HomeMy WebLinkAbout1969-08-21; Parking Authority; Resolution 4RESOLUTION NO.
RESOLUTION OF THE PARKING AUTHORITY OP THE
CITY OP CARLSBAD, CALIFORNIA APPROVING AND
AUTHORIZING THE EXECUTION OP THAT CERTAIN
DOCUMENT ENTITLED "LEASE AGREEMENT"
WHEREAS this Parking Authority proposes to acquire
certain property for use as a public parking facility pursuant
to the Parking Law of 19^9, Sections 32500 et seq. of the
Streets and Highways Code; and
WHEREAS this Authority proposes to issue its revenue
bonds in an amount sufficient to enable it to acquire said
property; and
WHEREAS this Authority proposes to lease said
facilities to the City of Carlsbad; and
WHEREAS said Authority proposes to apply the
rental payments made by said City of Carlsbad to pay princi-
pal and Interest on said bonds and all other expenses of
the Authority; and
WHEREAS certain documents entitled "Lease and
Agreement," "Sublease and Agreement," "Grant Deed/'
"Amendment of Lease," "Amendment of Sublease and Agreement"
and an amended grant deed have heretofore been approved
by this Authority; and
WHEREAS subject to approval of the City of
Carlsbad and the grantor as named in said Grant Deeds
this Authority proposes to substitute that certain lease
agreement attached hereto in place of those certain documents
entitled "Lease and Agreement," "Sublease and Agreement,"
"Amendment of Lease," and "Amendment of Sublease and
Agreement;"
NOW, THEREFORE, the Parking Authority of the
City of Carlsbad, California does hereby FIND, RESOLVE,
DETERMINE AND ORDER as follows:
Section 1. That said certain Lease Agreement
attached hereto as Exhibit A be and hereby is approved
and the Chairman and Clerk of this Authority are hereby
authorized to execute same on behalf of this Authority.
Section 2. Tnat bond counsel for this Authority
is hereby directed to obtain the approval of said Lease
and Agreement by that certain grantor named in the Grant
Deed referred to in the recitals hereof and of the City of
Carlsbad to said Lease Agreement and to prepare such other
documents as necessary in support of said Lease Agreement.
ADOPTED, SIGNED AND APPROVED this 21st day
of August ^ Q
ATTEST:
Chairman o^ the JP^rifeing Authority
of the City of/G^lsbadZ/callfornia
Clerk 7
2.
STATE OF CALIFORNIA
XOUNTY OF SAN DIEGO
) ss
I, Margaret E. Adams, Clerk of the Parking Authority
of .the City of Carlsbad, California, DO HEREBY CERTIFY that
the foregoing resolution was duly adopted by the Parking
Authority of said City and was approved by the Chairman
of said Parking Authority at a special meeting of said
Parking Authority held on the 21st day of August ,
1969, and that it was adopted by the following vote, to wit:
AYES Directors Cannon, Daugherty, Snedeker,
NOES:
ABSENT
None.
Directors Killen and Sugg
Cler{( the Parking Autno>"it;y
of the/City of Carlsbad, California
LEASE AGREEMENT
This Agreement made as of the 19th day of August, 1969, by and between the Parking Authority
of the City of Carlsbad (hereinafter sometimes referred to as the "Authority"), a public body corporate
and politic organized and existing under the laws of the State of California, and the City of Carisbad
(hereinafter sometimes called the "City"), a municipal corporation of the State of California.
WITNESSETH:
WHEREAS, the Authority is a public corporation created under and exercising its powers pursuant
to the Parking Law of 1949, Part 2 of Division 18, commencing at Section 32500, of the Streets and
Highways Code of the State of California, and under said Law has the power to issue revenue bonds
for the purpose of financing public parking facilities; and
WHEREAS, the Authority proposes to acquire that certain land in the City of Carisbad, California
(hereinafter sometimes called the "Site"), which is described in Exhibit A attached hereto, and the
off-street parking improvements thereon; and
WHEREAS, the estimated cost and expense of said acquisition is $1,535,000; and
WHEREAS, the Authority proposes to issue revenue bonds in the principal amount of $1,535,000 for
the purpose of the acquisition and financing of said public parking facilities; and
WHEREAS, under said Parking Law of 1949, and particularly Section 32957 thereof, the Authority
has the power to lease said parking facilities to the City without the necessity of inviting bids;
Now, THEREFORE, in consideration of the mutual promises and agreements herein contained, the
parties hereto agree as follows:
Section 1. Issuance and Sale of Bonds.
The Authority agrees that, as promptly as feasible following the date of this Agreement, it will
use its best efforts to issue and sell revenue bonds in a principal amount which, together with other
available funds of the Authority, is estimated to be sufficient to make the acquisition referred to in the
recitals hereof and in Section 2 hereof together with the improvements mentioned in Section 2 hereof;
and to pay other costs and expenses in connection with such acquisition. Said bonds are hereinafter
sometimes referred to as the "revenue bonds" of the Authority.
Section 2. Acquisition of Site and Improvements.
The Authority agrees to acquire, with the proceeds of the revenue bonds and other available
funds, the Site and improvements thereon and perform all undertakings incidental or advantageous
thereto so that the Site is reasonably suitable for use for parking purposes. Such acquisition shall be
made as promptly as feasible.
The City shall be reimbursed for advances made, if any, for legal, financing consultant and engineer-
ing fees and other costs incurred by the City in connection with said acquisition from the proceeds of the
revenue bonds.
Section 3. Lease of Parking Facilities.
The Authority hereby leases to the City the Site together with the parking improvements con-
structed thereon. The term of the lease shall commence on the date the Site is conveyed to the Authority
and shall terminate on the date the revenue bonds have been retired or provision for payment made.
The City agrees to pay rental for such use in the amount of $142,250 during each fiscal year of this /.^.^•'
/ e / ~y / 4
EXHIBIT A , .V^
f •7 ;, V
Lease Agreement (hereinafter referred to as "rental"), except that no rental shall be payable by the
City for occupancy prior to October 1, 1970.
Commencing October 1, 1970 said rentals shall be due in quarterly installments in advance on the
first days of October, January, April and July and shall be payable without penalty on or before the
last days of October, January, April and July of each fiscal year.
Section 4. Adjustment of Rent.
The rental above set forth is based upon the schedule for adjustment of rental, marked Exhibit B
and made a part hereof. Such schedule is used for computing the yearly rental necessary for Authority
to receive to enable it to pay the principal of and interest on its bonds so that they will be serviced and
retired as set forth in the Resolution and furnish the Authority with the necessary reserves. When the
interest rate or rates on the Authority's Bonds are known. Authority and City shall recompute the rental
in the same manner, based upon said figures, and shall adjust the rental upwards or downwards to the
new figure so determined.
Section 5. Maintenance, Operations, Encumbrances, etc.
The City shall, at its own expense, maintain during the term of the lease hereunder the Site and
all improvements thereon in good order, condition and repair and shall pay all costs and expenses of
operating the same as parking facilities, it being understood and agreed that the Authority is obligated
to provide only the Site and the improvements thereon as expressly provided herein and has no obliga-
tion to pay any cost or expense of any kind or character in connection with or related to the management,
operation or maintenance of the parking facilities during the term of the lease hereunder. The City
agrees to keep the Site and the improvements thereon free and clear of all liens, charges and encum-
brances. The Authority agrees that, at the time the term of the lease hereunder commences, it will
have fee title to the Site, subject to such conditions, reservations, exceptions and rights of way of
record as do not substantially interfere with the use of the Site by the City for parking purposes.
Section 6. Taxes, Assessments, Insurance, etc.
As rental in addition to and after the commencement of the rental under Section 3 (hereinafter
referred to as "additional rental"), the City agrees to pay and discharge (1) all taxes and assessments,
if any, of any type or character levied at any time during the term of the lease hereunder upon the
Site or any improvement thereon or upon the City's or the Authority's interest therein or upon the
operation of the property leased or upon income or other revenue derived by the City or by the
Authority therefrom; (2) the insurance premiums on all insurance required or permitted on the
property leased; (3) all costs and expenses which the Authority may incur including but not limited
to fiscal agent's fees, costs and expenses of maintenance and operation as a result of any default by
the City under this Agreement, including reasonable attorneys' fees and the costs and expenses of any
suit or action at law to enforce the terms and conditions of this Agreement; and (4) amounts necessary
to maintain a working capital fund of $1500 for the foregoing. The additional rental payable
hereunder shall be paid by the City within ten (10) days after notice in writing from the Authority
to the City stating the amount of additional rental then due and payable and the purpose thereof;
provided, that the City's liability for additional rental shall be limited to the balance due after any
credits under the resolution issuing the bonds of the Authority.
Section 7. Source of Funds for Rentals.
(a) Based upon reports and other evidence submitted the parties hereto have each determined
and have agreed that the rentals payable by the City hereunder (including rentals payable under
Sections 3, 4 and 6 hereof) represent fair rental values for the Site and improvements leased here-
under. Said rentals shall be payable year by year as specified herein for and in consideration of the
right of use and occupancy from year to year as granted by this Agreement and in consideration of the
continued quiet use and enjoyment thereof during the term specified herein.
(b) The City hereby agrees to take such actions as may be necessary to include and maintain
in its budget for each fiscal year all rentals payable by the City during such fiscal year, to make the
necessary appropriations for all such rentals and to provide the funds necessary to meet such appro-
priations, it being understood that the Authority will pledge the rentals due hereunder for the payment
and security of the revenue bonds, and the interest thereon, issued as specified in Section 1 hereof.
Section 8. Additions and Improvements.
The City shall have the right during the term specified in this Agreement, at its own expense, to
make any additions to or improvements of the Site and improvements leased hereunder which do not
impair the utility thereof as parking places, to attach fixtures, structures or signs thereto, and to affix
any personal property to the improvements on the Site. Title to all personal property so affixed shall
remain in the City.
Section 9. Insurance.
Authority shall, during the term of this Agreement, keep or cause to be kept a policy or policies
of insurance against loss or damage to the Site and the improvements thereon resulting from fire,
lightning, vandalism, malicious mischief, riot and civil commotion and such perils ordinarily defined
as "extended coverage" and other perils as Authority and City may agree should be insured against
on forms and in amounts satisfactory to each.
During the term of this Agreement, Authority shall keep or cause to be kept public liability and
property damage policies protecting both Authority and City on forms and in amounts satisfactory to
each.
The Authority may also carry or cause to be carried such other insurance as is required by the
resolution providing for the issuance of the revenue bonds.
All premiums and charges paid by Authority for all of the aforesaid insurance shall be paid to the
Authority in accordance with the provisions of Section 6. Any such premium for a period partly
within such period shall be prorated.
At the option of the City any insurance required by Authority hereunder may be provided by
the City.
Notwithstanding the generality of the foregoing, the Authority shall not be required to maintain
or cause to be maintained any insurance which is not available from reputable insurers on the open
market or more insurance than is specifically referred to above.
Section 10. Abatement of Rental.
The rentals hereunder shall abate during any period in which by reason of any damage or
destruction there is a substantial interference with the use and occupancy by the City. If only a portion
of the parking facilities is rendered so untenantable, the rental shall abate in the proportion which the
parking capacity of such portion bears to the total parking capacity of the facilities immediately prior
to such damage or destruction. Such abatement shall continue for the period commencing with such
destruction or damage and ending with the substantial completion by the Authority of the work or
repair or reconstruction. In the event of any such damage or destruction, this Agreement shall continue
in full force and effect and the City waives any right to terminate this Agreement by reason of any such
damage or destruction.
Section 11. City's Obligation to Operate.
The City shall be obligated to so use and operate the parking facilities leased so as to afford to the
public the benefits contemplated by this Agreement and to permit the Authority to carry out its covenants
to its bondholders.
Section 12. Assignment and Sublease.
Neither this Agreement nor any interest of the City herein shall, at any time after the date hereof,
without the prior written consent of the Authority, be mortgaged, pledged, assigned or transferred by the
City by voluntary act or by operation of law, or otherwise, except as specifically provided herein. The
City shall at all times remain liable for the performance of the covenants and conditions on its part
to be performed, notwithstanding any assigning, transferring or subletting which may be made. The
City shall have the right to sublease or permit the use by others of all or any part of the facilities leased,
but nothing herein contained shall be construed to relieve the City from its obligation to pay rentals
as provided in this Agreement or relieve the City from any other obligations contained herein. The
Authority may issue its revenue bonds as contemplated by Section 1 hereof, may pledge to the payment
of said bonds and the interest thereon the rentals to be received hereunder, and may make all necessary
covenants for the protection and security of the bondholders.
Section 13. Eminent Domain.
If the whole of the Site together with any improvements thereon, or so much thereof as to render
the remainder unusable for parking purposes, shall be taken under the power of eminent domain,
then this Agreement shall terminate. In such event the rent provided herein shall abate. If less than
the whole of the Site, together with any improvements thereon, shall be taken under the power of
eminent domain, and the remainder is usable for parking purposes, then this Agreement shall con-
tinue in full force and effect as to such remainder and the parties waive the benefit of any law to the
contrary. In such event there shall be a partial abatement of the rent hereunder in an amount
equivalent to that portion of the rent hereunder for the portion taken which the parking capacity of
the portion taken bears to the total previous parking capacity of the Site and the improvements thereon.
Any award made in eminent domain proceedings for the taking or damaging of the Site or the
improvements thereon in whole or in part shall be paid to the Authority for the benefit of the holders
of the outstanding revenue bonds of the Authority and shall be used as provided in the resolution under
which the revenue bonds are issued subject to such reversionary or other rights to share in any such
award as may be contained in any document of record relating to the site. The City shall have no interest
in or thereto and shall not be entitled to any part of such award.
Section 14. Surrender of Leased Premises.
Upon the expiration of this Agreement the City agrees that it shall surrender to the Authority all
property then under lease hereunder, together with any improvements thereon, in good order and
condition and in a state of repair that is consistent with prudent use and conscientious maintenance
except for reasonable wear and tear.
Section 15. Right of Entry.
The Authority and its designated representatives shall have the right to enter upon the leased
property during reasonable business hours (and in emergencies at all times), (i) to inspect the same,
(ii) for any purpose connected with the City's rights or obligations under this Agreement, and (iii) for
all other lawful purposes.
Section 16. Liens.
The City agrees to pay, when due, all sums of money that may become due for, or purporting to
be for, any labor, services, materials, supplies or equipment alleged to have been furnished or to be
furnished to or for the City in, upon or about the leased property and which may be secured by any
mechanics', materialmen's or other lien against the leased property, and/or the Authority's interest
therein, and will cause each such lien to be fully discharged and released at the time the performance
of any obligation secured by any such lien matures and/or becomes due, provided, however, that if
the City desires to contest any such lien, it may do so, but notwithstanding any such contest, if any,
such lien shall be reduced to final judgment and such judgment or such process as may be issued for
the enforcement thereof is not promptly stayed, or if so stayed and said stay thereafter expires, then
and in any such event the City shall forthwith pay and discharge said judgment.
Section 17. Taxes.
The parties understand that the leased property constitutes public property free and exempt from
all taxation; however, the Authority agrees to take whatever steps may be necessary, upon written
request by the City, to contest any proposed tax or assessment, or to take steps necessary to recover any
tax or assessment paid. The City agrees to reimburse the Authority for any and all costs and expenses
thus incurred by the Authority.
Section 18. Quiet Enjoyment.
The parties hereto mutually covenant and agree that the City, by keeping and performing the
covenants and agreements herein contained, shall at all times during the several terms, peaceably and
quietly have, hold, and enjoy the leased property, without suit, trouble or hindrance from the Authority.
Section 19. Law Goveming.
This Agreement shall be governed exclusively by the provisions hereof and by the laws of the
State of California, subject to the waivers, exclusions and provisions herein contained.
Section 20. Notices.
All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements,
appointments or designations hereunder by either party to the other shall be in writing and shall be
sufficiently given and served upon the other party, if sent by United States registered mail, return
receipt requested, postage prepaid and addressed as follows:
City — City Clerk, City Hall, Carisbad, California.
Authority — Clerk of the Authority — At such address as Authority shall designate for
such purpose.
Section 21. Waiver.
The waiver of the Authority of any breach by the City of any term, covenant or condition hereof
shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or
condition hereof.
Section 22. Default by City.
If (a) the City shall fail to pay any rental payable hereunder within fifteen days from the date such
rental is payable, or (b) the City shall fail to keep any such other terms, covenants or conditions
contained herein for a period of twenty-five days after written notice thereof from the Authority to the
City, or (c) the City shall abandon or vacate the premises, or (d) the City's interest in this Agreement
or any part thereof shall be assigned or transferred without the written consent of the Authority,
either voluntarily or by operation of law, or (e) the City shall file any petition or institute any pro-
ceedings where or whereby the City asks or seeks or prays to be adjudicated a bankrupt, or to be
discharged from any or all of its debts or obligations, or offers to the City's creditors to effect a
composition or extension of time to pay the City's debts, or asks, seeks or prays for a reorganization
or to effect a plan of reorganization, or for a readjustment of the City's debts, or for any other similar
relief, or (f) any such petition or any such proceedings of the same or similar kind or character shall
be filed, instituted or taken against the City, then and in any of such events the City shall be deemed
to be in default hereunder.
If the City should, after notice of such default, fail to remedy any defauh with all reasonable
dispatch, in not exceeding thirty days, then the Authority shall have the right, at its option, without
any further demand or notice (i) to terminate this Agreement, if such termination is then permitted
under the provisions of the resolution under which the revenue bonds are issued, and to re-enter the
leased property and eject all parties in possession thereof therefrom, using all necessary force so to
do, or (ii) to re-enter the leased property and eject all parties therefrom, using all necessary force so
to do, and, without terminating this Agreement, re-let the leased property, or any part thereof, as the agent
and for the account of the City upon such terms and conditions as the Authority may deem advisable,
in which event the rent received on such re-letting shall be applied first to the expenses of re-letting and
collection, including necessary renovation and alteration of the leased property, a reasonable attorney's
fee, and any real estate commissions actually paid, and thereafter toward payment of all sums due
or to become due to the Authority hereunder, and if a sufl^icient sum shall not be thus realized to pay
such sums and other charges, the City shall pay the Authority semiannually any cumulative net deficiency
existing on the date when rentals are due hereunder. The foregoing remedies of Authority are in
addition to and not exclusive of any other remedy of Authority. Any such re-entry shall be allowed by
the City without let or hindrance and the Authority shall not be liable in damages for any such re-
entry or be guilty of trespass.
The term "re-let" or "re-letting" as used in this Section shall include, but not be limited to, re-letting
by means of the operation by the Authority of the parking facilities and the collection of fees and
charges for parking therein.
Section 23. Net Lease.
This Agreement shall be deemed and construed to be a "net-net lease" and the City hereby
agrees that the rentals provided for therein shall be an absolute net return to the Authority, free and
clear of any expenses, charges or set-offs whatsoever.
Section 24. Execution.
This Agreement may be simultaneously executed in any number of counterparts, each of which
when so executed shall be deemed to be an original, but all together shall constitute but one and the
same Agreement, and it is also understood and agreed that separate counterparts of this Agreement
may be separately executed by the Authority and the City, all with the same full force and effect as
though the same counterpart had been executed simultaneously by both the Authority and the City.
Section 25. Validity.
If any one or more of the terms, provisions, promises, covenants or conditions of this Agreement
shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by
a court of competent jurisdiction, each and all of the remaining terms, provisions, promises, covenants
and conditions of this Agreement shall not be affected thereby and shall be valid and enforceable to the
fullest extent permitted by law.
If for any reason this Agreement shall be held by a court of competent jurisdiction void, voidable,
or unenforceable by the Authority or by the City, or if for any reason it is held by such a court that
the covenants and conditions of the City hereunder, including the covenants to pay rents hereunder, is
unenforceable for the full terms hereunder, then and in such event for and in consideration of the
right of the City to possess, occupy and use the leased property, which right in such event is hereby
granted, this Agreement shall thereupon become, and shall be deemed to be, a lease from year to year
under which the annual rentals herein specified will be paid by the City.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and
attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed,
as of the day and year first above written.
CITY OF CARLSBAD
Attest:
l)i^»^^T*
(SEAL)
Attest:
•Penj^y Clerk
(SEAL)
Mayor
PARKING AUTHORITY OF THE
CITY-OF CARLSBAD
Cj|)dirman
I HEREBY APPROVE the form and legality of the foregoing Agreement this 21st day of August, 1969.
City Attorney and ex officio Attorney
for the Parking Authority of the
City of Carisbad
ss.
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
On this 21st day of August, in the year 1969, before mQ,5L{^A^t....C..K...(^J^.^.9^..,a Notary
Public, State of California, duly commissioned and sworn, personally appeared .y.A.y.!^^.,^.Mv..I).t^iV''^^
known to me to be the Mayor, and .SJl.i.r.le.y...San.SO.n-, known to me to be theyyCity Clerk, re-
spectively, of the CITY OF CARLSBAD, a municipal corporation that executed the within instrument, and
known to me to be the persons who executed the within instrument on behalf of said municipal corpo-
ration therein named, and acknowledged to me that such municipal corporation executed the within
instrument pursuant to a resolution of the City Council of said City of Carlsbad.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the
day and year in this certificate first above written.
• Notary Public, State of California
(NOTARIAL SEAL) i y0ES STUART C. WILSON I
NOTARY PUBLIC • CALIFORNIA I
PRINCIP.U OFFICE IN
SAN DIEGO COUNTY
MY COMMISSION EXPIRES JUNE 15. 19? 2,
ss.
STATE OF CALIFORNIA ]
COUNTY OF SAN DIEGO
On this 21st day of August, in the year 1969, before me, '$TOA!^T....^..K..i:^..(kf:(^X a Notary
Public, State of California, duly commissioned and sworn, personally appeared.^^^. R^.^ Qau gh 6 r±y
known to me to be the Chairman and .Shlrley....SanS.piftnown to me to be theXlkk, i^spectively,
of the Parking Authority of the City of Carisbad, a public corporation that executed the within instru-
ment, and known to me to be the persons who executed the within instrument on behalf of said public
corporation therein named, and acknowledged to me that such public corporation executed the within
instrument pursuant to a resolution of said Authority.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the
day and year in this certificate first above written.
Notary Public, State of California
(NOTARIAL SEAL) STUART C. WILSON
NOTARY PUBLIC • CALIFORNIA
PRINCIP.U OFFICE IN
SAN OIEGO COUNTV
MY COMMISSION EXPIRES JUNE 15, 197 2-
c r, R T , T r I c A T i ;
This is to certify that the interest in real property
conveved by the hea.se Aj-reenent dated .Mipust 21, 1969
from The Parkino Authority of the Citv of Carlsbad, a
political corporation to the City of Carlsbad, a rmnicipal
corporation of the State of California, is hereby
accepted by Resolution 1659 of the City Coimcil of the
City of Carlsbad on October 7, 1909, and the prantec
consents to recordation thereof by its duly authorized
officer.
11 AT nil: Octo])er 2], 196 9
September 8, 1964 as Document No. 163432 of oflicial records; thence along the boundary of said
state highway as follows; North 56° 32' 58" West 100.34 feet to the beginning of a non-tangent
curve, the radial center of which bears South 28° 33' 27" West 150.00 feet therefrom; thence
westerly along the arc of said curve through a central angle of 31° 03' 27" a distance of 81.31 feet
to the end thereof; thence non-tangent to said curve, South 89° 12' 51" West 167.13 feet to a point
in the arc of a 205.00 foot radius curve, concave southerly, the radial center of which bears South
2° 30' 00" East from said point; thence westerly along the arc of said curve through a central angle
of 35° 09' 13" a distance of 125.78 feet to the beginning of a reverse curve having a radius of 95.00
feet; thence westerly and northwesterly along the arc of said curve through a central angle of
112° 09' 13" a distance of 185.96 feet to the southeast corner of that easement for drainage pur-
poses described under Parcel 2, granted to the State of California, recorded September 8, 1964
as Document No. 163432 of official records; thence leaving said curve and said southerly Une of
California State Highway, and following along the southerly and westerly lines of said drainage
easement. South 74° 30' 00" West 138.88 feet and North 15° 19' 26" West 40.85 feet to a point
in the southerly line of the land described under Parcel 1 in Deed to the City of Oceanside, recorded
April 20, 1959 as Document No. 77257 of official records; thence South 69° 30' 00" West along
the southerly line of said Parcel 1 a distance of 614.20 feet to the true point of beginning.
Excepting therefrom that portion of said Section 32, described as follows: Beginning at said southeast
corner of said north half of the northeast quarter of Section 31, of said Township and Range; thence
North 69° 30' 00" East along said southerly line of land described in said Deed to the City of Oceanside,
425.90 feet; thence leaving said southerly line, South 5° 00' 00" East 58.17 feet to the true point of
beginning of the herein described parcel; thence continuing South 5° 00' 00" East 104.00 feet; thence
North 85° 00' 00" East 327.67 feet; thence North 5° 00' 00" West 104.00 feet; thence South 85° 00' 00"
West 327.67 feet to the true point of beginning.
Also excepting from Section 32, herein described, all of the oil, gas, and mineral and mineral rights,
lying beneath a depth of 500 feet from the surface of said land, together with the right of entry at any
point in such land lying below said depth for the purposes of exploring, drilling, conveying and removal
of any such substances and installation of equipment and pipelines for such purposes, provided that any
such entry and activity upon said land for such purpose shall be carried out in such manner as to avoid
any interference with the use of the surface of said land, as excepted in deeds from FAWCO, a partnership,
William S. Bartman, Fred A. Bartman Jr., Bernard Citron, and Harry J. L. Frank Jr., recorded April 21,
1966 under Recorder's File No.'s 66913 and 66568.
Also excepting from said portion of Section 32, above all mineral rights and all oil, gas, petroleum,
or other hydrocarbon substances within or underlying said land without right of surface entry as reserved
in deeds executed by Reginaldo Marron and Caroline Marron recorded in Book 6699, Page 264 of official
records, and Book 7712, Page 477 of official records.
EXHIBIT B
PARKING AU'raORITY OF THE CITY OF CARLSBAD
Schedule for Adjustment of Rental
Estimated total Project cost $1,359,550
Estimated funded interest*... $107,450
Estimated Reserve Fund 68,000
Sub-Total 175,450
Estimated Required Bond Issue $1,535,000
* Subject to adjustment under Section 4 for the purpose of adjusting the Rental. Funded interest on the bonds during
their life has been estimated at 7% and shall be adjusted pursuant to Section 4. Said adjustment may take into con-
sideration the need to adjust the Schedule of Rental payments to fit the financial program of the City and shall be
subject to approval of the City; provided the Schedule of Rental payments (which may vary from year to year)
shall be in any case at least suflicient to pay the principal and interest on the Bonds in any succeeding year in
accordance with the Resolution.
[EXHIBIT A ATTACHED TO ORIGINAL ONLY]