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HomeMy WebLinkAboutC-4878 - Carnation, 412 & 412 1/2 - Purchase and Sale of Real Property 2002October 22, 2012 Dave Kiff City Manager City of Newport Beach PO Box 1768 Newport Beach, CA 92685-8915 Dear Mr. Kiff The parties to the attached Agreement for Purchase and Sale of Real Estate("Agreement'q hereby mutually agree that pursuant to Paragraph 3 of said Agreement, the Outside Date shall be extended to November 30, 2013 It is further agreed that said Outside Date may be further extended should parties mutually agree thereto. BUYERS: Kurt Christiansen, Trustee The Kurt Christiansen Trust c� Nichol A KaWos C"t6 Carole B Samios Date:�-- Date: /L Date: '41 1 171 Kurt Christiansen 412 Carnation Avenue Corona del Mar, CA 92625 Phone: 949-723-5600 �) Inti•tchi-isticretsett5Dtl(ct,¢ttrail.coiit October 22, 2012 Dave Kiff City Manager City of Newport Beach PO Box 1768 Newport Beach, CA 92685-8915 Dear Mr. Kiff The parties to the attached Agreement for Purchase and Sale of Real Estate("Agreement'q hereby mutually agree that pursuant to Paragraph 3 of said Agreement, the Outside Date shall be extended to November 30, 2013 It is further agreed that said Outside Date may be further extended should parties mutually agree thereto. BUYERS: Kurt Christiansen, Trustee The Kurt Christiansen Trust c� Nichol A KaWos C"t6 Carole B Samios Date:�-- Date: /L Date: '41 1 171 CrTy CrTYO.FNEWPORT BEACH A CabfOrnia chanter cily and nuaucipal corporation 4wU�, Manager ATTEST. By: Leflani Brown, City Clerk SEW P®R O� T 9 � s a. APPROVEDAS TO FORM: OFF14CE OFCITYATTORNEY Leonie Muluthr7l Assistant City Attorney Date: I I/ I h Z Date: I'1JZ Duft-- i�l�, 4 July 16, 2012 Dave Kiff City Manager City of Newport Beach PO Box 1768 Newport Beach, CA 92658-8915 Dear Mr. Kiff.• The parties to the attached Agreement for Purchase and Sale of Real Estate ("Agreement") hereby mutually agree that pursuant to Paragraph 3 of said Agreement, the Outside Date shall be extended to December 31, 2012. It is further agreed that said Outside Date may be further extended should the parties mutually agree thereto. BUYERS. urt Christiansen, Trustee The Kurt Christiansen Trust ola eLu�' �- - Carole B Samios Date: % / t �-j I 'Z - Date: Date: li Kurt Christiansen 412 Carnation Avenue Corona del Mar, CA 92625 Phone: 949-723-5600 kurtchristiansen 500(&,,amail. com July 16, 2012 Dave Kiff City Manager City of Newport Beach PO Box 1768 Newport Beach, CA 92658-8915 Dear Mr. Kiff.• The parties to the attached Agreement for Purchase and Sale of Real Estate ("Agreement") hereby mutually agree that pursuant to Paragraph 3 of said Agreement, the Outside Date shall be extended to December 31, 2012. It is further agreed that said Outside Date may be further extended should the parties mutually agree thereto. BUYERS. urt Christiansen, Trustee The Kurt Christiansen Trust ola eLu�' �- - Carole B Samios Date: % / t �-j I 'Z - Date: Date: li CITY: CITY OF NEWPORT BEACH A California charter city and municipal corporation By: Dave %iff, City Manager ATTEST: By: I APPROVED AS TO FORM.- OFFICE ORM:OFFICE OF CITYATTORNEY By: Leonie Muluihill Assistant City Attorney Date: 7 I Date: Z Z Date:_? 1 di 2 CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK Leilant I. Brown, MMC August 29, 2011 Kurt Christiansen, Trustee Nicholas & Carol Samios The Kurt P. Christiansen Trust P.O. Box 876 412 Carnation Ave. Westminster, MD 21158 -0867 Corona del Mar, CA 92625 RE: Agreement for Purchase and Sale of Real Property C -4878 Dear Mr. Christiansen and Mr. and Mrs. Samios: Enclosed please find your fully executed copy of the Agreement for Purchase and Sale of Real Property pertaining to 412 & 412'% Carnation Avenue. If you have any questions or need additional information, please contact City Manager, Dave Kiff at (949) 644 -3001. Sincerely, iouv�� )00Y- Leilani I. Brown, MMC City Clerk Enclosure cc: Shirley Oborny, City Manager's Office (w /out enclosure) Lillian Harris, City Clerk's Office (w /out enclosure) Leonie Mulvihill, City Attorney's Office (w /out enclosure) 3300 Newport Boulevard • Post Office Box 1768 - Newport Beach, California 92658 -8915 Telephone: (949) 644 -3005 • Fax: (949) 644 -3039 - www.city.newport- beach.ca.us 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 %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 - 016 -50 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 (e) Neither Buyers or City are in material default of this Agreement; and 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. Agreement For Purchase And Sale Of Real Property 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) 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 IN WITNESS WHEREOF, the Buyers and the City have signed this Agreement on the dates set forth below. BUYERS: K rt Christiansen, Trustee The Kurt P. tiansen Trust Nicholas A. S mios Date: Date: I I I I " Lmu-� D. � • I M11 11 CITY: CITY OF NEWPORT BEACH, a California charter city and municipal corporation By: 2. (!X-` Date: Ibl l� e Kiff, City Man er ATTEST: B Date: LS t Le' ani Brown, City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTOR By. Date: 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 Agreement For Purchase And Sale Of Real Property 10 u L EXHIBIT A MAP OF 412 CARNATION AVE. EXHIBIT "B" LEGAL DESCRIPTION OF SUBJECT PROPERTY To Be Inserted DOC SOC/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 quitclaims 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],as their interests appear in the Revised Condominium Plan recorded on April 9, 2010, as Instrument No., 2010000168317 of the Official Records of Orange County, California, 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: Leonie Mulvihill, Assistant City Attorney ATTEST: M Leilani I. Brown, City Clerk State of California County of ORANGE CITY OF NEWPORT BEACH, A California Municipal Corporation and charter City Dated: IIn 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 (Seal) A08 -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:. By: Dave Kiff, City Manager C -1 CITY OF NEWPORT BEACH City Council Staff Report f�''9 ZU11 August 9, 2011 C T& 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: z 4 ki 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 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. 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: �_ ,I ���/I -• Badum 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 ATTACHMENT A - VICINITY MAP Attachment B 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 % 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, Assessors 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 Camation 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. 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 (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 (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 7.2 The 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 (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 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) 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 IN WITNESS WHEREOF, the Buyers and the City have signed this Agreement on the dates set forth below. [3R717ta Kurt Christiansen, Trustee The Kurt P. Christiansen Trust Nicholas A. Samios Date: Date: Carol B. Samios Date: CITY: CITY OF NEWPORT BEACH, a California charter city and municipal corporation By: Date: Dave Kiff, City Manager ATTEST: Date: Leilani Brown, City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY B C Date: 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 Agreement For Purchase And Sale Of Real Property 10 EXHIBIT A MAP OF 412 CARNATION AVE. EXHIBIT "B" LEGAL DESCRIPTION OF SUBJECT PROPERTY To Be Inserted DO C S O C/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: 0 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 A08 -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:. 0 Dave Kiff, City Manager C -1 NEWPORT e=JtCh Executive Summary Client Property Identification: Owner. Assessor`s Parcel p: Effective Valuation Date: Purpose: Intended Use: Type of Value determined Property Overview: Single -User Value Conclusion: Comments Scope of Work: Subject's Sales History: ADDENDUM Mr. Kurt Christiansen An abandoned parcel immodlately west of the condominium project located at 412 Carnation Ave. Newport Beach, CA. City of Newport Beach Notassigned April 30, 2009 The purpose of this appraisal is to estimate the coolant Singla -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 dead restrictions. The intended use of the report pertains to the sale of the subject parcel to Mr. Kurt Chdstiansen. This report Is intended as assistance In the negotlations for the sale. It is not for lending purposes. A hypothetical Singla -User Value. An abandoned vacant parcel situated immediately west of the condominium project at 412 Carnation Ave, Newport Beach, CA. The parcel makes up the lower 30 ft of APN: 459- 114 -25. The parcel extends westward approximately 28.50 R from the northern lot line of APN: 459 - 114 -23 to the curb of Carnation Avenue. and westward approximately 38.75 0: from the southern lot firm of the above APN. The parcel has a gentle upslope from Carnation Avenue. $7,900 As of April 30, 2009. The above estimated value takes into consideration several deed restrictions relating to the use afore parcel. These restrictions make the property have the most value to the ownership of the 2 condo units at 412 Carnation Ave., and little value to anyone else. The value determined Is a hypothetical value "as iP certain dead restrictions were in place. This report Is prepared in a summary format. The srbjoct property was inspected on April 30, 2009. Information on the subject was researched in public records and the local MILS. A search was made forother small abandoned parcels, to determine a market -based discount factor, and this formed the basis for the analysis of value. The subject has not sold or transfamed in the last 10 years oaec.n iva ADDENDUM CA Naiahbarh.ed pescriptlon The subject property is located in the Incorporated city of Newport Beach, in the western potion of Orange County. The city is bound to the south by the Pacific Ocean. attractions are in convenient proximity, or accessible via the extensive regional freeway system "Corona Del MaP: The subject property is located in the neighborhood just east of Avocado-Avenue and Seoul of Coast Highway. The area is a mix of mostly single (amity residences, some Commercial uses, and a few condo projects. The overall area does experience some tourist traffic and congestion mosey in the summer. The commercial uses in the area are Concentmled primarily along Coast Highway [1]. The residential properties range in age from new custom homes to older Cottages built during the 1920'x. There is an ongoing trend to remodel and update the older homes, ordemolish them to Construct new, goad to excellent quality, Custom single family residences. Residential properties range from average to excellent quality homes reflecting average to excellent condition. site Comments: The subject site is approximately 1,009 sf in size and is rectangular in shape. There is a gentle upslope from the Carnation Avenue street curb to me eastern lot line. It is sided by Camadon Avenue to the west and by a 2 -unit condominium project on the east. Carnation Avenue is a public sheet which runs north and south. There is no driveway on of Carnation Avenue providing access to the subject site. There Is a 3 ft. stuccoed retaining wall and a concrete sidewalk that Inn alongside Carnation Avenue just inside the western border. The parcel is currently landscaped and is used by Mr. Christiansen as a yard area. No adverse easements or encroachments were apparent. Market Methodology The abandoned vacant parcel immediately south of the subject was sold by Ile City to Mr. Ed Foster (the adjacent property owner) In Feb. 1999 for $31,000. This sale was made under similar deed restrictions to those that are being applied to the subject, and is used to establish a discount factor that can be applied to the valuation of me subjOCL Ed Foster bought his parcel of 8, 1,81 St. from me City on Feb. 19, 1999 for $31,000. This sale refiecls a S /sf indicator of $3.79 psf. The subject is located in a neighborhood known as "Corona Del Mar South" (COMS) and sales of properties situated within CDMS which occurred during the 6 months leading up to the Foster Feb. 19. 1999 sate date were researched in the local MLS. Sales were selected that were north of Baysida Drive and south of Coast Highway, this is the subject's immediate neighborhood. Prices were gently bending upward in the last half of 1998 and into 1999, and a free adjustment of •1.0% per month was applied to their date of solo up thin 02-19 -1999. These sales had an average sale price was $G26,610 and their average lot size was 3,493 St. This results in an indicator of. Nghd sales (8 -20 -98 to 249 -99) Avg Sale Prinz per SF. _ $179.39 When Compared to the Ed Foster sale 183.79 psl), this indicates a discount factor of 97.9% due to the Single -User deed rosbicted parcel. However. Mr. Poster's parcel is more private as it is accessible only by himself. In the subjuct's case, me adjoining paroai is a 2 -unit condominium and me City has indioaled Ural access across me subject parcel is to be available to both Condo owners. This reduces the privacy of the subject parcel and a further discount factor is warramed. The appraiser has aspirated a further discount of 0.5 %, resulting in a total discount factor of 98.4 %. lvtr+xLn P:ec1U1 rr OPPI M 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 that were north of Dayside . Drive and south of Coast Highway. Prices have been Mantling downward over this lime paged and a time adjustment was applied of -1.5% per month from the date of sale up thru April 30, 2009. These sales had an average sale price was $1,677,015 and their average lot size was 3,417 sf. This results in an Nghd sales (10 -30 -08 to 4- 29-09) Avg Sale Price per SF. _ $490.78 Applying the discount factor of - 90.4 %, the associated Single -User indicator is ......... $7.85 test. When this $7.05 psf indicator is applied to the Subject's lot slza of 1,009 at, the hypothetical deed restricted Single -User Value as of April 30, 2009 is estimated to be $7,920, rounded to: "' ^$7,900 " "' (AS of April 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 marks[ 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 $ /sfof lot area basis. The average $ /cl of the current sales was adjusted by the discount factor, and the discounted $/sf indicator was men applied M the subje Ts lot sim 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 0te subject and were not developed. Subject's Use Restrictions: Per Mr. Christiansen, no official deed restrictions have been formally agreed to between himself and the City. However. he Indicated that the following restrictions or similar ones should be assumed as to what he and the City will agree lo: 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 me 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 the property or his successors. 5. That the owner of the rear unit at 412 Carnation have access across the subject parcel. C. Spectre 05-07.2009 Appraiser AR00.1953 ADDENDUM M25 Appraiser Certifications: 1. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and funifing conditions and are the appraiser's unbiased professional conclusions. 2. The appraiser has no present or prospective interest in the property that is the subject of this report and has no personal inlerastwith respect. to the paNes imolvea, sw ,._, _,.,._........,,......,,.,. _ .,.,..M,.- ..-... ,.., -.. ... -_...- .,.r_..... 3. The appraiser has no blas with respect to the property That Is the subject of this report or to the parties involved with this assignment. A. The appraiser's engagement in this assignment was not contingent upon developing or reporting predetermined results. S. The appraisers compensation is not contingent upon the development of a predetermined value or direction In value that favors the client. 6. The appraiser has made a personal inspection of the property that is the subject of this report. 7. No on provided significant real property appraisal assistance to The appraiser. 8. This is a Restricted Use Reporl for use only by the diem and the City of Newport Beach, both of whom are familiar with the subject property. 9. This report is not for lending purposes. 10. This is a summary format with additional information maintained in the appraisers work file. fik Ua, 412CARNATION-LAN Scapa W Work Assumptions and Limiting Conditions Thb$'O or -is bWaisal aM ensuing dibc sOolb this m1 are specific- Ulercetls W Ilae[Ilanl0Obt idgadaea inmmdwtl u bkna to the m.Ue lu-ssn blkfobn. Thisrepmwasp-eparetlror the soloantlexclusiveuSe of Uie Nenazna Rt Mtltlmli�edin leMequsersfwUaeidemi(iea Incergea lascardialsebyany other parties is protidtea. The appaismisrat reS;,cxoblOrOr%Oau izad� Wlhorapm Tneappr &sa'scerci(�lion appevingin Nis appraisal reywt is'subjeato[he rgbwingcOntlilipnsarga0 Ser:ho[pzrspecllk [ixaiJpraaserc sttloMby J»aDPmiserintflp repot. MeaUdaailurya5sumplipnsantlnypotMlkalcontlili0ns are5lapeaintherepunantl mighthavea lle0tetl Vle assgnm¢ncresgts. I. Theappraisa assumes aWbWbawbuly (dlmaeaz dak9alwesx aaewng N pmutyappa"ved a+Je JwEld, naddn the zpplalsarentlaelryoplROCas b IM li!e,wlvAis assumealo begaEOaM rIalMemDle. Tnapdpenyis oppds�as elWghundwrespd 3leowrelvkp y. -P aFp'asa6'm[[ywea la g,vetesampnyolappev h mvn Demusa dbariig maaelheappraivlm `J�lelareeloneplopmy ingveslon uriess umnyemau have beau aLYIW3if m)ap NtlPb. a. kfibaM many ra 1paemrden,wed).DUi[opyw anw metlm ueled fnryyay[ arnslms asm Jx pmperyvNue, tluideriilyd Neappla'sa, prd -sb -I devpuJVby a Ne film Wm xh'rd ace appraBa 8 ronr�m¢dl. shatl D e usee fa wt' pmpdzes q a nymc D u b1p dm1 ene dnawa eaea uxs a s itl auu¢tl m Iliz.l epoM1 rIw sha Y A Ee pmmeyetl et' anyaa Ib Ja pubk Ib W Sh aditlJtln9.!nd6c rdsaMS. rerrs. szlex a oVef m etla. MItw4 as wlpmn moot! d Jle aprcalsa. s The apptaiserwTlna blecka he[nmpn15 Dim applaiol lep ,Wass(gsbeaby appli[ade law w as speaayd in ob Ualam Standards d Prdassmrvl p4baisal Rabb.. 6. INWAd00R e5amd16. aed aplNanS (IYYi111Mb N¢ ap(IPISN, dM LmNn V bl Ne �PDat wQ1Q etldhlM IfOm 5¢WCPS PJISN %ed (Cbdbi MdD91EYPA IehYea NdCa1Ml Ilmevet, m lest' mAary Iw ttcwnry of w[h dams hmiskW b the appaistl 2 a swm etl by tle appaka. ]. iM apgaxt usvlres Uat Ner¢ae nohitltlm a uwppdteM[mtamsdge peptlry, wMW.ct --ores, xbidlwcuarmtladenrea kss vxluzWe. the ap)IdYCassWlles mmzp- iLllyla s[rhmMUians.wfa mgreaiig wleslilgxltir6.tigNbeleedmd IodisWrea w hlaaoes. itu appla!sal Isnaanemirmmenal azseszmrmorNepopenyarA 9lmddrol bewrsidaceassu[h B. Uts applaisalrepdrtshoddmt be uua Ideisdose Ne mndvanollhepmpalyaza �elalestouYpesal [efabszxedad¢[[s. The tL4N hh�tl ant ellmwaged m eryloy qualified e[penslanspeo anaaadress amm deoalem. Pnegalrve mlti4onsatedhms 'apa.IMCpai'ondvaluemaybe a9enetl. 9. Aprraisat5lnvavi�g l{)poNelkdlemdiY'ons 1plalpd W [omppbon0ln¢w[mwu[tim, repairs aalaadmalPdaz[Oan Ne axYimpliW tliel soh mmpkUOR adaatiun a�Pya'vsxiY 4 mmT+ImEypalnmed. Aaoieiwal Comments Rela[M TOSmpeIN Work Assumptions arb limitingCwMJOns rat No. 412CARNATI ON. AN Appraiser's Certification Thadppolsafsjcalities that, lo(MbnstofUreappraiser's k ;Odgz arm hallef: a. iMSralemeNZ dfacl[vNJY:ada11A4[ep'Jll arelNeavytvnat 2 eeariss daoOrs"olagand, rndcm[bSlms are Emi ", lean,aporled assn PdhFa.ndlin Jrtg nnlaixa a, mare Ne app,ars¢fspusarol.impvnid, and unbiased qd iaulsalysn, ojvliNZZ. and [uiduslms. 3. UNCS gnernist sNlea, uz appuistt hasnv gesvd mp,mpe[WciNattl in Ne gq�e9y Nals Nes:aryep of Nh rrymt mdNazropgscnNiderW wBnrespegsv dxpanies �wWm. a. he appWsmnasnvgaswiN,osprnlvtla qupeny Na115NesN.j¢I Vf Nh,epvndrla Na packs Nrdrel xiNgp aSVg�meK 5. iMappazYSelgsgm�e ,d�Nisessignlvx.usr.Nwui:gert vpondevtlap�grc(apontrgpeegenlyrcd lesdtt s. mappraiuR ca *pmsa:ionlol mmplefrg IAs asslgnmm hrotcenlhperd upon6:e devdvpmenu repah•O WapWelemuleLVaYx ry dueaioll nwbe dlaltarns Ne mouse W de GerYNa amuPA of Nevalue ap'vun d:e eeeamwN da 5tipulabd resWEa US o[[vrerce tla subs¢qumtamlbecy+dalmly drhvnded um vrtlds oppalsel. ], lh¢avaaiuh anmrs... �.: s :I:e..•.a.....u..u....,....a__: ......... ... .. _.. _ _ a, v�.essamwssemea. vro appralsecnas made a palmnalilepealvn tlV'agvpgty Naliz mesuyen dU•alryn 9. UNeonstdbelvw w enapoddadsyu4 ¢allwdpoaelryappaisal azsiz4+li¢w Nexppaive zigrvrg Ws`mih[aum Sigrifuanl+eal p'vpenyap'+andasysurc¢ pmvgM ey: PaoI[IOnalC m(iW v. OefinilionaaVV4R: 0NAfk,a VdIa, ®OUwrvalue: SiMle -User Valu9 sw,cQ ohaFdkam Use Value: Use value is the ve ac a s2ecifis p o rty has for o ifi ADDRESS OF tHE PP,OPCFIT PPPRAISEO: A VACANT PARCEL ADJOINING TO 412 CARNATION NEWPORT BEACH CA 92625 EPFECTVE WE OF TDEAPPRNSAb APRIL 30 2008 APPEARED VAEUC OF THE SUSIECT PROPEM 1 7,900 APPRA..ISER rvamz: CHRISTOPHER SPF_ RE Smmcm e,Oana AR001953 u: s; vx " _ a OIFN (tlesoLC;: -� Sum r CA. Suw: CA Erprdo-.OaedCm4aumvni e+: sr. 06 -2a -2010 Dale vl5ig:mwm am Repvn: 05!0712009 Oamor Pwpe[yv , APRIL30, 2008 Deglredp:aprnY Ox�neg: QDid penvnalry dc+ QpW wlpaurauy Ne,. SUPERVISORYAPMoSER Sgame: __ Yd OQ: sdd.cPV„dme vraxznsea Sl '. ESpuaim Dam d CoWsadvn a Ixm�u' Wren! StgaH:e: Oaten. Pmpely vAri:, Oegee vlp:oenydQ:ng. II�� Oui,,sraay�v ,_IOW IU pgsMally Ne.v Mar wo .,...:. P�aae �•; ._^'.,.. _. Lase, Forms FRONT VIEW OF SUBJECTPROPERTY Appraised Date: APRIL 30, ZOOS REAR VIEW OF SUBJECTPROPERTY STREFTSCENE 8L K. 330 sa*o 24 v I� I c 10 �'•_ 1 111 }s. PLATMAP O Ire Z2. n• L°— r v I 8 7 T °s SAYSOE 17 77 16 15 18 P /tJi 7 1A 9 13 m. _r�m 4 ♦ } 70 Q 2 so, LOCATION MAP Jia%f LPN. VrJavlevi N w Pam ntmyea Bay Pin cardnaDa It SM. Beaefi narpo, � I Oar wo :c;rae:zooc mm +rr.:, n: m� PreycrnJ Lp :.asbi P�nl!huA1.8E50 Staff Analysis of Real Estate Appraiser Report Sale of Excess Right -of -Way - Foster Council Report —September 28, 1998 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) = $31,00018,181 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 sale of City property: ($16.20 per square foot)(1,009 square foot) = $16,346 Issues • Appraisal report uses sale price of $31,000 instead of $48,000 for basis for proposed sale price. Discount Factor from Foster Sale 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. CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY DATE: August 8, 2011 SEW PO� T TO: Honorable Mayor and Members of the City Council } `� FROM: Office of the City Attorney V r Leonie Mulvihill, Assistant City Attorney 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 f�� ' -f -T �Al ldj' , k k " 0 J"�L 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; Agreement For Purchase And Sale Of Real Property 2 �, 1i, r T J 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 (e) Neither Buyers or City are in material default of this Agreement; and Agreement For Purchase And Sale Of Real Property 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. Agreement For Purchase And Sale Of Real Property 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. A mement 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) 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 IN WITNESS WHEREOF, the Buyers and the City have signed this Agreement on the dates set forth below. BUYERS: csn:�L V ^ Date: �� f urt Christiansen, Trustee The Kurt P. Christiansen Trust Nicholas A. Samios Carol B. Samios Date: Date: CITY: CITY OF NEWPORT BEACH, a California charter city and municipal corporation By: Date: Dave Kiff, City Manager ATTEST: By: Date: Leilani Brown, City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By: Date: 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 Agreement For Purchase And Sale Of Real Property 10 EXHIBIT A MAP OF 412 CARNATION AVE. 'r4f "er lh. ZXII M� �kl 1,1h, Al IA r EXHIBIT "B" LEGAL DESCRIPTION OF SUBJECT PROPERTY To Be Inserted DOCS OC/ 1077240v3/22087 -0180 EXHIBIT C QUITCLAIM DEED AOB -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: M 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) A08 -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:. In Dave Kiff, City Manager C -1 "RECEIVED AFTER .ENDA PRINTED:" A6 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 '/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 - 016 -3250 and Assessor's Parcel No. 938 -01 -326 FI t d: Font: 14 p0, 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 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 "). 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 quitclaims 9fants —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], 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. A08 -00107 `Formatted: Font: 14 pt, Bold J - (Formatted: Font: 14 pt, Bold 03;18/2002 16:30 ,luly 28, 2011 949 - 723 -5602 David Kecly, P.1F. Senior Civil Engineer City of Newport Beach rublic Works Department 3300 Newport. Blvd Newport Beach, CA 92663 -3884 Dear Mr, K,eely: CHRISTIANSEN CAPITAL Carole and Nicholas SRtnins 412 % Carnation Avenue Corona del Polar, CA 9262.x.+ 949 - 675 -7676 RECEIVED 7011 AUG -8 PM 3 03 OFFICE OF THE CITY CLERK CITY OF N47IVPORT BEkH PAGE We, Carole and Nicholas gamins, own and reside in 412 % Carnation kjrcime, Corona del Mar, CA 92625. hurt Christiansen, Trustee of the Kart P. Christiansen Trust dated August 1, 2002 (c,Christiansen'^) owns and resides in 412 Carnation Avenue, Corona del Mar, CA 92625. The m structure at that location. aforeanentioned units make up the entirely of a two unit condominiu Christiansen is entering into an Agreement for Purchase and Sale of Real Property (the "Contract") wherein the City of Newport Beach will sell a parcel of abandoned city land situated between the Christiansen properly line and Carnation Avcnue. Tile parcel will lie 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 benclit our property as well as Christiansen''. We therefore request that the City of Newport. Reach procced with the transaction as described in the Contract. Thank you for your consideration of our views on this matter. .S'incerel� icholas gamios Carole Samios I M 0 IL i- ICC a 4 -(M_)) 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 <phaidlCd)sbcglobal.net> To: Moore, Tania Cc: Badum, Steve Sent: Toe 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