HomeMy WebLinkAbout1988-08-09; City Council; 9587; Acceptance Letter of Credit Park Purposes Sammis Properties and Execution Revised Parks Agreement’ * _ .
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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.
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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.
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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.
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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-
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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.
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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-
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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.
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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
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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-
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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
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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
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m&,q f. G4Ih
FOR NOTARY SEAL OR STAMP
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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.
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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.
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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
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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
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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
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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
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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.
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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
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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.
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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
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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