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HomeMy WebLinkAboutProject Ovis LLC 2025-09-15 COU No. �5���0 - l D EXCLUSIVE NEGOTIATING AGREEMENT (City of Ukiah and Project Ovis LLC) This Exclusive Negotiating Agreement ("Agreement") is made as of 1 S , 2025 (the "Agreement Date"), between the City of Ukiah, a municipal corporation, ("City") and Project Ovis LLC, a California corporation ("Seller"). RECITALS: A. The Owner is the fee owner of the following parcels of real property located in the unincorporated area of Mendocino County: Assessor's Parcel Nos. 170-030- 05; 170-030-03; 170-010-05; 170-020-07; 170-020-11; 170-040-03; 170-020- 08 (collectively, the "Property"). B. The Owner recognizes the opportunities for public uses on the Property and has contacted the City, which, as a public agency, could serve as the potential developer/facilitator of such uses. C. The parties are entering into this Agreement to allow the City to determine the feasibility of public uses on the Property. For good and valuable consideration, the Owner and the City agree as follows: 1. Agreement to Negotiate. The Owner and the City agree that for the Term of this Agreement, they shall negotiate diligently and in good faith to determine the feasibility and terms of the City's acquisition of the Property. During the Term, the Owner agrees to negotiate exclusively with the City, and not with any other person or entity, with regard to the disposition and development of the Property. 2. Term. The term of this Agreement ("Term") shall begin on the Agreement Date and shall terminate at 5:00 p.m. on the thirty-first of December, 2025. The Term may be extended by the mutual consent of the parties by a written amendment to this Agreement. 3. Scope of Negotiations. During the Term, the parties shall negotiate in good faith the terms of a Purchase Agreement, consistent with this ENA. 4. Termination of Negotiations. If at any time prior to expiration of the Term the City determines, in good faith, that it does not desire to pursue development, then the City party may terminate this Agreement upon written notice to the Owner. 5. Expiration. If, as of the expiration of the Term, the parties have not entered into the MOU or extended the Term pursuant to Section 2, then this Agreement shall terminate as of the expiration of the Term. Project Ovis LLC Ukiah ENA 2025 6. Costs and Expenses. Each party shall be responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with the performance of its obligations under this Agreement, and agrees that it shall receive no compensation from the other party for any activities performed in connection with this Agreement. 7. Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, or electronic mail, shall be deemed received upon (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if mailed, three (3) business days after the date of posting by the United States post office, (iii) if given by electronic mail, when sent, or(d) if delivered by overnight delivery, one (1) business day after mailing. Any notice, request, demand, direction or other communication sent by electronic mail must be confirmed by letter mailed or delivered within two (2) business days of such electronic mail notice in accordance with subsection (i) or(ii). To City: The City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Attn: Sage Sangiacomo, City Manager Email: ssangiacomo@cityofukiah.com To Seller: Project Ovis LLC PO Box 2037 Clearlake Oaks, CA 95423 Attn: Lorenzo Pacini Email: lorenzo@paciniwines.com 8. Default. Failure by either party to negotiate in good faith or to perform any other of its duties as provided in this Agreement shall constitute an event of default under this Agreement. The non-defaulting party shall give written notice of a default to the defaulting party, specifying the nature of the default and the action required to cure the default. If the default remains uncured ten (10) days after the date of such notice, then the sole remedy of the non-defaulting party shall be to terminate this Agreement. hollowing such termination, neither party shall have any further rights, remedies or obligations under this Agreement. Except with respect to City's obligating to provide due diligence information to Owner, neither party shall have any liability to the other for monetary damages or specific performance for the breach of this Agreement, and each party hereby waives and releases any such rights or claims it may otherwise have at law or at equity. 9. Time of Essence. Time is of the essence in the performance of this Agreement 10. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties with respect to the development of the Property, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all Project Ovis LLC Ukiah ENA 2025 2 negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. 11. Counterparts. This Agreement may be executed in counterparts. In witness whereof, the parties have executed this Agreement as of the Agreement Date. THE CITY OF UKIAH, a municipal corporation Title: C I T Y AN A&E R Ap ed as to form: City torne PROECT OVIS LLC By: Title: Project Ovis LLC Ukiah ENA 2025