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HomeMy WebLinkAbout2001-03-19 City Council (15)To: .FROM: HONOI~LABLE CITY COUN.CIL CITY MANAGER DEPARTMENT: ADMINISTILkTIVE ’. SERVICES ¯ DATE:MARCH 19, 2001 CMR: 177:01 SUBYEC, T: AGREEMENT WITH .CASA O~GAI~LATINGTO THE. PROPOSED UNIVERSITY AVENUE ASSESSMENT DISTRICT REPORT IN BRIEF The attached agreement has been negotiated between.staff and the owners of the. Casa Olga prop.e .rby in:vrder to.adjust Casa Olga’s assessment payments.¯ Under the agreement, C.asa:Olga will be liable for,payment, of the full gsse.ssmeiat., but the City .:will reimburse Casa Olgafor the valu~ of ll7.spaces solong as the use of the property remains as ~onvalescent care or other residential .use; and th~ number of rooms does not increase, If the use changes or the number of rooms increases., the City’s reimbursement would cease. RECOMMENDATION ,:Staff recommends ~ouncil approve, the agreement, -ATTACHMENTS Attachment A:..Agre.~ment Between.the city of~Palo Alto and Casa Olga Relating to the Uriivdrsity Avenue Are~.Off-Street Parking Ass~ssm~Ii~ District PREPARED BY: r s Ccio " Mianager, Investments and Debt CMR: 1~7:01 Page .1 of 2 ir r; A.nllnistraliy S rvi .es ,. EMILY .HARRISON CITY MANAGER APPROVAL: Assistant City Manager ClVIR:177:01 Page 2 Of 2 This .~.document is recorded for the"benefit of the City. ¯ of PaloAlto and is entitled to be recorded free of charge ’in .accordance with Section 6103 of .the Government Code. After Recordation, mail to:’ ~’Offic~"6f .~h~..City’A~torney 250 Hamilton Avenue ’ ~ PaI0 Alto,.. CA 94301 AGREEMENT BETWEEN THE CITY OF.PALO ALTO AND, .CASA.OL~A RELATING TO THE. UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRXCT This Agre.ement is made and entered into. this __ day of March, 2001, by and among CASA OLGK CARE CENTERS, INC’.,. a California corporation., CASA OLGA, L.P. , a .California . Limited Partnership (collectively,¯ "Casa. Olga") and the CITY OF PALO. ALTO, . a California. chartered municipal corporat’ion ("Ci’ty") .’ " "E.s.. S El ... . " .. "’ WHEREAS’, Cit’y proposes "to form the University, Avenue Area"Off.-Street Parking Assessment District (’"District")., located " within-the city of Palo Alto, County of Santa Clara, State-of California,. for the purpose of financing’.th¢ construction of two ¯ parking garages in .the downfiown, area of the City; and : . WHEREAS, the ~ngineer of Work has filed a report showing.~the proposed, a.ssessments among the’ owners of ’~e~l property w~thin the proposed District,. using as the.basis for the assessment, spread the blended parking requirement of the Cityi’s zoning Ordihance (Title 18,¯Palo Alto Municipal Code, the¯"Zoning Ordinance")" for.the "CD-Commercial" zone; ahd WHERE~S, .Casa Olga owns’certain real property Iocated within the City of Palo¯Alto, County .of Santa Cl~ra, State of ~alif~rnia as more particularly described in Exhibit "A" attached hereto and i~corporated hereini~ by reference (the "Property"),- ~hich .Property .is .l~ated. withi~ the. proposed -.District and.is proposed.to be assessed; and WHEREAS, C~sa’ Olga alleges that the .amount of. the proposed assessment, on its p~operty is .mQre than the .relative speci~l benefit its property .wil~ receive from the assessment, ~nd that the’alleged exces~ assessment is invalid, under Article XIIID of the California .Constitution ("P~oposition 218"); and 01031~ .sd| 0032434 1 WHEREAS, Cit~ disputes Casa oOlga’s allegations and believes .that .the proposed assessment on Casa Olga’s Prope;ty is. valid and proper;.and ~HEREAS, in order ~o..ayoid the costs, ri~ks and uncertainties.o.f litigation, the parties hereto desire to enter into this Agreement. NOW, THEREFORE, th~ parties do hereby-agree’ as f~’ii0ws: 1... Casa Olgaagrees t~.be"assess~d int.he full amohnt of theproposed assessment. The prineipal.amount of.fihe.’prop.osed assessment is $977,536.96, and°. i~ based upon ¯a parking requirement of 195. unprovided-parking spaces. Casa Olga understahds that the.amount of the actual unpaid ~ssessment, with appropriate interest, will become a lien on the Property~ 2. Casa Olga shall pay each annual assessment. installment iincluding interest) when it~ becom4s due. Within two working days after receipt of cancelled check Or other evidence of payment .satisfactpry to city’s" Director of Administrative S~rvices, ~ity sha~l.r~imburse Cas~ Olga~n an a~ounfi eqial to an assessment (including interest) for 117 spaces. 3. .The ~eimbur~ement.. described, in .Section .2 shall -[.ease,~ .and .~a~a. Olga~...sha~l .thereafter "be. sol~iy .li~ble.’..fbr ¯ payment.6f the enZire assessment- ~f. ~.95.1spac~s. under either. 6f the following events: . .-a. iAny change in the use’of ~he ?roperty to a use other than convalescent .care, intermediate care,, assisted .living,’ hotel., hotel suite.s,. SR0, ’or other residential li~ing or care fa~i!i~y,.°and occupantzserving’accessory uses, ingl~dihg’ no m6re than 500 "square feet of . ground floor .retail ~space. ("Consistent ~ses"),"but not multi-f.amilY use, as defined in the Zoning OrdinanceS. or %. b. Any addition. of rooms;¯provided, that, if required fo£.compliancewith state o~ federal acqessibility laws,. Casa Olga may create up to a maximum of Qne additiona~ room on each.of floors 2-.7 as a "handicap roomi" ¯4. So long as the use of.the’P~operty remains one ~f the Consisbent Uses., the restaurant on.the eighth floor shall be only for the use of the employees and occupants, and.their.guests o ~ndnot for.general. ~ommetcial..restaurant~purp0~es. ~ .... 5. For purposes’ of verifying the Consisten~"Hses, Casa. 0!ga’shall.submit to City. annually a Medi-.c~l Cost Report or equivalent doeumentatioh in. a form reasonably satisfactory to CitY, but not internal financial Statements.or other.coDfidential documents, and shall ilso -allow City to inspect the property .annually during.business hours upon a minimum of.48 hours advance 010315 sdl 0032434 notice.¯ The rights of City to documentation and’ inspecti6n ¯ described in. this paragraph shall be in addition to any rights of City under, its regulatory or p61ice~poW~rS.. 6-. The’ term of this Agreement shall .be"for. the duration of the unpaid assessment. 7. In consideration for.£h~ Germs of thisAgr.eement, all claims by and between the parties, regarding ’~he. proposed assessment of .the ¯Property shall be considered compromised and settled, without the admission of liability by either party, and each pa~ty agre@s to w&iv~ and .release,- in favo~ of. the other ..pa~ty and all~. employees, ~officers,. agents, .con£r~ctors. and representatives Of the other parSy, all claims, demands,, causes. of ac$ion, rights, damages, costs, expenses, .compensation; and legal entitlements, of ~all kind .o9 nature (including attorney. fees)..arising out of o~ connected with.tOe proposed assessment of ’the Property and to accept the duties and liabilities stated in this Agreement in full" accord and satisfaction.thereof. " 8. ~ThisAgreement shall.be .recorded and shall:.’run with the.land and shall be binding upon and inure.to the benefit of the .parties and their respective as.signs.,, heirs or ’Qther successors in int.erest. ~9, . .(a) .Casa’ Olga ~hall have the r~g~t.’t0 sell, transfer, "le~se~or.assign .:the .P.rbp~rty,.’.,!.n whole¯ or in. part (provided that ino such.pir£~ai". transfer, shall be..p~rmi%ted~t6 cause a violation of’the Subdivision Map Act, ¯Government Code ’sectiQn 66410, et seq.), to any person or entity at any time during., the .te~m.of this Agreement; provided, that concurreDtly with any such sale~ transfer or assignment, or within ten (I0) bus£nes~ days thgreafter, C~a ,Olga s.hall notify City,, in wri~.ing, of such sale, transfer or assignment and shall provide .Ci£y with an executed agreement, in a. form reasoDably acceptable to City, by the purchaser, transferee or assignee-expressl~ and pro~i~ing therein that the .purchas~, transferee or a~s~gnee expressly .and .uncondihionally. assumes all the ’ duties ¯ and ¯ obligations..of Casa O~ga under this Agreement.- .(’b) ’Notwithstanding the failure.~of.any purchaser., transferee or assignee’ to execute the .Agreement required" by subparagraph 9(a) abDve, .the burdens of this Agreement shall be binding upon such ~purchaser, transferee or assignee, but the benefits of this Agreement’.shal~ not. inure to such purchaser, transferee or assignee until and Unless such ¯~greement is ... executed..’ ’ ’ ". . ~ (C) The parties hereto agree t~at this Agreement. ¯ shall, not’ prevent or limit Casa Olga in any manner, at Casa Dlga’s sole discretion, from encumbering the Property. or .any portion ~hereof orany improvement thereon by any mortgage, deed¯ of trdst Or Other security device securing financingwith.respect. to the Property. 3 (d) At~ any time ’.du~ing th~ term. ~f this Agreement,..Casa Olga or any lender may. request .City to confirm that. to the best of City’s knowledge, Ca~& 01ga was not. in default of .the ~erms Df this Agreement as" of the mo~t’ recent. &nspe~tign and/or receipt of the documentation d~scribed in Segtion 5, or if defaults do exist, to describe the nature of such defaults.- City her~byag~es to provide a 9ertif~cate to such..lender or to. Casa Olga within fiftee~ (15) business days of the request therefom~ The failure of .City to provide the requesZed certificat4within the fifteen (15). business day period shall.beconstrued to mean. that, to the. best. of.City’s knowledge~ Casa. Olgawas ~ot in default.o~ this Agreement as. ofthe most recent inspection and/or receipt ~f the documentation described in Section5. I0.. All notices required or provided for under this Agreement ~hall be in writing and shallbe delivered personally or by "o~ernight .courier .service: or sent. by certified or regist4red mail, return receipt requested. ~Any notice given by. the ~above .li~ted means shall "be deemed to have b~en duly given. and received upon :~eceipt....Notices to the .’parties shall be addressed as follows: .Cit~ Cler.k . City .of Palo Alto .. 250 Hamilton Avenue ¯ .. .Palo Al.to~ CA- 94301 with a copy to:"~ity Attorney City of 9alo Alto 250 Hamilton Avenue Palo Altd, CA 94301 ¯ Casa Olga: with a 9~py Any. notice so delivered shall be effective upon the .date of personal’deliqery.or,’ in the case of mailing,on the date" of delivery as shown on the U.S. Postal Service return’ reqeipt. Any party may change its address forno~ici by giving ten (i0) .days’ notice.bf such change in the manner"provid~d.f0r in this ii. T~is Agreement is stipulated.to have. be~n executed ’b~ the ~arties. in Santa Clara County, California, and the.parties aggee that Santa Clara County shall be the proper venue for any litigation or proceeding n~c.essary to ’enforce or i.nterpret this. ’Agreement. Attorney.fees shall be recoverable by the prevailing party.in any ’act~0n or...proc~ed~ng. ~’o enforce or interpret.this Agreement. 12. This Agreement shall not take’effect or be recorded.if the District is.not formed and the ’ass4ssments not imposed. :. IN. WITNESS. WHEREOF~ the parties have executed, this Agreement as of the.day and year first, above writteh. ¯ ATTEST:. .. ~ "CITY.OF PALO ALTO City Clerk APPROVED AS TO ?ORM: Senior Asst.. City Attorney APPROVED: .Mayo~ .. ¯CASA. 0LGA CARE CENTERS, INC., a’Califor~ia corpora~iQn .By: ¯Name: Title: Ass~ant.City Di.rector of Administrative Services. Di!,ector of Public Works Dir’~ctor of Planning & ’community Environment 010315 sd! 0032434 5 03/1512081 15:88 6508549661 LANCE & WANDA GINNER party,in any action o~ p~oceedin9 to enforce or interpret this Agreement. ’ 12, This Agreement shall net take effeat or" be , re~orded if the District is ne£.formed and .the assessments imposed. , ¯ IN WIT~ESS .WHEREO~, hh? pa~tie~ have executed this Asreement as of.the day a~d yea~ fxrst above w~itten, ATTEST ’.. .. City Clerk AP£~OVED AS TO FORM: Se~o~ ASSt, City Attorne~ APPROV~~ DireCtor of Administrative services Director of Publ$¢ Works-" Director o~’ Community ¯Environment CASA OLGA CARE CENTERS, !NO,, a California corporation ~y: Nam~ Title: . CASA OLeA, L,~,.A calife~nla.. .Limited Partnership By: Name: Title~ O]03t~ ~ 003~4’~4; 5 EXHIBIT "A" ALL THAT CERTAIN REAL PROPERTY SITUATE’ IN THE CiTY OF PALO ALTO, COUNTY OF SANTA C.’ .LARA, STATE OF CALIFORNIA DESCRIBED.AS FOLLOWS: .PORTION OF LoTS 521. 53, 54~, AND 55, AS SHOWN UPO~I THAt CERTAIN ,MAP ENTITLED,!’WM. H.H. HART’S SUBDIVISION OF BLOCK NO. 6 UNIVERSI..TY PARK (NOW PALO A....LT.O) SANTA".CLARA COUNTY, CALIFORNIA", WHICH MAP WAS FILED. FOR RECORD IN THE OFFICE OF THE. RECORDER O.F THE COUNT~’ O.F . SANTA CLARA, STATE OF CALIFORNIA, ON AUGUST .22, 1888. IN BOOK g OF MAPS, AT PAGE "~5; AND MORE PARTIC.ULARLY DESCRIBEDAS FOLLOWS: BEGINNING AT THE POINT OF INTERSECTION OF THE SOUTHEASTERLY."LINE OF ..HAMILTON AVENUE .WITH THE SOUTHWESTERLY LINE. OF EMERSON STREET; RUNNING THENCE SOUTHEASTERLY ALONG .THE SOU3"HWESTERLY LI.NE OF EMERSON .STREET 85 FEET.; THENCE SOUTHWESTERLY AND PARALLEL WITH THE SOUTHEASTERLY LINE OF HAMILTON AVENUE, 100 FEETi THENCE NORTHWESTERLY AND PARALLEL WITH THE SOUTHWESTERLY LINE OF EMERSON STREET 85 .FEET TO THE SOUTHEASTERLY LINE OF HAMILTON AVENUE;. THENCE. NOR.T.HEASTERLY AND. ALONG .SAID :.SOUTHEASTERLY LINE DE HAMILTON A~/’ENUE 1.0.0 FEET.TO.THEpOINT OF BEGJNNING.. ..’ EXCEPTING. THEREFRC~M ALL _-OIL, GAS AND OTHER HYDROCARBON SUBSTANCES AND ALL MINERALS IN, UNDEI~ AND THAT.MAY.BE PRODUCED FROM A DEPTH BELOW 500 FEET OF THE SURFACE OF THE LANDS DESCRIBED ABOVE, BUT WITHOUT RIGHT. OF EN’i’RY UPON THE SURFACE THERE, AS RESERVED BY PHILIIPS PETROLEUM COMPANY, A CORPORATION ORGANIZED UNDERTHE I’AWS OF THE STATE OF DELAWARE, IN THE’DEED RECORDED ~UGUS’F,.29, .1967 IN BQOK 7837 PAGE 552 OF OFFICIAL RECORDS. ¯ CERTIFICATE OF ACKN~WL~.DGEMENT (Civil Code § 1189) ). a Nodary Public.¯ in and. for ~aid County ’and ~tate,. per~ona~y ’ " appeared [1)~~ ~-, ~. ¯ " , perso~ally known tO me Qr. proved-ho me "on.the basis ofOsatisfacto~y’evldence .to be the .person(~ whose name(~) is/e~-e subscribed to the within instriment and a~knowledged tdme that he/ePee./t-Aey 4xe~uted the same in. His/~/~4~ ’iuthorized. cap.acity(.ie~ .and’ that by his/l~x/-th~ir- signature~ on the. instrument the person Q~., or the entity upon behalf of which the pe~s~n!s)’acted, executed.the i~s~rument... .. ~ W~TNESS my.hand¯and officialSeal.. ’Notary Publ)’c- California ~.’ : Santa Clara Counfy " ~’ Signatur~ of Notary P~b~ 010315 9000060.