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HomeMy WebLinkAbout67-02RESOLUTION N0. 67- ~ RESOLUTION APPROVING AND RATIFYING PURCHA SE AGREEMfENT ( POUL0$ PRO PERTY) AND APPROPRIATIOI'? OF FUITD$ FOR PAYMENT The City Council of the City of Ukiah does hereby RE.SOLIFE: ~.2st the Agreement between the City of Ukish and Tom W. Poulos and Ksliopi Poulos, dated June 14, 1966, s copy of which is sttsched hereto snd incorporsted herein by reference, is hereby spproved, smd the exec~.~tion of said Agreement, secv. rity instr~ment or other doc~_:ment rsquyired thereunder by the Mayor and Clerk on behalf of said City is hereby ratified and spproved. Appropriation of funds for the psyment of the cssh deposit, deferred payments and closing costs ss provided in said Agreement is hereby spproved and ratified. It is declared that said f~nds are from the general fund of the City presently on hand and mot from future 'tax revenues. Deposit of such smo~nts ss are required to pay deferred balances, together with interest on such deposited amounts is spproved snd ratified, snd ssid smo~nts are pledged to be maintained in sccordsnce with ssid Agreement. PASSED AND ADOPTED this 6th dsy of July, 1966 by the following vote: AYES: NOES: ABSEB]T: ATTEST' Councilmen Scotto, Crook, Henderson, Har!owe and Hayor ,,,u _. None. None. AGREEMENT FOR SALE OF REAL PROPERTY THIS AGREEMENT, made and entered into on the date hereinafter set forth, by and between TOM W. POULOS and ~LIOPI POULOS, his wife, hereinafter called Sellers and CITY OF UKIAH, a municipal corporation, hereinafter called Buyer, W I T N'E S S E T H · IN CONSIDERATION of the terms, covenants and condition herein expressed, to be kept and performed by the respective parties hereto, it is mutually agreed by the parties as follows: RECITALS- A. Buyer is a general law city having authority To purchase the real property to which this agreement relates. The acquisition of said property by Buyer is necessary in furtherance of Buyer's program of municipal improvements· B. Buyer represents to Sellers that, in the current fiscal yomr, Buyer has on l~and all of ~he funds necessary ~o completely pay the cost of acquiring said property, including the purchase price hereinafter specified, and incidental acquisition costs, and that such funds have been tentatively appropriated for the purpose of the acquisition of said property and that said funds have not been appropriated for and are not needed for any other budgeted outlay of Buyer. C. Buyer represents to Sellers that, by investing such funds tentatively appropriated for the acquisition of said property, it has the capability of earning interest in an amount sufficient to pay to Sellers the interest actually payable to Sellers on account of the deferred balance of the purchase price of said property, as herein provided. IT IS THEREFORE AGREED AS FOLLOWS- 1. Sellers agree to sell to Buyer and Buyer agrees to purchase from Sellers all of the real property of the Sellers in the City of Ukiah, County of Mendocino, State of California, bounded on the south by Perkins Street, on the west by Main Street, on the north by Standley Street, and on the east by lands of R. F. Clarke and Carrie A. Clarke, which property of the Sellers is further identified as Assessor's Parcel 2-192-18 and 2-192-19. · 2. The property which is the subject of this agreement and the property which is being sold pursuant to this agreement is only the real property of the Sellers described above and does not include any of the furniture equipment, fixtures or readily removable articles presently located on said real property or presently affixed to any structures on said real property. 3. The purchase price for said real property is ~he sum of One Hundred Eight Thousand Dollars ($108,000.00). 4. Said purchase price shall be paid and the sale shall be executed and consummated in the following manner' (a) An escrow shall be opened at Western Title Guaranty Company, ~endocino County Divison, Ukiah, California, and employed for the purpose of consummating the sale. (b) Not later than ten (10) days after the execution of this agreement by Buyer, it shall deposit in said escrow the sum o£ THIRTY-ONE THOUSAND DOLLARS ($31,000.00) in cash £or delivery to Sellers upon the close of escrow. (c) Not later than ten (10) days after the execution of this agreement by Buyer, it shall deposit in said escrow, for delivery to Sellers upon close of escrow ,~e Buyer s promissory note, in the standard form employed by said title company, in the principal amount of SEVENTY-SEVEN THOUSAR~ DOLLARS ($77,000.00), bearing interest on the declining balance thereof at the rate of four and three-quarter percent (4 3/4%) per annum from the date of close of escrow. Said note shall require payments in annual installments on the 15th day of.,.~rcn, 1967 and on the 15th day of ~arch in each year there- afzer, in the amount of FIFTEEN THOUSA~q) FOUR ,,~rUNDRED DOLLARS ($15,400.00) on account of principal, plus interest accrued to the date of such payment. Said note shall prohibit the payment of any portion of the principal or interest prior to January 5, 1967 and shall prohibit the payment of any portion of principal or 4'~'~ "~ ~ ...te. es~ in amounts in excess of those required by the terms of the note. (d) Not later than ten (10) days after the execution of this agreement, Buyer shall deposit in said escrow, for recording and delivery to Sellers on close of escrow, a deed of trust on the real property which is the subject of Zhis agreement for the purpose of securing the payment of said promissory note. Said deed of trust shall be in the standard form employed by %Vestern Title Guaranty Company. (e) At the expense of Buyer, a title insurance policy insuring Buyer and Sellers, in an amount not less than SE~NTY-SEVEN THOUSAA~ DOLLARS ($77,000.00), that the title to said real property is vested in Buyer free and clear of all liens, defects and encumbrances, save and except for the lien of said deed of trust and the lien of county taxes not delinquent, shall be procured from %Vestern Title Guaranty Company and delivered to Sellers on close of escrow. (f) Not later than ten (10) days after the execution of this agreement, Sellers shall execute and deposit in said escrow a grant deed conveying the title to said property to Buyer. (g) Not later than ten (10) days after the execution of this agreement, each of the parties hereto shall execute and deposit in said escrow all instructions and documents wkich may be necessary or convenient for the prompt consummation of said sale and closing of said escrow. (h) Sellers shall convey title to said property zo Buyer free and clear of all liens, defects and encumbrances, save and except for the lien of county taxes not delinquent and the effect of an action in eminent domain heretofore insti- tuted by Buyer against Sellers. In the event that Sellers are unable to deliver title in such condition within twenty (20) days after the execution of this agreement, then Sellers shall have the option of rescinding this agreement by giving Buyer written notice of the Sellers' election to exercise said option which notice must be delivered to Buyer not later than thirty (30) days after the execution of this agreement; provided, however, that, notwithstanding the giving of such notice by Sellers, this agreement shall not be rescinded in the event t~+,~, not later than forty-five (45) days after the execution of this agreement, Buyer shall give Sellers written notice that the Buyer will accept title to said property regardless of its condition. (i) Sellers shall pay the cost of revenue stamps required in connection with this transaction. · (j) Rents, insurance and real property taxes shall be prorated between the Sellers and the Buyer as of the close of escrow. (k) Buyer shall be entitled to possession of the property as of the close of escrow, but' (i) Sellers shall have the right, for a period of time expiring thirty (30) days after the date of close of escrow, to enter upon the property from time to time and remove therefrom all of the Sellers property not sold to Buyer hereunder, including furniture, equipment, fixtures or readily removable articles presently located on said real property or presently affixed to any structures on said real property. (2) Buyer shall allow the present tenants of the premises to remain in possession until their tenancy has been legally terminated. (1) Buyer shall pay all escrow charges in connection with the escrow except for revenue stamps. 5. Immediately upon the close of said escrow, Buyer ~a~ dismiss with prejudice, as to the Sellers, that certain action in eminent domain bearing number 26982, in the Superior Courz for the County of ~[endocino, in which Buyer is the pla' + '~ zn,m~f and Sellers are some of the defendants. 6. Bayer covenants that, immediately upon the execution of this agreement, it will appropriate, from funds presenZly on hand and not heretofore appropriated for any budgeted outlay of the Buyer, all funds necessary to provide zor ~,,e acquisition .of said property in accordance with the terms of this agreement. Buyer further covenants that, until the purchase price of said property has been paid in full, it maintain such funds on hand, unappropriated for any purpose other than the acquisition of the property which is the subject of this agreement, and will use such funds so appropriated for the acquisition of said property solely for the purpose of paying the purchase price of said property. In addition, Buyer covenants that, at all times until the balance of the purchase price has been paid in full, it will cause said funds, so appropriated, to be invested so as to provide income enough to pay each installment of interest which shall become due on account of the balance of +ne ~ .... ~°~ price, ~.. ~ ..... ~ and that such income shall be used for no purpose other than the payment of interest accruing on account of the unpaid balance of the purchase price. Dated- June 1~,$ 1966. · .... ~£Op~--pO~JLOS S~LLERS. CITY OF UKIAH, a municipal corporation. By (SEAL) BUYER.