HomeMy WebLinkAboutAD 2002-01; LNR Bressi Commercial Inc; 2005-0054587; Disclosure AgreementDOC # 2005-0054587
6 Recording Requested By 1 rv and when Recorded Mail to: ,we
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: City Clerk
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JAN 21.2005 8:47 AM
OFFICIAL RECORDS SAN DIEGO CDCINT‘I‘ RECORDER’S OFFICE GREGDRYJ. SMITH, CDUFITY RECORDER
FEES 38 00
PAGES 11
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SPECIAL ASSESSMENT DISTRICT
DISCLOSURE AGREEMENT
,2004 by and between the day of aeb4za
City of Carlsbad, a municipal corporation (“City”) and LNR Bressi Commercial Inc., a California
corporation (“Developer”).
# This Agreement entered into as of this
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 hll 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.
Special Assessment District Disclosure Agreement-3d (1) February 4,2004
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.
Special Assessment District Disclosure Agreement-3d (1) 2 February 4,2004
Section 7. Developer shall indemnify 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 the36 day of
peC-em.,w , 2004.
CITY OF QAlUSBAD A LNR Bressi
corporation
By:
Name: Curt% Gephei
By: Y
Name:
(All signatures must be notarized)
Special Assessment District Disclosure Agreement-3d (I) 3 February 4,2004
STATE OF CALIFORNIA
COUNTY OF &L?A/GE
ss.
On &ccfiarL 7, =LOOF before me, AIL 4- ,~!&LK~L ,a
notary public in and for said State, personally appeared &&,Is 7. 277~ PnFNsm W- ,
personally known to me ) to be the person@
whose name@ is/= subscribed to the within instrument and acknowledged to me that hehhdtky
executed the same in his-r authorized capacity@+, and that byhis/he&k&r signature(i-@on the
instrument the personwor the entity upon behalf of which the person&$ acted, executed the
instrument.
*
WITNESS my hand and official seal.
Signature JLCR (Seal)
STATE OF CALIFORNIA 1
ss.
COUNTY 0FSRA.J %LE@
on DxeUemL 30. a& before me, ,a
notary public in and for said State, pkrsonaliy appeared &4LiW A. UWrs 3
personally known to me (b ’ ) to be the persono
whose name@) is/= subscribed to the within instrument and acknowledged to me that he/sk&hey
executed the same in his/he&&r authorized capacity@$, and that by hislkgl.kkeh. signaturew on the
instrument the personrs), or the entity upon behalf of which the personN acted, executed the
instrument.
WITNESS my hand and official seal.
Signature
Special Assessment District Disclosure Agreement-3d (I) 4 February 4,2004
EXHIBIT A
DESCRIPTION OF SUBJECT PROPERTY
THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA,
COUNTY OF SAN DEGO, AND IS DESCRBED AS FOLLOWS:
Lot 5 of Map 14800, Carlsbad Tract CT 03-03
Special Assessment District Disclosure Agreement-3d (1) 5 February 4,2004
~~ ~
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
Special Assessment District Disclosure Agreement-3d (1) 6 February 4,2004
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.CLCARLSBAJ3.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.
Special Assessment District Disclosure Agreement-3d (I) 7 February 4,2004
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 fi-om 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.
Special Assessment District Disclosure Agreement-3d (1) 8 February 4,2004
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
Special Assessment District Disclosure Agreement-3d (1) 9 February 4,2004
EXHIBIT C
(Example - Use Font size 30 for heading and 20 for text)
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
Special Assessment District Disclosure Agreement-3d (1) 10 February 4,2004
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 $ This may require the
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.
over a term of 30 or more years. More
Special Assessment District Disclosure Agreement-3d (1) 11 February 4,2004