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Home My WebLink AboutAD 2002-01; Greystone Homes Inc; 2005-0054590; Disclosure AgreementDOC # 2005-0054590 i I llllllil 111 11111 11111 11111 111ll1111111111 IIIII 11111111111111111111111 (6 Recording Requested by I 1 p and when Recorded Mail to: Or& of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: City Clerk JAN 21,2005 8:47 AM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER’S OFFICE GREGORY J SMITH, COUNTY RECORDER FEES. 38 00 PAGES 11 I Ill111 1111 Ill11 11111 11111 Ill11 11111 Ill11 11111 1111 Ill11 11111 Ill11 Ill11 111 1111 SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT This Agreement entered into as of this 30 fp day of D-AA-&~ ,2004 by and between the City of Carlsbad, a Municipal Corporation (“City”) and Greystone Homes, Inc., a Delaware Corporation (“Developer”). WHEREAS, Developer has petitioned the City Council of the City to initiate and the City has initiated proceedings for the formation of a special assessment district pursuant to the terms and provisions of the “Municipal Improvement Act of 1913”, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO 2002-01 (POINSETTIA LANE EAST) (hereinafter referred to as the “Assessment District”); and WHEREAS, the City has adopted policies relating to the utilization of Assessment District financing which require Developer to extinguish the lien on any parcel created as a result of the confirmation of assessments of the Assessment District prior to the close of escrow on the sale of such parcel to a residential home buyer unless Developer shall have provided full disclosure of the existence of the assessment lien, the amount thereof, the annual assessment installments, the duration of the assessment lien and such other information as may be required by the City, and has provided the residential home buyer with the option to (a) take title subject to the applicable Assessment District special assessment against their parcel, or (b) discharge the special assessment obligation prior to or concurrent with the close of such escrow; and WHEREAS, the parties hereto have entered into this Disclosure Agreement to establish the terms and conditions which must be satisfied by Developer should it desire to allow either residential home buyers or nonresidential buyers to take title subject to the assessment obligation established for any parcel or parcels within the Assessment District. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 1. The above recitals are all true and correct. SpecialAssessmentDistrictDisclosureAgreement-3d( ]).doc December 7,2004 Section 2. Developer owns property proposed to be subject to assessment obligations within the boundaries of the Assessment District. Developer’s property is described and set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. The escrow for the sale to any residential home buyer of any lot or parcel, including condominium unit, within the Assessment District shall not close or title to such parcel be otherwise conveyed to such residential home buyer without first causing the assessment lien created as a result of the confirmation of the Assessment District, if any, on such parcel to be extinguished except as provided for herein below. Section 4. An assessment lien on a parcel within the Assessment District proposed to be sold by the Developer to a homeowner in the case of a residential parcel or an end user in the case of a nonresidential parcel need not be extinguished prior to the close of the escrow for the sale if Developer shall have given such buyer or buyers of such parcel a copy of the Notice of Special Assessment and Pre-Payment Option Election applicable to such parcel, the form of which is attached hereto as Exhibit “B” and incorporated herein by this reference, and such Notice shall have been duly executed by such buyer or buyers and deposited into escrow. Section 5. Developer shall incorporate the amount of assessment lien into the advertised sales price of the home or the sales price of nonresidential property and clearly disclose the pass- through option in any sales literature. Sales literature for this purpose shall not be deemed to include media advertising, billboards, signs or other like advertisements. In addition, notice of the assessment in a form and size similar to Exhibit “C” shall be prominently displayed in all sales offices offering residential units for sale that are subject to the Assessment District lien. Section 6. This obligation shall be binding on all heirs, assigns or successors-in-interest of the parties hereto, and the City shall cause a copy of this Agreement to be recorded in the Office of the County Recorder upon its execution. SpecialAssessmentDistrictDisclosureAgreernent-3d( 1 ).doc 2 December 7,2004 Section 7. Developer shall indemnifL and hold harmless the City of Carlsbad from any claims arising out of Developer’s failure to adequately perform under the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the *day of S~cc_e\y~ec ,2004. (All signatures must be notarized) SpecialAssessmentDistrictDisclosureAgreement-3d( I).doc 3 December 7,2004 STATE OF CALIFORNIA 1 ) ss. COUNTY OF Shd &?& ) On D-M 30. AOOq before me,..&&%& ~h/nk pmm a personally known to me (w * ) to be the personN whose namew is/- subscribed to the within instrument and acknowledged to me that he/she&ey executed the same in his- authorized capacity@), and that by hislkerkkeir signatureh) on the instrument the personM, or the entity upon behalf of which the person'&) acted, executed the instrument. notary public in and for said State, pekonally appeared &&a6 R. -1 5 > WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) instrument. WITNESS my hand and official seal. SpecialAssessmentDistrictDisclosureAgreement-3d( I).doc 4 December 7,2004 EXHIBIT A DESCRIPTION OF SUBJECT PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: Map 14774, Lots 1 through97 Map 14775, Lots 1 through 74 Map 14776, Lots 1 through 88 Map 14777, Lots 1 through 65 Map 14778, Lots 1 through 101 Map 14779, Lots 1 through 98 Fehniarv 4.211114 EXHIBIT B NOTICE OF SPECIAL ASSESSMENT AND PRE-PAYMENT OPTION ELECTION Assessment District No. 2002-01 (Poinsettia Lane East) of the City of Carlsbad TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: Lot Number: Tract Number: Street Address: Estimated Original Assessment Lien: $ THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. This property is within the above-named assessment district. The City of Carlsbad has issued bonds for the Assessment District to finance the acquisition or construction of certain public improvements that are of direct and special benefit to property within the assessment district. The bonds will be repaid from annual assessment installments on property within the assessment district. The property is subject to annual assessment installments of the assessment district that will appear on your property tax bills, but which are in addition to the regular property taxes and any other charges and levies that will be listed on the property tax bill. If you fail to pay assessment installments when due each year, the property may be foreclosed upon and sold. The annual assessment installment against this property for the - tax year is dollars ($ ). Assessment installments will be collected each year on your property tax bill in semi-annual installments until the assessment bonds are repaid in tax year - . The public facilities that are being paid for by the money received from the sale of bonds that are being repaid by the assessments are: 0 Roadway improvements to Poinsettia Lane, El Fuerte Street and El Camino Real generally consisting of grading and paving of streets, installation of curbs, gutters, sidewalks, signing and striping, storm drainage pipelines and other facilities, water, sewer SpecialAssessmentDistrictDisclosureAgreernent~3d( I ).doc 6 December 7,2004 and reclaimed water mains, dry utilities, environmental mitigation, landscaping of medians, parkways and adjacent slopes and other appurtenant works; and These facilities may not yet have all been constructed or acquired and it is possible that some of such facilities may never be constructed or acquired. YOU SHOULD TAKE THIS ASSESSMENT AND THE BENEFITS FROM THE PUBLIC FACILITIES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. YOU MAY OBTAIN A COPY OF THE RESOLUTION CONFIRMING ASSESSMENTS (RESOLUTION NO. 2004- ) THAT SPECIFIES MORE PRECISELY HOW THE ASSESSMENTS ARE APPORTIONED AMONG PROPERTIES IN THE ASSESSMENT DISTRICT FROM THE CITY OF CARLSBAD BY CALLING (760 ) OR ON THE CITY WEBSITE AT WWW.CI.CARLSBAD.CA.US. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE DOCUMENT. PRE-PAYMENT OPTION ELECTION When you purchase the property, you will be solely responsible for the payment of the assessment. Prior to the close of escrow, you have the option to elect to either (a) pay off the assessment obligation in semi-annual assessment installments (“Option (a)”) during the term of the bonds or (b) pre-pay the entire assessment obligation at the close of escrow on the sale of the property to you in order to extinguish the assessment lien (“Option (b)”). If you elect Option (a) the assessment on the property will be collected in semi- annual installments which will be included in the property tax bill for the property. The annual assessment installments are estimated to be approximately $ per year to be collected through tax year - . In the event you elect Option (b), the amount required to pay-off the assessment in order to extinguish the assessment lien will be determined at the close of escrow. SpecialAssessmentDistrictDisclosureAgreement~3d( ]).doc 7 December 7,2004 RECEIPT, ACKNOWLEDGEMENT AND PAYMENT OPTION ELECTION By signing this Notice, Buyer acknowledges that: 1. The property that Buyer is purchasing is located within the boundaries of Assessment District No. 2002-01 (Poinsettia Lane East). 2. Buyer has had an opportunity to read and review this Notice, and has received a copy of this Notice prior to opening escrow for the purchase of the property, or, if received after the opening of such escrow, with sufficient time for Buyer to make any reasonable inquiries that Buyer deems necessary regarding the assessment against the property prior to the close of escrow. Buyer understands that Buyer may terminate the contract to purchase or deposit receipt after receiving this notice from the owner or agent selling the property. The contract may be terminated within three days if the notice was received in person or within five days after it was deposited in the mail by giving written notice of that termination to the owner or agent selling the property. 3. Buyer hereby elects the following option (check one): (a) pay the assessment in annual installments estimated to be approximately $- per year through the tax year - . (b) pay-off the entire assessment lien at one time at the close of escrow for the Property. The amount will be determined in escrow. The pay-off amount may include prepayment penalties, interest charges and other charges related to the calculation and administration of such pay-off so that such pay-off amount may exceed the original assessment lien amount. 4. If Buyer elects Option (a), Buyer assumes the assessment against the property, and will be solely responsible for the payment of assessment installments for such assessment for as long as the Buyer owns the property and Seller shall have no liability for such payment. Further Buyer agrees to the amount and purpose of the assessment on the property and that Buyer forever waives any right of complaint or protest to the City pertaining to the nature, extent, duration and amount of the assessment against the property. Notwithstanding Buyer’s election of Option (a) at this time, Buyer may pay the entire assessment at any time in the future if Buyer so chooses. The future pay-off amount may also include prepayment penalties, interest charges and other charges related to the calculation and administration of such pay-off. SpecialAssessmentDistrictDisclosureAgreement~3d( 1 ).doc 8 December 7,2004 BUYER Name (Please Print) Signature Date Name (Please Print) Signature Date A COPY OF THIS EXECUTED NOTICE OF SPECIAL ASSESSMENT AND PRE- PAYMENT OPTION ELECTION SHALL BE PROVIDED TO THE FINANCE DIRECTOR OF THE CITY AT THE CLOSE OF ESCROW. Please mail executed copy to: Finance Director City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 SpecialAssessmentDistrictDisclosureAgreement-3d( ]).doc 9 December 7,2004 EXHIBIT C NOTICE OF SPECIAL TAXES AND ASSESSMENTS The homes being sold in (name of development) are within Carlsbad Assessment District No. 2002-0 1 (Poinsettia Lane East), the Carlsbad Unified School District Community Facilities District No. San Marcos Unified School District Community Facilities District No. and are subject to an assessment lien and special taxes. This may require the homeowner to make semi-annual payments of assessment installments and special taxes over a term of 30 or more years. The payments are made at the same time and in the same manner as your property taxes. More information can be found in the Notice of Special Assessment and Pre- Payment Option Election form and the Notice of Special Tax, both of which must be read and signed prior to purchasing a (name of Development) home. Your sales representative will provide a copy of these Notices and is available to answer questions. and the SpecialAssessmentDistrictDisclosureAgreement~3d( I).doc 10 December 7,2004 Price Sheet First home Second home Third home Fourth home Notice: The homes being sold in (name of development) are within Assessment District No. 2002-0 1 (Poinsettia Lane East) and are subject to an assessment lien of approximately $ homeowner to make annual payments of approximately $ information can be found in the Notice of Special Assessment and Pre-Payment Option Election form. Please see your sales representative for a copy of the Notice. This may require the over a term of 30 or more years. More SpecialAssessmentDistrictDisclosureAgreement-3d( 1 ).doc 11 December 7,2004