CRA - 21RESOLUTION NO. CRA-21
A RESOLUTION OF THE CYPRESS REDEVELOPMENT AGENCY
APPROVING THE PROPERTY OPTION AGREEMENT BETWEEN
THE CYPRESS SCHOOL DISTRICT AND THE CYPRESS REDEVELOPMENT AGENCY
FOR A PORTION OF CERTAIN REAL PROPERTY CON~4ONLY KNOWN AS
CYPRESS ELEMENTARY SCHOOL AND AUTHORIZING THE EXECUTION
AND ACKNOWLEDGMENT THEREOF.
WHEREAS, the Cypress Redevelopment Agency has resolved to support
the submittal of a preliminary application for funding under the Federal
Department of Housing and Urban Development 202/8 Program; and
WHEREAS, required as part of this submittal is a document verifying
site control of the proposed building location; and
WHEREAS, the Cypress School District Board of Trustees has agreed
to cooperate with the Cypress Redevelopment Agency in providing an option
for the site.
NOW, THEREFORE, the Cypress Redevelopment Agency DOES HEREBY RESOLVE
as follows:
SECTION 1: The Cypress Redevelopment Agency HEREBY APPROVES the
form of the Property Option Agreement attached hereto as Exhibit "I-A"
and incorporated herein.
SECTION 2: The Cypress Redevelopment Agency authorizes and directs
the executive and acknowledgment of this option (Exhibit "i-A") with the
Cypress School District Board of Trustees and authorizes and directs the
officers of the Redevelopment Agency to take any and all actions neces-
sary to accomplish the purposes set forth in said Option Agreement.
PASSED AND ADOPTED by the governing body of the Cypress Redevelopment
Agency on the 13thday of May 1985.
CYPRESS REDEVE~MENT AGENCY
ATTEST:
SECP[E~TATRY~- - _ ,/
CYPRESS REDEVELOPMENT AGENCY
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
SS
I, DARRELL ESSEX, Secretary of the Cypress Redevelopment Agency, DO
HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular
meeting of said Agency held on the 13th day of May 1985, by the following
roll call vote:
AYES: 3 AGENCY MEMBERS: Mullen, Partin, and Kanel
NOES: 0 AGENCY MEMBERS: None
ABSENT:2
AGENCY MEMBERS:
Coronado and Lacayo
CYPRESS REDEVELOPMENT AGENCY
EXHIBIT "i-A"
OPTION AGREEMENT
This Agreement made this day of , 1985, at
Cypress, California, by and between the CYPRESS REDEVELOPMENT AGENCY
or its nominee, hereinafter referred to as "OPTIONEE," and CYPRESS
SCHOOL DISTRICT, hereinafter referred to as "OPTIONOR."
WHEREAS, OPTIONOR is the owner of certain real property situ-
ated in Cypress, hereinafter referred to as "The Property," commonly
known as Cypress Elementary School, located at 9031 Grindlay Street,
Cypress, California, and more particularly described as follows:
That portion of A.P. No. 244-071-10, indicated by cross-
hatching in Exhibit "A," as jointly determined by OPTIONEE
and OPTIONOR, but in no event less than 1.3 acres, which
portion shall be of sufficient buildable area and location
to construct a 75-unit apartment project with parking and
landscaping in accordance with City Code (See Exhibit "A").
WHEREAS, OPTIONEE desires to acquire the exclusive right to
purchase, without becoming obligated to purchase, the above-described
real property; and
WHEREAS, OPTIONEE is required to follow the procedures set
out in the Real Property Acquisition Act of 1970, as amended, here-
inafter referred to as Act, prior to making any real property
acquisitions utilizing federal grants or loans for the same; and
WHEREAS, OPTIONEE desires to file Notices, complete environ-
mental assessments, zoning clearances, title checks, soil tests,
engineering and architectural studies, utility and public services
availability studies; and
WHEREAS, said studies shall inform OPTIONEE and the Depart-
ment of Housing and Urban Development as to the feasibility of
acquisition and/or development, and accordingly, and subsequently,
elect or not elect to exercise the option to acquire the property
after following all designated procedures required by Department of
Housing and Urban Development in connection with its Section 202
Direct Loan Program.
WHEREAS, OPTIONOR must comply with various legal requirements,
including Education Code Section 39500 e~t s_~., prior to sale of the
property to OPTIONEE.
NOW, THEREFORE, it is agreed as follows:
1. GRANT OF OPTION. OPTIONOR hereby grants OPTIONEE the
exclusive right to purchase the property at a price established as
provided in Section 6.
- 1 -
2. EXERCISE OF OPTION. Exercise of the option shall be
subject to the mutual agreement of the parties and the OPTIONOR's
compliance with Education Code Section 39500 et seq. or any other
legal requirements.
3. OPTION PERIOD. This option shall continue for a period
of one hundred and eighty (180) days from the date of the execution
of this Option Agreement unless the option period is otherwise
extended.
4. OPTION CONSIDERATION. This option is granted in con-
sideration of OPTIONEE's payment to OPTIONOR of the sum of one
hundred dollars ($100.00), receipt of which is hereby acknowledged
by OPTIONOR.
5. EXTENSION OF OPTION PERIOD. OPTIONOR further grants
to OPTIONEE the right to extend the original grant period for an
additional ninety (90) days should OPTIONEE give notice of said
extension within the option period and tender the sum of ten
dollars ($10.00). In the event said option is exercised, the
additional consideration shall be applied to the purchase price.
6. PURCHASE. The purchase price will be determined as a
result of establishing fair market value by way of an appraisal as
of the date of the exercise of this option, taking into account the
highest and best use of the property. The appraisal shall be made
by one MAI appraiser, selected jointly by the OPTIONEE and the
OPTIONOR. All costs for the appraisal shall be shared by OPTIONEE
and OPTIONOR. In the event the market value determined by the
appraisal is not acceptable to the OPTIONEE, the OPTIONEE may
decline to proceed with the purchase.
7. EXERCISE OF OPTION. The option shall be exercised by the
giving of written notice thereof before 5:00 p.m. of the last day of
the option period, specifying whether the OPTIONEE chooses to
purchase the property, and setting forth the terms and conditions
that the OPTIONEE desires to see in Escrow Instructions for the sale.
8. RISK OF LOSS AND CONDEMNATION. In the event of material
loss or damage to the property, or all or any part of the property
is appropriated by the power of eminent domain during the option
period or extension thereof, this Option Agreement shall be termi-
nated at the discretion of either party by giving written notice
thereof.
9. AUTOMATIC TERMINATION. If OPTIONEE fails to exercise
this option in accordance with its terms and within the option
period or any extension thereof, then this option and the rights
of the OPTIONEE shall automatically and immediately terminate
without notice. Thereafter, OPTIONEE agrees that they will proper-
ly execute, acknowledge, and deliver to OPTIONOR within ten (10)
days of receipt thereof, any document required by OPTIONOR or a
title insurance company to verify the termination of this Option
Agreement.
- 2 -
10. NOTICES. Unless otherwise provided herein, any notice,
tender, or delivery to be given hereunder by either party to the
other may be effected by personal delivery in writing or by regis-
tered or certified mail, postage prepaid, return receipt requested,
and shall be deemed communicated as of three (3) days from mailing.
Mailed notices shall be addressed as set forth below, but each
party may change his address by written notice in accordance with
this paragraph.
OPTIONEE
OPTIONOR
Cypress Redevelopment Agency
5275 Orange Avenue
Cypress, California 90630
Cypress School District
9470 Moody Street
Cypress, California 90630
11. ENTRY UPON OPTIONED LANDS. OPTIONEE or its employees,
agents and representatives shall have the right at any time here-
after to survey, map, engineer, make and take soundings on any
parcel subject to this Agreement, even during the period when
OPTIONOR shall have exclusive possession, provided such acts do
not unreasonably interfere with such exclusive possession, and
provided further that OPTIONEE shall indemnify and hold OPTIONOR
harmless from any and all damage and liability occasioned thereby.
12. TITLE. Prior to exercising option and within the
option period, OPTIONEE shall have the right to secure, at
OPTIONEE's own expense, a preliminary title report and to approve
or disapprove all exceptions to coverage contained in the prelim-
inary title report. In the event that OPTIONEE disapproves any
exception to coverage, OPTIONOR shall have ten (10) days within
which to cure such exception. In the event that OPTIONOR fails to
cure such exception, OPTIONEE may cure the exception at OPTIONEE's
expense or terminate this Option Agreement.
13. CLOSING. Upon the OPTIONEE's election to exercise
the option and purchase the property, an escrow shall be opened
with a reliable title insurance company of the parties' mutual
selection. Moreover, the parties shall mutually agree to appropri-
ate Escrow Instructions which shall include the following items,
among other things:
Taxes for the current year shall be prorated as
of the date of close;
Transfer taxes and title insurance shall be paid
by OPTIONOR;
Escrow fees shall be paid one-half by each party;
Any recording fees shall be paid in accordance with
customary procedures.
- 3 -
A CLTA title insurance policy insuring the OPTIONEE's
interest in the property shall be received, subject only to the
exceptions to coverage proved by OPTIONEE pursuant to Section 12.
OPTIONEE may secure an ALTA title insurance policy, provided
OPTIONEE pays the difference between the cost of the CLTA coverage
and the ALTA coverage.
14. EXISTING LEASES.
subject to existing leases.
OPTIONEE shall take the property
15. ASSIGNMENT. Any assignment of the option other than
to the City of Cypress must be approved by OPTIONOR, which approval
shall not be unreasonably withheld.
16. ENTIRE AGREEMENT. This instrument contains the entire
agreement between the parties relating to the option herein granted.
Any oral representations or modifications concerning this instru-
ment shall be of no force and effect except a subsequent modifi-
cation in writing, signed by the party to be charged.
17. ATTORNEYS' 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, attorneys' fees and costs.
18. BINDING EFFECT. This Agreement shall bind and inure
to the benefit of the respective heirs, personal representatives,
successors and asigns of the parties hereto except as hereinabove
expressly provided.
19. Both OPTIONOR and OPTIONEE do covenant that each
individual executing this Agreement in behalf of each party is a
person duly authorized and empowered to execute agreements for
such party.
IN WITNESS WHEREOF, the parties hereto have subscribed
their names as of the date first above written.
OPTIONOR OPTIONEE
CYPRESS SCHOOL DISTRICT
CYPRESS REDEVELOPMENT AGENCY
By By
- 4 -
EXHIBIT "A"
CYPRESS ELEM.
ST.
SCHOOL
ST. IRENEAUS
~CHURCH
AVENUE