HomeMy WebLinkAboutCC RESO 2011-12RESOLUTION 2011 — 12
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
RATIFYING A SECOND AMENDMENT TO AGREEMENT FOR EXCHANGE OF
REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS,
AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT
TO SAID AGREEMENT, AND AUTHORIZING THE MAYOR
TO EXECUTE AN INDEMNIFICATION AGREEMENT WITH
THE ILLES FAMILY TRUST AND WELLS FARGO BANK
PERTAINING TO SAID EXCHANGE OF REAL PROPERTY
(522 WEST 8TH STREET AND 2020 HOOVER AVENUE)
WHEREAS, on September 23, 2010, the City and the Illes Family Trust (Ales")
entered into an Agreement for Exchange of Real Property and Joint Escrow Instructions (the
"Agreement") whereby the parties agreed to an exchange of the City -owned property at 522
West 8th Street for the Illes-owned property at 2020 Hoover Avenue; and
WHEREAS, Section 6.1.2 of the Agreement provides that a party shall have
forty-five (45) days after the Agreement is executed (the "Contingency Period") to review and
approve or disapprove, among other items, soils and environmental reports pertaining to the
other party's property; and
WHEREAS, on or about November 9, 2010, the parties entered into a First
Amendment to the Agreement, extending the Contingency Period by 45 days to December 23,
2010; and
WHEREAS, it was necessary, in order to provide adequate time for preparation
and approval of an Indemnification Agreement between the parties and Wells Fargo Bank (the
"Bank"), which will hold a deed of trust on the property at 522 West 8th Street, for the parties to
enter into a Second Amendment to the Agreement on or about December 23, 2010, extending
the Contingency Period for 22 days, until January 14, 2011; said Second Amendment was
executed by City staff and should appropriately be ratified by the City Council; and
WHEREAS, it is necessary in order to provide additional time for preparation and
approval of the Indemnification Agreement, for the parties to enter into a Third Amendment to
the Agreement to extend the Contingency Period for 10 additional days, until January 24, 2011;
and
WHEREAS, the proposed Indemnification Agreement shall provide that the City
will indemnify, defend, and hold harmless Illes and the Bank from all liability, loss, or damages
resulting from any corrective action ordered by the County of San Diego for the property at 522
West 8th Street; and
WHEREAS, the Indemnification Agreement shall provide that the City will
reimburse Illes for the cost of any corrective action required by the County that is within the
scope of the Geosyntec proposal, and that said reimbursement obligation is limited to $32,000,
or in the alternative, that the City will reimburse Illes for up to $10,000 for the cost of Illes
removing contaminated soil from 522 West 8th Street according to the February 3, 2010
Geosyntec proposal.
Resolution No. 2011 — 12
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby ratifies a Second Amendment to Agreement for Exchange of Real Property
and Joint Escrow Instructions to amend Section 6.1.2 of the Agreement to extend the
Contingency Period for 22 days, for a total of 112 days. Said Second Amendment to
Agreement is on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the Mayor is authorized to execute a Third
Amendment to Agreement to extend the Contingency Period by an additional 10 days, until
January 24, 2011.
BE IT FURTHER RESOLVED that the Mayor is authorized to execute an
Indemnification Agreement by and between the City, the IIles Family Trust, and Wells Fargo
Bank. Said Indemnification Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 11th day of January, 2011.
ATTEST:
Michael R. Dalla, "City Clerk
A'P-OVED AS
cm, ;la G Stiva � 7
City Attorney
0 FORM:
Ron Morrison, Mayor
Passed and adopted by the Council of the City of National City, California, on January
11, 2011 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City erk of the Cit of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-12 of the City of National City, California, passed and adopted
by the Council of said City on January 11, 2011.
City Clerk of the City of National City, California
By:
Deputy