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HomeMy WebLinkAboutAD 96-01; Continental Ranch Inc; 1998-0725543; Disclosure AgreementRECORDING REQUESTEU BY WIEEN RECORDED MAIL TO: (g City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 \&? Attn: chy.C\& k .- NOU 069 1998 l2:14 PM SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT THIS AGREEMENT entered into as of thi - day o 0 &&98 by and between the City of Carlsbad, a municipal corporation (“City,”) and Continental Ranch, Inc., a Delaware Corporation (“Developer”). WHEREAS, Developer or its predecessor in interest has petitioned the City Council of the City to initiate and the City has initiated proceedings for the formation of a special assessment district pursuant to the terms and provisions of the “Municipal Improvement Act of 19 13”, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO 96- 1 (RANCHO CARRILLO) (hereinafter referred to as the “Assessment District”); and WHEREAS, the City has adopted policies relating to the utilization of Assessment District financing which require Developer to extinguish the lien on any parcel created as a result of the confirmation of the Assessment District prior to the close of escrow on the sale of such parcel to a residential home buyer unless Developer shall have provided full disclosure of the existence of the assessment lien, the amount thereof, the annual assessment installments, the duration of the assessment lien and such other information as may be required by the City, and has provided the residential home buyer with the option to (a) take title subject to the applicable Assessment District special assessment against their parcel, or (b) require the special assessment obligation to be discharged prior to the close of such escrow; and WHEREAS, the parties hereto have entered into this Disclosure Agreement to establish the terms and conditions which must be satisfied by Developer should it desire to allow residential home buyers to take title subject to the assessment obligation established for any parcel or parcels within the Assessment District. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. Developer owns property proposed to be subject to assessment obligations within the boundaries of the Assessment District. Developer’s property is described and set forth in the attached, referenced and incorporated Exhibit “A”. SECTION 3. The escrow for the sale to any residential home buyer of any lot or parcel, including condominium unit, within the Assessment District shall not close or title to 1 b .. ’ .. . 513 such parcel be Perwise conveyed to such residential liolbuyer without first causing the asse,,ment lien created as a result of the confirmation of the Assessment . District, if any, on such parcel to be extinguished except as provided for herein below. An assessment lien on a parcel within the Assessment District proposed to be sold to a residential home buyer need not be extinguished prior to the close of the escrow for the sale or other conveyance to such residential home buyer if Developer shall have given the residential home buyer a copy of the Notice of Special Assessment and Payment Option Election, the form of which is attached hereto as Exhibit “B” and incorporated herein by this reference and such notice shall have been duly executed by the residential home buyer or buyers and deposited into escrow. SECTION 4. DeveIoper shall incorporate the amount of assessment lien into the advertised sales price of the home and clearly disclose the pass-through option in any sales literature. Sales literature for this purpose shall not be deemed to include media advertising, billboards, signs or other like advertisements. In addition, notice of the assessment in a form similar to Exhibit “C” shall be prominently displayed in all sales offices offering units for sale that are subject to the Assessment District lien. SECTION 5. This obligation shall be binding on all heirs, assigns or successors-in-interest of the parties hereto, and the City shall cause a copy of this Agreement to be recorded in the Office of the County Recorder upon its execution. SECTION 6. Developer shall indemnify and hold harmless the City of Carlsbad from any claims arising out of Developer’s failure to adequately perform under the provisions of this Agreement. IN WITXESS WHEREOF, the parties hereto have executed this Agreement on the 5th day of October , 199s. CITY OF CARLSBAD Mayor ATTEST: CONTINENTAL RANCH, INC., a Delaware Corporation By: Christopher Clhilrnbers President By: d* David mther President /3. By: David mther Vice President Aletha L. Rautenkranz City Clerk 2 ,. ‘. . P 514 State of California County of San Diego On October 26, 1998 before me, Nancy A. Nemg~, Notary Pubh , personally appeared David A. J,o-d Cwher Cm, personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. P, &cy A. Nemec, Notary Public Description of Attached Document: Title or Type of Document: .. Document Date: Undated Number of Pages: 13 Capacity(ies) Claimed by Signers: Signer’s Name: David A. J,o&r Signer’s Name: Chris Chambers Title: Vice President Title: Pr-t Representing: Co- Representing: Co- EXHIBIT A A DESCNPTION OF SUBJECT PROPERTY .. 516 .r7 RICKENGI"GW%NY 3620 Friars Road rAj . SanDirgo California 92 110-2596 (619)291-0707 Legal Description J-i 2987 RANCHO CARRILLO, EXCLUDING PARK SITES, SCHOOL SITE AND PORTIONS OF VILLAGE "J" By: RBljb.002 TC Ref. co. Order No. Date Oescr. Rev. By Date: September 29, 1998 Page 1 of 6 A parcel of land being a portion of the Southerly one half of Section 18 and a portion of Section 19, Township 12 South, Range 3 West, San Bemardino Meridian and a portion of Fractional Section 13 and a portion of Fractional Section 24, Township 12 South, Range 4 West, San Bernardino Meridian, City of Carlsbad, County of San Diego, State of California described as follows: Beginning at a point on the Westerly boundary line of Record of Survey No. 91 12 on file in the Ofice of the County Recorder of said County of San Diego, said point also being on the centerline of Palomar Airport Road and the beginning of a non-tangent 1200.00 foot radius curve concave Southwesterly, to which a radial line bears North 02'03'04" East; thence leaving said Westerly line and along said centerline Southeasterly along the arc of said curve through a central angle of 20'13'34" a distance of 423.61 feet; thence South 67O43'22" East 1328.80 feet to the beginning of a tangent 1000.00 foot radius curve concave Northeasterly; thence Southeasterly along the arc of said curve through a central angle of 03'09'32" a distance of 55.13 feet to the beginning of a non-tangent 2263.00 foot radius curve concave Northeriy to which a radial line bears North 08°33'46" East; thence Easterly along the arc of said curve through a central angle of 16'17'25'' a distance of 643.41 feet to the beginning of a non-tangent 1000.00 foot radius curve concave Northwesterly to which a radial line bears North 18'16'59" West; thence Northeasterly along the arc of said cuwe through a central angle of 03'09'32" a distance of 55.13 feet; thence North 68'33'29" East 1525.56 feet to the beginning of a tangent 6000.00 foot radius cume concave Southeasterly; thence Northeasterly along the arc of said curve through a central angle of 05'39'05" a distance of 591.81 feet; thence North 74'1 2'34" East 454.40 feet to the beginning of a tangent 3000.00 foot radius curve concave Southeastedy; thence Northeasterly along the arc of said cuwe through a central angle of 00°52'58" a distance of 46.22 feet to a point on the Easterly boundary line of said Record RE103 4/89 .. I, f- 517 ,-7 RICK ENGINEERING COMPANY 5620 Friars Road SanDiego 'L-A Ca1ifornia92110-ZS96 (619)291-0707 Legal Description J-12987 RANCHO CARRILLO, EXCLUDING PARK SITES, SCHOOL SITE AND PORTIONS OF VILLAGE "J" By: RWjb.002 Date: September 29, 1998 Page 2 of 6 TC Ref. CO. Order No. Date Descr. Rev. By of Survey No. 91 12; thence leaving said centerline and Southerly, Westerly and Northerly along the boundary lines of said Record of Survey the following courses: South OO"39'50" West 2492.24 feet: thence South 00'08'23'' West 2669.98 feet; thence South 00 "07'39" West 1335.81 feet: thence North 89'45'39" West 1314.12 feet; thence North 89'48'08" West 1248.20 feet; thence North 89'46'41'' West 1848.74 feet; thence South 00'51'48'' West 431.07 feet to the beginning of a non-tangent 900.00 foot radius curve concave Northeasterly, to which a radial line bears South 15'05'10" West; thence Northwesterly along the arc of said cuwe through a central angle of 01 "44'50" a distance of 27.45 feet; thence North 73"lO'OO" West 120.00 feet to the beginning of a tangent 900.00 foot radius curve concave Northeasterly: thence Northwesterly along the arc of said curve through a central angle of 29'32'00" a distance of 463.91 feet; thence South 46'22'00'' West 82.83 feet to the beginning of a tangent 150.00 foot radius curve concave Northerly; thence Westerly along the arc of said curve through a central angle of 82'18'00'' a distance of 21 5.46 feet; thence North 51 '20'00" West 440.25 feet to the beginning of a tangent 700.00 foot radius curve concave Northeasterly; thence Northwesterly along the arc of said curve through a central angle of 19"20'00" a distance of 236.20 feet; thence North 32'00'00" West 425.00 feet to the beginning of a tangent 750.00 foot radius curve concave Southwesterly; thence Northwesterly along the arc of said curve through a central angle of 57'17'44" a distance of 750.00 feet; thence North 89'17'44" West 480.00 feet; thence North 00'41'42'' East 205.09 feet; thence South 89'26'46" East 2458.80 feet; thence North 02°38'00'' West 5065.02 feet to the Point of Beginning. Excepting therefrom the following described parcels of land: [Existina Park Site 1) Commencing at the Southeast corner of said Record of Survey No. 91 12; thence North RE103 4/89 I,. /4\ 518 RICKENGNEERINGCOMPANY 5620 Friars Road VAT. San Diego L-A California 921 10-2596 (619)291-0707 Legal Description J-12987 RANCHO CARRILLO, EXCLUDING PARK SITES, SCHOOL SITE AND PORTIONS OF VILLAGE "J" By: RWjb.002 Date: September 29, 1998 Page 3 of 6 TC Ret. co. Order No. Date Dhlcr. Rev. By 00'07'39" East along the Easterly line thereof 1335.81 feet; thence leaving said Easterly line North 89'46'1 1" West 1308.84 feet; thence North 00°21'00" East 1398.14 feet; thence North 89'39'00" West 542.1 1 feet to the TRUE POINT OF BEGINNING, being a point on that certain document granted to the City of Carlsbad on February 24,1977 as FilelPage 77-068081 ; thence along said document the following courses: South 36'1 5'49" West 408.00 feet: South 05'10'15" East 176.66 feet; South 06'32'57" West 225.02 feet; South 79'55'36" East 228.30 feet; South 32"22'19'' East 107.90 feet; South 19'16'22" West 68.69 feet; South 76'50'48" West 575.23 feet; North 48'51'58" West 291.10 feet; North 16'01'37" East 549.47 feet; North 49'58'58" East 494.91 feet; North 85'50'40" East 240.49 feet to the TRUE POINT OF BEGINNING. JExistina Park Site a That parcel of land described in that document recorded November 4, 1997 as Document NO. 97-0554155 and being a portion of Parcel 2 of Certificate of Compliance, Document No. 94-0497667 in the City of Carlsbad, both on file in the Office of the County Recorder of San Diego County, State of California described as follows: Beginning at an angle point in the Southeasterly line of said Parcel 2 formed by the intersection of the two courses: North 85'50'40" East 92.05 feet, North 04"09'20" West 326.97 feet; thence along said Southeasterly line the following courses: South 85°50'40" West 92.05 feet to the beginning of a tangent 2000.00 foot radius curve concave Southerly; thence Westerly along the arc of said curve through a central angle of 02'22'02" a distance of 82.63 feet; thence leaving said Southeasterly line North 50'32'05" East 21 4.03 feet to said Southeasterly line; thence along said Southeasterly line South 04'09'20" East 122.00 feet to the Point of Beginning. RE103 4/89 - I. 519 RICKENGI"Gc0MpANy 5620 Friars Road . SanDirgo L-J California 92110-2596 (6t9wwm7 Legal Description TC Ref. J-12987 RANCHO CARRILLO, EXCLUDING PARK SITES, SCHOOL SITE AND PORTIONS OF VILLAGE "J" Co. Order No. Data Dalcr. I Rw. By By: RWjb.002 I Date: September 29, 1998 Page 4 of 6 /Lot 11 1. Carlsbad Tract No. 93-04. Villaae "Q". Phase 1. Park Site) Lot 11 1 of Carlsbad Tract NO. 93-04, Rancho Carrillo Village "Q" Phase 1 in the City of Carlsbad, County of San Diego, State of California according to Map No. 13551 on file in the Office of the San Diego County Recorder. (Prooosed School Site] That portion of Parcel 2 of Certificate of Compliance, Document No, 94-0497667 and Parcel 3 of Certificate of Compliance, Document No. 94-0497669 both in the City of Carlsbad, on file in the Office of the County Recorder of San Diego County, State of California described as follows: Beginning at an angle point in the Southeasterly line of said Parcet 2 formed by the intersection of the two courses: North 85'50'40" East 92.05 feet, North 04'09'20" West 326.97 feet; thence North 04'09'20" West along said Southeasterly line 122.00 feet to the TRUE POINT OF BEGINNING; thence South 50'32'05" West 230.39 feet; thence South 38'58'1 2" East 19.32 feet; thence South 55'32'56'' West 143.45 feet; thence South 48O54'47" West 15 1.28 feet; thence South 44'27'1 7" West 104.02 feet; thence South 56'30'35" West 147.1 7 feet; thence North 74'13'36'' West 146.41 feet; thence North 84'1 1'15" West 218.1 1 feet to the beginning of a tangent 140.00 foot radius curve concave Southeasterly: thence Southwesterly along the arc of said curve through a central angle of 56'28'45" a distance of 138.01 feet; thence South 39'20'00" West 236.54 feet; thence South 46'46'16" West 31.78 feet; thence South 60"10'20" West 58.15 feet to the beginning of a tangent 1 25 .OO foot radius curve concave Northerly; thence Westerly RICKENGI"GCOMPANY 5620 friars Road . ~~~~192110-ZS96 (619)291-0707 Legal Description J-12987 RANCHO CARRILLO, EXCLUDING PARK SITES, SCHOOL SITE AND PORTIONS OF VILLAGE "J" By: RBljb.002 Date: September 29, 1998 Page 5 of 6 TC Rd. co. Order No. Date Dew. Rev. By along the arc of said curve through a central angle of 51 '48'28" a distance of 1 13.03 feet; thence North 68'01 '1 2" West 41.08 feet to the beginning of a tangent 100.00 foot radius curve concave Southerly; thence Westerly along the arc of said curve through a central angle of 35'36'36" a distance of 62.15 feet; thence South 76'22'1 2" West 45.1 3 feet; thence North 87'28'01 " West 41.1 8 feet; thence North 18'34'56" West 95.67 feet; thence North 72'43'50" East 84.30 feet to the beginning of a tangent 145 1 .OO foot radius curve concave Northwesterly; thence Northeasterly along the arc of said curve through a central angle of 30'05'48" a distance of 762.1 9 feet to the beginning of a reverse 20.00 foot radius curve concave Southeasterly: thence Northeasterly along the arc of said curve through a central angle of 21 '1 2'1 6" a distance of 7.40 feet to the beginning of a reverse 30.00 foot radius curve concave Northwesterly; thence Northeasterly along the arc of said curve through a central angle of 33'23'30" a distance of 17.48 feet to the beginning of a reverse 170.00 foot radius curve concave Southeasterly: thence Northeasterly along the arc of said curve through a central angle of 10'03'18" a distance of 29.83 feet to the beginning of a reverse 1451 .OO foot radius curve concave Northwesterly; thence Northeasterly along the arc of said curve through a central angle of 07'43'04" a distance of 195.45 feet; thence North 32'47'02" East 240.48 feet to the beginning of a tangent 21 49.00 foot radius curve concave Southeasterly; thence Northeasterly along the arc of said curve through a central angle of OO"54'1 1 " a distance of 33.87 feet; thence North 33O41'13" East 280.45 feet to the beginning of a tangent 25.00 foot radius curve concave Southerly; thence Northeasterly along the arc of said curve through a central angle of 91O53'02" a distance of 40.09 feet; thence South 46'49'56" East 31.87 feet; thence South 53'32'41 'I East 8.86 feet; thence South 59'31'58" East 35.19 feet to the beginning of a non-tangent 2337.00 foot radius curve concave Southwesterly, to which a radial line bears North 37'25'20" East; thence Southeasterly along the arc of said curve through a central angle of 13'37'27" RE103 4/89 -. . '. .. 5 2.4 I RIC.KE"EERINGWM 5620 Friars Road ' :::2192110-2596 (6 19129 1-0707 Legal Description J-12987 RANCHO CARRILLO, EXCLUDING PARK SITES, SCHOOL SITE AND PORTIONS OF VILLAGE "J" By: RB/jb.002 Date: September 29, 1998 Page 6 of 6 TC Ref. Ca. Order No. oat. Oarcr. Rw. By a distance of 555.71 feet; thence South 50'32'05" West 59.84 feet to the TRUE POINT OF BEGINNING. JVillaae "J". Lots 1 throuah 45 & Lots 61 throuah 651 Lots 1 through 45 and Lots 61 through 65 of Carlsbad Tract No, 93-01, Rancho Carrillo Village "J" in the City of Carlsbad, County of San Diego, State of California according to the map thereof No. 13552 on file in the Office of the San Diego County Recorder. jb112987.002 EXHIBIT B (SAMPLE - FOR ILLUSTRATION PURPOSES ONLY) NOTICE OF SPECIAL ASSESSMENT AND PAYMENT OPTION ELECTION (Supplement to Escrow Instructions) THE PROPERTY WHICH BUYER IS PURCHASING IS SUBJECT TO A SIGNIFICANT ASSESSMENT WHICH IS IN ADDITION TO REGULAR PROPERTY TAXES. THIS ASSESSMENT WILL AFFECT THE AMOUNT WHICH BUYER WILL BE REQUIRED TO PAY IN THE PURCHASE OF BUYER'S PROPERTY. YOU ARE URGED TO READ THIS NOTICE VERY CAREFULLY IN ORDER TO UNDERSTAND THE ASSESSMENT AGAINST THE PROPERTY. Name(s) of Buyer: Address of Property: Escrow Company: The escrow instructions relating to the sale and purchase of the above described property (the "Property") are supplemented by the following as set forth herein. ASSESSMENT INFORMATION The City of Carlsbad ("City") has formed a special assessment district pursuant to the provisions of the "Municipal Improvement Act of 1913" to finance the acquisition or construction of certain public works of improvement which will benefit the properties within the assessment district. This assessment district is known and designated as ASSESSMENT DISTRICT NO. 96-1 (Rancho Carrillo) (the "Assessment District"). The public improvements to be financed through the Assessment District include: 0 Roadway improvements to Melrose Drive generally consisting of relocation of sewer mains, grading and paving of streets, installation of curbs, gutters, sidewalks , guardrail, signing and striping, storm drainage facilities, water, sewer and reclaimed water mains, riparian mitigation, landscaping of medians, parkways and adjacent slopes and other appurtenant works; 0 Roadway improvements to the intersection of Melrose Drive and Palomar Airport Road generally consisting of left-turn pockets, acceleration and deceleration lanes and median break; and Bonds in the amount of $ above-described improvements. The bonds are secured by the assessments levied on property have been issued to finance the construction of the 3 23 within the Assessment District. The Property which you are purchasing is located within the boundaries of the Assessment District. The City has determined that the Property will receive a direct and special benefit from the improvements to be financed through the Assessment District and has levied an assessment against the Property in the total amount of $ is secured by a lien much like a home loan is secured by a deed of trust. When you purchase the Property, you will be solely responsible for the payment of the assessment. Prior to the close of escrow, you have the option to either (a) pay off the assessment obligation in semi- annual installments ("Option (a)") or (b) pay the entire assessment obligation at the close of escrow on the sale of the Property ("Option (b)"). . The assessment against the Property If you elect Option (a) the assessment on the Property will be collected in annual installments which will be included in the property tax bill for the Property. The annual installments are estimated to be $ years. In the event you elect Option (b), the amount required to pay the assessment will be determined at the close of escrow. per year to be collected for a maximum period of FAILURE TO PAY Should you fail to pay an assessment installment when due, the City may be required to initiate judicial foreclosure proceedings against the Property in order to recover any delinquent assessment installments and the penalties which may be imposed for such a delinquency. In the event that the City is able to obtain a favorable court ruling in such foreclosure proceedings, the Property would be subject to foreclosure sale. Should you have any questions regarding this Notice, please call NBS Government Finance Group (the District Administrator) at 1-800-676-7516 or the Finance Department of the City of Carlsbad at (760) 434-2867. PLEASE INSURE THAT YOU HAVE THOROUGHLY READ AND UNDERSTAND THIS NOTICE BEFORE YOU PURCHASE THE PROPERTY. ___________-_------------ RECEIPT, ACKNOWLEDGMENT AND OPTION ELECTION By signing this Notice, Buyer acknowledges that: 1. 2. The Property that Buyer is purchasing is located within the boundaries of the Assessment District and is subject to a significant assessment against the Property. Buyer has had an opportunity to read and review this Notice, and has received a copy of this Notice prior to opening escrow for the purchase of the Property, or, if received after the opening of such escrow, with sufficient time for Buyer to make any reasonable inquiries that Buyer deems necessary regarding the assessment against the Property prior to the close of escrow. 4 I * .. : -524 3. Buyer hereby elects the following option (check one): (a) pay the assessment in annual installments estimated to be $ per year. (b) pay the entire assessment at one time at the close of escrow for the Property. The amount will be determined in escrow. 4. If Buyer elects Option (a), Buyer assumes the assessment against the Property, and will be solely responsible for the payment of such assessment and Seller shall have no liability for such payment. Further Buyer agrees to the amount and purpose of the assessment on the Property and that Buyer forever waives any right of complaint or protest to the City pertaining to the nature, extent, duration and amount of the assessment against the Property. Notwithstanding Buyer’s election of Option (a) at this time, Buyer may pay the entire assessment at any time in the future if Buyer so chooses. BUYER: Name (Please Print) Signature Date Name (Please Print) Signature Date A COPY OF THIS EXECUTED NOTICE OF SPECIAL ASSESSMENT SHALL BE PROVIDED TO THE FINANCE DIRECTOR OF THE CITY AT THE CLOSE OF ESCROW. Please mail executed copy to: Finance Director City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 5 *' SEP-80-98 WED 13 : 44 CITY OLCARLSBAD FINANCE FAX NO, 76043444 < . P.02.. .. e-. ... . ... .. .. ... ... > ,. ... _. ... .. ..... ,~. . :Y ..' . ' , '. .... . .' ... ... . 8. .& ..,._.... 1 >. .. .. 525. i ... ... .' .. ,. '.' I, .. . 8. . '. ......... .I ... ..... .. .. .. .. 3. ... .* , . . ': ... ' 5 - .. .. ..... .. .... .. .. ...':.... * ... ... .: . .. ITC '. . EXEFIB .... .... -. .. .. .. .. ..... .. .. : ... .... i. .. .. xam le, . .. ... ... :u)" .. ,. . . . ,. , ., .. NOTICE OF SPECIAL TAXE S.AND ASSESSMENTS *1 .. The homes being sold in [name of develon ment) are within Unified School District Community Facilities District NO. 5 are subject to special taxes and an assessment lien. "his may - . Carlsbad Assessment District No. 96-i and the San Marcos require .the homeowner to make semi-annual payments over a. *,. .. tee ofup to 30 years.. The payments are made at.the same time ...... .'. . , and in the same manher as your property taxes. More '..' : * .. I. : -. ,. \ I_. a ikbmaticm can be found.in the Notice of Specid Assessrnerg and Payment Option Election foA-andthe Notice of Special . * ' Tax, both of which must be read and signed prior to purchasing a (name of development) home. Your sales representative will provide a copy of these notices and is available to answer. * .I .. .. .. .. ...... .... , .,' . questions. . .. .. .. .. ..... .. L ..