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HomeMy WebLinkAboutC-5993(C) - East Balboa, Blvd, 608 & Washington St, 209 (Palm Street Parking Lot) - Consent to Assignment of Option to Ground Lease Agreement 2021RECORDING REQUESTED BY: First American Title Insurance Company National Commercial Services 18500 Von Karman Avenue, Suite 600 Irvine, CA 92612 WHEN RECORDED MAIL DOCUMENT TO: City of Newport Beach City Clerk's Office 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658-8915 Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder 43.00 *$ R 0 0 1 3 1 3 1 4 2 8$ 2021000548631 9:31 am 09101121 7 407A C34 12 0.00 0.00 0.00 0.00 33.00 0.00 0.000.000.00 3.00 Space Above This Line for Recorder's Use Only File No.: NCS -1023322 -SAI CONSENT TO ASSIGNMENT OF OPTION TO GROUND LEASE AGREEMENT Pursuant to Senate Bill 2 - Building Homes and Jobs Act (GC Code Section 27388.1), effective January 1, 2018, a fee of seventy-five dollars ($75.00) shall be paid at the time of recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, except those expressly exempted from payment of recording fee, per each single transaction per parcel of real property. The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225.00). ( ) This document is a transfer that is subject to the imposition of documentary transfer tax (X) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner - occupier per GC 27388.1 (a) (2). () Maximum fee of $225 has been reached per GC 27388.1 (a) (1). () Not related to real property GC 27388.1 (a) (1). THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB -2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) RECORDING REQUESTED BY: First American Title Insurance Company National Commercial Services 18500 Von Karman Avenue, Suite 600 Irvine, CA 92612 WHEN RECORDED MAIL DOCUMENT TO: City of Newport Beach City Clerk's Office 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658-8915 Space Above This Line for Recorder's Use Only File No.: NCS-1023322-SA1 CONSENT TO ASSIGNMENT OF OPTION TO GROUND LEASE AGREEMENT Pursuant to Senate Bill 2 - Building Homes and Jobs Act (GC Code Section 27388.1), effective January 1, 2018, a fee of seventy-five dollars ($75.00) shall be paid at the time of recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, except those expressly exempted from payment of recording fee, per each single transaction per parcel of real property. The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225.00). ( ) This document is a transfer that is subject to the imposition of documentary transfer tax (X) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner - occupier per GC 27388.1 (a) (2). () Maximum fee of $225 has been reached per GC 27388.1 (a) (1). () Not related to real property GC 27388.1 (a) (1). THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB -2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach City Clerk's Office 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658-8915 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) CONSENT TO ASSIGNMENT OF OPTION TO GROUND LEASE AGREEMENT THIS CONSENT TO ASSIGNMENT OF OPTION TO GROUND LEASE AGREEMENT ("Consent to Assignment") is given this Z 4- , day of 2021, by the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City") on the following terms and conditions: RECITALS A. On November 25, 2014, the City entered into that certain Option to Ground Lease Agreement ("Option Agreement") with EXPLOROCEAN, a California nonprofit corporation, concerning certain real property located generally between Palm Street and Washington Street from Bay Avenue to Balboa Boulevard on the Balboa Peninsula in the City of Newport Beach, California, more commonly referred to as the Palm Street Parking Lot ("Property"), more particularly depicted on the map set forth in Exhibit A and described in Exhibit B of the Option Agreement, as evidenced by a Memorandum of Option Agreement recorded on December 24, 2014, as Instrument No. 2014000557708 in the Official Records of Orange County. B. EXPLOROCEAN, a California nonprofit corporation, and DISCOVERY SCENCE CENTER OF ORANGE COUNTY, a California nonprofit public benefit corporation ("Assignor), merged on July 8, 2016, to become DISCOVERY SCIENCE CENTER OF ORANGE COUNTY. C. Pursuant to Section 9 of the Option Agreement, the prior written consent of City is required in connection with any transfer of the Option Agreement. D. On June 7, 2021, Assignor provided a written request to City, requesting approval of the transfer and assignment of Assignor's interest in the Option Agreement to Balboa Fun Zone Realty Investments LLC, a Delaware limited liability company ("Assignee"). CONSENT NOW, THEREFORE, the City does hereby consent to the assignment of Assignor's interest in and to the Option Agreement to Assignee, subject to the following: 1. Said Consent to Assignment shall be subject to each and all of the covenants, conditions and restrictions set forth in the Option Agreement and shall be subject to all rights and interest of the City thereunder, except as herein otherwise provided. 2. Assignee shall assume the Option Agreement via an Assignment and Assumption Agreement ("Assignment"), subject to each and all of the covenants, conditions and restrictions set forth in the Option Agreement and shall be subject to all rights and interest of the City thereunder, except as herein otherwise provided. A copy of the completed Assignment shall be provided to the City to ensure that any transfer of the leasehold interest will not circumvent the provisions of the Lease. 3. A Memorandum of Assignment of Option Agreement and Amendment to the Option Agreement Memorandum shall be executed by Assignor, Assignee and City, in substantially the same form as the document attached hereto as Exhibit "A", and recorded against title to the Property. 4. All notices and other communications required or permitted under this Consent to Assignment shall be in writing, served personally on, or mailed by certified or registered United States mail to the party to be charged with receipt thereof. Notices and other communications served by mail shall be deposited in a United States post office, as certified or registered mail with postage prepaid and duly addressed to the party to whom such notice or communication is to be given as follows.- Notice ollows: Notice to Assignee: Attention: David A. Pyle Balboa Fun Zone Realty Investments LLC 151 Innovation Drive Irvine, CA 92617 Notice to City: Attention: Real Property Administrator City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Any such party may change said party's address for purposes of this Section 4 by giving to the party intended to be bound thereby, in the manner provided herein, written notice of such change. Consent to Assignment of Option to Ground Lease Agreement Page 2 5. This Consent to Assignment shall become effective upon recording and be recorded concurrently with (but immediately prior to) the Memorandum of Assignment of Option Agreement and Amendment to the Option Agreement Memorandum. [SIGNATURES ON FOLLOWING PAGE] Consent to Assignment of Option to Ground Lease Agreement Page 3 EXECUTED on the dates indicated below, at Newport Beach, Orange County, California. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 5 �j Aaron --Harp City A rney ATTEST: Date: �.p,�QoZ( wnwo!,11� fA ow n City Clerk CITY OF NEWPORT BEACH, a California municipal cow oration and charter city Date: -26-2,021 Grago. Leung Cit anager Attachments: Exhibit A — reement and -r/ CJ tA6tMb?-ikNDQ 1 OF Asst etjj\AUNT O,�: M�NT- 1r0 Consent to Assignment of Option to Ground Lease Agreement Page 4 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory eviden a to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowle ed to me that he/she/they executed the same in his/her/their authorized capacity(ies), and th 9 by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of w 'ch the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY,�inder the laws of the State of California that the foregoing paragraph is true and correct. / WITNESS my hand and official Signature ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. (seal) State of California County of 09-A"E,E —)ss. On Aoj(Pu wr ZL# , 20 Zt before me, AeNNIFE2 p w mvwel Notary Public, personally appeared GQAt..L- Y— i s%jtAf 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 signatures(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. WITN my hand and official seal. nif �~ l' �r Anne � Mulvey W'=� 214138 a Signatur (seal) ¢`. a NotaryPublic _ California r".M ORANGE COUNTY y Commission Expires Oct 11,1011 EXHIBIT "A" MEMORANDUM OF ASSIGNMENT OF OPTION TO GROUND LEASE AGREMMENT AND AMENDMENT TO LEASE MEMORANDUM Page A-1 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach City Clerk's Office 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658-8915 SPACE ABOVE THIS LINE FOR RECORDER'S USE A.P.N. 048-116-06 MEMORANDUM OF ASSIGNMENT OF OPTION TO GROUND LEASE AGREEMENT AND AMENDMENT TO LEASE MEMORANDUM THIS MEMORANDUM OF ASSIGNMENT OF OPTION TO GROUND LEASE AGREEMENT AND AMENDMENT TO LEASE MEMORANDUM ("Memorandum") is made and executed in connection with that certain Assignment and Assumption Agreement dated as of August 2, 2021 ("Assignment") by and between DISCOVERY SCIENCE CENTER OF ORANGE COUNTY, a California nonprofit public benefit corporation, as "Assignor", and BALBOA FUN ZONE REALTY INVESTMENTS LLC, a Delaware limited liability corporation as "Assignee" and the CITY OF NEWPORT BEACH, a California municipal corporation and charter city as "City". RECITALS A. EXPLOROCEAN, a California nonprofit corporation ("EXPLOROCEAN"), and the City of Newport Beach, a California corporation and charter city ("City") are parties to that certain Option to Ground Lease Agreement ("Option Agreement") dated November 25, 2014 respecting that certain property owned by the City located generally between Palm Street and Washington Street form Bay Avenue to Balboa Boulevard on the Balboa Peninsula in the City of Newport Beach, more commonly referred to as the Palm Street Parking Lot ("Property"), as evidenced by that certain Memorandum of Option Agreement recorded on December 24, 2014, in the Official Records of Orange County, California as Instrument No. 2014000557708. B. EXPLOROCEAN and DISCOVERY SCIENCE CENTER OF ORANGE COUNTY, a California nonprofit public benefit corporation, merged on July 8, 2016, to become DISCOVERY SCIENCE CENTER OF ORANGE COUNTY. C. Pursuant to Section 9 of the Option Agreement, dated November 25, 2014, EXPLOROCEAN has authorized to assign it's interest to an affiliate. Therefore, Page A-2 DISCOVERY SCIENCE CENTER OF ORANGE COUNTY has assumed the role of EXPLOROCEAN. D. In connection with Assignee's purchase of the Property from Assignor, which closed escrow on or about July 31, 2021, Assignor and Assignee executed the Assignment to which Assignor assigned to Assignee (and Assignee assumed from Assignor) all of Assignor's right, title, interest and obligations under the Option Agreement. AGREEMENTS NOW, THEREFORE, in order to memorialize and give notice of the Option Agreement and Assignment thereof, the parties acknowledge and agree as follows: 1. Purpose of Memorandum. This Memorandum is being recorded to place the public on notice of the terms and provisions of the Option Agreement, which terms and provisions are hereby incorporated by reference into this Memorandum, and of the Assignment. In the event of any conflict between the terms and conditions of this Memorandum and the Option Agreement, the terms and conditions of the Option Agreement shall prevail. 2. Amendment of Option Agreement Memorandum. The Memorandum is amended such that the "EO" identified therein shall mean and refer to Assignee from and after the effective date of the Assignment. 3. Counterparts. This Memorandum may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one in the same instrument. [SIGNATURES ON FOLLOWING PAGE] Page A-3 IN WITNESS WHEREOF, the duly authorized representatives of Assignor, Assignee and City have executed this Memorandum effective as of the 28th day of April 2017. "Assignor" DISCOVERY SCIENCE CENTER OF ORANGE COUNTY. a California nonprofit public benefit corporation By: By: Lloyd Joseph Adams, Chief Executive Officer Nancee Christianson, Chief Financial Officer ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. I I State of California County of }ss. On 20 before me, , Notary Public, personally appeared 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 signatures(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. Signature ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. (seal) I I State of California County of ) ss. On 20 before me, Notary Public, personally appeared 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 signatures(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. Signature (seal) Page A-4 "Assignee" BALBOA FUN ZONE REALTY INVESTMENTS LLC. a Delaware limited liability company By: By: David A. Pyle, Manager Darryl A. Lycett, Manager ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. I I State of California County of }ss. On 20 before me, , Notary Public, personally appeared , 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 signatures(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. Signature ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. (seal) I ' State of California County of ) ss. On 20 before me, , Notary Public, personally appeared , 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 signatures(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. Signature (seal) Page A-5 "City" City of Newport Beach, a California municipal corporation and charter city Grace K. Leung City Manager ATTEST: Date: Leilani I. Brown City Clerk APPROVED AS TO FORM: Aaron C. Harp City Attorney ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of _ I ss. On 20 before me, Notary Public, personally appeared 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 signatures(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. Signature (seal) Page A-6