HomeMy WebLinkAbout1990-07-10; City Council; Resolution 90-223e e
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RESOLUTION NO. 90-223
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, APPROVING A SPECIAL
ASSESSMENT DISTRICT PASS-THROUGH AUTHORIZATION AGREEMENT AND DISCLOSURE PLAN
WHEREAS, the City Council of the City of Carl:
California on December 6, 1988 initiated proceedings f
1913/1915 Act Special Assessment District to be known as Asses:
District No. 88-1 (Alga Road); and
WHEREAS, said Special Assessment District contair
provision for pass-through of assessments upon approval by the
Council of an acceptable disclosure plan; and
WHEREAS, Council Policy 33 contains guidelines fo:
contents of an acceptable disclosure plan:
NOW, THEREFORE, BE IT RESOLVED as follows:
1. That the above recitations are true and correl
2. That the Special Assessment District Pass-th,
Authorization Agreement, together with the Notice of Assessmen
the Property Buyer Assessment Option Agreement, all attached hi
as Exhibit 3 and made a part hereof constitute an accep.
disclosure plan and have been found to be consistent witk
requirements of Policy 33.
3. That said Special District Pass-th:
Authorization Agreement together with the Notice of Assessmen
Property Buyer Assessment Option Agreement are hereby apprl
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1 4. That the Mayor of the City of Carlsbad is 1
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of the City of Carlsbad. 3
authorized and directed to execute said agreement for and on 1
4 PASSED, APPROVED AND ADOPTED at a regular meeting (
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by the following vote, to wit: 6
Carlsbad City Council held on the 10th day of
ABSENT : None 9
NOES: None
July 1
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and
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i!kd.&.
CLAUDE A .TWIS, Mayor ANN J. KULCHIN, Mayor Pro-Tern
l3 aQltRh $, Raw
ATTEST : - 14 ALETIIA L. RAUTENKRANZ, CityIClerk
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(SEAL)
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e a
SPECIAL ASSESSMENT DISTRICT
PASS-THROUGH AUTHORIZATION AGREEMENT
THIS AGREEMENT entered into this day of , 1990 by and between th
City of Carlsbad, a municipal corporation ("City"), and
("Developer").
WHEREAS Developer or its predecessor in interest has petitioned the City Council of the City ta
initiate proceedings for the formation of a special assessment district pursuant to the terms an(
provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets an(
Highways Code of the State of California, said special assessment district known and designate(
as ASSESSMENT DISTRICT NO. 88-1 (ALGA ROAD) (hereinafter referred to as the "Assessmen
District") ; and,
WHEREAS, the City has received the petition of Developer or its predecessor in interest and ha,
initiated proceedings for the formation of the Assessment District; and,
WHEREAS, the City has adopted policies relating to the utilization of Assessment District financin;
which require Developer to extinguish the lien on any parcel created as a result of the confirmatiol
of the Assessment District prior to the close of escrow on the sale of such parcel to a residentia.
home buyer unless Developer shall have provided full disclosure of the existence of the assessmen1
lien, the amount thereof, the annual assessment insfallments, the duration of the assessment lier
and such other information as may be required by the City, and has provided the residential homc
buyer with the option to (a) take title subject to the applicable Assessment District specia
assessment against their parcel, or (b) require the special assessment obligation to be dischargec
prior to the close of such escrow; and,
WHEREAS, the parties hereto have entered into this Pass-Through Authorization Agreement tc
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 parce
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 does own 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 suck
parcel be otherwise conveyed to such residential home 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 the
following preconditions are satisfied.
EQttD1-r
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A. Developer shall have given the residential home buyer a copy of the Notic
of Assessment, the form of which is attached hereto as Exhibit "B" an
incorporated herein by this reference, which shall have been duly execute
by the residential home buyer or buyers.
B. Developer and the residential home buyer shall have entered into a "Propert
Owner Special Assessment District Option Agreement (Supplement to Escrol
Instructions)" (the "Option Agreement"), the form of which is attached heret
as Exhibit "C" and incorporated herein by this reference, and such Optio
Agreement shall have been deposited into the escrow for the sale of sucl
parcel. Such Option Agreement shall have been executed prior to the clos
of escrow by the Finance Director, or his designee.
SECTION 4. Developer shall incorporate the amount of assessment discharge information into th
advertised sales price of the home and clearly disclose the pass-through option i
any sales literature. Sales literature for this purpose shall not be deemed to includ
media advertising, billboards, signs or other like advertisements.
SECTION 5. This obligation shall be binding on all heirs, assigns or successors-in-interest of th
parties hereto, and the City shall cause a copy of this Agreement to be recorded i
the Office of the County Recorder upon its execution.
SECTION 6. Developer shall indew and hold harmless the City of Carlsbad from any claim
arising out of developefs failure to adequately perform under the provisions of thj
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
- day of , 1990. "CIW
CITY OF CARLSBAD
ATTEST:
ALETHA L. RAUTENKMNZ, City Clerk
City of Carlsbad
State of California
CLAUDE A. LEWIS, Mayor
City of Carlsbad
State of California
"DEVELOPER"
BY
0 0 Exhibit
NOTICE OF ASSESSMENT
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THE PROi'ERm WHiCH BUYERS ARE PROPOSING TO PQRCHASE 6 SUBJECT 7
SIGNIFICANT ASSESSMENT WHiCH IS IN ADOlTiON TO THE REGUMR PROPERN TA
THIS ASSESSMENT WILL AFFECT THE AMOUNT WHiCii BUYERS WILL BE REQUlFlEl
PAY IN THE PURCHASE OF BUYERS PROPERTY. YOU ARE URGED TO READ '
NOTICE VERY CAREFULLY IN ORDER TO UNDERSTAND THE ASSESSMENT AGAINST
PROPERTY.
The City of Carlsbad ('City') has formed a
special assessment district pursuant to the
provisions of the 'Municipal Improvement Act of
191 3' to fkancs tha acquisition or construction
of certain pubiic works of improvement which
will benefit the properties within the assessment
district. This assessment is known and
designated as ASSESSMENT DISTRICT NO. 88-
1 (ALGA ROAD) (the 'Assessment District').
The public improvements to be financed
through the Assessment District inciude portions
of Alga Road and Poinsettia Lane, including
related grading and earth work, construction of
water, sewer, drainage and rxlaimed water
facilities, curb, guner, sidewalk, street paving,
the installation of street lights and median
landscaping.
ASSESSMENT
The home or parcel which Buyers are proping
to purchase (the 'Property') is katsd wPhiw the
boundaries of the Assessment District. me City
has determined that the Propmy will receive a
benefit frm the public works be financed through the
therdwe, the City has
levied an assess against the Property in
the total amount d $ . me
assessment against the Property is secured by
a lien much like a home loan is secured by 8
deed of trust. If you complete the purchase d
the Property and assume the, assessment
against the Property, you will be sole!y
responsible for the payment of tha assessment.
The assessment shall be coi1Bcted in sami-
annual irtstalfmsnts which will be include1 proparty tax bif! for the Property.
assessment instailments wiil be collecte!
period of years.
FAllbSRE TQ PAY
Should you fail to pay an asse:
instAim@nl when due, the City may be r(
to initiate judicial foreclosure proce
against the Propeq in order to recov
delinquent assessment installments a!
penskies which may be imposed for
delinquency. In the event that the City
lo obtaim a faarable court ruling in foreclosure prwwdings, the Property wc subject to forwlosurs sale.
You. as Buyer, are not required to ~SSUI
assessmmt against the Property. S(
required $0 praride you with she option tc
(a) assi~me the assessment obligation i
the Property of [b) prepay the assessrnel
to the close OQ escrow for the sate
Property to you.
You will t?ae the ability to exercise this
through a 'Br~pwiy Buys~ Special Asses Opim Agr~ment (Suppi'ernent to E
Instru@tkm)m (ths%ption Agreement'), a 1
which is attached to this Notice.
Should you haw any questions regardin(
this Notice, OQ the Option Agreement. yc
fed free to call the Finance Director of t of Cabbad 1 the Following telephone nl
(61 9) G"9.
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1 PLEASE INSURE YHAT YOU HAVE THOROUGHLY READ AND UNDERSTAND BOT!-
NOTICE AND THE OPTION AGREEMENT APPLICABLE TO THE PROPERN. THE 0
THAT YOU CHOOSE WILL AFFECT THE PAYMEWS WHICH YOU WILL BE NiAKlNG II
PURCHASE OFTHE PROPERTY.
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RECEIPT AND ~~~~~~~~~~~~~~
By signing this Notice, Buyers acknowledge that:
1. The Property that Buyers are purchasing is located within the bouncfane
Assessment District and is subject to a significant assessment against the Pr!
2. Buyers have had an opportunity to read and review this Notics, and have receiv
of this Notice prior to opening escrow for the purchase of the Property, or, if I after the opening of such escrow, with suffkient time for Buyers ta make any rw
inquirigs that Buyers deem necessafy regarding the assessment against tire i
prior to the close of escrow.
3. If Buyers assume tha assessment against the Property, they will be solely res
for the payment of such assessment and Seller shall have no liability for such F
Funher Buyers agree to the amount and purpose of the assessment on the Prop
that Buyers forever waive any Tight 04 complain? or protest to the City pertainir
nature, extent, duration and amount of the assessment against the Property.
DATE:
DATE:
e Exhibit
I TO PWOPEAV BUYER: PLEASE READ THlS OQTlUtd AGREEMENT CAREF3bLY AND BE !
YOU THOWQUGfdkY UNDERSTAM0 THE OPTIONS BEING PROVIDED YO YOU BEi SELECBINQ b\P( OPTION. THE OPTION YQU CHBQSE WILL AFFECT YOUR PAYMENTS Ob
HOME YOU AWE W.!RCHASIPIG.
PROPERW BUYER ASS%%SN$ENT oP?iOP( AGREEMENT
(SUPPLEMENT TO ESCROW INSTWUCTBQNS)
RE: CIW OF CARLSSAD
(ALGA ROAD)
ESCROW COMPANY:
NAME OF BUYER:
ESCROW NUMBER:
ESCROW OFFICER:
ASSESSMENT DISTRICT NO. 88-1
The escrow instructions relating to !he sale asid purchase Ot the following described prop€
supplemented by the following as set foRh herein.
1. PROPERW: Buyers are purchasing a certain piece of property (the ‘Property‘) within t
of Carlsbad, California, generally described as fallows:
2. SPECIAL ASSESSMENT DISTRICT The City d Carkbad (“City’) has formed a !
assessment district permuant to the prwizsions cd the ‘Municipal Improvement Act of 19
finance certain of the major infrastnrcture improvements to serve benefited properties, inc
the Propmy With is subject to this escrow. This assessment district is known and des11
as ASSESSMENT OiSTRlCT NO. 88-1 (ALGA ROAR).
3. City and S&b hawe entered into an agrement which provides that Buyen shall have the
to either (a) assume the spxiJ assessment obligation upn the close of this escrow
discharge the special assessment obligation prior to the cbse d this escrow.
Total amount of the assessment on the Propmy is S . If Buyer agrees to a
the aSsessment against the Property, 8uyw will be required to pay semi-annual asses
installments for a psM OB - yen. These Itmars wilt be incorporati
the property tax bill for the property. Attach em a Exhibit ‘A’ is a sc
of the semi-annual assessment ins?&lments whkh Buyer wsufd be required to pay if
chooses to assume the assessment obligation.
r (I)
1 IT iS IMPORTANT TO NOTE THAT iF THE BUYER FAILS TO PAY AN ASSESS/
INSTALLMENT WHEN DUE, THE CITY MAY BE REQUIRED TO INITIATE JUC
FORECLOSURE PROCEEDINGS AGAINST THE BUYER TO RECOVER ANY DELINQ
ASSESSMENT INSTALLMENT AN0 ANY PENALTIES ON THE DELINQUENT INSTALLh
CITY WILL BE REQUIRED TO INITIATE SUCH FOXCLOSURE PROCEEDINGS NO L
THAN THE NOVEMBER 1Sf FOLLOWING THE DATE OF THE DELINQUENCY.
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If Buyer does not desire to assume the assessnsnt obligation, it must be extinguished
the close of this escrow. The obligation may be extinguished by the deposlt of S __
into this escrow or by increasing the mortgage by such amount and directing the escrc:
to pay such amount to the Crty to extinguish obligation at or prior lo the time of the
this escrow. Your bank may allow an increase in your loan, bS this is your respons
determine.
4. Buyer hereby exercises the following option:
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OPTION 1: Buyer wishes to assume the special assessment obligation applicable
Property and pay the assessment installments semi-annually as they i
on the property tax bill for the Property. To select and exercise Optic
1. Buyer must sign on the space provided below:
DATE:
DATE:
I DATE:
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OPTION 2: Buyer wishes to have the spacial ~e$smeM obligation for the Prc
discharged and paid off in full now. Buyer will deposit additional cash ir
escrow to enable the assessment obligation to be discharged, or will ar
with the lender for any required increase in the Loan. To select and ex'
Option No. 2, Buyer must sign m the spsce provided below:
DATE:
DATE:
DATE:
I * * 5. Buyer acknowledges that if Buyer chooses to assume the assessment obligation for the
that the CQ Of Carlsbad shall consider that Buyer fully understands the nature and
Buyer’s obligations to make the payment of the assessment installments. Buyer agre
amount and purpose of the assessment on the Property and Buyer forever waives an
complaint of protest to the City pertaining to the nature, extent, duration and amoc
assessment against the Propeq.
6. Escrow Officer is hereby direeed to deliver an executed copy of this Option Agreeml
Finance Department of the CQ of Carlsbad for execution prior to the close of thls e!
DATED:
SUYER
BUYER
DATED: SELLER
DATED: ESCROW OFFICER
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ClTY ACKNOWLEDG
RECEIVED AND ACffiYOWDGED Tits
DAY OF , 19w
FINANCE DIRECTOR, CITY OF CARLSBAD
BY:
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