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HomeMy WebLinkAbout1996-06-10 City Council (26)City of Palo Alto City Manager’s Summary Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:JUNE 10, 1996 CMR:276:96 SUBJECT:REQUEST FOR PROPOSALS FOR AN OPTION TO PURCHASE THE TOWER WELL SITE AT 201 ALMA STREET REQUEST: This report transmits the Request for Proposals (RFP) for an option to purchase the Tower Well site, located at the comer of Alma Street and Hawthorne Avenue in Palo Alto, for Council approval prior to solicitation. RECOMMENDATIONS: Staff recommends that Council approve the attached RFP package and direct staffto solicit proposals for an option to purchase the Tower Well site. POLICY IMPLICATIONS: The guidelines and criteria in the attached RFP are similar to those included in the previous Request for Conceptual Proposals (RFCP), except for the three new criteria approved by Council on February 5, 1996: 1) the preservation of the tower; 2) the potential for public benefit to be provided through use of the proceeds from the sale of the site, as well as through direct use; and 3) single family use as an appropriate use of the site. It should be noted that the motion approved by Council on February 5 was that the RFP should "encourage" preservation of the tower. The attached RFP includes a facade easement, which would require preservation of the tower (and the large eucalyptus tree on the site), as improved and developed under the plans that will be approved by the City during the option period. The facade easement has been included, based on Council’s discussion at the February 5 meeting concerning the desirability of using a facade easement to protect the Tower Well should it become privately owned. CMR:276:96 Page 1 of 7 The current zoning of the Tower Well site is Public Facilities (PF), and the Comprehensive Plan Land Use Designation is Regional Community Commercial. The attached RFP requires the optionee to obtain a zone change for the property during the option period and encourages proposals which comply with the Planned Community Zone District (PC) regulations. The RFP is consistent with Comprehensive Plan Housing and Historic Preservation policies and programs. EXECUTIVE SUMMARY: The intent of the attached RFP is to sell the Tower Well site for development and use which preserves the tower, is compatible with the neighborhood and which provides public benefit through either direct use or from proceeds from the sale of the site, or a combination of both. The RFP includes an option to purchase which would allow the optionee up to two years to obtain a zone change, approval of its development plans, and any necessary permit and environmental clearances, and to provide evidence that sufficient finances are available to complete the proposed improvements. The deed attached to the option includes a facade easement, which would protect the exterior of the tower and the mature eucalyptus tree on the site. Upon approval of the RFP by Council, staffwill advertise the offering and proposals will be accepted until September 9, 1996. Proposals will be reviewed by an evaluation committee which will make a recommendation for a successful proposer to the City Council. FISCAL IMPACT: There is no minimum purchase price set for the option to purchase; however, the proposals are expected to provide public benefit through either direct use or purchase proceeds which the City could dedicate to filling an identified public need. ENVIRONMENTAL IMPACT ASSESSMENT: An RFP is not a project under the requirements of the California Environmental Quality Act (CEQA). An environmental impact assessment, as may be required by CEQA, will be prepared during the option period, in conjunction with the optionee’s application and approval of the proposed use and development plans. ATTACHMENT S/EXHIBIT S: Attachment A (Summary of RFP) Request for Proposals, including: Information Flyer Proposal Package CMR:276:96 Page 2 of 7 PREPARED BY: Janet Freeland, Senior Financial Analyst DEPARTMENT HEAD APPROV~~~, ~/(~ ~...,t ~ E y arri n Deputy City M ~anager, Administrative Services CITY MANAGER APPROVAL: Cit! l¢lanager CC:Tower Well Site Subcommittee Mailing List Tom Taylor Encino Design Wayne Swan Palo Alto Housing Corporation Palo Alto Community Child Care Carrasco & Associates Historic Resources Board Related CMR’s: CMR:324:93, CMR:167:92, CMR:290:91, CMR:289:91, CMR:545:0, CMR:374:0, CMR:351:0, CMR:497:9, CMR:267:8, CMR: 162:94,CMR: 133:96. CMR:276:96 Page 3 of 7 City of Palo Alto City Manager’s Report SUBJECT:REQUEST FOR PROPOSALS FOR AN OPTION TO PURCHASE THE TOWER WELL SITE, 201 ALMA STREET RECOMMENDATIONS: Staffrecommends that Council approve the attached RFP package and direct staffto solicit proposals for an option to purchase the Tower Well site. BACKGROUND: In 1988, Council approved a staff recommendation to abandon and dispose of four of the City’s ten wells, including the Tower Well, an 8,437 square foot site located at the corner of Alma Street and Hawthorne Avenue. On March 9, 1992, the City Council approved a Request for Conceptual Proposals (RFCP) for reuse and disposition of the Tower Well site and directed staff to solicit conceptual proposals. On December 15, 1992, three proposals were received. On August 18, 1993, the Historic Resources Board (HRB) passed a motion requesting that the City Council designate the Tower Well site a Category 2 building on the City’s Historic Structure Inventory, because of its historical significance. On February 28, 1993, the Council determined not to designate the Tower Well site as a Category 2 building on the Palo Alto Historic Building Inventory and rejected the conceptual proposals. Council directed that the property be land banked and a beneficial use considered in the future, and that if there were a good idea in the community for use of the property, the City should let it emerge. On February 5, 1996, Council reviewed three unsolicited proposals for use of the Tower Well site, which staff felt should be brought before the Council for consideration, and directed staffto prepare a Request for Proposal (RFP) for an option to purchase the site for use and development, including the following criteria: 1) encourage preservation of the tower; 2) recognize that public benefit may be provided through direct use of the site and/or through dedication of the proceeds from the sale of the site to an identified public need; and 3) recognize single-family use as an appropriate use of the site. POLICY IMPLICATIONS: The guidelines and criteria in the attached RFP are similar to those included in the previous RFCP, except for the three new criteria approved by Council on February 5, 1996: 1) the preservation of the tower; 2) public benefit provided through use of the proceeds from the sale of the site, as well as through direct use; and 3) single family use as an appropriate use CMR:276:96 Page 4 of 7 of the site. It should be noted that the wording of the motion approved by Council on February 5 was that the RFP.should "encourage" preservation of the tower. The attached RFP includes a facade easement, which would require preservation of the tower (and the large eucalyptus tree on the site). The facade easement has been included, based on Council’s discussion at the February 5 meeting concerning the desirability of using a facade easement to protect the Tower Well should it become privately owned. The current zoning of the Tower Well site is PF (Public Facilities), and the Comprehensive Plan Land Use Designation is Regional Community Commercial. The attached RFP requires the optionee to obtain a zone change for the property during the option period, and it encourages proposals which comply with the PC regulations. The RFP is consistent with Comprehensive Plan Housing and Historic Preservation policies and programs. DISCUSSION: The attached RFP consists of an Information Flyer (summarizing the offering) and Proposal Package (including Proposal Forms, Proposal Questionnaire, and Option to Purchase). The general intent of the RFP is to sell the property in an "as is" condition. The RFP is summarized in Attachment A. Major provisions and requirements of the RFP and Option to Purchase are as follows: Use and development which preserve the tower; Use which provides public benefit through: a) b) Provision of an identified public need, e.g., child care, or housing; and!or Purchase proceeds which the City could dedicate to filling an identified public need. - Use with low traffic and parking impacts on adjacent residential neighborhoods; Use and design compatibility with the adjacent neighborhood; Compliance with the PC Zone District regulations. Office uses are discouraged. CMR:276:96 Page 5 of 7 Reauired Information and Evaluation of Proposals Proposers will be required to provide a written description of the proposed project (including how it meets the RFP guidelines and criteria); complete and sign the Proposal Forms, Proposer;s Questionnaire, and Environmental Impact Assessment work sheet; sign the Option; and provide a $1,000 proposal deposit and preliminary site plans. Proposals will be evaluated using the following criteria: 1. The extent to which the proposed use satisfies a public need; 2.The extent to which the proposed use and development preserves the tower; o Consistency of the proposed use-with existing City goals and objectives (set forth in the Comprehensive Plan, Zoning Ordinance, Municipal Code); The impact of the proposed use (compatible uses, traffic impacts, noise impact, energy conservation, etc.) upon the immediate neighborhood, the community generally, and the environment; o o The history and assessment of the proposer’s ability to carry out the construction and operation of the facility and services as proposed; and The monetary consideration to be provided to the City. Option to Purchase Once a successful proposer has been selected by the City Council, and the Option to Purchase has been executed, the optionee has up to two years to meet the conditions necessary to exercise the option. During the two year option period, the optionee must pay the purchase price of the option ($5,000.00); obtain approval of development plans from the City’s Historic Resources Board, Architectural Review Board, Planning Commission and City Council; obtain a zone change of the property from PF to PC; obtain any necessary pen~ts and environmental clearances; provide evidence that sufficient finances are available to complete the proposed improvements; and obtain completion/performance bonds sufficient to ensure funds to complete the approved plans. Deed and Facade Easement Once the optionee has satisfied all the option conditions, escrow will be opened, the purchase price paid and the title to the property transferred. The deed includes the reservation of a facade easement, with restrictions and conditions to protect the exterior appearance of the structure (as depicted in the approved development plans) and the mature eucalyptus tree on CMR:276:96 Page 6 of 7 the site. The future owner may make no changes to the exterior of the structure or make any changes which would affect the appearance, health or public view of the tree without prior written approval of the City. The owner must maintain the property in a good state of repair and maintain fire and extended insurance coverage as required by the City Risk Manager. Proposed Schedule for Solicitation Upon approval of the RFP by Council, staff will send the Information Flyer to interested groups and individuals and advertise in local newspapers. Proposals will be accepted until September 9, 1996, when sealed proposals will be opened at 3:00 p.m. Proposals will then be reviewed by an evaluation committee made up of representatives of City staff and the Historic Resources Board, using the criteria outlined in the RFP. The proposals and recommendations for a successful proposer will then be forwarded to the City Council. ALTERNATIVES: Since the RFP is consistent with Council’s direction to staff given on February 5, 1996, no alternatives to approval of an RFP are addressed in this report. FISCAL IMPACT: There is no minimum purchase price set for the option to purchase; however, the proposals are expected to provide public benefit through either direct use or purchase proceeds which the City could dedicate to filling an identified public need. ENVIRONMENTAL ASSESSMENT: An RFP is not a project under the requirements of the California Environmental Quality Act (CEQA). An environmental impact assessment, as may be required by CEQA, will be prepared during the option period, in conjunction with the optionee’s application and approval of the proposed use and development plans. STEPS FOLLOWING APPROVAL: Staffwill advertise the RFP. Proposals received by the September 9, 1996 due date will be reviewed by a proposal evaluation committee, which will make recommendations regarding the proposals to the City Council. CMR:276:96 Page 7 of 7 ATTACHMENT A SUMMARY - TOWER WELL SITE RFP The Request for Proposals (RFP) consists of 1) the Information Flyer and II) the Proposal Package. I.The Information Flyer summarizes the offering and will be sent to interested persons or organizations. The Information Flyer includes the following information: A.A general description of the property for sale, including a location and site map. B.The place and date proposals are due (September 9, 1996). C.Statement of intent of the RFP and guidelines and criteria for use. D.Proposal requirements and evaluation criteria. E.Summary of the terms of the option agreement. F.Instructions for obtaining the proposal package. II.Proposal Package The Proposal Package summarizes the proposal requirements and procedures and lists the ¯ evaluation criteria. It includes the Proposal Forms, Proposal Questionnaire, the Option Agreement and the form of the Deed, including a facade easement. A.Option Agreement - the term of the Option is 2 years, and it may not be exercised until the Optionee has fulfilled the following conditions: 1.Paid the purchase price of the option ($5,000.00). 2.Submitted schematic plans of all proposed improvements within 2 months of the commencement of the option. 3.Obtained approval of its development plans from the City’s Historic Resources Board, Architectural Review Board, Planning Commission and City Council. 4.Obtained approval from City for a change in land use zoning from PF (Public Facilities) to PC (Planned Community) and appropriate change in the Comprehensive Plan designation and any other land use permit required. No o Obtained approvals of the City Engineer and the Chief Building Official of the construction drawings, including a construction schedule. Obtained any necessary permits and environmental clearances for the proposed development. ° ° Satisfied the Real Property Manager that sufficient funds are available to implement the plans approved by the City. Obtained completion/performance bonds sufficient to ensure funds to complete the approved plans. Deed and Reservation of Facade Easement Once the optionee has satisfied all the option conditions referred to above, escrow will be opened, the purchase price paid and the title to the property transferred. The deed includes the reservation of a facade easement with the following restrictions and conditions: Grantee (owner) shall Make no changes materially affecting the exterior appearance of the structure (as depicted in the approved development plans) without prior written approval of the City. °Make no changes, pnming, etc. which would materially affect the appearance health or public view of the eucalyptus tree without prior written approval of City. o Maintain property in a good state of repair and take all reasonable action to minimize deterioration of the exterior appearance subsequent to rehabilitation. o ° Maintain fire and extended insurance coverage as required by the City Risk Manager. In the event of damage to property, notify City, pursue in a timely manner all available claims and remedies against any insurance policy covering, and against any person or entity responsible for the damage, and use any money derived from any such claim to restore the damaged part of the property adversely affecting City’s interest as soon as possible to its pre- existing condition, subject to the prior written approval of City. Construct no structures or add planting which obstructs the view of the building without prior written approval of City. City shall Have the fight to enter upon the property, after prior notice to Grantee, at all reasonable times in order to inspect the property or exercise any or all of its fights. Have the right, but not the obligation to make improvements or repairs to the building to preserve and enhance the property’s historical authenticity Information Flyer Tower Well Site AME~CANS WITH DISABILITIES ACT (ADA) STATEMENT In compliance with the Americans with Disabilities Act (ADA) of 1990, this document may be provided in other accessible formats. For information, contact: Fred Herman, ADA Director City of Palo Alto 250 Hamilton Avenue (415) 329-2550 (voice) or (415) 328-1199 (TDD) For information concerning the Request for Proposals for the sale of the Tower Well site, contact: Janet Freeland, Senior Financial Analyst City of Palo Alto, P~O. Box 10250 Palo Alto, CA 94303 (415) 329-2662 INFORMATION FLYER SALE OF SURPLUS PROPERTY WHAT IS THE NATURE OF THE PROPERTY? WHERE IS IT? WHAT IS THE ZONING? WHEN ARE PROPOSALS DUE? IS THERE A MINIMUM BID? HOW DO i GET A PROPOSAL PACKAGE? The subject City-owned property is a parcel formerly used as a municipal well. The well has been sealed; well facilities, including a 70-foot reinforced concrete tower, remain on the site. Preservation of the tower is required. On the northeast comer of Alma and Hawthome Street in Palo Alto. See attached maps. The property is currently zoned PF (Public Facility). Adjacent properties are zoned CD-N (Commercial Development Downtown) and RM-310 (Multiple Family Residential.) Proposals are due on or before 3:00 p.m. Tuesday, September 9, 1996 and should be submitted to: Manager, Purchasing/Contract Administration City of Palo Alto, First Floor P.O. Box 10250 Palo Alto, CA 94303 Because the City will consider proposals which provide public benefit (non-monetary consideration) as well as monetary consideration, there is no minimum bid. However, each proposal will require a $1,000 proposal deposit in the form of a Cashier’s or a Certified Check made out to the City of Palo Alto. If, after reading this flyer, you would like to obtain the proposal package, please contact: Janet Freeland City of Palo Alto/Real Estate Division 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 (415) 329-2662 C:a:rfcp 1 I.GENERAL DESCRIP~ON OF PROPERTY AND SURROUNDINGS The property for sale is an 8,437 square foot lot (75’ x 112.5’) formerly used as a municipal water well. The well has been sealed; well facilities and equipment remain on the site and include a 79-foot high reinforced concrete tower, 30-feet in diameter, and a small adjoining building of 210 square feet at ground level. The site is adjacent to commercial uses on the north and east, and multiple family residential uses on the west. To the south across Alma Street is the Caltrain station. It should be noted that the property is offered for sale "as is," and the City makes no representation regarding the fitness or condition of the well, well seal, or tower structure for development. It is incumbent on proposers to investigate the condition of the well, well seal and any regulatory requirements associated with development on the site. II.REQUEST FOR PROPOSALS FOR SALE OF THE TOWER WELL SITE A.GENERAL STATEMENT OF INTENT OF REQUEST FOR PROPOSALS Since 1988, when the City Council approved the abandonment and disposition of the Tower Well site, interest in the use of the property has arisen from a number of different sources in the community. Several groups and individuals have expressed interest in the site for uses such as low and moderate income housing, a day care center, residential development, a single room occupancy hotel, a combination of office and residential, and single family residential use. There is also significant interest in the community in preserving the tower, due to its historic significance, and the Palo Alto Historic Resources Board has recommended the site be designated on the Palo Alto Historic Building Inventory. It is the City’s intent to sell the property for development and use which preserves the tower, is compatible with the neighborhood and which provides public benefit through either direct use or through use of the proceeds from the sale of the site or a combination of both. The City is offering an option to purchase the site. The option is for a term up to two years, during.which time the optionee must fulfill certain conditions or terminate the option. Major conditions include paying the purchase price of the option; obtaining a zone change for the property; obtaining approval of development plans; obtaining required permits for the proposed use and development; and providing evidence of optionee’s ability to finance the cost of development and complete the proposed construction. (Note: The City will not finance development of the site.) The option may not be exercised until the option conditions have been met. The deed for the property will include the reservation of a facade easement to protect the water tower and the mature eucalyptus tree on the site from future alteration or destruction. C:a:rfcp 2 B.GUIDELINES AND CRITERIA FOR PROPOSALS Co C:a:rfcp The City desires proposals with the following characteristics: o Use and development which preserves the tower. Uses which provide public benefit through: a.Use of the site to provide for an identified public need, e.g., child care, single room occupancy housing, low-income family housing and family prqiects such as single-parent transitional housing; and/or b.Purchase proceeds which the City could dedicate to filling an identified public need. Uses with low traffic and parking impacts on adjacent residential neighborhoods; Use and design compatibility with the adjacent neighborhood; Compliance with the PC (Planned Community) Zone district regulations. Office uses are discouraged. REQUIREMENTS OF PURCHASE PROPOSALS Submitted proposals must include the following specific items: 1.A written description of the proposed project which includes the following information: .a.How the project will satisfy a public benefit or need; b.How the tower will be preserved. c.How the project will be compatible with the adjacent residential neighborhood and the process for involving the neighborhoods in the development of the project plans; d.The number and types of residential units, if any; e.A general financing proposal for the project, and proposed timing for project implementation. 3 III. 2.Completed and signed Proposal Forms, including the proposed purchase price, Proposer’s Questionnaire and Option Agreement. 3.An Environmental Assessment work sheet. 4.Preliminary site plans showing ingress and egress, parking, elevations, and floor plans which label proposed uses. 5.A $1,000 deposit in the form. of a Cashier’s or a Certified Check made out to the City of Palo Alto. D.EVALUATION OF PROPOSALS Proposals will be evaluated using the following criteria: 1.The extent to which the proposed use satisfies a public need; 2.The extent to which the proposed use and development preserves the tower; 3.Consistency of the proposed use with existing City goals and objectives (set forth in the Comprehensive Plan, Zoning Ordinance, and Municipal Code); 4.The impact of the proposed use (compatible uses, traffic impacts, noise impacts, energy conservation, etc.) upon: 1.The immediate neighborhood, 2.The community generally, 3.The environment; 5..The history and assessment of the proposer’s ability to carry out the construction and operation of the facility and services as proposed; and 6.The monetary consideration to be provided to the City. SUMMARY OF OPTION AGREEMENT The successful proposer will be awarded a 24-month option in the form of the Option Agreement attached to the proposal package. following: A. The term of the option is 24 months. The Option Agreement provides for the C:a:rfcp 4 The option can be exercised anytime after the Optionee has met the following conditions: 1.Paid the purchase price of the option ($5,000.00).* Obtained a zone change of the property from PF(Public Facility) to PC (Planned Community). o Obtained approval of development plans from City’s Historic Resources Board (compliance with Historic Preservation Ordinance); Architectural Review Board (ARB approval); Planning Commission (approval of PC zoning, development plan, & environmental impact assessment); and City Council (approval of PC zoning, development plan, & environmental impact assessment). 4.Obtained any and all permits required for the proposed use and development. Satisfied City of its ability to finance the costs of development and complete the proposed construction. IV.DEED RESTRICTIONS The deed for the property will include the reservation of a facade easement to protect the exterior features of the site from alteration or demolition. *In the event the optionee does not exercise the option in accordance with the terms of the option, the City will retain the option purchase price as consideration for granting the option. C:a:rfcp 5 LOCATi ON [CAP Tower Well site ~..OS Proposal Package Tower Well Site AMERICANS WITH DISABILITIES ACT (ADA) STATEMENT In compliance with the Americans with Disabilities Act (ADA) of 1990, this document may be provided in other accessible formats. For information, contact: Fred Herman, ADA Director City of Palo Alto 250 Hamilton Avenue (415) 329-2550 (voice) or (415) 328-1199 (TDD) For information concerning the Request for Proposals for the sale of the Tower Well site, contact: Janet Freeland, Senior Financial Analyst City of Palo Alto, P~O. Box 10250 Palo Alto, CA 94303 (415) 329-2662 B.EVALUATION OF PROPOSALS Proposal documents will first be reviewed and evaluated by a committee made up of representatives of City staff and a member of the Historic Resources Board. This evaluation committee will make recommendations regarding the proposals to the City Council. The review process may also require the proposer to make a verbal presentation. Proposals will be evaluated using the following criteria: 1.The extent to which the proposed use satisfies a public need; 2.The extent to which the proposed use and development preserves the tower. Consistency of the proposed use with existing City goals and objectives (set forth in the Comprehensive Plan, Zoning Ordinance, Municipal Code); The impact of the proposed use (compatible uses, traffic & safety impacts, noise & visual impacts, energy conservation, historical resources, seismic safety, etc.) upon: a.The immediate neighborhood, b.The community generally, c.The environment; o The history and assessment of the proposer’s ability to carry out the construction and operation of the facility and services as proposed; and 6.The monetary consideration to be provided to the City. The City Council will make the final selection of the successful proposer. The City Council reserves the right to reject any and all proposals or to accept that proposal which, in its opinion, will best serve the public interest. C:ab:tower PROJECT: TOWER WELL SITE PROPOSAL PACKJ~GE (With Option Agreement) THIS IS A PROPOSAL FOR AN OPTION TO ACQUIRE THE TOWER WELL SITE. PROPOSER Name: (Please print) Address: Phone No. Home ( )Work ( ) The undersigned ,("PROPOSER") hereby submits a proposal to the City of Palo Alto, ("CITY") for an option to acquire the Tower Well site, more fully described in the Option Agreement (AI-TACHMENT C), in accordance with the terms, covenants, and conditions contained in this PROPOSAL and in the Option Agreement. A.PROPOSER HEREBY PROPOSES THE FOLLOWING: 1.Monetary Bid Items: a)PROPOSER agrees to pay to CITY as the purchase price of the Option Agreement set forth in Subparagraph 11.B (Purchase Price of Option) of the attached Option Agreement the sum of Five Thousand Dollars ($5,000.00). The amount bid for the purchase of the Tower Well site is: (Amount in Words) (Amount in Numbers) 3,5RELEA.SES. 1/PROPTOWE - 1 - 2. Non-Monetary Bid Items: Bo CONDITIONS OF AGREEMENTS PROPOSER has carefully read and fully understands this PROPOSAL document and the Option Agreement attached to this PROPOSAL. The Option Agreement is an integral part of this PROPOSAL and must be attached to this PROPOSAL. PROPOSER warrants that it has the capability to successfully undertake and complete the responsibilities and obligations of OPTIONEE contained in the Option Agreement. A PROPOSER’s Deposit in the sum of One Thousand Dollars ($1,000.00), in the form of a Cashier’s or Certified Check made payable to the City of Palo Alto, must be submitted with this PROPOSAL and is attached hereto. The PROPOSER’s Deposit will be held by CITY as a guarantee securing the obligations PROPOSER agrees to assume in this PROPOSAL. In. the event this PROPOSAL is accepted by CITY and PROPOSER fails to meet the terms hereof, PROPOSER agrees that said sum represents a fair and reasonable estimate of CITY’s cost in prepa~Jng and soliciting this offering, and PROPOSER further agrees that said sum shall be retained by CITY as compensation for these costs. Upon execution of the Option Agreement, said sum shall, at PROPOSER’S option, be returned to PROPOSER or shall be credited toward the purchase price of the option. This PROPOSAL may be withdrawn at any time prior to the time set for opening the proposals for the Option Agreement but may not be withdrawn after the time set for such opening. o Within ten (10) days after notification of the acceptance of this PROPOSAL by CITY, PROPOSER will execute copies of the Option 3.5RELEASES. 1/PROPTC~WE - 2 - Agreement in duplicate and deliver to CITY the executed copies of the agreement and the purchase price of the Option as set forth in the Option Agreement. PROPOSER has fully completed the Proposer’s Questionnaire (Attachment B), and the completed questionnaire is attached to this PROPOSAL together with any appropriate or requested supplemental material. All the information contained in or supplementing said questionnaire is true and correct to the best of PROPOSER’s knowledge. 10.CITY reserves the right to reject any or all PROPOSALS and to accept that PROPOSAL which will, in its opinion, best serve the public interest. 11.By submission of this proposal, PROPOSER acknowledges and agrees that the CITY has the right to make any inquiry or investigation it deems appropriate to substantiate or supplement information contained in this questionnaire, and authorizes the release to CITY of any and all information sought in such inquiry or investi- gation. 12.ATTACHMENT A (Proposed Use of Property), ATTACHMENT B (Proposer’s Questionnaire). AI-FACHMENT C (Option Agreement) and ATTACHMENT D (Environmental Impact Assessment Worksheet) are attached to and by this reference made a part of this PROPOSAL. 13.PROPOSER acknowledges and agrees that the CITY has made no written or oral representations regarding the fitness of the existing well. well seal or tower structure for development of any kind. PROPOSER accepts the sole obligation to investigate the well seal and determine independently, its fitness for development. PROPOSER (Please sign) (Corporate seal) Date 3.5RELEASES. 1/PROPTOWE 3 PROPOSED USE AND DISPOSITION OF PROPERTY Provide a written description of the project you propose. This description can be of any length and must be included as Attachment A to the proposal. The description must include the following information: 1.How the project will satisfy a public benefit or need. 2.How the tower will be preserved. How the project will be compatible with the adjacent residential neighborhood and the process for involving the neighborhood in the development of the project plans. 4.The number and type of residential units, if any. 5.A general financing proposal for the project and proposed timing for project implementation. C : ab : tower ATTACI~M~NT A PROPOSER’S OUESTIONNAIRE All information requested in this questionnaire MUST be furnished by the PROPOSER, and MUST be submitted with the PROPOSAL. Statements must be complete and accurate. Omission, inaccuracy, or misstatement MAY be cause for rejection of this PROPOSAL. How did you learn of this PROPOSAL offering? ( ( ( )1. )2. )3. Received City direct mail flyer Word of mouth Read about offering in following newspaper, magazine or newsletter: I. PROPOSER Name of PROPOSER exactly as it appears on the PROPOSAL and as it will appear on any proposed agreement with the City: Address of PROPOSER for purposes of notices or other communication relating to the PROPOSAL: Telephone Number of PROPOSER: PROPOSER intends to operate as a Sole Proprietorship ( ); Partnership ( ); Corporation ( ): Joint Venture ( ); or 3.5RELEASES. i/TOWERB AI-FACHMENT B 1 II. SOLE PROPRIETORSHIP STATEMENT If a Sole. Proprietorship, furnish the following: 1. Name in full: 2. Address: 3. Birth date:P1 ace of Bi rth: 4. California Driver’s Lic. No. Is proprietor doing business under a fictitious business name? If so, furnish evidence that proprietor is authorized to do business under such fictitious business name (e.g.) notice published in newspaper of general circulation; no. of filing with a County Clerk). III. PARTNERSHIP STATEMENT If a Partnership, furnish the following: 1.Date of Organization? 2.General Partnership ( ) Limited Partnership ( ) 3. Statement of Partnership recorded? Yes ( ) No ( ) 3.5RELF_/kSES. 1/TOWERB Date Book Page County Has the partnership done business in Santa Clara County? Yes ( )No ( )When? ATTACHMENT B 2 Name, address, and partnership share of each partner. Name Address o Furnish the birth date, place of birth, and California Driver’s License number of each person shown above. IV.CORPORATION STATEMENT If a Corporation, furnish the following: 1.When incorporated? 2.Where incorporated? 3.Agent for service: 4.Is the corporation authorized to do business in California? o Yes ( ) No ( ) The corporation is held: If so, as of what date: Publicly ( ) Privately ( ) If publicly held, how and where is the stock traded? 3.5RELEASES . I/TOWERB ATTACHMENT B 3 7. Li st the fol 1 owing: a.Number of voting shares: b.Number of non-voting shares: c.Number of shareholders:, d.Value per share of common stock: Par $ Book $ Market $ Authori ~d Issued OutstandinQ 10. Furnish the name, title, address, and the. number of voting and non-voting shares of stock held by each officer, director, and principal shareholder. Furnish the birth date, place of birth, and California Driver’s License number .of each person shown under Item 7 above. Attach a copy of Certificate of Good Standing obtainable from California Secretary of State. V. NON-PROFIT CORPORATION STATEMENT If a non-profit corporation, furnish one copy of the following: a o Articles of incorporation Bylaw~ A letter from the Internal Revenue Service stating that the organization is tax exempt under Section 501(c)(3) or 101(b) of the IRS Code. A tax-exempt status under Section 170(b) or 509(a) is also acceptable. The IRS letter must contain the proper name and address of the organization, or a copy of the change notice which has been forwarded to them. A letter from the State of California stating that the organization is tax exempt. 3.5RELEASES , I/TOWERB AI-FACHMENT B 4 2. State the mission of the organization: Please attach an organization chart showing Board of Directors, members, if any, management and staffing levels. Please include a membership list of your Board of Directors, their city of residence, occupations, and dates of service on the Board. How often does your Board meet? What was the average attendance of Board members at Board meetings last year? Vl.JOINT VENTURE STATEMENT If a Joint Venture, answer the following Date of Organization Joint Venture Agreement recorded? Yes ( ) No ( ) Has the Joint Venture done business in.Santa Clara County? Yes ( ) No ( ) When? Name and address of each Joint Venturer: Nam~Address 3.5RELEASES. 1/TOWERB ATTACHMENT B 5 Furnish the birth date, place of birth, and California Driver’s License number of each person or principals or officers of any entity shown under Item 4 above: 6. Attach a complete copy of the Joint Venture Agreement and any amendments. VII FINANCIAL DATA FINANCIAL STATEMENT Attach complete audited financial statements, prepared in accordance with generally accepted accounting principles, reflecting your current financial condition and that of the previous five years. The report must include a balance sheet and income statement and must be audited by a licensed auditor. You must be prepared to substantiate all information shown. Bo SURETY INFORMATION Have you ever applied for and obtained a bond? If so, provide details of most recent bond. Have you ever had a bond or surety denied, canceled or forfeited? Yes ( ) No ( ) If yes, attach a statement naming the bonding company, date, amount of bond, and reason for such cancellation or forfeiture. 3.5RELESLSES . I/TOWERB AI-FACHMENT B 6 C.BANKRUPTCY INFORMATION Have you ever filed bankruptcy or been declared bankrupt? Yes ( ) No ( ) If yes, give details, state date(s), court jurisdiction(s), case docket number(s), amount of liabilities, and amount of assets. Do PROPOSED METHOD OF FINANCING REPAIRS/IMPROVEMENTS/USE/OPERATION The development and operation to which this proposal relates shall be financed in the following manner: FELONY INFORMATION Have you or any principals or officers of the partnership or officers or directors o! the corporation, as applicable, ever been convicted of a felony? Yes ( ) No ( ) If yes, please state date(s), court location(s) and details of conviction. 3.5RELEY~SES. IlTOWERB ATTACHMENT B 7 VII~, EXPERIENCE STATEMENT Describe in detail the duration and extent of your experience with special emphasis upon experience directly related to development and/or management of the type of operation proposed for this project. Also describe, in detail, the pertinent experience of the persons who will be directly involved in the development and/or management of the operation proposed for this project. Please include any experience in construction and/or with the preservation and rehabilitation of historic structures. 3,5RELEASES. i/TOWERB ATTACHMENT B 8 IX. REFERENCES List at least four persons or firms with whom you have conducted business transactions during the past three years. At least two references named should have knowledge of your ability to finance the proposed project and your debt payment history. At least two references should have knowledge of your abilities to operate the proposed facility. REFERENCE NO.1 Name: Firm: Title: Address: Zip. Telephone: Nature and magnitude of purchase, sale, loan, business association, etc.- REFERENCE NO. 2 Name: Firm: Title: Address: Zip Telephone Nature and magnitude of purchase, sale, loan, business association, etc. 3.5RELEASES. IlTOWERB ATTACHMENT B 9 IX. REF{RENCES List at least four persons or firms with whom you have conducted business transactions during the past three years. At least two references named should have knowledge of your ability to finance the proposed project and your debt payment history. At least two references should have knowledge of your abilities to operate the proposed facility. REFERENCE NO, ~ Name: Firm: Title: Address: Zip Tel ephone: Nature and magnitude of purchase, sale, loan, business association, etc.: REFERENCE NO. 4 Name: Firm: Title: Address: Zip Telephone: Nature and magnitude of purchase, sale, loan, business association, etc.: 3.5RELE/kSES. 1/TOWERB ATTACHMENT B 10 X. METHOD OF OPERATION Describe your specific plan for development and/or operation of the proposed facility. 3.5RELEASES . I/TOWERB ATTACHMENT B 11 XI. ESTIMATED CONSTRUCTION COSTS - 1. FINANCIAL INFORMATION Land Related Direct Construction Costs: a.Land Preparation; including off-sites, grading, etc. b. Landscaping Building Related Direct Construction Costs: Sub-Total a o Shel I Construction Interi or Fi ni shes Fixtures & Other Improvements Indi rect Costs: Sub-Total a o Architect & Engineering Legal, Appraisal & Accounting: Construction Loan Costs*: i.points ii.interest d. Other Sub-Total Total Estimated Construction Costs *Assumes construction loan of $ with interest estimated @ % for months construction period. Source of construction loan payments will be: 3.5RELE/kSES . 1/TOWERB ATTACHMENT B 12 XII. OTHER INFORMATION Please provide any other information which you feel will be helpful in evaluating your abilityto successfully develop the proposed facility in compliance with the City’s Request for Proposals. 3.5RELEASES. 1/TOWERB ATTACHMENT B 13 Xlll. PROPOSED GHANGES TO DOCUMENT* If you believe changes to the forms of the document(s) (Option Agreement.and/or Deed) are necessary for you to successfully develop the proposed facility please identify the clauses requiring changes below and specifically indicate the nature of the required change on the document or on another sheet of paper. IMPORTANT -any proposed changes should relate to the particular proposed use. Remember that CITY may reject any or all proposals, and required revisions to the document(s) may be grounds for rejection. Notwithstanding the foregoing, the form of the documents may also be subject to change by the City and further negotiation, based on the City Council’s selection of the proposed use of the property. Clauses requiring Changes:Required Changes (use additional sheets if necessary) 3.5RELEASES. 1/TOWERB ATTACHMENT B 14 Project: Tower Well Site OPTION AGREEMENT This Agreement is made this day of , 1996 by and between the City of Palo Alto, a municipal corporation, ("CITY") and , ("OPTIONEE"). RECITALS CITY owns property located in the City of Palo Alto, Santa Clara County commonly referred to as Tower Well site ("PROPERTY") more specifically described and shown in the Deed attached hereto as Exhibit I, which Exhibit is made a part hereof. OPTIONEE de~ires to obtain an exclusive option to acquire the PROPERTY, in accordance with the terms and conditions hereinafter provided. CITY agrees to grant an exclusive option to OPTIONEE during which time OPTIONEE shall develop specific plans, obtain financing, and satisfy other conditions set forth prior to the acquisition and development of PROPERTY. NOW THEREFORE, in consideration of the premises set forth above, the parties hereto mutually agree as follows: I.GRANT OF OPTION CITY hereby grants to OPTIONEE an exclusive option to purchase the rights to develop and operate PROPERTY upon the terms and subject to the covenants and conditions set forth below and in the Deed attached to this Option Agreement as Exhibit I. II.TERMS OF OPTION Ao Term. The term of this option shall be 24 months and shall commence upon execution.of this agreement by CITY. Pur#hase Price of Option. The purchase price of this option shall be Five Thousand Dollars ($5,000.00) due and payable to CITY within ten (10) days of the signing of this option by CITY. In the event that OPTIONEE P: \ECHAN\OLTOWER.WPD ATTACHMENT C -1- Co Do does not exercise this option in accordance with the terms hereof, all option monies paid to CITY shall be retained by CITY in consideration for granti ng thi s opti on. Exercise of ODtion; Conditions. Optionee may exercise its option to acquire the PROPERTY at any time within the term of the option; provided, that OPTIONEE’S right to exercise the option shall be conditioned upon fulfillment of all the conditions precedent to exercising the option set forth in Exhibit II attached hereto and incorporated herein by this reference. Optionee shall not be entitled to exercise the option until all of the conditions ha#e been satisfied. Failure to satisfy any of the conditions shall not extend the term of the option except as may be provided below. Notice of Exercise. OPTIONEE shall exercise option by giving written notice to CITY of the exercise and of the satisfaction of all of the conditions referred to above. E°Purchase Price of ProDertv. The purchase price for the PROPERTY is: ($ )° This purchase price is in addition to the Option Purchase Price and the Option Purchase Price shall not be applied to the ¯ purchase price for the PROPERTY. Extension of ODtion. Upon written request of OPTIONEE stating the reasons therefore, the City Manager, or designee, may, at his or her sole discretion, extend the term of this option as follows: City Manager or designee may grant an extension of the term of this option for a reasonable period of time, as determined by the City Manager or designee in the event OPTIONEE is delayed in fulfilling the conditions precedent to the exercise of this option by reason of any cause not the fault of, or within the control of, OPTIONEE or its agents or employees; or o City Manager or designee may grant an extension of the term of the option for a period not to exceed ninety (90) days, in the event OPTIONEE is delayed in fulfilling the conditions precedent to the exercise of this option for any other reason. However, the City Manager or designee may grant such extension only upon the following conditions: P : \ ECHAN\OLTOWER. WPD ATTACHMENT C -2- Written request for such extension shall have been delivered by OPTIONEE to CITY’S Real Property Manager at least fifteen (15) days prior to the expiration of the option term; Payment in an amount equal to one (1) percent of the agreed on purchase price for the property shall be submitted to CITY with the request for extension referred to above (in the event an extension is denied, CITY shall refund said amount to OPTIONEE.); and Co OPTIONEE shall submit, together with its request for extension, evidence of its progress toward fulfilling the conditions precedent to the exercise of this option, documentation of its proposed actions and feasibility of satisfying said conditions within the term of the extension requested and such other information and material as may be required by the City Manager or designee. Escrow. Upon exercise of the option by OPTIONEE as set forth above, CITY shall open an escrow with: North American Title Company The opening date of escrow shall be the date upon which the escrow holder named above [eceives written authorization from CITY’s Real Property Manager to open escrow. Both parties shall execute and deliver into escrow such escrow instructions and other documents as may be consistent with and required to carry out the provisions of this agreement. However, the escrow holder may consider the terms of the agreement as its escrow instruction. No Terms of Escrow. The escrow shall run for a period of thirty (30) days. CITY shall deliver into escrow a Deed in the form of Exhibit I and such other documents as are required to transfer title subject only to those exceptions shown in Exhibit Ill attached hereto and incorporated herein by this reference ("Title Report"), and any reservations, covenants and conditions, if any, set forth in Exhibit I. Prior to the date set for close of escrow, Optionee shall deposit into escrow the total amount of the. purchase price as set forth in subparagraph II.E.(Purchase Price of Option). The close of escrow may occur prior to the time period set forth above if it is mutual?y desirable to CITY’s Real Property Manager and OPTIONEE. However, the time period shall not be extended unless P : \ ECHAN\OLTOWER, WPD ATTACHMENT C -3- authorized in writing by CITY’S Real Property Manager. Close of escrow shall be the date that the documents are filed for recordation with the County Recorder. The escrow holder shall not close escrow except at such time as escrow holder is able to deliver to CITY the full purchase price for the PROPERTY as set forth above. Title. Title insurance shall be supplied by North American Title Company at OPTIONEE’s’ expense. Title shall be vested as specified in subparagraph II.K.(Vesting of Title) below and shall be subject to the exceptions shown in Preliminary Report No.4103052, dated March 26, 1996, attached hereto as Exhibit Ill and any reservations, conditions or covenants, if any, set forth in Exhibit I. If CITY is unable to deliver title as specified herein prior to the date set for close of escrow OPTIONEE shall have the option to: Accept title in the condition in which it exists. Acceptance of such title by OPTIONEE shall constitute full satisfaction of the terms of this agreement as they relate to title, and CITY shall in no way be liable for its failure to deliver title as set forth herein; or o Terminate this agreement by delivering written notice thereof to CITY and to the escrow holder. Thereupon, all moneys paid by OPTIONEE shall be refunded to OPTIONEE, and CITY and OPTIONEE shall be relieved of further obligations to one another. In the event of termination as provided in this paragraph, all-escrow and title fees incurred shall be paid by CITY, and OPTIONEE shall not be liable therefore. Neither subparagraph II.I.1. nor II.I.2. hereinabove shall apply if CITY delivers better title than that set out in subparagraph II.H. Costs. In addition to the amount specified in subparagraph II.E. (Purchase Price of Option) above, OPTIONEE shall deposit into escrow a sum sufficient to pay the total cost Of title insurance, escrow fees, Real Property Transfer Tax, and all recording fees applicable to this transaction. P : \ECHAN\OLTOWER,WPD ATTACHMENT C -4- Ves%inq Qf Title. Title to the real property conveyed pursuant to this agreement shall be vested in OPTIONEE as set forth below. (Please type or print clearly. An example of one of the several ways title may be vested is: John and Jane Doe, Husband and Wife, as joint tenants.) Ill.GENERAL CONDITIONS Ao Form of Payments Any payments to be made by OPTIONEE to CITY not through escrow shall be in the form of a Cashier’s or Certified check made payable to the City of Palo Alto. B.Option Purchase Price The Option Purchase Price referred to above is paid solely for the right to purchase the Option. No portion thereof shall be refundable by reason of OPTIONEE’s failure or inability to exercise the Option or by reason of any failure of any conditions of the option. C.Review by City OPTIONEE hereby acknowledges that one of the purposes of this option is to afford OPTIONEE and CITY the opportunity to determine whether or not OPTIONEE is able to meet the various conditions and obtain the required approvals as set forth in this option. Several of those conditions involve obtaining review and approval from officers, employees or agents of CITY. Each of those reviews shall be conducted in an independent manner and nothing contained herein shall be deemed to limit the jurisdiction.or authority otherwise possessed by said officers, employees or agents in the conduct of such review. Nothing contained in this option shall be deemed to imply that said approvals will be forthcoming, and the failure to issue any such approval or permit by any officer, employee or agent of CITY shall not be deemed in any manner a breach of this option, nor shall any such denial give raise to any claim, liability, obligation, or cause of action with respect to this option or the attached Lease. CITY agrees to consent to any application by OPTIONEE with respect to any permits or approvals related to activities or improvements approved by CITY in accordance with the option which may be required by any P : \ ECHAN \OLTOWER. WPD ATTACHMENT C -5- Do governmental or other regulatory agencies aside from CITY. Assignment Prohi bi ted This option has been awarded based on the background and proposa]s of OPTIONEE; therefore, this Option cannot be sold, assigned or otherwise transferred without the prior written consent of CITY. Failure to obtain CITY’s required written consent shall render said sale, assignment, or transfer void. Termination of Option Failure of OPTIONEE to meet the terms and conditions of this option fully and satisfactorily withinthe time limits stated shall absolutely and conclusively terminate OPTIONEE’S rights hereunder. Upon termination hereof without exercise of the option by OPTIONEE, OPTIONEE shall, within 5 business days of receipt of request from CITY’S Real Property Manager, deliver to CITY a properly executed Quitclaim Deed quitclaiming any and all interest in and to PROPERTY. OPTIONEE’S Right to Enter CITY hereby grants to OPTIONEE, its agents, employees, and assigns, during the term of this option or any extension thereof, the right to enter said property or any portion thereof at reasonable times for the purposes of conducting, at OPTIONEE’s’ own cost and expense, such soil, geologic, and engineering investigations as may be required by any public agency required to approve any development of PROPERTY by OPTIONEE. OPTIONEE hereby agrees to indemnify CITY and hold CITY, CITY’s agents and employees, free and harmless from any loss or liability incurred by-reason of such investigation. Should this option be terminated, OPTIONEE agrees to repair any and all damages caused to the PROPERTY by reason of any such investigation or investigations. CITY, at the sole discretion of the City Manager or designee, may require that OPTIONEE provide evidence of insurance coverage acceptable to CITY and/or a security deposit prior to any soil, geologic or other tests or investigations on PROPERTY by OPTIONEE, its agents, employees ¯ or assignees. P: \ ECFU~N\OLTOWER .WPD ATTACHMENT C -~- G. Notices Any notice, tender, or delivery to be given in accordance with this option by either party to the other shall be directed as follows: TO: OPTIONEE Name Address CITY Real Property Manager City of Palo Alto P.O. Box 10250 Palo Alto, Ca 94303 FAX: (415) 323-1741 Tel ephone Finder’s Fees with a copy to: City Clerk, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, Ca 94303 FAX: (415) 328-3631 Each party represents to the other that it has employed no real estate broker or finder in connection with this agreement and hereby agrees to hold the other harmless, and free from any liability in connection with any commission or finder’s fee alleged to be incurred by it. I.CITY’S Representations and Warranties Excepting any matters shown in the Preliminary Report, no leases, occupancies, tenancies, or licenses exist that affect the Prope~.ty. °To the best of CITY’s knowledge, there are not presently any actions, suits, or proceedings pending or threatened against or affecting the Property or CITY’s interest in the Property or its use or that would affect CITY’s ability to perform under this agreement. The property shall be purchased by OPTIONEE "AS IS," and OPTIONEE shall purchase the property solely upon the basis of OPTIONEE’S own investigation and not in reliance upon any representations by 960501 apc 0051552 ATTACHMENT C CITY or Cll~{’s agents that are not contained in the agreement. Without modifying the generality of the foregoing, CITY specific disclaims any knowledge of the condition of the well, well seal or tower structure located on the property, and OPTIONEE shall conduct such investigations of the well, well seal, and tower structure as OPTIONEE deems necessary or advisable to ascertain their condition. Enti re Agreement This instrument contains the entire agreement between the parties relating to the option granted by this agreement. Any oral representations or modifications concerning this instrument shall be of no force and effect except in a subsequent modification which is made in writing, and signed by both parties. Recovery of Attorney’s Fees In the event of any controversy, claim, or dispute between the parties hereto, arising out of or relating to this agreement or the breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, including attorney’s fees, and other legal costs. Binding on Successors This agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties hereto except as may be expressly provided elsewhere in this agreement. 960501 apc 0051552 ATTACHMENT C IN WITNESS WHEREOF, the parties hereto have executed this Option Agreement on the day and year first above written. CITY: CITY OF PALO ALTO OPTIONEE: By: By: Mayor AI-FEST: City Clerk APPROVED AS TO FORM: Its: By: City Attorney RECOMMENDED FOR APPROVAL: Di rector, Planning and Community Environment Di rector, Admi ni strati ve Services Its: Manager, Real Property 960501 apc 0051552 ATTACHMENT C EXHIBIT I (to Option AgreemeF Recorded at Request of: and when recorded return to: City of Palo Alto/Real Estate 250 Hamilton Avenue PO Box 10250 Palo Alto, CA 94303 SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY A.P. No.: 120-25-060 Parcel No.: Project: Tower Well Site, Sale of Surplus Property ]G R A N T DEEDI FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CITY OF PALO ALTO, a municipal corporation, does hereby GRANT to: the real property in the City of Palo Alto, County of Santa Clara, State of California described as: See Exhibit A attached hereto and made a part hereof for legal description. See Exhibit B attached hereto and made a part hereof for reservation of facade easement. 3.5REEZMT/GDTOWER GRANTOR: City of Palo Alto, a Municipal Corporation Dated By City Manager ALL- PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SANTA CLARA On personally appeared __ personally known to me satisfactory evidence to , 1996, before me, (NOTARY) SIGNER(S) -or- proved to me on the basis of be the person(s) whose name is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. NOTARY’ S SIGNATURE APPROVALS Approved as to Form: Sr. Asst. City Attorney Approved as to Content: ASD/Real Estate Division By.By. Approved as to Description: Public Works/Engineering Approved as to Form: By.By. A.P.NO. 120-25-060 APRIL 15, 1996 REQUESTED BY: JANET FREELAND APPROVED BY: JAMES D. KIEHL ,~.K. CREATED BY: JAMES T. BOURQUIN -’-’~ CHECKED BY: JAY E. REMLEY, SR. ffZ" LEGAL DESCRIPTION PARCEL 1 All that real property situated in the City of Palo Alto, County of Santa Clara, State of California ¯ described as follows. Being a portion of Lot 1, Block 2, as shown upon that certain map of the re-subdivision of Block 2, recorded on September 6, 1902 in Volume F-3 of Maps, Page 4, said re-subdivision being a portion of that certain map entitled "UNIVERSITY PARK", recorded on February 27, 1889 in Book D of Maps, Page 69; Beginning at the intersection of the northeasterly line of Alma Street with the southeasterly line of Hawthorne Avenue; THENCE, northeasterly 112.50 feet along.the southeasterly line of Hawthorne Avenue; THENCE, southeasterly 75.00 feet and parallel with Alma Street; THENCE, southwesterly 112.50 feet and parallel with Hawthorne Avenue; THENCE, northwesterly 75.00 feet along the northeasterly line of Alma Street to the POINT OF BEGINNING, Said Parcel 1 contains 8,437.50 square feet more or~ less, Said Parcel 1 is shown on attached map Exhibit "B" .and made a part hereof, LEGAL: 12025060.wpd PLAT: 12025060.DWG End of Legal Description Exhibit "A" EXHIBIT A ( 1 of 2) (to Deed) 35’ I,i i,I Z HAWTHORNE AVENUE -- P.D.B. PARCEL =:-XHIBTT_ 35’ IIBSO¯ PARCEL A.P.No, ]80-85-060 DRAWN BY: J. KIEHL CHECKED BY: J. BI:]URQUIN..~rB CHECKED BY: J. REMLEY/#’~: LEGAL F]LENAME: 18085060 DRAWING F]LENAME: 12025060 112.50’ s°°& A,P.No , 77.13’ PARCEL 1 WELL SITE UNIVERSITY PARK A.P,No. CITY OF PALD ALTO, CALIFORNIA EXHIBIT A (2 of 2) 35.37" d Z O_ <£ 180-85-053 SCALE: l" = P.L.S. 7158 APPROVED: REVISION: (4) 4/18/96 I RESERVA~ON OF FACADE EASEMENT The CITY reserves an interest in the property consisting of the benefit of the following affu-mative and negative covenants, conditions, and restrictions: (1) Building. GRANTEE shall not, without the prior written approval of CITY, undertake or permit, directly or indirectly, any destruction, construction, ~,lteration, remodeling, or painting, or do or permit, directly or indirectly, any other thing which would materially affect the exterior appearance, including the roof, or public view of the Tower Well Structure as depicted in the attached Development Plans, approved by the City of Palo Alto on , attached hereto, designated as Exhibit ~, and incorporated by reference as though fully set forth herein. (2) Tree.____, GRANTEE shall not, without the prior written approval of CITY, undertake or permit, directly or indirectly, any removal, destruction, alteration, or major pruning, or do or permit, directly or indirectly, any other thing which would materially affect the appearance, health, or public view of the eucalyptus tree, as depicted in the plot plan, attached hereto, designated as Exhibit w, and incorporated by reference as though fully set forth herein. The written approval required to be obtained from CITY hereunder may be given by the City Manager of CITY or his/her authorized representative for the pruning or health maintenance of the tree, and the installation, construction, and repairs on the property which might affect said tree. (3) Maintenance and Repair. GRANTEE at all times shall maintain the property in a safe, good, and sound state of repair and shall take all reasonable action to minimize deterioration of its exterior appearance subsequent to rehabilitation. GRANTEE agrees to save and hold harmless CITY, its employees, officers, agents, and assigns from any and all liability, including costs and attorneys’ fees, arising out of GRANTEE’s failure to properly maintain the property as required hereunder. (4) Insurance. GRANTEE at all times and at his/her sole cost and expense shall maintain and keep in force a standard Fire and Extended coverage insurance policy, with an insurance company rated by Best’s as A, AAA, or better, insuring the building against such loss. The improvements shall beinsured for no less than its replacement or reconstruction cost at the time of loss. Said replacement or reconstruction cost means replacement or reconstruction of the original character and architectural integrity of the Tower Well as it may be improved from time to time. The City of Palo Alto shall be named as an additional insured under the above-specified insurance policy. A certificate or policy of said Property Insurance shall be filed with the Real Property Manager of CITY concurrently with the execution of this agreement or within ten (10) days thereafter. Said certificate and policy shall be subject to the approval of the Risk Manager of CITY. Current certificates of insurance shall be kept on file with Real Property Manager of CITY, during EXHIBIT B (I of 5) to Deed of duration of this agreement. (5) Restoration. In the event of any damage to, or destruction of, any part of the property adversely affecting, directly or indirectly, the interest in the property reserved by CITY: (a) GRANTEE shall immediately notify CITY in writing of such damage or destruction. (b) GRANTEE shall pursue in a timely manner all available claims and remedies against any insurance policy covering, and against any person or entity responsible for the damage or destruction. (c) GRANTEE shall use any money or other thing derived from any such claim or remedy to restore the damaged or destroyed part of the property adversely affecting CITY’s interests therein as soon as possible to its pre-existing condition and architectural integrity, subject to the required prior written approval of CITY, as specified above. (6) Entry_ by CITY. CITY shall have the right to enter upon the property, including any structure thereon, after reasonable prior notice to GRANTEE, at all reasonable times in order to inspect the same and to exercise any or all of its rights herein. (7) Improvement and Repair by CITY. CITY shall have the right, but not the obligation, to make improvements or repairs to the building to preserve and enhance the property’s historical and architectural authenticity and to retain and maintain as nearly as possible the original character of the property. (8) Additional Structures and Planting. No structures in addition to the existing ones, including fencing, shall be constructed or erected on the property without the prior written approval of CITY. No planting shall significantly obstruct the view of the building from adjacent streets and sidewalks. II NATURE AND DURATION The covenants, conditions, and restrictions contained herein constitute a binding equitable servitude upon the property, in perpetuity and shall run with the land and shall be binding on all parties having or acquiring any right, title, or interest in the property of any part thereof, including agents, personal representatives, mortgagees, heirs, assigns, and all other successors in interest, and shall insure to the benefit of CITY, it successors, and assigns. GRANTEE agrees that the covenants, conditions, and restrictions contained herein will be inserted in any subsequent deed or other legal instrument of which GRANTEE divests himself/herself of either fee simple title to or of any other possessory interest in, the property. 3 . 5REEZMT/EZFACADE 2 Exhibit B (2 of 5) III REMEDIES In the event GRANTEE violates any provision hereof, CITY shall have available such legal and equitable remedies as are provided by law to enforce the obligation or obligations of GRANTEE hereunder and, in addition thereto and as an alternative, at the sole option and discretion of CITY, CITY may enter upon the property and any structure thereon to correct any violation and hold GRANTEE responsible for the cost thereof after thirty days’ written notice to GRANTEE to cure the violation and failure by GRANTEE to so cure the violation. Said costs shall be deemed to be an assessment. IV LIEN FOR ASSESSED COSTS (1) Creation of Lien and Procedure. Each of such costs assessed pursuant to Article III hereof shall be a separate and distinct debt and obligation of GRANTEE. The amount of any assessment, including interest at the rate of six percent (6%), and costs, including reasonable attorneys’ fees, shall be a lien upon the property, and GRANTEE hereby expressly grants to CITY and its assign or assigns a continuing lien against the property to secure the payment to CITY and it assign or assigns of any and all such assessments which may be made from time to time. As such assessments are made against GRANTEE, CITY shall cause to be recorded with the county recorder of the County of Santa Clara a notice of assessment, which shall state the amount of such assessment and such other charges thereon, a description of the property, and the name of the record owner or owners thereof. Such notice shall be signed by the City Manger of CITY or his/her authorized representative. Upon payment of such assessment and charges in connection with which such notice has been so recorded, or other satisfaction thereof, the City Manager of CITY or his/her authorized representative shall cause to be recorded a further notice stating the satisfaction and release of the lien assessment thereof. Except as provided herein, such continuing lien shall be prior to all other liens and encumbrances recorded subsequent to the recordation of this document unless CITY and GRANTEE agree to the subordination thereof to other liens and encumbrances. (2) Alternative Creation of Lien. If it should be determined by a Court, by judicial precedent, or otherwise, that the lien granted hereunder cannot attach to the property until the amount of the particular assessment is ascertained or that the lien is otherwise invalid or void, then the parties agree that a separate lien shall attach to the property and come into being upon recordation of a notice of assessment as provided herein and that each of such liens Shall be prior to all other liens and encumbrances recorded subsequent to the recordation of said notice of assessment unless CITY and GRANTEE agree to the subordination thereof to other liens and encumbrances. (3) Foreclosure. With the prior approval of the Council of CITY, any such lien may be foreclosed b~ an appropriate action in Court or in the manner provided by law for the foreclosure of a mortgage under power of sale. Any action in Court brought to foreclose such a lien shall be commenced within two (2) years following such recordation. In the event the foreclosure is under a power of sale, as in the case of a mortgage, the City Manager of CITY or his/her authorized representative or the assign or assigns of CITY shall be deemed to be acting as the agent, of CITY, and CITY or its assign or assigns, as the case may be, shall be entitled to actual expenses and such 3.5P.EEZMT/EZFACADE 3 Exhibit B (3 of 5) fees as may be allowed by law or as may be prevailing at the time the sale is conducted. (4) Sal_...ee. Such sale shall be conducted in accordance with the provisions of law applicable to the exercise of powers of sale and mortgages and deeds of trust, or in any other manner permitted by law. With the prior approval of the Council of CITY the certificate of sale may be executed and acknowledged by the City Manager of CITY or by the person conducting the sale. A deed upon the Court’s foreclosure shall be executed in a like manner after the lapse of the period of redemption then required by statute. (5) Other Liens. No provision hereof respecting the creation of a contractual lien shall in any way be construed as limiting or waiving any right of CITY to assert any statutory or other lien that may be available to it. V MORTGAGE PROTECTION (1) Subordination Agreement. Notwithstanding all other provisions herein, the lien or liens, as the case may be, created under Article IV hereof on the property shall be subject and subordinate to, and shall not affect the rights of the holder of the indebtedness secured by any recorded first mortgage (meaning a mortgage with first priority over other mortgages) upon such interest made in good faith and for value, provided that there is no outstanding recorded notice of assessment pursuant to Article IV hereof. If there is any outstanding recordednotice of assessment prior to a first mortgage, then the amount of the lien shown on the notice or notices of assessment shall be senior to the interest of the mortgagee, but otherwise any further right of CITY to lien pursuant to Article IV shall be subordinate to such mortgagee. After the foreclosure of any such mortgage, there is, or may be, as the case may be, a lien created pursuant to Article IV hereof on the interest of the purchaser at such foreclosure sale to secure all assessments assessed hereunder to such purchaser as a GRANTEE after the date of such foreclosure sale, which said lien, if any claimed, shall have the same effect and be enforced in the same manner as provided herein. (2) Amendment. No amendment of this Article shall affect the rights of the holder of any such mortgage recorded prior to the recordation of such amendment who does not join in the execution thereof. vI SEVERABILITY The provisions hereof shall be deemed to be independent and severable, and the invalidity or partial invalidity or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provision hereof. vii INTERPRETATION The provisions hereof shall be liberally construed to effectuate the purposes recited herein. 3 . 5REEZMT/EZFACADE 4 Exhibit B (4 of 5) Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce said provision of any other provision hereof. viii NOTICES Any and all notices or other communications required or permitted hereunder or by law to be served on or given to either party hereto by the other party hereto shall be in writing and shall be deemed duly served and given when deposited in the United States mail, first-class postage prepaid, addressed to GRANTEE at the address of the property or to CITY, in care of the City Clerk, Civic Center, 250 Hamilton Avenue, Palo Alto, Caiifomia 94301. Either party may change their address for the purpose of this Article by giving written notice of such change to the other party in the manner provided in this Article. IX TIME OF ESSENCE Time is expressly declared to be the essence of this agreement. X COSTS AND ATTORNEYS’ FEES The prevailing party in any action brought to enforce the terms of this agreement or arising out oft.his agreement may recover its reasonable costs and attorneys’ fees expended in connection with such an action from the other party. 3.5REEZMT/EZFACADE -- 5 - Exhibit B ( 5 of 5) EXHIBIT II (to Option Agreement) CONDITIONS PRECEDENT This option may not be exercised by OPTIONEE unless and until each and every following condition has been satisfied: OPTIONEE shall have made the payment(s) required in accordance with subparagraph II.B. (Purchase Price of Option) above. o OPTIONEE shall have submitted Schematic Plans to CITY within 2 months of the commencement of this option. Schematic Plans shall include a site layout of all buildings, landscape developments, schematic floor plans for all structures, simple elevations of all structures, identification of proposed architectural theme, or style, a detailed description of all proposed improvements (including proposed uses and methods of operation and a general outline specification which identifies proposed construction material and methods), and an estimate of the total construction cost for all proposed improvements. o OPTIONEE shall have submitted to, and shall have received approval of its development plans for PROPERTY from CITY’s Historic Resources Board, Architectural Review Board, Planning Commission and City Council. Said plans shall include interior plans, structural plans, exterior elevations, and landscaping plans and shall indicate specific plans and details of the resource conservation features to be included. ° o OPTIONEE shall have received approval from CITY’s City Council for a change in land use zoning from P-F (Public Facilities) to P-C (Planned Community); and appropriate change in the CITY’s Comprehensive Plan designation .and any other land use permit required, if necessary, for implementation of the development plans as approved by CITY. OPTIONEE shall have complied with the requirements of CITY’s procedures for implementation of the California EnvironmentalQuality Act of 1970, as may be amended from time to time. OPTIONEE shall have provided to CITY’s Real Property Manager evidence that any and all permits from .any and all agencies having pre-construction jurisdiction over the proposed development including, but not limited to, building permits, grading permits and health permits have been authorized P : \ ECHAN\OLTOWER. WPD o o o 10. and are available. OPTIONEE shall have submitted to CITY’s Chief Building Official certification.that the plans for any proposed building construction comply, in all respects, with energy conservation requirements as set forth in California Code of Regulations, Title 24 for non-residential construction. The form and content of said certifications shall be in conformance with the requirements of California Code of Regulations, Title 24 for non-residential construction. OPTIONEE shall have obtained approval of the Working Drawings for the proposed development from CITY’s City Engineer and Chief Building Official, Working Drawings shall include: 1.Complete architectural, landscape and engineering working drawings; 2.Complete construction specifications; 3.Complete construction contract form; and 4.Proposed construction schedule. OPTIONEE shall have satisfied CITY’s Real Property Manager that OPTIONEE has sufficient finances or financial commitments to implement the plans approved by CITY in accordance with the above. OPTIONEE shall have furnished to CITY’S Real Property Manager evidence of coverage that assures CITY that sufficient monies will be available to complete the proposed construction. The amount of assurance shall be at lease the total estimated construction cost that was submitted to and approved by CITY in accordance with.condition #8 above. Evidence of such assurance shall take one of the forms set out below and shall guarantee OPTIONEE’s full and faithful performance of all of the terms of this option: a.Completion Bond naming CITY as beneficiary; Performance and payment bonds, supplied byOPTIONEE’S contractor or contractors, provided the bonds are issued with both OPTIONEE and CITY named as beneficiaries; Irrevocable letter of credit from a financial institution naming CITY as beneficiary; or d. Any combination of the above. P : \ ECM~N\OLTOWER. WPD EXHIBIT III ,(to Option Agreement)Nor" American Title ComF"ny 431 FLORENCE STREET, #I00 PALO ALTO, CALIFORNIA 94301 (415) 325-0330 DATE MARCH 26, 1996 CITY OF PALO ALTO 250 HAMILTON AVENUE, LEVEL A PALOALTO, CALIFORNIA ATTN: JANET FREELAND ORDER NO. 4103052 PROPERTY ADDRESS: 201 AI,MA STREET PALO ALTO, CALIFORNIA PRELIMINARY REPORT- IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, NORTH AMERICAN TITLE COMPANY, INC. HEREBY REPORTS THAT IT IS PREPARED TO ISSUE, OR CAUSE TO BE ISSUED, AS OF THE DATE HEREOF, A POLICY OR POLICIES OF TITLE INSURANCE FROM COMMONWEALTH LAND TITLE INSURANCE COMPANY, A PENNSYLVANIA CORPORATION, DESCRIBING THE LAND AND THE ESTATE OR INTEREST THEREIN HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT, LIEN OR ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORM. THE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH IN EXHIBIT "A" ATTACHED. COPIES OF THE POLICY FORMS SHOULD BE READ. THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT. THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS THERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A P~LICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET FORTH IN EXHIBIT AOF THIS REPORT CAREFULLY. THE EXCEPTIONS AND EXCLUSIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WHICH ARE NOTCOVERED UNDER THE TERMS OF THE TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLEAND MAY NOT LIST ALL LIENS~ DEFECTS,AND ENCUMBRANCES AFFECTING TITLE TO THE LAND. EFFECTIVE MARCH 7, 1996 AS OF 7:30 A.M. ANNA MARIE CREAL (ESCROW OFFICER) NoP% American Title Coml" "ny THE FORM OR FORMS OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS: California Land Title Association Standard Coverage Policy - 1990 American Land Title Association Loan Policy - 1992 THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: FEE SIMPLE TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: THE CITY OF PALO ALTO, A MUNICIPAL CORPORATION Page 2 of 9 4103052 Nor" American Title Comr-?ny THE LAND REFERRED TO HERE~N IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SANTA CLARA, CITY OF PALO ALTO, AND IS DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE INTERSECTION OF THE NORTHEASTERLY LINE OF ALMA STREET WITH THE SOUTHEASTERLY LINE OF HAWTHORNE AVENUE; RUNNING THENCE NORTHEASTERLY ALONG THE SOUTHEASTERLY LINE OF HAWTHORNE AVENUE 112 FEET 6 INCHES; THENCE AT A RIGHT ANGLE SOUTHEASTERLY AND PARALLEL WITH ALMA STREET 75 FEET; THENCE AT RIGHT ANGLES SOUTHWESTERLY AND PARALLEL WITH HAWTHORNE AVENUE 112 FEET 6 INCHES TO A POINT ON THE NORTHEASTERLY LINE OF ALMA STREET; THENCE NORTHWESTERLY ALONG THE NORTHEASTERLY LINE OF ALMA STREET 75 FEET TO THE POINT OF BEGINNING; THE S~E BEING PART OF LOT NUMBER, I OF BLOCK NUMBER 2 OF THE SAID CITY; REFERENCE BEING HEREBY MADE FOR A MORE COMPLETE DESCRIPTION OF SAID PREMISES TO THE MAP OF UNIVERSITY PARK (NOW KNOWN AS PALO ALTO) RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF THE SAID COUNTY OF SANTA CLARA IN BOOK "D" OF MAPS,PAGE 69. ASSESSOR’S PARCEL NUMBER: 120-25-060 Page 3 of 9 4103052 Nor’h American Title ComF;ny ON THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS CONTAINED IN SAID POLICY WOULD BE AS FOLLOWS: o o Property taxes, including any assessments collected with taxes, to be levied for the fiscal year 1996-1997 which are a lien not yet payable. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California. Water rights, claims or title to water, whether.or not the rights or claims are disclosed by the public records. Page 4 of 9 4103052 Nor" American Title ComF"ny There are no conveyances affecting said land recorded within SIX MONTHS of the date of this report. NOTES: CALIFORNIA ASSEMBLY BILL 512 ("AB512") IS EFFECTIVE ON JANUARY I, 1990. UNDER AB 512, NORTH AMERICAN TITLE COMPANY, INC. ("NATC") MAY ONLY MAKE FUNDS AVAILABLE FOR MONETARY DISBURSAL IN ACCORDANCE WITH THE FOLLOWING RULES: Io SAME DAY AVAILABILITY - DISBURSEMENT ON THAT DATE OF DEPOSIT IS ALLOWED ONLY WHEN FUNDS ARE DEPOSITED TO NORTH AMERICAN TITLE COMPANY ("NATC") IN CASH OR BY ELECTRONIC TRANSFER (WIRE). BEAR IN MIND THAT CASH WILL BE ACCEPTED FROM CUSTOMERS ONLY UNDER SPECIAL CIRCUMSTANCES AS INDIVIDUALLY APPROVED BY MANAGEMENT. 2. NEXT DAY AVAILABILITY - IF FUNDS ARE DEPOSITED TO NATC BY CASHIER’S CHECKS, CERTIFIED CHECKS, OR TELLER’S CHECKS, DISBURSEMENT MAY BE ON THE NEXT BUSINESS DAY FOLLOWING DEPOSIT. A "TELLER’S CHECK" IS ONE DRAWN BY AN INSURED FINANCIAL INSTITUTION AGAINST ANOTHER INSURED FINANCIAL INSTITUTION (E.G., A SAVINGS AND LOAN FUNDING WITH A CHECK DRAWN AGAINST AN FDIC INSURED BANK). 3. 3-7 DAY AVAILABILITY (REGULATION CC). IF THE DEPOSIT IS MADE BY CHECKS OTHER THAN THOSE DESCRIBED IN PARAGRAPHS 1 AND 2 ABOVE, DISBURSEMENT MAY OCCUR ON THE DAY WHEN FUNDS MUST BE MADE AVAILABLE TO DEPOSITORS UNDER FEDERAL RESERVE REGULATION CC. THIS REQUIRES A "HOLD" ON SOME CHECKS OF 2-5 DAYS OR LONGER IN SOME INSTANCES. PERSONAL CHECKS, DRAFTS, PRIVATE CORPORATION AND COMPANY CHECKS, AND FUNDING CHECKS FROM MORTGAGE COMPANIES THAT ARE NOT TELLER’S CHECKS ARE AMONG THOSE CHECKS SUBJECT TO SUCH HOLDS. (FOR FURTHER DETAILS, CONSULT CHAPTER 598, STATUTES OF 1989.) NOTE: THE ABOVE GUIDELINES ARE IN CONFORMITY WITH THOSE ISSUED BY THE DEPARTMENT OF INSURANCE FOR ALL CALIFORNIA TITLE INSURANCE AND CALIFORNIA TITLE COMPANIES. NOTE: ON OR AFTER JULY I, 1985, THE COUNTY RECORDER’S OFFICE WILL CHARGE, IN ADDITION TO THE REGULAR CHARGES, AN EXTRA $20.00 RECORDING FEE, UNLESS A DOCUMENT EVIDENCING A CHANGE OF OWNERSHIP IS ACCOMPANIED BY A PRELIMINARY CHANGE OF OWNERSHIP REPORT. IN LIEU OF SAID REPORT, SIGNED BY THE TRANSFEREE, THE RECORDER WILL ACCEPT AN AFFIDAVIT THAT THE TRANSFEREE IS NOT A RESIDENT OF CALIFORNIA. TITLE BILLINGS WILL BE ADJUSTED TO REFLECT SUCH ADDITIONAL FEES WHEN APPLICABLE. Page 5 of 9 4103052 Nc,-- h American Title Corn tny IF ANY OF THE DEEDS OF TRUST SHOWN IN THIS PRELIMINARY REPORT SECURES A REVOLVING CREDIT LOAN, THIS COMPANY WILL REQUIRE PRIOR TO CLOSING THAT: (A) THE BORROWER PROVIDE AUTHORIZATION TO THE LENDER TO FREEZE THE LOAN FROM FURTHER DISBURSEMENTS fuND THAT WE BE PROVIDED WITH PROOF THAT THE ACCOUNT HAS BEEN FROZEN AND ~HE EFFECTIVE DATE OF THE FREEZE; AND, (B)THERE ARE NO OUTSTANDING CHECKS UNPAID;~AND, (C)SHOULD THE COMPANY BE UNABLE TO ASCERTAIN THAT ONE OR MORE OF THE ABOVE HAVE NOT BEEN COMPLIED WITH, WE WILL WITHHOLD FROM THE PROCEEDS THE MAXIMUM AMOUNT OF THE LOAN OBLIGATION UNTIL SUCH TIME AS WE MAY VERIFY THAT THE PAYOFF WAS SUFFICIENT TO OBTAIN A FULL RECONVEYANCE. THIS REPORT IS SUBJECT TO A CANCELLATION CHARGE AND OR MINIMUM CHARGE AS REQUIRED BY SECTIONS 12404, ET. SEQ., OF THE INSURANCE CODE OF THE STATE OF CALIFORNIA AND RULE NO. 2 OF DEPARTMENT OF INSURANCE BULLETIN NO. NSo 35 E. THIS IS A NOTICE OF A WITHHOLDING REQUIREMENT (CALIFORNIA REVENUE AND TAXATION CODE SECTIONS 18662) ON SALES OF REAL PROPERTY. BEFORE THE TRANSACTION CONTEMPLATED BY THIS REPORT CAN BE CLOSED, THE SELLER/BORROWER MUST FURNISH A TAXPAYER IDENTIFICATION NUMBER TO US SO THAT WE CAN FILE AN IRS FORM 1099, OR ITS EQUIVALENT, WITH THE INTERNAL REVENUE SERVICE. THIS PROCEDURE IS REQUIRED BY SECTION 6045 OF THE INTERNAL REVENUE SERVICE. IN ACCORDANCE WITH SECTION 18662 OF THE REVENUE AND TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD AN AMOUNT EQUAL TO 3-1/3 PERCENT OF THE SALES PRICE, IN THE CASE OF A DISPOSITION OF CALIFORNIA REAL PROPERTY INTEREST BY EITHER: I. A SELLER WHO IS AN INDIVIDUAL WITH A LAST KNOWN STREET ADDRESS OUTSIDE OF CALIFORNIA OR WHEN THE DISBURSEMENT INSTRUCTIONS AUTHORIZE THE PROCEEDS BE SENT TO A FINANCIAL INTERMEDIARY OF THE SELLER, OR 2. A CORPORATE SELLER WHICH HAS NO PERMANENT PLACE OF BUSINESS IN CALIFORNIA, OR FOR FAILURE TO WITHHOLD, THE BUYER MAY BECOME SUBJECT TO A PENALTY IN AN AMOUNT EQUAL TO THE GREATER OF i0 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS ($500). HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALIFORNIA STATUTES REFERENCED ABOVE, NO BUYER WILL BE REQUIRED TO WITHHOLD AIqY AMOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF: I.THE SALES PRICE OF THE CALIFORNIA REAL PROPERTYCONVEYED DOES NOT EXCEED ONE HUNDRED THOUSAND DOLLARS ($I00,000),OR Page 6 of 9 4103052 No, American Title ComF-ny 2. THE SELLER EXECUTES AWRITTEN CERTIFICATE, UNDER PENALTY OF PERJURY, CERTIFYING THAT THE SELLER IS A RESIDENT OF CALIFORNIA, OR IF A CORPORATION, HAS A PERMANENT PLACE OF BUSINESS IN CALIFORNIA OR 3. THE SELLER, WHO IS AN INDIVIDUAL, EXECUTES A WRITTEN CERTIFICATE, UNDER PENALTY OF PERJURY, THAT THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS THE SELLER’S PRINCIPAL RESIDENCE (AS DEFINED IN SECTION 1034 OF THE INTERNAL REVENUE CODE). THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF AVOIDING THE WITHHOLDING REQUIREMENT. THE CALIFORNIA STATUTES REFERENCE ABOVE INCLUDE PROVISIONS WHICH AUTHORIZE THE FRANCHISE TAX BOARD TO GRANT REDUCED WITHHOLDING AND WAIVERS FROM WITHHOLDING ON A CASE-BY-CASE BASIS. Page 7 of 9 4103052 Ne’ h American Title Com" IN THE EVENT THE BUYER REQUIRES WITHHOLDING OF THE 3-1/3 PERCENT OF SALES PRICE FROM THE SELLERS PROCEEDS, THE BUYER IS REQUIRED TO FILE COPY A OF FORM FTB597 WITH THE FRANCHISE TAX BOARD ALONG WITH THE WITHHOLDING AMOUNT DUE NO LATER THAN THE 20TH DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH THE WITHHOLDING OCCURRED, UNLESS THE SELLER HAS REQUESTED A WAIVER. IF THE SELLER HAS REQUESTED A WAIVER, THE FRANCHISE TAX BOARD, WITHIN 45 DAYS, WILL EITHER AUTHORIZE A REDUCED AMOUNT, OR NO AMOUNT, OR DENY THE REQUEST, AT WHICH TIME THE AMOUNT WITHHELD ALONG WITH COPY A OF FORM FTB 597 MUST BE SENT TO THE FRANCHISE TAX BOARD, AT THE FOLLOWING ADDRESS: FRANCHISE TAX BOARD WITHHOLDING AT SOURCE UNIT P.O. BOX 651 SACRAMENTO, CA 95812-0651 (916)369-4900 THE CHARGE FOR A POLICY OF TITLE INSURANCE, WHEN ISSUED THROUGH THIS TITLE ORDER WILL BE BASED ON THE BASIC (NOT SHORTTERM) TITLE INSURANCE RATE. LENDERS SUPPLEMENTAL REPORT THE A.L.T.A. POLICY, WHEN ISSUED, WILL INCLUDE C.L.T.A. ENDORSEMENT’ NUMBER i00 AND ENDORSEMENT 116 OR 116.2. SAID LAND IS KNOWN AS 201 ALMA STREET, PALO ALTO, CALIFORNIA, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA. Page 8 of 9 4103052 NORTH AMERICAN TITLE COMPANY INFORMATIONAL NOTE : PROBLEM AREAS FOR TITLE COMPANIES I.ONGOING CONSTRUCTION: THE TITLE COMPANY WILL REQUIRE, AS A MINIMUM, THE FOLLOWING PRIOR TO INSURING: A. VALID NOTICE OF COMPLETION VERIFIED BY INSPECTION AND EXPIRATION OF 60 DAYS FROM RECORDATION OF SAID NOTICE OR; B.2~PPROVED INDEMNITIES FROM BORROWER/SELLER, APPROVED FINANCIAL STATEMENT NOT OVER ONE YEAR OLD AND A WAIVER OF LIEN RIGHTS. FROM GENERAL CONTRA.CTOR. i.THE TITLE COMPA!qY MAY ALSO REQUIRE PROOF OF PAYMENT OF SUBCONTRACTORS, INDEMNITY AND FINANCIAL STATEMENT FROM THE GENERAL CONTRACTOR, A COPY OF THE CONTRACTAIqD THE WITH I4OLDING OF A SUM OF MONEY, TO COVER THE CONTRACT UNTIL THE MECHANICS L!EN PERIOD HAS EXPIRED, WITH WHICH TO PAY FILED MECHANICS LIENORS, OR OTHER ASSURANCES TO BE DETERMINED ON A CASE. BY CASE BASIS. 2.BAIqKRUPTCY: THE TITLE COMPANY WILL REQUIRE, AS A MINIMUM, THE FOLLOWING PRIOR TO INSURING: A. THE BANKRUPTCY CASE BE CLOSED OR; " B.AIW ORDER FROM THE BANKRUPTCY COURT VERIFYING THE TRANS- ACTION, WITH A DF_24AND PLACED INTO ESCROW BY THE TRUSTEE. I.ESCROW MAY NOT CLOSE UNTIL 15 DAYS HAVE ELAPSED FROM THE ORDER AND THE FILE HAS BEEN CHECKED TO VERIFY THAT THERE ARE NO OBJECTIONS TO SAID ORDER. ABSTRACTS OF JUDGMENT, LIENS, TAX LIENS: THE TITLE COMPANY WILL REQUIRE, AS A MINIMUM, PRIOR TO INSURING: A.PROOF THAT THE BUYER/SELLER ARE NOT THE SAME PARTIES AS ON THE RECORDED LIENS. I. TH’IS IS ACCOMPLISHED BY THE BLrYER/SELLER/BORROWER COMPLETELY FILLING OUT AND SIGNING A STATEMENT OF INFORMATION ¯ B. THE ITEMS ARE TO BE ~AID OFF IN ESCROW. C.. TH~ ITEMS ARE TO BE SUBORDINATED TO THE NEW TRANSACTION. COMMUNITY PROPERTY: CALIFORNIA IS A COMF[[rNI.TY PROPERTY STATE. A.A QUITCLAIM FROM ONE SPOUSE TO ANOTHER MUST SPECIFICALLY QUITCLAIM ANY COMMUNITY PROPERTY INTEREST. B.AN INTERLOCUTORY DECREE OF DIVORCE,SPECIFICALLY GRANTING THE PROPERTY TO ONE SPOUSE IS SUFFICIENT IF A FINAL DECREE IS ISSUED AND RECORDED IN THE COUNTY, (~08) 453.030CNorth American "rifle Company, Inc. ’1740 Technology Drive, Suite 150, San Jose, CA 95’110 LIST OF pK~..RINTED POLICY EXCLUS.IONS AND E XPTIONS CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVE,,,-~GE POLICY -1990 EXCLUSIONS FROM COVERAGE The following mtttters ~ expressly excluded from the covcr’~ge o[ thls policy and the Company will not pay loss or damage, costs, attorneys, fees or expenses whlch by reason of:1. (a) Any law, ordinance or governmental regulation (including but not Iimlt=d to building and zoning laws, ordinances, or regulations) restricting, ~’tgulating, prohlbhlr or relating In (i) the occupancy, use, or enjoyment of the land; (ill the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) separation in ownership or a change in the dimensions or text of the lend or any parcel of which the land Is or was t part; or (iv) envlronmcntsl protection, or the of any vloladon of these laws, ordinances or governmental rtgulatlons, except to the extent that a notice of the enforcement thereof or a notice of a defect, llen or encumbrance resulting from a violation or alleged violation afro:sing the land has been recorded in the publlc records at Date of Policy. (b)Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, llen or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of’ Policy. 2.Rights of eminent domain unless notlce of the exetx:ise thereof has been rr..¢orded in the public records st Date of Policy, but not excluding from coverage any taking w~ch has occurred prior to Dateof Policy which would be binding on the rights of a pur¢haser for value without knowledge. nces adverse claims or other matters:3. Defects, hens, encumbra , . or a reed to b the ifisured claimant; (a) whether or not rccorcled in the public records at Date of Pohcy, but created, suffered, assumed g (0) not known to the Company, not recorded in the public recoMs at Date of Policy, but known to the insured claimant and no.t disclosed in writing to the Company the insured claimant prior to the date the insure~l claimant became an insur=d under this Policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy or;, ¯ (el resulting in loss or damage which would not have been sustained if the.insured claimant had paid value for the insured mortgage at: for the estate or interest insure by this policy. "4. Unenl’oreeability of the lien of the insured mortgage because of the inability or failure of the insured at Dat~. of Policy, or the inability or failure of any s~bsex:iuent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien o1" the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is bas~ upon usur~ or any consumer credit protection or truth in lending law. 6.Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reasonof the olxration of federal bankruptcy, state insolvency or similar credltors’ righ~ laws. EXCE~HONS FP, OM COVERAGE (SCHEDULE B - PART I) This policy do~:s not insure against loss or damage (and the Company will not pay costs, attorneys, fees or exl:~nses) which arise by rea~on of: I. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public r=:o~s. .Proceedings by a public agency which may result in taxes or assessments, or notices of such proc=edlngs, whether or not shown by the records of such agency or by publio records. . 2.Any facts, rights, interests or claims which are not shown by the public records but which could be asccrtalned by an inspection of the land or which may bc assertc~ ~::raons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundm’y lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by Fublie records. 5.(a) Unpatenled mining clalms; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof’; (el water r~ghts, claims or title to waS=r, whether not the matters excepted under (a), (b) or (c) are shown by the public records. _AMERICAN LAND TITLE ASSOCIATION OWNER’S POLICY (10-17-92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER’S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE The following matter~ art: expressly excluded’from the coverage of this Policy and the Company will not pay loss or damage, costs, attorneys" fees or expenses which by reason of: ¯1. (a) Any law, o~inance or governmental regulatlon (including but not limited to building and zonlng laws, ordinances, or regulations) restricting, regulating, prohil: or relating to (1) the o~:upancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafmr erected on the land; separation in ownership or a change in the dimensions or area o[ the land or any parcel of which the land is or was a part; or (iv) environmental protex:tlon, or the of any violation ol" these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defer:t, llcn or encumbrance resulting from a violation or alleged violation affecting the land has bccn recorded in the public records at Date of Policy. (b)Any governmental police powcr not excluded by (t) above, except to the extent that a notice of the exercise thereof or a notice of a 1~: fect’ lien or encumbrance resulting from a violation or alleged violation affecting the land has Ixcn recorded in the public records at Date of Policy.2. Rights of eminent domain unless notice of the cxcrclse thereof has Ix:cn recorded in the public records at Date o[ Policy, but not cxcludlng from coverage any laklr which has occurred prior to Date o[ Policy which would be binding on the fights of a purchaser for value without knowledge. 3. D.cfects. liens, encumb~nces, adverse claims or other matters: Ca) created, suffered, assumed or agreed Io by the insured claimant: (0) not known to the Company, not recorded in the public re¢ords at Date of Policy, but known to the insured claimant and not disclosed in v..fitlng to the Compat the insured claimant prior to the date the insured claimant became an insured under this pollcy. (el resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (el resulting in loss or damage which would not have been sustained il’thc insured claimant had paid vahv" for the estate or interest insure~l by this pollcy.4. Any claim which ~rises out of the transaction vesting in the lnsured the estate or interest insured by this Policy, by reason o1" the operation of federal bankruptcy, insolvency, or similar creditors’ rights laws, that is based on: (a) the i n crcatln the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; ortransact o g ...........-. ~--:-~ ~ .....,~ ,~ -referential transfer except where the prcferentlal transfer results from the (0) the transaction creating the estate or ntcrest tnsurcu oy the l’~t~.~ u~-~, .........r (i) to timely record the instrument of transfer; or (ii) of ~u~l’t re¢ordatlon to impart notice to a purchaser roe value or a judgment or llen creditor.(Contlnued or Vorn~ 2210-6 (9-94) AhIERICI’N LAND TITLE ASSOCIATION LOAN WITII A.L.T.A. ENDORSEhIENT FORhl 1 ~OVERAGE (10-17-92) AND A.L.T.A. LEASEHOLD LOAN POLICY (10-17-92) EXCLUSIONS FROhI COVERAGE following m~tte~ t~ txp~ssly excluded from ~e covc~ge of thlt ~llcy and the Company will not pay Io~s or d~magc, co~t~, atto~c)’t’ f~s or cx~n~s whlch ~oson of : (~) Any I~w. ordinance or govc~mcntal ~gul~tlon (including but not Iimlt~d to building ~nd zonlng laws. o~inances, or regulations) ~s~ctlng. ~latlng. pmhlbhlng or relating to (i) ~ ~cup~ncy. use. or enjoyment of ~ l~nd; (ii) the ch~ctcr, dimensions or I~atlon or tny improvement now or herca~cr ~ctcd on scp~r~tlon in ownership or t change in the dlmcnslons or t~a of ~e land or ~ny parcel of which ~* land is or w~s t pa~; or (iv) environment1 pmtcctlon, or ~= [~t of ~ny viota~on of ~s¢ ]tws, o~inances or govemm,ntal ~gulatlons. except to the extent that t notic* o~ ~* enforcement ~¢t¢o~ or t notlc¢ of t d,[~t, lien or encumbrance rcsultlng from a violation or tllegtd viola~on aff~ting ~ land has bccn rccord*d in ~* public records tt D~t¢ of Pollcy. ~) Any govcmmen~l ~li~e ~w,r not ~xclud*d by (a) a~ve. except to ~e extent ~at a notice of the exercise thereof or a notice of a dc[ec6 lien or encumb~n~ resulting f~m ~ vlolatlon or tlleged violation affecting ~e land h~s ~n r~ordtd in ~* public ~cords tt Date of Pollcy. Rights of tmln,nt domaln unless notice of ~* exe~ise ~ercof has ~¢n ~ordcd in th* public ~cords at Date of Policy. but not txcludlng f~m cov¢~ge tny ~ng which has ~¢u~ed p~or to Date pf Pollcy which would ~ binding on ~e fights of a purchaser for value wi~out knowledge. D,~. liens, encumbrances, tdv¢~e claims or o~¢r m~tters: -" (a) created, suffc~ tssum*d 0~ ag~cd to by ~* insur¢d claimant; ~) not known to ~t Company. not r¢cord*d in ~: public ~cords at Dat¢ of Policy. but known to ~e insu~d claimant and not dlsclos~ in wfitlng to ~, insu~d claimant p~or to ~* d,te ~e insured claimant ~cam* an insur¢d under this (c) r:sultlng in no loss or damag* t~ ~e insured claimant: (d) at~achlng or c~at¢d subs~u¢nt to Date o~ Policy (except to ~e ,gt¢nt that ~is policy insurcs ~e p~o~ty of ~* llcn of ~e insur:d mo~gage over any statuto~ llen for so,ices, lair or material * for to th, extent insu~nc¢ is afforded h¢r,ln as to assessments for s~**t improvem*nts und¢r cons~ctlon or ~mplet~ at Date Policy])~ or (e) r, suldng in loss or damage which would not hay* ~en sustained if ~e insu~d claimant had paid va!u* for ~* insured mo~gage. 4. Un,nfor~bility of ~* li¢n of ~* insured moflgage ~caus* of th* inability or failure of th* insured at Date of Policy, or ~e inability or failure of any subs,qu*nt owner of ~e indebtedness, to comply wi~ ~9 applicab]* doing business laws of ~e state in which ~= land is situate. 5. Invalidit~ or unenfo~bility of ~* lien of ~e insu~d mo~gage, or claim ~ereoL which adses out of ~e ~nsaction tvidenced by ~e insur~ mo~gage and is based u~n usu~ or any consumer credit protection or~th in lending law. 6. An~ s~tuto~ lien for ~ices. lair or materials (~ ~ claim of priority of any statuto~ lien for se~ices, la~r or materials over ~ lien of ~* insur~ mo~gage) arising from an imp~vement or work ~lated to ~e land which is contracted for and commenced subsequent to Date of Policy and is not financ~ pr~eeds of ~* indebt~ness s~u~ by th* insured mo~gage which at Date o~ Policy the insured has advanced or is obligated to tdvance. 7. hn~ claim which ~¢s out of ~ ~nsactlon creating th* interest of th* mo~gag¢* insured b~ this ~llcT. by reason of th* o~tlon of federal ban~ptc~, state insolvcncT, or simila~ ~redito~’ Hgh~laws. that is based on: (a) ~ ~n~cffon c~a~ng ~* interest of ~e insured made,gee ~ing dtcmcd t fraudul*nt convcyanc* or fraud~l*nt ~ansfc~ or ~) ~ su~rdlnafion of ~= interest of ~* insured mo~gagc* as a ~sult of ~* application of th~ d~ne of ~ui~bl~ su~rdinatlon; or (c) ~ ~nsacfion c~atlng ~ in,rest of ~ insu~d mo~gagc¢ ~ing deemed a preferential ~ans[cr except wh¢~ the ~rc~cr¢ntltl ~ns[cr msul~ from ~ failure: (i) to dm,lj ~cord ~* inst~ment o~ns[~ or - (ii) of such ~oMatlon m imp~ notice to a purchaser ~or value or a judgment or lien creditor. Inner B~ckc~ dcno~ cave.go not contained in ~asrhold ~an Policy. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY PRINTED POLICY EXCEPTIONS AND EXCLUSIONS ~, ~clusi~’ns and ~= ~ccptlons oE the ALTA Rcsldcntlal Policy Fo~ recite that you arc not insured against loss or dkmag=, costs, attorneys’ ftcs and ~nscs rcsultlng from: Exclusions 1.Governmental police power, and the existance or vloh~tion of any law or 3. governmefit regulation. "f’nls includes building and zoning ordinances and also laws and rt:gulatlons concerning: ¯ land use ¯impro",’eme.nts on the land - land division ¯cnvlronmental protect.lon ¯ This exclusion does not apply to violations .or the enl’orcemen( or these 4. matters which appear in the public records at Policy Date. This exclusion dc~s not limit the zoning coverage descrlbcd in Items 12 and 13 of Covered Title Risks. The right to take the land by condemning it. unless: ¯ a notice of exercising the right appears in the public records on the Policy Date. ¯ the taking happened pfior to the Policy Date and is binding on you if you bought the land without knowing o1" the taking. Title Risks: ¯ that are created, allowed, or agreed to by you ¯ t.~t are known to you. but not to us. on the Policy Date ~ unless th appeared in the public records ¯ that result in no loss to you ¯ that first affect your title after the Policy Date ~ this dcms not limit labor and material lien coverage in Item g of Covcrcd Title Risks Failure to pay value for your thle. L2ck of a fight: ¯ to any land outside the area specifically descfibcd and rcfcrro:t to leon1 3 of Schedule A . ¯ in s~~. alleys, or watc~’ays ~at touch your land ~is cxcluslon d~s not limit ~e access ~vcrag* in ltcm 5 of Cove Title Risks. Standard Exceptions (a)Any fights, interests or claims of partlcs in possession of the land not shown by the public records. (b)Any casements or liens not shown by the public records. This does not limit the lien coverage in ltcm 8 of the Covered Title Risks. (c) An)’ facts about the land which a correct survey would disclose and which are not shown by the public records. This do~s not limit the forced removal coverage in ltcm 12 of Covered Title Risks. (d) Any water fights, claims or title to water on or under the land. P.O. BOX 10250 PALO ALTO. CA 94303 ENVIRONMENTAL ASSESSMENT WORKSHEET Address of Project Current Zoning. Applicant: Name. Address Comprehensive Plan Designation Owner: Yes__ No~ Telephone Application for: Site and Design Use Permit Parcel Map Zone Change ARB RevieK EIA, EIR I.EXISTING SITE 1.Size of site 2. Site is owned,rented 3.Existing use of property Assdssor’s Parcel Number. by applicant. 4.Total number of building occupants for the existing use 5.Number of existing parking spaces Percent of compact spaces Number of existing bicycle parking spaces 6.Number of existing structures Current use Will any structures be demolished for this project? 7. Size of existing structures B.If the current use is residential: Number of owner-occupied units Number of renter-occupied units Yes Condition, .No Class a: e i awork, doc Page I ATTACHMENT D PROPOSED PRO3EC~ g.DescriPtion of project 10.Number of structures proposed Size (in square feet 11. Number of floors Square footage of each floor 12.Percent of site to be covered by pavement 13.Total number of building occupants for the proposed project 14.If the proposed use is residential: Total number of units Number of units/acre Expected sales price or monthly rent per dwelling unit List kinds and sizes of community buildings. Area of private open space Area of common open space Provision of low/moderate income units: 1) Number.of units provided for: sale reBt 2) Sale and/or rental price 15.Total number of vehicles expected daily for proposed project Number of proposed parking spaces Percent of compact spaces Number of p~oposed bicycle parking spaces Class 16.Are any. toxic wastes to be discharged? Yes No (If yes, please complete a Sewer Discharge Questionnaire, which is furnished by the Building Department) 17. Has this facility in the past or will the operation of the proposed facility involve the storage or use of hazardous materials? Yes No (If yes, please complete a Hazardous Materials Disclosure Checklist, which is furnished by the Fire Department) a:eiawork.doc ATTACHMENT D Page 2 18. Expected amount of water usage (except for. residential developments of fewer than 4 units not located in the foothills): Domestic qal/day Peak use,gal/min Commercial qal/day Peak use qal/min Expected fire flow demand qal/min Daily sewer discharge (over 30 fixtures only) Expected energy use: Gas,therms Electric Uses and equipment sizes A. Space heating: Gas Electric Other B. Air conditioning:. Number of units C. Water Heating: Gas Electric Other Type: KWH Peak electric demand BTUH Solar KW Heat Pump,Tons Total tonnage. BTUH.Solar KW Heat Pump,Tons Central system Individual systems Recirculating Loop? Yes__ No D. Other: Indoor lighting___ Cooking K~ Motors HP KW Outdoor lighting__ KW Refrigeration Tons or ft~ X-Ray Computer a:eiawork.doc ATTACHMENT D Page 3 21.Air poilution emission.~ (Check applicable BAAPCD regulations). Conmer.cial/Industrial only: Source and type Amount 22.Noise generation: Source Amount (dBa) Sound-proofing proposed 23. Site drainage provisions 24.- Amount of proposed grading (cubic yards) 25. Disposition of excavated material 26. Permits required from other agencies: Santa Clara Valley Water District Bay Conservation and Development Commission Bay Area Air Pollution Control District Corps of Engineers Other III.ENVIRONMENTAL DESCRIPTION 27. Percent and direction of ground slope at site 2B. Is this site Within a special flood hazard area? Yes No 29. Existing site vegetation (please list, and indicate any to be removed) 30.Existing animal and bird life on site a:eiawork.doc ATTACHMENT D Page 4 31.Land uses adjacent to-site Prepared by Date NOTE: More information may be required before the application for which this assessment has been prepared can be processed. Please call thR Department of Planning and Con~nunity Environment at (415) 329-2442 if you have any questions. PLEASE RETURN COMPLETED WORKSHEE-r TO THE DEPARTMENT OF PLANNING AND COMMUNITY ENVIRONMENT, CIVIC CENTER, 250 HAHILTON AVENUE, 5TH FLOOR. a:eiawork.doc ATTACHMEFIT D Page 5