HomeMy WebLinkAboutAD 2003-01; McMillin Montara LLC; 2003-1229943; Disclosure AgreementI
DOC # 2003-1229943
OCT 069 2003 4~44 F‘M
Recording Requested By
and when Recorded Mail to:
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: City Clerk
WFICIN RECURDS SCIN DIEGO COUNTY RECORDER’S OFFICE ciREL;MiY J. SHITHr COUNTY RECDF.DEK FEES: 41.00
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SPECIAL ASSESSMENT DISTRICT
DISCLOSURE AGREEMENT
This Agreement entered into as of this 16th day of September, 2003 by and between the City
of Carlsbad, a municipal corporation (“City”) and McMillin Montara, LLC, a Delaware limited
liability company (“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 2003-01 (College Boulevard and Cannon Road 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 residential home
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.
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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.
An assessment lien on a parcel within the Assessment District proposed to be sold to a
residential home buyer need not be extinguished prior to the close of the escrow for the sale or other
conveyance to such residential home buyer if Developer shall have given the residential home buyer
a copy of the Notice of Special Assessment and Pre-Payment Option Election, the form of which is
attached hereto as Exhibit “By’ and incorporated herein by this reference, and such Notice shall have
been duly executed by the residential home buyer or buyers and deposited into escrow.
Section 4. Developer shall incorporate the amount of assessment lien into the advertised
sales price of the home 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 units for sale that are subject to the
Assessment District lien.
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Section 5. 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.
Section 6. 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 the /8. @ ay
McMillin Montara, LLC
a Delaware limited liability company
By: McMillin Management Services, LP
a California liability partnership
Its: Manager
Construction Services, Inc
By:
Its:
By:
Its:
(All signatures must be notarized)
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STATE OF CALIFORNIA
me that W/
instrument.
Signature (Seal)
CALIFORNIA
personally known to me (0
whose name(s) idare subscn
executed the same in his/her/their
instrument the person(s), or the e
instrument.
and that by his/her/their signature(s) on the
which the person(s) acted, executed the
(Seal)
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
personally appeared (?&b'x 4- 15
Name@) of Signer(s)
dpersonally known to me
0 proved to me on the basis of satisfactory
evidence
to be the person(+ whose name(s) is/=
subscribed to the within instrument and
acknowledged to me that he/* executed
the same in his/- authorized
capacity(4, and that by his/Wir
signature@ on the instrument the person@, or
the entity upon behalf of which the person(+
acted, executed the instrument.
Place Notary Seal Above
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date: Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
0 Individual
0 Corporate Officer - Title(s):
[7 Partner - 0 Limited 0 General
0 Attorney in Fact
0 Guardian or Conservator
Signer Is Representing:
0 1999 National Notary Association * 9350 De Sot0 he.. P.0. Box 2402 * Chatswonh, GA 91313-2402 www nationalnotaryorg Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827
I
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EXHIBIT A
DESCRIPTION OF SUBJECT PROPERTY
THE LAND REFERRED TO HEREIN IS SITUATED JN THE STATE OF CALIFORNIA,
COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS:
LEGAL DESCRIPTION OF VILLAGE K
LOTS 1 THROUGH 84, INCLUSIVE, OF CARLSBAD TRACT NO. 01-02, CALAVERA
HILLS VILLAGE ‘K, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14622, FILED IN THE OFFICE
OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 1,2003.
LEGAL DESCRIPTION OF VILLAGE L-2
LOTS 1 THROUGH 14, INCLUSIVE, OF CARLSBAD TRACT NO. 01-02, CALAVERA
HILLS VILLAGE ‘L-2’, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14623, FILED IN THE OFFICE
OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 2,2003.
LEGAL DESCRIPTION OF VILLAGE R
BEING A SUBDIVISION OF A PORTION OF LOT 168 AND THE REMAINDER PARCEL
CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO
MAP THEREOF NO. 12951, FILED IN THE OFFICE OF THE COUNTY RECORDER OF
SAID COUNTY ON JULY 16,1992.
OF CARLSBAD TRACT NO. 83-19 CALAVERA HILLS VILLAGE “T”, IN THE CITY OF
SAID PROPERTY BEING DESCRIBED AS PARCEL A IN A CERTIFICATE OF
OFFICIAL RECORDS OF SAID SAN DIEGO COUNTY.
COMPLIANCE RECORDED SEPTEMBER 20,2000 AS FILE NO. 2000-0503706 OF
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EXHIBIT B
NOTICE OF SPECIAL ASSESSMENT AND PRE-PAYMENT OPTION ELECTION
Assessment District No. 2003-1
(College Boulevard and Cannon Road 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 fiom annual assessment installments on property within the assessment
dlstrict.
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 fiom the sale of bonds that are
being repaid by the assessments are:
Roadway improvements to College Blvd. and Cannon Road generally consisting of
grading and paving of streets, installation of curbs, gutters, sidewalks, guardrail, signing
and striping, storm drainage pipelines and other facilities, water, sewer and reclaimed
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water mains, dry utilities, environmental mitigation, landscaping of medians, parkways
and adjacent slopes and other appurtenant works; and
0 Storm drain improvements including a storm water detention basin east of College
Boulevard north of the easterly extension of Cannon Road.
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. 2003- ) 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 serni-
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.
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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. 2003-01 (College Boulevard and Cannon Road 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 so that it may exceed the original assessment
lien amount.
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4. If Buyer elects Option (a), Buyer assumes the assessment against the property, and will be
solely responsible for the payment of 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 of 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 fbture if
Buyer so chooses.
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
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EXHIBIT C
{Example of Sales Ofice sign - Use no smaller than 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. 2003-0 1
(College Boulevard and Cannon Road East) and the
Carlsbad 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.
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EXHIBIT C
{Example of Price Sheet Notice - Use no small than Font size 12 for Notice)
Price Sheet
First home
Second home
Third home
Fourth home
Notice: The homes being sold in (name of development) are within Assessment District No.
2003-01 (College Boulevard and Cannon Road East) and are subject to an assessment lien of
approximately $
approximately $
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 homeowner to make annual payments of
over a term of 30 or more years. More information can be found in the
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