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HomeMy WebLinkAbout1988-08-09; City Council; 9587; Acceptance Letter of Credit Park Purposes Sammis Properties and Execution Revised Parks Agreement’ * _ . . . p 2 d 5 8 Cr”’ OF CARLSBAD - AGENI-’ B MTG. 8/g/88 PARK PURPOSES FROM SAMMIS PROPERTIES, INC. AND THE EXECUTION OF A DEPT. CDD PARKS AGREEMENT. RECOMMENDED ACTION: I 1. I Adopt Resolution No. &%?9~ accepting the Letter of Credit from SAMMIS Properties, Inc. in fulfillment of their park land obligations. 2. Adopt Resolution No. g?%Aauth orizing the Mayor to execute a revised Parks Agreement with SAMMIS Properties, Inc. I ITEM EXPLANATION As a condition of the Batiguitos Lagoon Educational Park Master Plan, SAMMIS was required to enter into a Parks Agreement with the City of Carlsbad. This Parks Agreement was executed in August of 1986 and it established the procedure to be followed so that SAMMIS Properties could meet its parks obligation. SAMMIS Properties along with City have been working to purchase a suitable park site in the Southwest Quadrant of the City. SAMMIS Properties has attempted in good faith to purchase property in order to meet their parks obligation as required under the Master Plan. However they have been unable to do so and as specifically defined in the Parks Agreement they are requesting that the City of Carlsbad take action on their behalf to purchase a suitable park site in the Southwest Quadrant. In doing so, SAMMIS Properties, Inc. was required by the Parks Agreement to provide the City of Carlsbad an irrevocable Letter of Credit in order to purchase this land. The Letter of Credit has been received and is in the amount of $l,OOO,OOO for the purposes of purchasing 10 acres of park land to meet the specific conditions of the Batiguitos Lagoon Educational Park Master Plan. The Letter of Credit has been reviewed by the Finance Department and City Attorney's office and is acceptable. The agreement which the Mayor is being authorized to execute will allow the City to accept the Letter of Credit and recover a prorata share of costs associated with the City's efforts to purchase the 10 acres of park land on SAMMIS' behalf. The previous Parks Agreement anticipated that the City would be purchasing 10 acres and therefore included a clause which required SAMMIS Properties, Inc. to pay for all costs incurred by the City in this effort. Although, the City is now attempting to purchase more than 10 acres and therefore the agreement that the Mayor will be authorized to execute will require SAMMIS to pay its prorata share of those costs associated with the acquisition of this park site. The City will pay its prorata share of the costs associated with this purchase of additional land. ’ . - 6, I. : Page 2 of Agenda Bill No. yxgq EXHIBITS 1) Irrevocable Letter of Credit. 2) Revised Parks Agreement. 3) 1986 Executed Parks Agreement. 4) Resolution No.wJqiaccepting the Letter of Credit. 5) Resolution No.sYLauthorizing the Mayor to execute a revise Parks Agreement. -. 1 2 3 4 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 88-291 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA ACCEPTING A $975,000 LETTER OF CREDIT AND CASHIER'S CHECK IN THE AMOUNT OF $25,000 FROM SANNIS PROPERTY, INC. WHEREAS, SAMMIS Property, Inc. has been required as part of the Batiguitos Lagoon Educational Park Master Plan to provide park facilities to the City of Carlsbad; and WHEREAS, the City Council of the City of Carlsbad executed a Parks Agreement with SAMMIS Property, Inc. in August of 1986 whereby establishing the procedures to be followed in order for SAMMIS to provide park land acceptable to the City: and WHEREAS, SAMMIS Property, Inc. along with the City have worked to locate a suitable park site in the Southwest Quadrant but have been unable to obtain this land: and WHEREAS, SAMMIS Property, Inc. has met its parks obligation by providing the City a Letter of Credit in the amount of $975,000 and a Cashier's Check in the amount of $25,000 which is necessary to purchase 10 acres of park land. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 11 That the above citations are true and correct. 2) That the Letter of Credit and Cashier's Check are accepted in fulfillment of the 1986 Park Agreement between the City and Sammis Properties, Inc. and their parks obligations. I . 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City Council held on the -day of ut , 1988 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, and Mamaux NOES: None ABSENT: Council Member Larson ATTEST: afEL R.Rm ALETHA L. RAUTENKRANZ, City)Clerk CC RESO NO. 88-291 -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 88-292 A RESOLUTION OF TEE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AUTHORI2ING THE MAYOR TO EXECUTE A REVISED PARKS AGREEMENT WITH SAMMIS PROPERTIES, INC. WHEREAS, SAMMIS Property, Inc. has been required as part of the Batiguitos Lagoon Educational Park Master Plan to provide park facilities to the City of Carlsbad; and WHEREAS, the City Council of the City of Carlsbad executed a Parks Agreement with SAMMIS Property, Inc. in August of 1986 whereby establishing the procedures to be followed in order for SAMMIS to provide park land acceptable to the City; and WHEREAS, SAMMIS Property, Inc. along with the City have worked to locate a suitable park site in the Southwest Quadrant but have been unable to obtain this land; and WHEREAS, SAMMIS Property, Inc. has met its parks obligation by providing the City a Letter of Credit in the amount of $975,000 and a Cashier's Check in the amount of $25,000 which is necessary to purchase 10 acres of park land; and WHEREAS, a new Parks Agreement is necessary at this time in order to accurately reflect the acquisition requirements and associated prorata share of all costs associated with the City's actions to obtain this park land. \\ \\ \\ -. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1) That the above citations are true and correct. 2) That the Mayor is authorized to execute on behalf of the City Council the revised Park Agreement. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 9th day of August , 1988 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine and Mamaux NOES: None ABSENT: Council Member Larson - &iz&?z-g Mayor ATTEST: ALETHA L. RAUTENKRANZ, City] Clerk CC RESO NO. 88-292 -2- , -. AGREEMENT AN AGREEMENT BETWEEN THE CITY OF CARLSBAD AND SAMMIS PROPERTIES REGARDING THE ACQUISITION OF PROPERTY FOR PARK PURPOSES AS REQUIRED FOR SUBDIVISION CT 85-14 AND MP-175. This Agreement is made this /+ day of AZ& , 19 88 by and between the City of Carlsbad, California, a municipal corporation (hereinafter called "City") and Sammis Properties (hereinafter called "Subdivider"). RECITALS A. Developer is required as a condition of Resolution No. 8764 of the City Council of the City of Carlsbad, approving a Master Plan Parks Agreement between the City of Carlsbad and Sammis Properties to dedicate and provide certain property to wit: B. The acquisition of ten acres of property as an off-site park is essential to provide needed public facilities for the subdivision and to mitigate the public facilities burdens created by the subdivision. C. It is necessary that Subdivider secure said property in accordance with the Growth Management Plan and Public Facility and Service Performance Standards of the City of Carlsbad. D. Subdivider has been unable to acquire by a negotiated purchase the required property for park purposes for the subdivision, and requests that the City assist in the acquisition by exercise of the City's power of eminent domain. E. City desires to acquire an additional 20 acres of park land. - 2 - NOW, THEREFORE, in consideration of the mutual covenants contained herein and of the recitals, it is mutually agreed by and between the parties as follows: 1. City hereby exercises its rights under Paragraph 10 to assume primary responsibility for the subject litigation and to prosecute it to comple- tion. City will hire an appraiser, attorney and other professional services as may be necessary to prosecute the action to completion. It is understood by both parties that whenever in this agreement it says "Subdivider shall retain" a consultant or attorney, that the City has agreed to perform these services. 2. Subdivider and City agree to pursue a joint condemnation. Subdivi- der agrees to pay its pro rata share of all costs based on its requirement to dedicate 10 acres. City's pro rata share will be based on the balance of land to be acquired which is estimated to be 20 acres more or less. Subdivider will pay the same percent of the land acquisition costs as the ten acres is of the total land area acquired. For example, Subdivider 10 acres, City 10 acres equals a 50% - 50% cost split; Subdivider 10 acres, City 20 acres equals 33.33% - 66.67% cost split, etc. 3. Subdivider shall deposit with City the sum of $25,000 cash immediately upon signing of this agreement to be used to pay for consultant services. Said cash shall be fully credited toward Subdivider's obligation to acquire the ten acres. Subdivider shall furnish a letter of credit in a form acceptable to City upon completion of the appraisal and prior to an offer being made for the property. Said letter of credit shall be sufficient to cover the full amount of Subdivider's obligation to acquire ten acres of park land includ- ing purchase price, appraisal, title report, attorney fees and any other incid- ental costs or consultant fees as may be required in the prosecution of the -3- acquisition. 4. Subdivider agrees to retain on behalf of the City.of Carlsbad a qualified attorney or attorneys to prepare and file on behalf of the City all documents, pleadings and processing necessary to acquire the required property through an action in eminent domain. Said attorney or attorneys will either be associated with the City Attorney in the eminent domain proceeding or will independently pursue the eminent domain action on behalf of the City, as the City in its discretion determines. The attorney or attorneys shall be approved by the City Attorney and Subdivider agrees not to replace the attorney or attorneys without the City Attorney's consent. The City Attorney's approval or consent shall not be unreasonably withheld. 5, Subdivider agrees to bear its pro rata share of all expenses, costs, fees, and charges, including attorneys, engineers, appraisers or other profes- sional services fees incurred or charged in connection with the acquisition of the property interest and the preparation and prosecution of eminent domain proceeding, and City shall assume no responsibility for said amounts. 6. It is understood and agreed that even though the City is party plaintiff, it shall assume no financial responsibility for Subdivider's pro rata share in said eminent domain action and that as further proceedings are required, outside counsel shall assume primary responsibility and direction of any actions subject to any necessary approvals of the City. The City agrees to cooperate and assist in commencing and prosecuting said condemnation action in an expeditious manner for the purpose of completing same as soon as reasonably possible in accordance with applicable laws. 7. Subdivider shall retain any appraiser, engineer or other expert witness, as mutually agreed upon by Subdivider and City, to provide any neces- -4- sary appraisal, engineering or other information in a form suitable for use in connection with said condemnation proceedings. 8. Subdivider shall pay its pro rata share of all amounts, plus interest, as required as a result of any judgement or settlement in payment for property to be acquired. City shall assume no responsibility for said payments. 9. The parties hereby agree that they may, at the sole discretion of City, seek an order of immediate possession for the real property necessary for the improvements and facilities and related easements and comply with the legal procedure necessary therefor. The subdivider shall be responsible for the deposit of its pro rata share of funds, posting of security, or payment of any cost associated with the order of immediate possession. 10. City retains the right to assume primary responsibility for the subject litigation at any time and to prosecute it to completion with all costs, including attorney fees, to be borne by the Subdivider. 11. It is understood that prior to initiation of any eminent domain proceedings, it will be necessary for the City in its sole discretion to adopt a resolution on necessity for the acquisition of the property and to make the necessary findings required by law. City agrees to use due diligence in pro- cessing the matter to hearing before the City Council. Subdivider agrees that any failure by the City to use due diligence to proceed in a timely manner, shall not cause an invalidation of any condition of the tentative map or relieve the Subdivider of any obligation hereunder. 12. City agrees that upon the acceptance by City of a letter of credit in a form approved by City for the full amount of all costs of the acquisition of ten acres, and notwithstanding Paragraphs 1 and 7 of the B.L.E.P. Master Plan Parks Agreement, the acquisition and dedication of the ten acres shall be deemed h ‘. . . .’ - 5 - to have occurred and occupancy of building in Phase I of B.L.E.P. may be approved. No final maps, however, may be approved for Phases II or III until actual acquisition of the park has been accomplished and City becomes the owner. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. ATTEST: SAMMIS PROPERTIES STATE OF CALIFORNIA COUNTY OF--.-%%~&~ 0-m . ..____. “‘. On this the...- ,&J>T day of .5 LL( .%---~ _ _._ . ) i 9 8-r. before me, the undersigned, a Notary Public in and for said County and State, !YYYY!X~~~~-,-& .Y!%!I1~-5~ ~..~_ ~, personally known to me or proved to me on the basis of satisfactory evidence to be the President, and - -, personally known to me or proved to me on the basis of satisfactory evidence to be Secretary of the corporation that executed the within instrument on behalf of the corporation therein named, and acknow- ledged to me that such corporation executed the within instrument PUrSUant to its by-laws or a resolution of its board of directors. Signature *, m&,q f. G4Ih FOR NOTARY SEAL OR STAMP h h BATIQUITOS LAGOON EDUCATIONAL PARK MASTER PLAN PARKS AGREEMENT This parks agreement is made this 2% day of et 1986 between the CITY OF CARLSBAD, ("City") a municipal corporation of the State of California, and SAMMIS PROPERTIES, (IISammis") a California Corporation who agree as follows: RECITALS A. On October 1, 1985 the City Council adopted Ordinance No. 9778 adopting a master plan for the Batiquitos Lagoon Educational Park (MP-1751 (BLEP). Section VI1.B 4.b) of that master plan reads as follows: "Park requirements for each planning area, as may be applicable, shall be established in accordance with City Council Ordinance No. 9365 adopted October 18, 1973 and subsequent amendments. [Chapter 20.44 of the Carlsbad Municipal Code]. In lieu of fees, the City may require developer to dedicate land off-site for park purposes. Prior to occupancy of any phase of the development within the master plan, the applicant and the City shall enter into a parks agreement so that land for park purposes can be dedicated up front to bring the City up to standard for community parks in this district based upon current population Levels. "This will be available as a credit against the property's Quimby Act park dedication requirements, and in addition, any excess of dedicated Land over the applicant's required amount will be eligible for reimbursement by future developers within this district." This agreement is intended to implement the provisions of that section of the master plan. B. Sammis has requested that City approve a final map for Carlsbad Tract 85-14 for phase I of the BLEP. -l- . The tentative map for Carlsbad Tract 85-14 contained a condition which read: "The City Council may require the developer to dedicate land off-site for park purposes. If the City Council so determines prior to occupancy of any of the units in this project the applicant and the City shall enter into a parks agreement as required by the master plan." The Carlsbad City Council on July 8, 1986 approved a final map for Carlsbad Tract 85-14 subject to the condition that before recording of the map Sammis and City shall enter into an agreement for dedication of the park Land. C. The park dedication required in this agreement will satisfy the requirements of Chapter 20.44 of the Carlsbad Municipal Code for subdivisions within the BLEP, and implements the provisions of Section 20.44.110 of the Carlsbad Municipal P Code which provides an alternative procedure for satisfaction of parks obligations within planned communities through the overall community planning process rather than on a subdivision by subdivision basis. City and Sammis recognize the development of the BLEP will take place over a period of years and intend to arrange for the dedication of park Land in advance of actuaL need in order to insure that the park area of the City in which the BLEP is located will have sufficient park land as required by City standards before the actual need for the land accrues. In addition, Sammis has volunteered, and is obligated as a condition of the master plan, to dedicate 10 acres of usable park Land to the City in order to cure the park Land deficiency which exists in the southwest quadrant of the City. -2- * . I. h P In order to cure the deficiency in the southwest quadrant of 8.3 acres, Sammis will dedicate to the City approximately 10 acres of usable park land before any buildings within the BLEP may be occupied. Sammis will be reimbursed for the land dedicated in excess of the park obligation for the BLEP. For the purpose of this agreement it is agreed that the park obligation for the BLEP is 3.95 acres of park land. D. In lieu of the obligation to' dedicate park land under this agreement Sammis may propose and the City Council may authorize Sammis to improve park land that the City owns to the satisfaction of the City Council. The cost of such improvements shall not be less than the amount of fees Sammis would otherwise be required to pay in lieu of the 3.95 acre park land dedication requirement for the BLEP. NOW, THEREFORE, in consideration of the mutual covenants contained herein an incorporating the recitals set forth above the parties agree as follows: 1. In satisfaction of its master plan obligation to dedicate park land Sammis agrees to acquire and dedicate to the City of Carlsbad approximately 10 acres of land suitable and usable for park and recreational purposes within City of Carlsbad park district 3 (southwest quadrant). The location of and the suitability for park purposes land shall be approved by the City Council pursuant to paragraph 5 prior to the dedication to the City. The dedication shall occur prior to the filing of a finaL map for Phases II or III of the master plan or the occupancy of any buildings within the BLEP, whichever occurs first. The -3- Y dedication shall be free and clear of all liens and encumbrances. 2. Park Dedication Credits. (a) The parties agree that the park land dedication requirements for the development of BLEP is not less than 3.95 acres as determined at the time of execution of this agreement. If the requirement for park land dedication increases within the BLEP by either an increase in the acreage per population or an increase in the calculated number of people who will be residing within the master plan area as determined by Chapter 20.44 of the Carlsbad Municipal Code then the park dedication requirement for Sammis shall increase. If changes occur to Chapter 20.44 which would decrease the park land dedication requirements the parties agree that there shall not be a reduction in the master plan park requirement below the 3.95 acre level. (b) Upon dedication of the park land specified in paragraph 1 the amount of the land dedicated shall constitute a credit in favor of Sammis to be held on account by the City to be drawn upon in satisfaction of the park dedication obligations of . subdivisions within the BLEP. (c) As a condition of receiving the final map for Carlsbad Tract 85-14 Sammis has entered into an agreement to pay park in lieu fees as required by Carlsbad Municipal Code Chapter 20.44. If, at the time of obtaining the building permits for the residential portion of Carlsbad Tract 85-14, the land which is the subject of this agreement has not yet been dedicated Sammis shall pay the park in lieu fees to the City as required by -4- that agreement. Upon making the dedication improvements satisfying the alternative under paragraph 4, those fees shall be refunded to Sammis without interest. 3. Reimbursement. Sammis shall be reimbursed from park-in-lieu fees collected in the southwest quadrant of the City for the amount of land dedicated which is in excess of the park land dedication requirement for the BLEP as determined pursuant to this agreement and the appropriate provisions of the Carlsbad Municipal Code, eg., 10 acres (dedicated) minus 3.95 acres (obligation) equals 6.05 acres (reimbursable acreage). - Reimbursement shall be paid from park-in-lieu fees collected as follows: The City shall collect from subdividers within the southwest quadrant (except for subdividers within BLEP) fees in r lieu of park land dedication pursuant to the provisions of Chapter 20.44 of the Carlsbad Municipal Code in effect at the time the fees are collected. The fees collected shall then be paid over to Sammis less a three percent administrative charge which shall be retained by the City to cover the cost of administering this agreement. The amount of the remaining land for which Sammis receives reimbursement shall be reduced in an amount equal to the amount of land which would otherwise have been required to be dedicated for the subdivision paying the fees. The reimbursement shall continue until the balance of the land for which reimbursement is owed is zero acres. If after 15 years, Sammis has not been reimbursed out of park-in-lieu fees collected from the southwest quadrant of the City, the City shall -5- b . then reimburse Sammis from park-in-lieu fees collected in the remainder of the City. 4. Improvement Alternative. In the discretion of the City Council, the City may, in lieu of the dedication of the park land required by Section 1 of this agreement, require Sammis to improve park land owned by the City as determined by the Parks and Recreation Director and the City Council, and deliver to the City a completed park facility. The cost of such improvements shall not be less than $344,530. 5. Access. The park site dedicated under this agreement, as a condition of acceptance by City Council, shall have reasonable access to a dedicated street or other access Ih acceptable to the City and shall have reasonable access to sewer and other necessary public utilities and otherwise shall meet City's reasonable criteria for parks as set forth in City's general plan. The City Council shall determine the adequacy of the access and the geological and geographical suitability of the site for development of active recreational facilities before the land is dedicated to the City. Sammis shall provide any information, studies, surveys or other data necessary to establish the suitability of the site for park purposes. 6. Nature of the Master Plan. City and Sammis acknowledge that the BLEP is part of the City's dynamic changing land use planning process and that the City may change the master plan pursuant to the provisions of the Carlsbad Municipal Code at - any time. It is acknowledged by the parties that in the course -6- of .the development of the property the park dedication requirement for the Batiquitos Lagoon Educational Park master plan may change. In the event that the parks requirement for the master plan changes it is agreed that the parks obligation for the purposes of this agreement shall not be less than 3.95 acres. P 7. Acquisition by Condemnation. If Sammis is unable to acquire the land necessary to fulfil1 its obligations under this agreement City agrees to use its power of eminent domain to acquire the necessary property interest. Sammis shall notify the City of the inability to acquire the land not less than 100 days prior to the time occupancy of the buildings or the final map for Phases II and III of the master plan will be requested. Sammis agrees to bear all expenses, costs, fees and charges including land costs, attorneys, engineers, appraisers, or other professional service fees, and court costs: incurred or charged in connection with the acquisition of the property interests in the preparation and prosecution of the eminent domain proceeding. The City shall assume no responsibility for said amounts. There shall be no charge for City staff time associated with such acquisition. No occupancy shall be granted until the acquisition is completed. 8. Successors and Assigns. This agreement shall bind and inure to the benefit of the parties, their respective assigns and successors, and the successors owners' of the property. 9. Attorneys Fees. In the event of any dispute between the parties relating to the terms of the subject matter of this -7- b 4 agreement, the parties agree that the prevailing party shall be entitled to reasonable attorneys fees together with all costs and damages as determined by the court regardless of whether the dispute is settled or prosecuted to judgment. 10. Amendments. No change in or addition to this .agreement or any part hereof shall be valid unless it is in writing and signed by all the parties hereto. 11. Severability. If any portion of this agreement is held by a court or arbitrator or competent jurisdiction to be invalid, void or unenforceable the remainder of the portions hereof shall remain in full force and effect and shall no way be effected impaired or invalidated. 12. Entire Agreement. This agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions, preliminary agreements or understandings written or oral. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written. CITY OF CARLSBAD a Municipal Corporation of the State of California ATTEST: ALETHA L. r * . ‘. . . . I . P APPROVED AS TO FORM ~,/D+g&-A;,~J VINCENT F. BIONDO,-JR.' 1 /I City Attorney v SAMMIS PROPERTIES A California by: tCorpomtion1 . . . . . . . F . . . l .* before me. the undcrslgned. a Notary Public in and for said , personally known IO me (or proved to me on the basis of sallsfactory ev President. an+ the corporailon that executed the wlthm Instrument. r ‘: Instrument on behalf of the corporation therein named. and 3 t acknowledged to me that such corporation executed the wlthm mstnnnent pursuant to tts by-laws or a resolution of its board Name (Typed or Printed) OFC-2058 F -9- Bank of America Trade Finance Serivce #1263 BENEFICIARY: 450 B Street, 1OTB Floor San Diego, Ca 92101 [7 DATE: O&/02/88 I. APPLICANT: l City of Carl&ad S&s Properties, A California 1200 Elm Avenue Carlsbad, California 92008 Attn: City Manager Corporation 2650 CAMINO De1 Rio North Suite 100 San Diego, Ca 92008-1989 REFERENCE: Irrevocable Letter of Credit No. LASB-250717 EXPIRY DATE: 07/29/89 Gentlemen: The purpose of this letter of credit is to secure the parks obligation of the Batiquitos Lagoon Educational Park Master Plan as adopted by Ordinance No. 9778. It further meets the conditions of Resolution No. 8217 which approved a 129 unity Tentative Tract Map (Ct 85-14) and Planned Unit Development (PUD-90). This letter of credit additionally satisfies the conditions of the Batiquitos Lagoon Educational Park Master Plan Parks Agreement as approved by the adoption of Resolution No. 8764 adopted August 19, 1986. This Letter of Credit shall be amended to incorporate an agreement to be entered into between the City of Carlsbad, a municipal corporation of the State of California, hereinafter referred to as "City", and Sanmis Properties, a California Corporation, hereinafter referred to as "Principal". Said agreement requires the Principal to provide for the acquisition and/or development of 10 acres of park land located in the southwest quadrant of the City and associated costs with the city's actions necessary to acquire said property as defined in the future agreement. As required by and/or to allo the acquisitio agreement, the account of Pri hundred sevent e&y the principal drafts at si City's wr Engineer, the agree I: ru&&e&&b&$shed by Bank of America NT & SA 450 B Street, 10th Floor San Diego, Ca 92101 RE: IRREVOCABLE LEITER OF CREDIT NO. LASB-250717 Sammis Properties, A California Corporation To be continued on page 2. 1983 revision, International Chamber of Commerce Publication No. 400. Please examine this instrument carefully. If you are unable to comply with the terms or conditions, please communicate with your buyer to arrange for an amendment. This procedure will facilitate prompt handling when documents are presented. Bank of America Trade Finance Serivce #1263 450 B Street, 1OTH Floor San Diego, Ca 92101 l-7 . We expressly agree with you that all drafts drawn under and in compliance with the terms of this letter of credit shall meet with due honor upOn prsentation at this office on or before the expiration date. This letter of credit shall be deemed autcmatically extended without amendment for one year from the present and annually thereafter unless at least sixty (60) days prior to any such date bank shall notify City Clerk, by registered letter, that bank elects not to renew for such additional one year. In any event, this guarantee letter of credit shall expire exactly one year after City’s approval of improvements described in the agreement. **************************************** PROVISIONS APPLICABLE TO THIS CREDlfSsT’%i;Jr8&fiM$Wbject to the Uniform Customs and Practice for Documentary Credits, 1983 revision, International Chamber of Commerce Publication No. 400. Please examine this instrument carefully. If you are unable to comply with the terms or conditions, please communicate with your buyer to arrange for an amendment. This procedure will facilitate prompt handling when documents are presented. r” -1.1 1. nr