1990-041-Authorizing Town Manager To Sign Agreements For Acquisition Of PropertyAC,R : gty. `t"
RESOLUTION 1990 -41
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING TOWN MANAGER TO SIGN
AGREEMENTS FOR ACQUISITION OF PROPERTY
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos enter into agreements (copies of
which are attached hereto) for acquisition of property, and that the Town Manager is
authorized, and is hereby directed, to execute said agreements in the name and in behalf
of the Town of Los Gatos.
RESOLVED, that the Town Clerk is hereby directed to record said agreement
with the County Recorder of Santa Clara County.
ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the 20th day of February, 1990 by the following vote:
COUNCILMEMBERS:
AYES: Joanne Benjamin, Eric D. Carlson, Robert L. Hamilton,
Brent N. Ventura and Mayor Thomas J. Ferrito.
NOES:
ABSTAIN:
ABSENT:
SIGNED:
MAYOR OFT TOWN OF LOS GATOS
ATTEST:
TOWN CLERK OF THE TOWN OF O GATOS
RESOLUTION 1990 -41
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING TOWN MANAGER TO SIGN
AGREEMENTS FOR ACQUISITION OF PROPERTY
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos enter into agreements (copies of
which are attached hereto) for acquisition of property, and that the Town Manager is
authorized, and is hereby directed, to execute said agreements in the name and in behalf
of the Town of Los Gatos.
RESOLVED, that the Town Clerk is hereby directed to record said agreement
with the County Recorder of Santa Clara County.
ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the 20th day of February, 1990 by the following vote:
COUNCILMEMBERS:
AYES: Joanne Benjamin, Eric D. Carlson, Robert L. Hamilton,
Brent N. Ventura and Mayor Thomas J. Ferrito.
NOES:
ABSTAIN:
ABSENT:
SIGNED:
MAYOR OFTHE TOWN OF LOS GATOS
ATTEST:
TOWN CLERK OF THE TOWN OF O GATOS
TD Y
PROMISSORY NOTE SECURED BY DEED OF TRUST
(INSTALLMENT - INTEREST INCLUDED)
$1,278,500 Town of Los Gatos, California
1990
1. Promise to Pa v. For value received, the Town of Los Gatos ( "Maker ")
promises to pay to Bruce and Eva Ogilvie or order ('Holder "), at 17525 Santa Cruz
Highway, Los Gatos, CA 95030, or any other place as Holder may from time to time
designate in writing, the sum of one million one hundred twenty eight thousand five
hundred dollars ($1,128,500), with interest from close of escrow on unpaid principal at
the rate of nine percent (9 %) per annum.
2. Terms of Payment.
2.1 Six (6) months from close of escrow, all sums then remaining unpaid
under this Note shall be due and payable. All payments shall be made in lawful money
of the United States of America without set -off, deduction or counterclaim of any kind
whatsoever.
2.2 Each payment shall be credited first on interest then due and the
remainder on principal; and interest shall thereupon cease upon the principal so credited.
3. Payment Schedule.
3.1 Mandatory Payments. Payments are to be made the fifteenth day
of every month, for six (6) months, in the amount of $8,463.75, for the interest due on
the unpaid principal beginning at the close of escrow. Principal and the unpaid interest
is due at the end of six (6) months from the first payment. The payment schedule is
attached as Exhibit A.
3.2 Optional Prepayments. Maker may prepay this Note in whole or
in part on any date without premium or penalty.
4. Notices. Any notice, request, demand or other communication provided
for in this Note shall be in writing and deemed given when received by the party for
whom intended, if personally delivered, or when mailed by registered or certified mail,
return receipt requested, addressed to the intended party at the address stated in this
Paragraph 4, or to any other address as may have been designated by written notice:
-1-
To Maker: Town of Los Gatos
Civic Center,
110 East Main Street
P.O. Box 949
To Holder: Bruce and Eva Ogilvie
P.O. Box 194
Los Gatos, CA 95031
5. Severability. If any provision or provisions of this Note are held to be
invalid, illegal or unenforceable in any respect, this Note shall be construed as not
containing that provision or provisions and all other provisions of this Note shall remain
in full force and effect, and to this end the provisions of this Note are declared to be
severable.
an
MG014:A: \M1SC\0GILVIEI 2/20/90 pm
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EXHIBIT A
PAYMENT SCHEDULE
PROMISSORY NOTE -- BRUCE AND EVA OGILVIE
Amount: $1,278,500
Interest Rate: 9.00%
Schedule:
$8,463.75
$8,463.75
$8,463.75
$8,463.75
$8,463.75
$8,463.75
Total Interest: $50,782.50
jE'�'ti 3
l�
PURCHASE AND SALE AGREEMENT
This agreement is made on between Wiley P. Montgomery ( "Grantor ")
and Town of Los Gatos ( "Town ").
"Town" agrees to purchase from "Grantor' and "Grantor' agrees to sell to "Town" the
property located at 54 -56 Villa Avenue, Los Gatos, CA, the legal description of which
is attached as Exhibit A hereto, including all tangible and intangible personal property
of the grantor now or hereafter located on or about the property or used in connection
with the property, including, without limitation, all governmental permits, approvals,
authorizations, declarations, and all applications therefor obtained or filed in connection
with the property, all agreements, understandings, reports, plans, maps, bonds, deposits,
fees, studies, notices and other materials prepared, given, filed or used or to be used in
connection with the property and all contracts, if any, entered into by "Grantor" and
approved by "Town ", which shall affect directly or indirectly the property (collectively
the "Property ").
1. Purchase Price. The purchase price ( "Purchase Price ") for the property is $486,150
consisting of:
a. "Town" giving "Grantor" an initial down payment of $150,000 at the close
of escrow.
b. "Town's" note to "Grantor" secured by a deed of trust against the property
in the amount of $336,150 bearing interest at the rate of 9% per annum,
payable interest only or more monthly, all due six (6) months after the close
of escrow.
2. Conditions to "Town's" Obligation. "Town's" obligations hereunder shall be
contingent upon satisfaction of all of the matters listed below.
a. Physical Inspection. "Town's" representatives, or authorized agents may
enter on the property to make tests, surveys, or other studies of the
property, provided that "Town" pays for all such test and studies, keeps the
property free and clear of any liens, repairs all damage to the property and
indemnifies and holds "Grantor" harmless from and against all liability,
claims, demands, damages or costs of any kind whatsoever arising from or
connected with the tests surveys or studies.
b. Title. Valley Title Company ( "Title Company ") is in the position to issue
its ALTA Owner's Coverage Form Policy of Title Insurance, with liability
in the amount of the purchase price, showing title to the property vested
in "Town ", subject only to those exceptions approved by "Town ". Escrow
holder is instructed to immediately order the preliminary title report
together with legible copies of all documents referred to therein. "Grantor"
agrees to convey title to the property to "Town" at close of escrow free and
-1-
clear of all monetary liens and encumbrances, including current real
property taxes. If "Grantor" does not remove one or more such monetary
encumbrances, liens or claims, in addition to all other remedies, "Town" may
have at law or in equity, 'Town" may close escrow on the scheduled closing
date and offset dollar for dollar against the purchase price an amount equal
to such monetary encumbrances, liens or claims.
C. Leases. "Town's" approval of all leases, sub - leases, rental agreements, and
all assignments, extensions, renewals or modifications thereof affecting the
property ( "Lease Documents ") within fifteen (15) days after receipt by
"Grantor" of copies of such Lease Documents and a rent roll listing the
tenants, address, date of lease, expiration date, rental rate, date to which
rent has been paid and concessions granted to each tenant.
d. Notes and Deeds of Trust. "Town's" approval of all notes and deeds of
trust of record, and any documents affecting such notes and deeds.
e. Survev. "Town's" approval of a survey of the property within fifteen (15)
days after "Town's" receipt of either a survey provided by "Grantor" and
satisfactory to the title company as the basis for an ALTA owner's policy
of title insurance of "Town's" receipt of a new survey commissioned by
"Town ". "Grantor" shall provide "Town" with any survey of the property
which "Grantor" may have.
Grantor's Representations and Warranties. "Grantor's" representations and
warranties set forth in Article 5 shall be true and correct as of the close
of escrow.
All conditions to the close of escrow or to "Town's" obligations hereunder, are for
"Town's" benefit only and "Town" may waive all or any part of such rights by
written notice to "Grantor" and escrow holder. If "Town" shall disapprove of any
of the items which are subject to "Town's" approval, or if any of the conditions
set forth in this agreement are not met, "Town" shall be entitled thereafter to
terminate this agreement and the escrow without any further liability on the part
of "Town" by giving written notice of termination to the escrow holder, with a copy
to "Grantor'. Escrow holder shall thereupon, without further consent from
"Grantor ", return to each party the documents deposited by them.
3. Closing,
3.1 Documents to be Delivered. At the closing, "Grantor" shall deliver to
"Town" through escrow the following original documents which shall be in
a form satisfactory to "Town's" Attorney:
a. A grant deed conveying the property to "Town"
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b. All rental agreements affecting the property and an assignment
thereof to "Town".
C. An assignment of all guarantees and warranties relating to the
property, and a bill of sale conveying the equipment and fixtures
therein, if any.
d. All contracts affecting the property.
At the closing, escrow holder shall cause the grant deed to be recorded in
the official records of Santa Clara County, California and shall cause the
bill of sale, rental agreements, assignment of rental agreements, and an
ALTA owner's coverage policy of title insurance complying with Paragraph
2.b. to be delivered to "Town ".
3.2 Closing Costs and Proration. "Town" shall be credited and "Grantor"
charged with security deposits or advance rentals made by tenants under the
rental agreement. Escrow holder shall pro -rate the following between the
parties as of the close of escrow ":
a. Rent payments under the leases.
b. Charges and fees paid or payable under contracts which are assigned
to "Town ". All pro - ration shall be based on a thirty (30) day month.
Escrow holder is to assume that all rents have been collected unless
otherwise advised by "Grantor ". Rent from tenants who are more
than thirty (30) days in arrears in payment of rent shall not be pro-
rated.
3.3 Utilities. "Grantor" shall endeavor to have all meters read and final bills
rendered for all utilities servicing the property, including, without limitation,
water, sewer, gas, and electricity, for the period to and including the day
preceding the closing and "Grantor" shall pay such bills. "Town" shall
arrange for utility service to the property after the closing.
3.4 Possession. Possession shall be given to "Town" at close of escrow, subject
to the rights of tenants in possession.
4. Expenses.
4.1 Expenses of "Grantor ". "Grantor" shall pay:
a. The documentary transfer tax applicable to this transaction.
b. The premium for a CLTA owner's title insurance policy.
C. One -half the escrow fees.
-3-
d. Expenses of clearing title.
e. All real estate and personal property taxes for the year 1989 -90.
f. Any and all monies due to any beneficiary or mortgages entitled
thereto under any trust deed or mortgage upon the property up to
and including the total amount of any unpaid indebtedness secured
by such trust deed or mortgage.
g. Other costs or expenses not expressly provided for herein.
4.2 Expenses of "Town". "Town" shall pay:
a. All recording charges on any document recorded pursuant to this
agreement.
b. The difference between the premium for an ALTA owner's title
insurance policy and the premium for a CLTA owner's title policy.
C. One -half the escrow fee.
5. Grantor's Representations and Warranties. "Grantor" represents, warrants, and
covenants the following, each of which shall be true in all respects as of the date
hereof and as of the date of close of escrow and shall survive the close of escrow:
a. During escrow it will, at its sole cost, maintain the property in good
condition and repair, including, without limitation, all mechanical equipment
and appliances.
b. "Grantor" shall not remove any fixtures or personal property from the
property.
C. "Grantor" has no knowledge of any violation of applicable law or ordinances
in connection with the property, and has no knowledge of hazardous waste
on, under, or in the vicinity of the property. "Grantor" has no knowledge
that there are now or ever have been underground storage tanks located
on the property, no knowledge that hazardous waste has been released on
the property, and no knowledge that there is asbestos or PCB present
anywhere on the property.
0
d. "Grantor' has delivered true, accurate and complete copies of all lease
documents, rental agreements, contracts, income and expense schedules,
surveys, plans and specifications describing the property and known by
"Grantor" to exist; and no documents supplied to "Town" from "Grantor"
contain any untrue statement of materials fact or fail to state any fact,
which would be necessary, in light of the circumstances, to render the
documents supplied not misleading.
e. At the close of escrow, there will be no outstanding expenses not fully paid
except for those expenses previously approved by the "Town" in writing.
f. "Grantor' has no knowledge of any pending or threatened claims or
litigation against the property and "Grantor" has not received any notice
from any governmental authority relating to defects in the property or non-
compliance with any applicable law, code or regulation, with the exception
of a weed abatement notice.
g. The persons executing this agreement are authorized by the "Grantor" to
enter into the transaction.
h. During the escrow period, "Grantor" shall not enter into a new lease or
rental agreement, or option to lease, or extension of an existing rental
agreement or any other contract or agreement pertaining to the property
unless "Grantor" shall first obtain "Town's" approval of the document it
proposes to sign.
i. The property upon close of escrow meets all basic provisions of the Town's
Housing Code.
j. When title vests with "Town" at close of escrow, property shall be free of
all liens, encumbrances, taxes, assessments and leases (recorded and /or
unrecorded), with the exception of rental agreements which shall be
assigned to the Town.
6. DamaEe or Destruction. If the property is damaged by an insured casualty prior
to closing which would cost $1,000 or more to repair, "Town" may terminate this
agreement by written notice to "Grantor" given within fifteen (15) days after
"Grantor" notifies 'Town" of such event, or at closing, whichever is earlier. If
"Town" does not terminate, or if the damage would cost less than $1,000 to repair,
closing shall take place as provided herein and "Grantor" shall assign to "Town"
at closing "Grantor's" insurance proceeds payable on account of such damage and
shall pay to "Town" the amount of any deductible under "Grantor's insurance. If
an uninsured casualty occurs which would cost more than $1,000 to repair, "Town"
may terminate this agreement at any time prior to closing. If this agreement is
not terminated, "Town" shall receive a credit against the purchase price in an
amount equal to the cost of repairing the damage in question.
-5-
7. Notices• All notices, demands, and requests which may be given by either party
to the other or to escrow holder shall be in writing and shall be deemed to have
been given, upon personal delivery or forty-eight (48) hours after deposit in the
United States mail, registered or certified, return receipt requested, postage
prepaid, addressed to the party to be notified at the address following the party's
signature or if addressed to escrow holder, at the address in Paragraph 8 or such
other place as either party may from time to time designate by written notice to
the other party in the manner set forth in this agreement. Requests, notices and
demands to escrow holder shall make specific reference on the face thereof to the
escrow number of the escrow.
8. Miscellaneous Provisions.
a. Waiver. The waiver of any provision of this agreement shall not be valid
unless evidenced by a writing signed by the party to be charged therewith.
The waiver of, or failure to enforce, any provision of this agreement shall
not be a waiver of any further breach of such provision or of any other
provision hereof. The waiver by either or both parties of the time for
performing an act shall not constitute a waiver of the time for performing
any other act or identical acts required to be performed at a later time.
b. Modifications. No change or addition to this agreement or any part hereof
shall be valid unless in writing and signed by each of the parties hereto.
C. Successors and Assigns. This agreement shall inure to the benefit of and
be binding upon the successors and assigns of the respective parties hereto.
d. Governing Law. This agreement shall be governed by the laws of the State
of California.
e. Headings. The headings in this agreement are for convenience only and
shall not be deemed a part of this agreement for the purposes of
interpretation.
f. Further Acts. Each party hereto agrees to take such further action and to
execute and deliver such further documents as may be reasonable or
necessary in order to carry out the purposes of this agreement.
g. Attorneys' Fees. If either party hereto incurs attorneys' fees to enforce this
agreement or because of a breach of this agreement by the other party, the
prevailing party shall be entitled to recover reasonable attorneys' fees as set
by the court from the other party.
h. Timing. Escrow shall be closed within thirty (30) days of acceptance by
"Grantor" and "Town ".
M
i. Escrow Company. Valley Title Company shall be the Escrow Officer for
this sale, at the office located at 300 South First Street, San Jose, CA
95113.
"GRANTOR" "TOWN"
Wiley MontgomeV
P.O. Box 9060
San Jose, CA 95157
Date:
2 id
DA:pm 2/21/90 MGRO17 A: \M(SC \.MO,NTGOME
-7-
�A c CKs �
Town of Los Gatos
Civic Center
110 E. Main Street
P.O. Box 949
Los Gatos, CA 95032/95031
Date: a—&0-90
EXHIBIT 'A'
That parcel of land in the Town of Los Gatos, County of Santa Clara,
State of California, described as follows:
A Portion of ?rancho P.inconada de Los Gatos, and described as follows:
BEGINNING on the Southerly line of Villa Avenue, distant thereon
N. 770 29' W. 84 feet from an iron oin on the Southerly prolongation
of the Easterly line of Fiesta Way, formerly Gray's Lane, and 40.2 feet
Southerly from the intersection of the Easterly line of Fiesta Way with
the Northerly line of Villa Avenue; thence N. 770 29' W. along the Southerly
line of Villa Avenue, 75 feet; thence S. 110 52' W. 250 feet, more
or less, to the Northerly line of Cleland Avenue; thence along the
Northerly line of Cleland Avenue, N. 850 29' E. 28.9 feet and
N. 58° 10' E. 77.8 feet to the Westerly line of the parcel of
land conveyed to C. Cacitti, et ux, by Deed recorded February 28, 1912,
Book 397 of Deeds, page 202; thence N. 110 52' E. along said Westerly
line 187 feet to the point of beginning.
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