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HomeMy WebLinkAboutAD 96-01; Shea Homes Limited Partnership; 1998-0725545; Disclosure Agreement* .Ie. QOC 3 1998-0?25545 535 RECORDING REQUESF BY AND WHEN RECORDED MAIL TO: .. Y -~ ~ City 0; Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: C,&y GfxWk, - NOV 06s 1998 12~14 PM 19994725546 ll SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT THIS AGREEMENT entered into as ofthis %ay - odd3 bd 1998 by and between the City of Carlsbad, a municipal corporation (“City”) and Shea Homes Limited Partnership, a California Limited Partnership (“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 1913”, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO 96-1 (RANCHO CARFULLO) (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. SECTION 2. SECTION 3. The above recitals are all true and correct. 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”. 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 536 such parcer otherwise conveyed to such residential . Jme buyer without first causing the assessment lien created as a result of the confirmation of the Assessment District, if any, on such parcel to be extinguished except as provided for herein below. ‘ An assessment lien on a parcel within the Assessment District proposed to be sold to a residential home buyer need not be extinguished prior to the close of the escrow for the sale or other conveyance to such residential home buyer if Developer shall have given the residential home buyer a copy of the Notice of Special Assessment and 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. Developer shall itlcorporate 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 indemnifl and hold harmless the City of Carlsbad from any claims arising out of Developer’s failure to adequately perform under the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the 5th day of -r , 1998. CITY OF CARLSBAD State of California SHEA HOMES LIMITED PARTNERSHIP, a California Limited Partnership J.F. SHEA CO., INC., a Nevada Corporation, General Partner By: Richard Gustafson By: ClahdeVA. Lewis Mayor ATTEST: It’s: Assistant Secretary I Aletha L. Rautenkranz City Clerk 2 STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO 1 ) ss. On OdobfW 6&, 149 3 , before me, Rhonda Ad Angel, Notary Public, personally appeared Richard Gustafson and Dale Holbrook, 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. Rhonda M. Angel, Notelic SEAL: r' 53? 4 I ** DESCRIPTION OF SUBECT PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: LOTS 1 THROUGH 45 AND 61 THROUGH 65 OF CAFUSBAD TRACT NO. 93-01 RANCHO CARRILLO VILLAGE "J", IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, 'ACCORDING TO MAP THEREOF NO. 13552, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 3 1, 1998. 09-23-98 S: \172\97120012.AG7 EXHIBITB (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@) 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; a 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 $ abovedescribed improvements. The bonds are secured by the assessments levied on property have been issued to finance the construction of the 3 n 540 "t within the Assessment Df 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)"). ct. The Property which you are purcLding is located within the . 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 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 FINANCE FAX NO. 76043Wfrl - 8 SEP-:~~~~ '. r WED i3:44 C IT( OACARLSBAD Pt 02: , . . , .. ... _. ..... '2 .... .. ... .. 54% ..? ... .... ....... ,. . >,:. :, ... ..... ...... ... .. ErnITC .. ,. .... ..... .. .' .' .' . ... .. ..... a: ... . , , !. .. ... s. . , ,. NOTICE OF SPECIAL TAXE S.AND ASSESSMENTS .. .. ... ..... .... .. ' ' .a. ... .. ,...I. .... ...... ... . . _. , ....... .. .. '.. .. .. ... ... ... '.The homes. being sold in [name of develon menQ qewithin . ... Carlsbad Assessment District No ... 96-'1 ani, the San Marcos . . 1' ..... .. Unified School District Community Facilities District No. 5 ' are subject to special t;ixes and an assessment lien. This m ... * , require .the homeowner to make semi-annual payments over a ',. .. .temi ofup to 30 years.. The payments'are made at.the same time :. '. .- * a . ' * - ikbrmation can be found .in the Notice of Specid Assessme,& 1 3. and Payment Opt ion Election fo&.and 'the Notice of Special . . .. ........ o % ':. .. and hthe same manner as your property bxes. .More . . : ' . ... .. ' " 9. .. - Tax, both of which must be read'and signed prior to purchasing a (name of development) home. Your sales representative will .* . : .. .. 8% provide a copy of these notices and is available to answer. .. questions. ... .._ .. .. .. .... . ~ ...... .. , . ' :. . .. .. .. .. .. .. ... .. .. .. ... .. .' .. .. .. ... ..... ., .. .. ._ .. .. : .. . ... .. ... .... .. ' -. . .f .. .. ..