dave Kiff, City Manager
C -1
22
ATTACHMENT C
PROPERTY APPRAISAL AND
STAFF ANALYSIS OF REAL
CHRISTOPHER SPEARE ESTATE APPRAISAL
REAL ESTATE APPRAISER
M Nn 412CARNATTON -LANE
I APPRAISAL OF I
ABANDONM LAND
LOCATEDAT:
A VACANT PARCEL ADJOINING TO 412 CARNATION
NEWPORT BEACH. CA 82825
CLIENT:
.gJRT CHRISTIANSEN
412 CARNATION AVE.
NEWPORT REACH. CA 92625
AS OF:
APRIL 00. 2009
QY:
CI' IRIS TOPHER 5PFARF
AR0019f
_ill 23
Executive Summary
Client
Property Identification:
Owner:
A55e55CYS Parwi k:�
Effective Valuation Dale:
Purpose:
Intended Use:
Type of Value detemited
Property Overview;
Single -User Value Conclusion:
Comments
Scope of Work:
ADDENDUM
Sal& CA
W. Kurt Christiansen
An abandoned parcel lmmedlalefy west of me condominium project
gpaled.al.4.12.Ca+na0on 2vo..Nav✓port EeaohrGA :........ ..........
City of Newpa-I Beach
Not assigned
Apr130, 2009
The purpose V this appraisal is to estimate the current
Sfngle.USer Value of the subject property as of the effective
date of valuation with the hypothetical assumption that the
subject will be encumbered with certain deed restric0ons.
The intended use of the report pertains to the sale of the subject parcel
be Mr. Kvrt Christiansen. This report is intended as assistance In the
nego0aUOns fer the sale. It is not for lending purposes.
A hypatheJcal Single -User Value
An abandoned vacant parcal situated immediately west of
The condominium project at 412 Camalion Ave, Newport Beach, CA. The
panel makes up the lower 30 it of APN: 459- 114 -25.
The parcel extends westward approximately 28.50 it from th a northern
of fine of APN; 459.114-23 to the curb of Carnation Avenue, and
nestmxd approxlmatafy 38.75 ft. from the southern lot line of the above
APN. The parcel has a gentle upslops from Carnation Avenue.
57,900 As cf AT:sl 30, 2009
The above estimated value takes into consideration several
dead:esbiciforia relating to the use atlas parcel. These restrictions
make the properly have the most value to the ownership of the 2
cooco units at 412 Carnation Ave.. and little value to anyone else.
The va[ua determined Is a hypothetical value "as iP certain deed
reslrhWns were in place.
This report is prepared in a summary format. The subject property
was Inspected on April W. 2009. Information an the subject was
researched P. public records and the local MLS. A search was made
for other small abandoned parcals, to determine a market -based
di5counl factor, era [his farmed the basis for the analysis of value.
Subject's Sales History: The sebjecl has nil sold or bansf aced in the last 10 years.
ME
nti umr�e �o�
ADDENDUM
Nmohborhood Descnotion
9-s
The subjpctproperty is loca ; @1in, 3aacit,.in mewes:em- ponlonof Orange -
Counly. The city is bound to the south by the Pacific Ocean.
c'mpioymanrvarrtrrs;'shapping pubtiettanaPartavoa indi pal earvrew.d:a6rl zrilnliifia ;'an'dTe6aa8o`n ":if"
attractions are In convenient proximity, or access via the extar vo regiarmd freeway systom.
"Corona Del Mar':
The subject property is located in the neighborhood just east of Avocado Avenue and sough of Coast Highway.
The area is a mix of mostly single family residences, some commercial uses, and a few condo projects. The
overall area does experience some tourist traffic and congestion mostly in the summer.
The commercial uses in the area are concentrated primarily along Coast Highway [1]. 'rne resldenual propertles
range in age from new custom homes b older collages built during the 1920'x. There is an ongoing trend to
remodel and update the older homes, or demolish them to construct new, good to excellent quality, custom single
family residences. Residential properties range from average to excellent quality homes reflecting average to
excellent condition.
site ComrrwnY.
The subject site is approximately 1,009 sf in size and is rectangular in shape. There is a gentle upslope from the
Carnation Avenue steel curb to the eastern lot line. II is sided by Carnation Avenue to 010 west and by a 2 -unit
condominium project on the east.
Carnation Avenue is a public street which runs north and south. There is no driveway off of Camaton Avenue
providing access to the subject site.
There Is a 3 ft stuccoed retaining wall and a concrele sidewalk that run alongside Carnation Avenue just inside
the western border. The parcol is curranfly landscaped and is used by Mr. Christensen as a yard area.
No adverse easements or encroachments were apparent
Marko( Methodology:
The abandoned vacant parcel immediately south e; the sulnert was sold by the City to Mc Ed Foster the
adjacent property owner) in Feb. t999 for $37,000. This sale was made under similar dead restrictions to those
that are being applied to the u:bjx, and is used to establish a discount factor that can be applied to the valuation
of the subject.
Ed Foster bought his parcel of 8,1,81 sf. from the ('try on Feb. 19, 1999 for $31.000. This sale reflects a $isf
Indicator of $3.79 pet.
The subject is located in a neighborhood known an "Corona 1791 Mar &mm" dCDkia} and sales od properties
situated within CDMS which occurred during the 6 months leading up to the Faster Feb. 19, 1959 sale date were
researched in me local MLS.
Sates were selected 0ia1 were north of Baysida Drive and south of Coast Highway, this is the subject's immediate
neighborhood. Prices were gently trending upward in the last half of 199 3 and info 1999, and a lime acush- ent
of +1.0% per month was applied to their dale of sala up too 02- 19-1799.
I hase sales had an average sale price was $626,610 and their average lot 53e -is 3,493 St. This iesuts in an
Indicator of'.
Nghd sales (8.20 -98 to 2.19 -99) Avg Sale Pd c per S`. _ $179.39
Whe i cornpared to the Ed Poster sale ($3.79 psi), this Indlcrgou s di. "•cnunl fnrtOr of 9T9% due to the
Single -User deed resticled parcel.
However, Mr Poster's parcel is more private as it is accessible only by himself. In Ire subject's ease, the
adjoining parcel is a 2 -unil condearinium and the City has Indiootod that 1=isn across the subject parcel is Ic be
availab:a le both condo owners. This reduces the privacy of the subject parcal and a further discount factor is
wanarnea Tna appraiser has estimated a Wrther discount of 0.5 %, resulting in a total discount factor of 98.4 %.
25
ADDENDUM
Slate: CA
The same sale parameters were then applied to sales in the subject's immediate neighborhood for the 6 months
leading up to the current date of value, April 30. 2009. Again, sales were selected thatwere north of Bayside .
Drive and south of Coast Highway. Prices have been trending downward over this time period and a 0me
adjustment was applied of .1.5% per month from the date of sale up thru April 30, 2008.
These sales had an average .vas $1,677,015 and their averse lot~ �ra 9 sale nce p g size was 3,417 s(. This results in an
indicator of:
Nghd sales ( 10 -30-08 to 4 -29-09) Avg Sale Price per SF. _ $490.78
Applying the discount factor of - 98.4 %, the associated Single -User indicator is ......... $7.85 pet.
When this $7.85 psf indicator is applied to the Subject's lot size of 1,009 sf, the hypothetical deed restricted
Single -User Value as of April 30, 20(19 is estimated to be $7,920, rounded to:
•—"$7,900-•'•• (AsofApri)30,2009)
MARKET DATA RECONCILIATION
There were few properties that were considered to be relevant to the subject. The prior sale to Mr. Ed Foster of
the parcel immediately south of the subject was used to develop a market discount factor, relating to the
difference between residential land that is able to be developed vs, abandoned deed- restricted land.
Current neighborhood sales were researched and analysed on a $ /at of lot area basis. The average $ /at of the
current sales was adjusted by the discount factor. and the discounted $Isf indicator was then appiled to the
subjwXs lot size to estimate a current Single -User Value for the subject
The Income approach to value and the Cost Approach to value were not considered relevant to the subject and
were not developed.
Subject's Use Restrictions:
Per Mr. Christiansen, no official dead restrictions have been tonally agreed to between himself and me City.
However. he Indicated that me following restrictions or similar ones should be assumed as to what he and the
City win agree to:
1. That no habitable structures are to be constructed on the parcel. Landscape features such as fences,
garden walls, and planters will be allowed. ...
2. The square footage of the Subject parcel can not be used to increase the buildable area allowed on the
adjacent parcel.
3. That the City makes no guarantees related to the stability of the slope of the parcel.
4. That any hardscape on the parcel be owned and maintained by the purchaser of Ole property or
his successors.
S. That the owner of the rear unit at 412 Carnation have access across the subject parcel.
C. Spoare
Appraiser
AR001953
05-07.2009
26
Appraiser Certifications:
1 The reported analyses opinions rd conclusions are limited only by the reported assumptions and funiting
oundlaone and are the appraiser% unbiased proresslorlal concusions
2 The appraiser has no present Or pmspeC6ve interest in tho property Molls the subject of this report and
3. The appraiser ties no Was with mspM to the property that Is the subject of this report or to the parties
involved with U:is assignment.
4. The appraisers angagement in this assignment was net contingent upon developing or reporting
predetermined results.
5. The appraisers compensation is not contingent upon the devaiopmerif of a predetermined value or
direction in value that favors the diem.
G. The appraiser has made a personal Inspection of the property Nat is the subject of this report.
7. No on provided significant real property, appraisal assistance to file appraiser.
8. This is a Restricted Use Report for use only by the client and the City of Newport Beall, both of whom
are familiar with the subject property.
9. Tills report is nor for lending purpasas.
10. This is a summary, format with additional infoipation maintained in the appmisers work file,
27
SWPeof Wafk, Assumptions and LiftlN V Conditions
thin. ,, nd ealenl
fia No. 412CARNATION -LAN
The scophaftniseppraisal and o,'s<iy die;W`4n%n Uismml ae spttifciova noodle of ale client, ouvy ldonafled M[endetl 'dl's and w Ehe
in[eMeds,sedlMrepmd. ThL^ reportwaspzparedfc-nie soa ancexcwsrveuse ufUxUanaaWO [heelam[iPMlnmMe4users lofdleiddnuflcl
lnaandeduaaarxiiuuu eyanyotFerpavesis preiliW:ed. Theappx ismir(Sptv'I6ih:DlarLmuM {adduced NOmpwr.
inc appraisv's ceniPrx:IDnappwvlrlg an[nts apprssa:rop„•, ix>ua�m mtay (ullavingcondilions aM msuch oGV f:l%dDUk cwldidomasnrc
sttfaPn Dy Gwappmiserintremprrt. ai: exvawdiuryessumpllunsar unypou, ell mlcmailions xaswtM In rhereporraw migh [IwveaRee[[d[he
asslgnmenrrxults.
d. meaFprais.ism fzpluad loyi',etesdmarya 3jpe.'r. rawthaulaa ulNd,Sw.xb Neappeialn ,'Pnderercetttllepl[a,dar e,gw.xlan,We» ale jelWl.lOre Eab+
oenno %rtadaN.em.
a, nenb. al, mrxnppand Uce eaaen NNSSe9ai [WYa [6:n.iypadw:ed ([,µe=fy earNdms astt de pmpcnf reD:e, roeikn�rydNeappla's., pMesdaul dasgadxs.
a an, tmvnlixfirh dm appals.. :", Cox taep betted fq.,yrylfnscstyeeWE ha Vedkwand ama uamled uses asaelUlad tt uls,apen. ml s 1e MtW,,41K b{
emalem.a p66[e IMm�I aEVmid.sq gt6crela'iaa.am. sekxm otl. ma3a.mhiddammnmynmame appal r.
5. LA ¢2pWEket•k§Inpl9i5(Ih'eNeCWelIS MWedpp'aSa:nnrm le•lyya(!^vyRf ry epfd'gLhbww P55p(af' din ihcU ,L•M9&Iddfd5MP101055TnalA�naiel REmle.
6, do:mako.e5,imafC, ae3aprlam Afni'MpNebj<YeCn, &:1[mlantlh Lie cgKwoe0ddA[C 1r4'l15'NYC&[Wt5iE8a1lefOGa aMa9iaved to MmwLM1eX
NMPrel,mlPNaiNIM6tJ[q MMdC/0.'SV:II Iems(gia3Md Uda iP5di5.¢a$duaed ErVC applaSU.
1.i 'W, iulazsumesc -at>Mrz uenoniC dz, a< mif ¢I[rr[mfrimsd[rapoµir,wMp1.Yl suuttvcs, ntiNwouldsa^Ani,mo,eaIEU Valvake. illeafglacaessvnzs
dhm SWbeoorltlednaah. o'fN NIa1CtYaxfol Iv'C. IYMlrl TI'yr1 U! IFQJUO, D( NYrV 'SWllaGq[.1)uapplYY,lld,laBO M1i([[MNYII B55CS:nk,Ilo1 LIEfRpUryarG
NaWd ml bemn5d.¢daS tWh.
6. nit appaitalnyonsmwdra [enuata awwe ne<elexmMUC p atve ,"eves:onlp�esenNebscrceam�pps. Tlemm6NVIDd artl mwwa9ad [e crpb /9ua6aed
egmsmnspetl andaaa�eAaeat o'm•Taar, pDegalrx:ati[ans ue 0fwrvecJ..k o"viondvxwEtlaybe adenrd.
9,udy floc ,,na:ydhypdnetvalemdY[mreLRtk laC aY{ Maanolaew[ msw :sn+.lepols.aanam'lalehaselten ps assvnplmwasunmmplef ,aeehuaa + nnptusui6
x rDlryvlmey p.fmmea
Addiddre[COmmen[:.Aela[enioSwspe OfYKrk hsw =,q�urnelu LimihNg Cw,.ldxs
m
spar
Fie hh. 612CARNAT I ON- A N
Appraisers Certlflcativn
Thoappreiserfsicertlhns that, to too MStoftheappraiss-a knonletlgaaW belle!:
1. i #M,erteR5dle6<naaMetlb CSlFpCtl xeWeiM[antCt
i Tne..pxtmankssec opums,an2crosbshlsaelniytlttfy 6y ee leyxlletl:simplG5an4vi irgwnduar¢xmxeme apgaisers peasawl. isyarcal,alW wine >ed
p'Hessnrota:ajzes.oynma, a-tl:n'dvtl; ,s,
z U:ass;Al!frvitt sumf,sxappzsnhu na pn'acnpusynu':emsteu AL'cepcgaiyNBislhewyea ofNtrepwt aw#smpescsW irurexwMrespmtPlhepaNes
amber.
4. 1la appai.uhnna.'lazrrhlospetttP C¢RPyeIIflMY is Yesv-jaa q'ganpata; xlMp:rJesurvdrm AJiis assglmua
3. 1#sppx YSe yaymcrn v:sass:gimx.;rascdmtirgrteysa Orxxhp'ry nlepufgpeenemlN4:e..11ts
T.
I Elm" ,Y 4ebvlx apntKN Sgriront"al popwlyapgeal5alassiaUl[epforieM Oy:
nnaltlonal rpnl( @etions:
oafirfitbnofvoua. ❑wrkc:Valvc 00e vol : Single -User Value
Sawea m Ce.A.: Use Value: Use value is the valve a specific prop Lf has for a specific use.
A VACANT PARCEL ADJOINING 10412 CARNATION
NEWPORT 3ERCH CA `2625
EFFECPVE 116TE Cr MC PFFRNSiL .APRIL 3012009
N'P3AISEp4'ALUE CFTrIE $tEJECi Pp,: £Rtt S i,9�3
.APMAIS -F /i J
vane: CHRISTOPNURRg__,
SalecmL9abnr ARGOt 953
Sure, CA. ._..__.
Sale: CA _
Fapi a .n croA t 06 -26 2010
wle lsyw mapn OO 072009___
U;le Pppq{jv g- APRIL SO 2009
Oep Ip WY ' -9
❑k oepnwally— ❑pe e p, mmff iew
S irM'g50RVAPP,VSER
Sgave _
54tR CPV111 l
a:4e1
S.4.
Ey.? ,N ex, 0 CrofpI'Ael ta:ln%'_
eel ISiy.4 e � _
C =9 P ap Y Cr'n
❑0.f pusv.Y74v (elJ nf;^•.a'a'rym�w
29
a parr, . F�xaa
, � . _ Laser F.-,Ps.
2 d .
ƒ�����
REARVIEWOF
Si NFEY, SCENE
RTY
30
PLAT MAP
N 18
8LK.330. BL
117
r, I 4 &AY5IDE
112 22
A
16
24
19�2iau�
13'.
g
I�
T
T.
7
s
11U
117
r, I 4 &AY5IDE
Q
v
so,
31
A
16
15
19�2iau�
13'.
g
' 11
s
11U
�
su•
3 s so-
} 10
Q
v
so,
31
LOCAPON MAP
32
Staff Analysis of Real Estate Appraiser Report
Sale of Excess Right -of -Way - Foster
Council Report — September 28 1998
............_......,... Trar;saetien- Gempteted- fi r• rary,..gg. 1ggQ...... ........ .. . . . ........................................... ....... ,. ..... .......... ......
...........
Lot Size = 8,181 SF
Total purchase price = $48,000 (per Council report)
Cash = $31,000 (recorded sale price)
Right -of -way improvements = $17,000 (sidewalk and retaining wall)
Price per square foot
(Per Council report sale price) = $48,000 / 8,181 SF = $5.87
(Per recorded sale price) = $31,000 / 8,181 SF = $3.79
Market Methodology
1998 -1999 (from appraisal report)
Area Average Sale Price = $626,610
Average Lot Size = 3,493 SF
Area Average Sale Price per SF = $179.39
2008 -2009 (from appraisal report)
Area Average Sale Price = $1,677,015
Average Lot Size = 3,417 SF
Area Average Sale Price per SF = $490.78
Proposed Price for Excess Right -of -Way - Christiansen
Proposed Lot Size = 1,009 SF
Discount Factor from Foster Sale
($179.39- $5.87) / ($179.39) = 0.967 or 96.7% of average sale price
Proposed Price per SF = $490.78 — ($490.78(0.967)) = $16.20
Price for proposed safe of C ty properiy:
($16.20 per square foot)(1,009 square foot) = $16,346
33
Issues
• Appraisal report uses sale price of $31,000 instead of $48,000 for basis for
proposed sale price.
.... ...... ... ....... _ _.........
Discount Factor from Foster Sale
0 °9'r9 °or9 r:9 ,of °average °'sate pnce _...._. .
Proposed Price per SF = $490.78 — ($490.78(0.979)) = $10.31
Price for proposed sale of City property:
($10.31 per square foot)(1,009 square foot) = $10,403
• Appraisal report discounts proposed sale price by 0.5% for privacy reasons.
Proposed City property to be purchase will be used exclusively by condo owners
therefore removing this 0.5% discount.
• Proposed City property to be purchased will need to be merged into existing
condo lot.
34
CITY OF NEWPORT BEACH
OFFICE OF THE CITY ATTORNEY
DATE: August 8, 2011
TO: Honorable Mayor and
Members of the City Council
FROM: Office of the City Attorney V r
Leonie Mulvihill, Assistant City Attorney
9�JFpV,
Public Works Department
Stephen Badum, Director
MATTER: 412 Carnation: Kurt Christiansen Agreement [A08- 00107]
RE: Agenda Item 6 — Minor Revisions to Purchase and Sale Agreement
The Office of the City Attorney and City staff requests a modification to the language of the
Agreement for Purchase and Sale of Real Property ( "Agreement ") included in Agenda
Item 6.
A redlined copy of page 2 of the Agreement depicting the revised section is included in
Attachment 1 for the City Council's consideration. A execution copy of the revised
Agreement is attached as Attachment 2 and has been executed by Mr. Kurt Christiansen.
We request and recommend that the City Council approve the Contract as revised in
Attachment.
Assistant City Attorney
E. Buyers desire to purchase the Property from City with the intent to merge
Property with 412 Carnation as their interests appear in the Revised
Condominium Plan described in Paragraph B above.
F. City desires to sell the Property to
transfer Property to Buyers on the
Agreement.
Buyers. City agrees to sell, assign and
terms and conditions set forth in this
NOW THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged, the parties agree as follows:
1. Purchase and Sale of Property. Upon the terms and conditions
contained herein, Buyers hereby agree to purchase all of City's right, title and interest in
and to the Property from City and City agrees to sell, assign and convey all of the City's
right, title and interest in and to the Property to Buyer.
2. Purchase Price. The purchase price for the Property shall be Sixteen
Thousand Dollars and no /100 ($16,000.00) ( "Property Purchase Price ").
3. Conveyance. City's conveyance of the Property to Buyers
( "Conveyance ") shall be completed within thirty (30) business days of the satisfaction of
the conditions to Conveyance set forth in Section 4, but in any event not later than 365
days after City and the Buyers have approved this Agreement (the "Outside Date ")
unless the City and Buyers have mutually agreed in writing to an extension of this
Outside Date if necessary. The Conveyance shall occur at a time and place reasonably
agreed upon by the parties. The "Conveyance" shall mean the time and day the
Quitclaim deed is filed for recording with the Orange County Recorder. The
"Conveyance Date" shall mean the day on which the Conveyance occurs.
4. Conditions to Conveyance. The Conditions to the Conveyance are as
follows:
(a) Buyers and City shall apply for a lot line adjustment to incorporate
the Property into 412 Carnation.
(b) Buyers have secured any and all permits and approvals required
for the lot line adjustment by the City or any other government agency including The
California Coastal Commission; and
(c) Buyers have secured any and all approvals interest holder in
property required pursuant to any mortgage deed of trust or other form of conveyance
forfinancing recorded on 412 Carnation Avenue.
(d) Buyers determining that the condition of the Property is as
represented herein by City; and
and
(e) Neither Buyers or City are in material default of this Agreement;
For Purchase And Sale Of Real
2
Flit
AGREEMENT FOR PURCHASE AND SALE OF REAL
PROPERTY
This AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
( "Agreement ") is entered into by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city (the "City'), KURT P. CHRISTIANSEN,
TRUSTEE OF THE KURT P. CHRISTIANSEN TRUST dated August 1, 2002 ( "the
Christiansen Trust "), owner of the real property commonly known as 412 Carnation,
andNICHOLAS A. SAMIOS and CAROL B. SAMIOS ( "the Samios "'), husband and
wife, owners in joint tenancy of the real property commonly known as 412'/2 Carnation
Avenue. The Christiansen Trust and the Samios' shall be referred to collectively as the
"Buyers." This Agreement is for sale of certain real property owned by City to the
Buyers, and is made on the basis of the following facts, intentions and understandings.
RECITALS
A. Buyers are the present owners of certain real property located in the City of
Newport Beach, County of Orange, California. The Christiansen Trust is the
owner of the parcel of land commonly known as 412 Carnation Avenue, Corona
del Mar, California, 92625, Assessor's Parcel No. 938 - 016 -50. Nicholas A.
Samios and Carol B. Samios (The "Samios "') are the owners of the parcel of land
commonly known as 412 '/2 Carnation Avenue, Corona del Mar, California,
92625. Assessor's Parcel No. 938 -01 -326. For purposes of this Agreement,
Assessor's Parcel No. 938 -01 -325 and Assessor's Parcel No. 938 -01 -326 shall
be referred to collectively as "412 Carnation." A map of 412 Carnation is
attached hereto as Exhibit "A ", which is attached hereto and incorporated
herein by reference.
B. 412 Carnation has been improved with two residential condominium units as
provided for in a Revised Condominium Plan recorded on April 9, 2010 as
Instrument No. 2010000168317 in the Offficial Records of the Orange County
Clerk- Recorder. One condominium unit is owned by the Christiansen Trust, and
the other is owned by the Samios'.
C. City owns certain real property consisting of a parcel of approximately 1,009
square feet of land, located between the westerly property line of 412 Carnation
and the easterly side of Carnation Avenue (the, "Property "), more particularly
described in Exhibit "B" ( "Legal Description ") which is attached hereto and
incorporated herein by reference.
D. Under the terms of Encroachment Permit No. EP97 -472 and an Encroachment
Agreement between City and Kurt P. Christiansen dated January 5, 1997, and
recorded as Document No. 1998 - 0020393 in the official records of the County of
Orange, the Christiansen Trust has improved the Property with a retaining wall,
concrete entrance stairway, raised concrete block planters, landscaping,
irrigation, garden paths, paved patio areas and appurtenances (the, "Permitted
Improvements ").
E. Buyers desire to purchase the Property from City with the intent to merge
Property with 412 Carnation as their interests appear in the Revised
Condominium Plan described in Paragraph B above.
F. City desires to sell the Property to Buyers. City agrees to sell, assign and
transfer Property to Buyers on the terms and conditions set forth in this
Agreement.
NOW THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged, the parties agree as follows:
1. Purchase and Sale of Property. Upon the terms and conditions
contained herein, Buyers hereby agree to purchase all of City's right, title and interest in
and to the Property from City and City agrees to sell, assign and convey all of the City's
right, title and interest in and to the Property to Buyer.
2. Purchase Price. The purchase price for the Property shall be Sixteen
Thousand Dollars and no /100 ($16,000.00) ( "Property Purchase Price ").
3. Conveyance. City's conveyance of the Property to Buyers
( "Conveyance ") shall be completed within thirty (30) business days of the satisfaction of
the conditions to Conveyance set forth in Section 4, but in any event not later than 365
days after City and the Buyers have approved this Agreement (the "Outside Date ")
unless the City and Buyers have mutually agreed in writing to an extension of this
Outside Date if necessary. The Conveyance shall occur at a time and place reasonably
agreed upon by the parties. The "Conveyance" shall mean the time and day the
Quitclaim deed is filed for recording with the Orange County Recorder. The
"Conveyance Date" shall mean the day on which the Conveyance occurs.
4. Conditions to Conveyance. The Conditions to the Conveyance are as
follows:
(a) Buyers and City shall apply for a lot line adjustment to incorporate
the Property into 412 Carnation.
(b) Buyers have secured any and all permits and approvals required
for the lot line adjustment by the City or any other government agency including The
California Coastal Commission; and
(c) Buyers have secured any and all approvals interest holder in
property required pursuant to any mortgage deed of trust or other form of conveyance
for financing recorded on 412 Carnation Avenue.
(d) Buyers determining that the condition of the Property is as
represented herein by City; and
and
(e) Neither Buyers or City are in material default of this Agreement;
For Purchase And Sale Of Real
2
M None of Buyers or City's representations and warranties contained
herein shall be proven materially untrue; and
(g) Satisfaction of all of City's obligations enumerated in Section 5
hereof; and
(h) Satisfaction of all of Buyers' obligations enumerated in Section 6
hereof: and
5. City's Obligations.
(a) City shall Advise Buyers no later than five (5) business days before
the anticipated Conveyance of the instructions to facilitate an electronic transfer of
funds.
(b) City shall deliver to Buyers, no later than 12:00 o'clock noon, one
(1) business day before the anticipated Conveyance, an originally executed and
recordable Quitclaim Deed (the, "Quitclaim Deed ") in substantially the form set forth of
Exhibit "C" incorporated herein by reference.
(c) A certification ( "FIRPTA Certificate ") originally executed by City
under penalty of perjury in substantially the form of Exhibit "D ", setting forth City's
address(es) and social security /tax identification numbers, and certifying that none of
the parties comprising Seller is a "foreign person" for purposes of Section 1445 (as may
be amended) of the Internal Revenue Code of 1986, as amended, and any regulation
promulgated thereunder and City are resident taxpayers in the State of California for
purposes of Revenue and Taxation Code Sections 18805 and 26131.
6. Buyers' Obligations. Buyers shall deliver to City, no later than 12:00
o'clock noon one (1) business day before the anticipated Conveyance, the following:
(a) Buyers shall deliver to City, no later than 12:00 o'clock noon two (2)
business days before the anticipated Conveyance the funds comprising the Property
Price. Delivery of funds shall be via wire transfer pursuant to the instructions set forth in
Exhibit "E"
(b) Prior to Conveyance, Buyers shall apply with City for a lot line
adjustment merging the Property with 412 Carnation, and shall pay all fees required by
City for the processing the lot line adjustment. Buyers shall diligently perform all actions
and submit all plans and other documents necessary for the lot line adjustment,
including but not limited retaining such surveyors, consultants and design professionals
as are necessary to prepare plans, documents and legal descriptions of the Property
and 412 Carnation. Fees for surveyors, design professionals, and /or other consultants
retained to produce such plans, documents and legal descriptions of the Property and
412 Carnation shall be paid entirely by Buyers.
7. Representations and Warranties.
7.1 The Buyers represent and warrant to the City as follows:
Agreement For Purchase And Sale Of Real Property
3
(a) Authority. Buyers have full right, power, and lawful authority to
purchase the Property as provided herein; and
(b) No Conflict. Buyers execution, delivery and performance of its
obligations under this Agreement will not constitute a default or a breach under any
contract, agreement or offer to which Buyers are a party or by which it is bound; and
(c) To the best of the Buyers' knowledge, there are no actions, suits,
material claims, legal proceedings, or any other proceedings affecting this Agreement
thereof, at law, or in equity before any court or governmental agency, domestic or
foreign; and
(d) To the best of the Buyers' knowledge, neither the execution of this
Agreement nor the performance of the obligations herein will conflict with, or breach any
of the provisions of any bond, note, evidence of indebtedness, contract, lease, or other
agreement; and
7.2The City represents and warrants to the Buyers as follows:
(a) The City has full right, power and lawful authority to grant, sell and
convey the Property as provided herein; and
(b) To the best of the City's knowledge there are no other persons who
have a lawful interest in the Property; and
(c) To the best of the City's knowledge, there are no pending or
threatened actions, suits, material claims, legal proceedings, or any other proceedings
affecting the Property or any portion thereof, at law, or in equity before any court or
governmental agency, domestic or foreign; and
(d) Until the Conveyance, the City shall not do anything, or allow any
other person or entity to do anything, which would impair the City's title to the Property
or title to the Property; and
(e) The City agrees to convey by Quitclaim Deed to Buyers title to the
Property
(f) Until the Conveyance, the City shall, upon learning of any fact or
condition which would cause any of the warranties and representations in this Section
7.2 not to be true as of Conveyance, immediately give written notice of such fact or
condition to Buyers.
8. Release and Waiver. The Property Purchase Price has been determined
based upon negotiations at arm's - length. City waives any right to receive an offer
based on an appraisal, and agrees that the Purchase Price shall be the sole payment
and compensation to the City for the sale of the City's interest in the Property.
For Purchase And Sale Of Real
4
9. Condition and Limitations on Use of the Property.
(a) The square footage of the Property cannot be used to increase the
buildable area allowed on 412 Carnation. This restriction shall be recorded with the
Quitclaim Deed substantially in a form set forth in Exhibit "C."
(b) No habitable structures may be constructed or installed on the
Property. This restriction shall be recorded with the Quitclaim Deed. Landscape
features, garden walls, fences, walkways, hardscape and paths and maintenance or
adjustment thereof will be allowed on the Property, subject to Buyersobtaining all
necessary permits that may be required by City or any other governmental agency.
Existing Permitted Improvements may remain on the Property.
(c) "AS IS" Acceptance of the Property. The Property is located on
a slope, and Permitted Improvements have been installed on the Property by the
Buyers. City makes no guarantees, representations or warranties related to the
condition of the Property, or the stability of the slope on the Property. Buyers are
satisfied with the physical condition, quality, quantity and state of repair of the Property
in all respects and by proceeding to Conveyance, Buyers shall be deemed to have
determined that the same is satisfactory to Buyers;
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND EXCEPT FOR
CITY'S REPRESENTATIONS AND WARRANTIES IN SECTION 6.2 OF THIS
AGREEMENT AND ANY WARRANTIES OF TITLE CONTAINED IN THE QUITCLAIM
DEED DELIVERED AT THE CONVEYANCE ( "CITY'S WARRANTIES "), THIS SALE IS
MADE AND WILL BE MADE WITHOUT REPRESENTATION, COVENANT, OR
WARRANTY OF ANY KIND (WHETHER EXPRESS, IMPLIED, OR, TO THE
MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, STATUTORY) BY CITY. AS
A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, BUYERS
AGREE TO ACCEPT THE PROPERTY ON AN "AS IS" AND "WHERE IS" BASIS,
WITH ALL FAULTS, AND WITHOUT ANY REPRESENTATION OR WARRANTY, ALL
OF WHICH CITY HEREBY DISCLAIMS, EXCEPT FOR CITY'S WARRANTIES IN
SECTION 6.2 OF THIS AGREEMENT. BUYERS ACKNOWLEDGE THAT BUYERS
ARE NOT NOW RELYING, AND WILL NOT LATER RELY, UPON ANY
REPRESENTATIONS AND WARRANTIES MADE BY CITY OR ANYONE ACTING OR
CLAIMING TO ACT, BY, THROUGH OR UNDER OR ON CITY'S BEHALF
CONCERNING THE PROPERTY. ADDITIONALLY, BUYERS AND CITY HEREBY
AGREE THAT EXCEPT FOR CITY'S WARRANTIES, BUYERS TAKE THE
PROPERTY "AS IS" WITH ALL LATENT AND PATENT DEFECTS AND THAT
EXCEPT FOR CITY'S WARRANTIES IN SECTION 6.2 OF THIS AGREEMENT,
THERE IS NO WARRANTY BY CITY THAT THE PROPERTY IS FIT FOR A
PARTICULAR PURPOSE. EXCEPT FOR CITY'S WARRANTIES IN SECTION 6.2 OF
THIS AGREEMENT, BUYERS ARE SOLELY RELYING UPON THEIR EXAMINATION
OF THE PROPERTY. BUYERS TAKE THE PROPERTY UNDER THIS AGREEMENT
UNDER THE EXPRESS UNDERSTANDING THAT THERE ARE NO EXPRESS OR
IMPLIED WARRANTIES (EXCEPT FOR THE LIMITED WARRANTIES OF TITLE SET
FORTH IN THE QUITCLAIM DEED AND CITY'S WARRANTIES).
Agreement For Purchase And Sale Of Real Property
5
BUYERS' INITIALS
10. Termination. If Buyers' or City's conditions or other obligations under this
Agreement have not been performed prior to the Outside Date, then either party which
has fully performed under this Agreement may, in writing, demand the return of money
including any earned interest or property and terminate this Agreement. Termination of
this Agreement shall be without prejudice as to whatever legal rights either party may
have against the other arising from this Agreement.
11. Loss or Damage. Loss or damage to Property, by fire or other casualty,
occurring prior to the recordation of the Quitclaim deed shall be at the risk of the Buyer.
12. General Provisions.
12.1 Brokers. The Buyers represent and warrant to City that they have
not used any finder, broker or real estate agent in connection with this transaction, and
agrees that it shall indemnify and hold the other harmless from and against all
brokerage commissions or finder's fees and claims therefore, payable in connection
with the disposition of the Property and resulting from the acts or omissions of such
indemnifying party.
12.2 Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the Buyers and the City and their respective heirs,
personal representatives, successors and assigns.
12.3 Attorneys' Fees. In any action between the parties to interpret,
enforce, award, modify or rescind any of the terms or provisions of this Agreement, or
any action otherwise commenced or taken in connection with this Agreement, both
parties shall be responsible for their respective litigation costs and attorneys' fees.
12.4 Approvals and Notices. Any approval, disapproval, demand,
document or other notice ( "Notice ") which either party may desire or be required to give
to the other party under this Agreement must be in writing and may be given by any
commercially acceptable means to the party to whom the Notice is directed at the
address of the party as set forth below, or at any other address as that party may later
designate by Notice. Any Notice given under this paragraph, whether personally or by
mail, shall be deemed received only upon actual receipt by the intended party.
Agreement For Purchase And Sale Of Real Property
6
To City: City Manager
City of Newport Beach
3300 Newport Blvd.
P.O. Box 1768
Newport Beach, CA 92658 -8915
Tele: (949)644 -3000
To Buyers: Kurt Christiansen, Trustee
The Kurt P. Christiansen Trust
412 Carnation
Corona del Mar, CA 92625
Nicholas and Carol Samios
P.O. Box 876
Westminster, MD 21158 -0867
12.5 Jurisdiction and Venue. This Agreement shall be construed under
the laws of the State of California in effect at the time of the signing of this Agreement.
The parties consent to the jurisdiction of the California courts with venue in County of
Orange.
12.6 Titles and Captions. Titles and captions are for convenience of
reference only and do not define, describe or limit the scope or the intent of this
Agreement or of any of its terms. Reference to section numbers are to sections in this
Agreement, unless expressly stated otherwise.
12.7 Interpretation. As used in this Agreement, masculine, feminine or
neuter gender and the singular or plural number shall each be deemed to include the
others where and when the context so dictates. The word "including" shall be construed
as if followed by the words "without limitation." This Agreement shall be interpreted as
though prepared jointly by both parties.
12.8 No Waiver. A waiver by either party of a breach of any of the
covenants, conditions or agreements under this Agreement to be performed by the
other party shall not be construed as a waiver of any succeeding breach of the same or
other covenants, agreements, restrictions or conditions of this Agreement.
12.9 Modifications. Any alteration, change or modification of or to this
Agreement, in order to become effective, shall be made in writing and in each instance
signed on behalf of each party.
12.10 Severability. If any term, provision, condition or covenant of this
Agreement or its application to any party or circumstances shall be held, to any extent,
invalid or unenforceable, the remainder of this Agreement, and the application of the
term, provision, condition or covenant to persons or circumstances other than those as
to whom or which it is held invalid or unenforceable, shall not be affected, and shall be
valid and enforceable to the fullest extent permitted by law.
Agreement For Purchase And Sale Of Real Property
7
12.11 Offer. Any delivery of unsigned copies of this Agreement is solely
for the purpose of review by the party to whom delivered, and neither the delivery nor
any prior communications between the parties, whether oral or written, shall in any way
be construed as an offer by City, nor in any way imply that City is under any obligation
to enter the transaction which is the subject of this Agreement. The signing of this
Agreement by the Buyers constitute an offer to purchase which shall not be deemed
accepted by City unless and until the City has signed this Agreement. This is not a
binding agreement unless and until executed on behalf of City after approval and
adoption of a resolution or minute action by the City's City Council in full compliance
with the City's Charter, ordinances, and regulations.
12.12 Computation of Time. The time in which any act is to be done
under this Agreement is computed by excluding the first day (such as the day escrow
opens), and including the last day, unless the last day is a holiday or Saturday or
Sunday, and then that day is also excluded. The term "holiday' shall mean all holidays
as specified in Section 6700 and 6701 of the California Government Code. If any act is
to be done by a particular time during a day, that time shall be Pacific Time Zone time.
12.13 Legal Advice. Each party represents and warrants to the other the
following: they have carefully read this Agreement, and in signing this Agreement, they
do so with full knowledge of any right which they may have; they have received
independent legal advice from their respective legal counsel as to the matters set forth
in this Agreement, or have knowingly chosen not to consult legal counsel as to the
matters set forth in this Agreement; and, they have freely signed this Agreement without
any reliance upon any agreement, promise, statement or representation by or on behalf
of the other party, or their respective agents, employees, or attorneys, except as
specifically set forth in this Agreement, and without duress or coercion, whether
economic or otherwise.
12.14 Time of Essence. Time is expressly made of the essence with
respect to the performance by the Buyers and the City of each and every obligation and
condition of this Agreement including, without limitation, the Conveyance.
12.15 Cooperation. Each party agrees to cooperate with the other in the
Conveyance of this transaction and, in that regard, to sign any and all documents which
may be reasonably necessary, helpful, or appropriate to carry out the purposes and
intent of this Agreement including, but not limited to, releases or additional agreements.
12.16 Agreement in Total.
(a) Entire Agreement. This Agreement contains the entire
understanding between the parties relating to the transaction contemplated by this
Agreement. The City is entering this Agreement based solely upon the representations
set forth herein and upon the City's own independent investigation of any and all facts
the City deems material. No subsequent agreement, representation, or promise made
by either party hereto, or by or to an employee, officer, agent or representative of either
party shall be of any effect unless it is in writing and executed by the party to be bound
thereby.
Agreement For Purchase And Sale Of Real Property
8
(b) Counterpart s. This Agreement may be signed in multiple
counterparts which, when signed by all parties, shall constitute a binding agreement.
Agreement For Purchase And Sale Of Real Property
9
IN WITNESS WHEREOF, the Buyers and the City have signed this Agreement
on the dates set forth below.
BUYERS:
L(Z� V `— Date:
urt Christiansen, Trustee
The Kurt P. Christiansen Trust
Nicholas A. Samios
Date:
Carol B. Samios
Date:
CITY:
CITY OF NEWPORT BEACH,
a California charter city and municipal corporation
:-
Dave Kiff, City Manager
ATTEST:
Leilani Brown, City Clerk
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
M
Leonie Mulvihill,
Assistant City Attorney
Exhibit A:
Map of 412 Carnation Ave.
Exhibit B:
Property Legal Description
Exhibit C:
Quit Claim Deed
Exhibit D:
FIRPTA Certificate
Date:
Date:
Date:
For Purchase And Sale Of Real
10
EXHIBIT A
MAP OF 412 CARNATION AVE.
Al
OS'
1 91
IS
Xc�
Lit
Arl
f f nL
Ile
Zle
4.
4z
er
001)
14 10
EXHIBIT "B"
LEGAL DESCRIPTION OF SUBJECT PROPERTY
To Be Inserted
D OCS OC/1077240v3/22087 -0180
EXHIBIT C
QUITCLAIM DEED
A08 -00107
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
Kurt P. Christiansen, Trustee
412 Carnation
Corona del Mar, CA 92625
WITH A CONFORMED COPY TO:
Nicholas and Carol Samios
P.O. Box 876
Westminster, MD 21158 -0867
And;
City of Newport Beach
3300 Newport Blvd.
PO Box 1768
Newport Beach, CA 92658 -8915
Attn: City Clerk
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
QUITCLAIM DEED
For valuable consideration, receipt of which is hereby acknowledged, CITY OF
NEWPORT BEACH, a California municipal corporation and charter city, hereby grants
to KURT P. CHRISTIANSEN, Trustee of the KURT P. CHRISTIANSEN TRUST, dated
August 1, 2002 and NICHOLAS A. SAMIOS and CAROL B. SAMIOS, husband and
wife, as joint tenants, [need owner's preferred vesting
designation, city cannot provide this legal advise to buyers], that real property in the City
of Newport Beach, County of Orange, state of California, described as follows:
See Exhibit 1 attached hereto.
SUBJECT TO, easements and rights of way of record or apparent and the restrictions
contained in Exhibit 2, attached hereto and incorporated by reference.
RESERVING UNTO GRANTOR, its successors and assigns, the right to use said land
for any purpose, that will not in any way interfere with the use by Grantee of this
easement, including, but not limited to, the Grantee's right to construct, relocate, repair,
maintain, piping and appurtenances, in, on, over, across, under and along said land.
Grantee shall not be obligated to relocate its facilities to accommodate any exercise of
the rights retained herein by Grantor; except that Grantee may, in its discretion, permit
such relocation provided the expense is borne by Grantor or others.
A08 -00107
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
GRANTORS:
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
Dated:
M
Leonie Mulvihill,
Assistant City Attorney
ATTEST:
Leilani I. Brown,
City Clerk
State of California
County of ORANGE
CITY OF NEWPORT BEACH,
A California Municipal Corporation
and charter City
Dated:
0
David Kiff,
City Manager
On , 2011 before me, , Notary Public, personally
appeared DAVE KIFF, who proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged to me that he executed the same in his
authorized capacity(ies), and that by his signature on the instrument the person, 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.
Signature
(Seal)
A06 -00107
Exhibit 1
Legal Description to Be Inserted
A08 -00107
Exhibit 2
PERMANENT RESTRICTIONS
1. No habitable structures shall be constructed on the parcel. Landscape features,
garden walls, retaining walls, irrigation equipment, fences, paths and patios will
be allowed.
2. The square footage of the Property cannot be used to increase the buildable
area allowed on the adjacent parcel.
3. "AS IS" Acceptance of the Property. The Property is located on a slope, and
Permitted Improvements have been installed on the Property by the Buyer.
Seller makes no guarantees, representations or warranties related to the
condition of the Property, or the stability of the slope on the Property.
EXHIBIT D
TRANSFEROR'S CERTIFICATION OF NON - FOREIGN STATUS
To inform the KURT P. CHRISTIANSEN, Trustee of the the KURT P.
CHRISTIANSEN TRUST dated August 1, 2002 and NICHOLAS A. SAMIOS and
CAROL B. SAMIOS ( "Transferee ") that withholding of tax under Section 1445 of the
Internal Revenue Code of 1986, as amended ( "Code ") will not be required upon the
transfer of certain real property described as Assessor's Parcel No.
located in the City of Newport Beach, County of Orange in the State of California to the
Transferee by CITY OF NEWPORT BEACH, a California municipal corporation and
charter city (the "Transferors "), the undersigned hereby certify the following:
1. We am /are not a nonresident alien for purposes of United States income
taxation;
2. My /our United States taxpayer identifying number (Employer Identification
Number is 95- 6000751.
3. My /our address is: City of Newport Beach
3300 Newport Blvd.
PO Box 1768
Newport Beach, CA 92658
Transferor understands that this Certification may be disclosed to the Internal Revenue
Service by the Transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.
Under penalty of perjury, we declare that we have examined this Certification and to the
best of my /our knowledge and belief it is true, correct, and complete, and we further
declare that we have authority to sign this document on behalf of the Transferor.
"TRANSFEROR"
Dated:.
L'-'
Dave Kiff, City Manager
C -1
"RECEIVED AFTER AGENDA
PRINTED." -W6 g'q-11
AGREEMENT FOR PURCHASE AND SALE OF REAL
PROPERTY
This AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
( "Agreement') is entered into by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city (the "City'), KURT P. CHRISTIANSEN,
TRUSTEE OF THE KURT P. CHRISTIANSEN TRUST dated August 1, 2002 ( "the
Christiansen Trust "), owner of the real property commonly known as 412 Carnation, and
NICHOLAS A. SAMIOS and CAROL B. SAMIOS ( "the Samios' "), husband and wife,
owners in joint tenancy of the real property commonly known as 412 % Carnation
Avenue. The Christiansen Trust and the Samios' shall be referred to collectively as the
"Buyers." This Agreement is for sale of certain real property owned by City to the
Buyers, and is made on the basis of the following facts, intentions and understandings.
RECITALS
A. Buyers are the present owners of certain real property located in the City of
Newport Beach, County of Orange, California. The Christiansen Trust is the
owner of the parcel of land commonly known as 412 Carnation Avenue, Corona
del Mar, California, 92625, Assessor's Parcel No. 938- 016 -50. Nicholas A.
Samios and Carol B. Samios (The "Samios' ") are the owners of the parcel of land
commonly known as 412 % Carnation Avenue, Corona del Mar, California,
92625. Assessor's Parcel No. 938 -01 -326. For purposes of this Agreement,
Assessors Parcel No. 938 - 016 -3250 and Assessor's Parcel No. 938 -01 -326 Furmstted: FWVL 14 M Bold
shall be referred to collectively as "412 Carnation." A map of 412 Carnation is
attached hereto as Exhibit "A ", which is attached hereto and incorporated
herein by reference.
B. 412 Carnation has been improved with two residential condominium units as
provided for in a Revised Condominium Plan recorded on April 9, 2010 as
Instrument No. 2010000168317 in the Official Records of the Orange County
Clerk- Recorder. One condominium unit is owned by the Christiansen Trust, and
the other is owned by the Samios'.
C. City owns certain real property consisting of a parcel of approximately 1,009
square feet of land, located between the westerly property line of 412 Carnation
and the easterly side of Carnation Avenue (the, "Property"), more particularly
described in Exhibit "B" ( "Legal Description ") which is attached hereto and
incorporated herein by reference.
D. Under the terms of Encroachment Permit No. EP97 -472 and an Encroachment
Agreement between City and Kurt P. Christiansen dated January 5, 1997, and
recorded as Document No. 1998- 0020393 in the official records of the County of
Orange, the Christiansen Trust has improved the Property with a retaining wall,
concrete entrance stairway, raised concrete block planters, landscaping,
irrigation, garden paths, paved patio areas and appurtenances (the, "Permitted
Improvements ").
EXHIBIT C
QUITCLAIM DEED
A08 -0010]
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
Kurt P. Christiansen, Trustee
412 Carnation
Corona del Mar, CA 92625
WITH A CONFORMED COPY TO:
Nicholas and Carol Samios
P.O. Box 876
Westminster, MD 21158 -0867
And;
City of Newport Beach
3300 Newport Blvd,
PO Box 1768
Newport Beach, CA 92658 -8915
Attn: City Clerk
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
QUITCLAIM DEED
For valuable consideration, receipt of which is hereby acknowledged, CITY OF
NEWPORT BEACH, a California municipal corporation and charter city, hereby
quitclaims grants —to KURT P. C_HRISTIANSEN, Trustee of the KURT P.
CHRISTIANSEN TRUST, dated August 1, 2002 and NICHOLAS A. SAMIOS and
CAROL B. SAMIOS, husband and wife, as joint tenants,
[need owner's preferred vesting designation, city
cannot provide this legal advise to buyers], as their interests appear in the
Revised Condominium Plan recorded on April 9, 2010 as Instrument
No. 2010000168317 in the Offficial Records of the Orange County
Clerk- Recorder, that real property in the City of Newport Beach, County of Orange,
state of California, described as follows:
See Exhibit 1 attached hereto.
SUBJECT TO, easements and rights of way of record or apparent and the restrictions
contained in Exhibit 2, attached hereto and incorporated by reference.
RESERVING UNTO GRANTOR, its successors and assigns, the right to use said land
for any purpose, that will not in any way interfere with the use by Grantee of this
easement, including, but not limited to, the Grantee's right to construct, relocate, repair,
maintain, piping and appurtenances, in, on, over, across, under and along said land.
Grantee shall not be obligated to relocate its facilities to accommodate any exercise of
the rights retained herein by Grantor; except that Grantee may, in its discretion, permit
such relocation provided the expense is borne by Grantor or others.
A084)0107
Formatted: Font: 14 pt, Bold
Formatt ed: Font: 14 pt, Bold
03/18/2002 16:30
July 28.2011
949 - 723 -5602
David Keely, P.R.
Senior Civil Engineer
City of Newport Beach
Public Works Department
3300 Newport Blvd
Newport Beach, CA 92663 -3884
Dear Mr. Keely:
CHRISTIANSEN CAPITAL
Carole and Nicholas Samios
412 A Carnation Avenue
Corona del Mar, CA 92625
949 - 675 -7676
RECEIVED
2011 AUG -8 PM 3 03
OFFICE OF
THE CfTY CLERK
Clay OF r 7" PORT BEACH
PAGE 02
We, Carole and Nicholas Samios, own and reside in 412 °/x Carnation Avenue, Corona del Alar, CA
92623. Batt Christiansen, Trustee of the Kurt P. Christiansen Trust dated August 1, 2002
( "Chrlstimnsen ") owns and resides in 412 Carnation Avenue, Corona del Mar, CA 92625. The
aforementioned units make up the entirely of a two unit condominium structure at that location.
Christiansen is entering into an Agreement for Purchase mod Sale of Beal Property (the
"Contract") wherein the City of Newport Beach will sell a parcel of abandoned city land situated
between the Christiansen property line mod Carnation Avenue. The parcel will be conveyed via a
lot line adjustment merging the acquired parcel into the Christiansen parcel. We have carefully
read the Contract and fully understand the terms of the sale included therein.
We have given considerable thought to the matter and have concluded that the acquired parcel will
benefit our property as well as Cbristiansen's. We therefore request that the City of Newport Beach
proceed with the transaction as described in the Contract.
Thank you for your consideration of our views on this matter.
Sincere r -
'flicholas- Samios Carole Samios
cn
W
CD
a
W
ri
LU
rr
a
Mulvihill, Leonie
From:
Badum, Steve
Sent:
Tuesday, August 09, 2011 5:04 PM
To:
Mulvihill, Leonie
Subject:
Fw: 412 Carnation Ave. Property - Agenda Item No. 6
FYI
From: Peggy Haidl <phaidl(asbcglobal.net>
To: Moore, Tania
Cc: Badum, Steve
Sent: Tue Aug 09 16:42:14 2011
Subject: 412 Carnation Ave. Property - Agenda Item No. 6
To the Honorable Mayor and Members of City Council:
I am respectfully asking that you postpone a decision on the request to sell City -Owned Property in Front of 412
Carnation Ave.
I am the owner of 414 Carnation Avenue and this decision will directly impact me. I only became aware of this
issue today, August 9, 2011. This sale has the potential to seriously devalue my property and I respectfully ask
for more time to review the terms and conditions.
Although you may not be aware, this neighbor and I have had serious legal issues relating to the location of the
property line and retaining wall in the past. I built and remodeled my home at 414 Carnation and I have strictly
adhered to all city and legal requirements.
Currently, there is a drainage issue that has never been resolved on this property and I have requested that it be
looked into, but was told it could only be investigated if there were an open permit.
There, in light of the situation and the major impact it could have on my property and I am respectfully
requesting that you postpone this matter until I have had time to meet with the Public Works Director and/ or
Inspector to review this matter and gain more information.
Thank you for your consideration in this matter.
Margaret (Peggy) Haidl
Cel - 949 - 836 -9629