HomeMy WebLinkAboutResolutions - No. 2021-14RESOLUTION NO. 2021-14
A RESOLUTION OF THE LODI CITY COUNCIL RATIFYING PURCHASE
AGREEMENT WITH LEIGH HOLMES AND JACKLEEN HOLMES, OWNERS,
OF REAL PROPERTY COMMONLY KNOWN AS 301 EAST LODI AVENUE,
FOR DEVELOPMENT OF THE HARMONY HOMES PROJECT IN THE
AMOUNT OF $350,000; AND FURTHER AUTHORIZING THE
APPROPRIATION OF FUNDS IN THE AMOUNT OF $150,000 FOR
PURCHASE OF THE REAL PROPERTY
WHEREAS, the City of Lodi is the recipient of a Homeless Emergency Aid Program
(HEAP) grant designed to provide direct assistance to cities and counties to address the
homelessness crisis throughout California; and
WHEREAS, the City has identified real property located at 301 East Lodi Avenue (APN
043-067-16) as the location for the development of Harmony Homes, a tiny homes project, and
the City Council gave direction to the City Manager to negotiate a purchase price for the
acquisition of the real property within the $200,000 budget of the HEAP grant allocation and
$150,000 of General Fund Capital Outlay funds; and
WHEREAS, the City Manager was authorized to execute a purchase agreement for the
acquisition of the subject real property in a form approved by the City Attorney; and
WHEREAS, the development and operation of the Harmony Homes Project will be
promulgated under an agreement between the City of Lodi and Housing Authority of the County
of San Joaquin, to be brought back to the City Council at a subsequent meeting for approval; and
WHEREAS, the Lodi City Council adopted Resolution 2020-295 authorizing the final
location of the Harmony Homes Project at 301 E. Lodi Avenue at its regular/special meeting on
December 02, 2020.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby ratify the
City Manager's execution of a purchase agreement to purchase real property located at 301 East
Lodi Avenue (APN 046-067-16) from Leigh Holmes and Jackleen Holmes, owners, entitled
Contract for Acquisition of Real Property (a copy of which is attached), for the Harmony Homes
Project and further ratifies the appropriation of funds in the amount of $150,000 from the General
Fund Capital Outlay Fund to purchase the subject real property.
Dated: January 6, 2021
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I hereby certify that Resolution No. 2021-14 was passed and adopted by the City Council
of the City of Lodi in a special meeting held January 6, 2021 by the following votes:
AYES: COUNCIL MEMBERS — Chandler, Kuehne, Khan, Hothi, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
J NNIFE USMIR
City Cler
021-14
Attachment 1: Purchase Agreement
CONTRACT FOR ACQUISITION OF REAL PROPERTY
California Government Code sections 7267.1 and 7267,2(x)
Acquisition of Property by Negotiation
301 East Lodi Avenue
Lodi, San Joaquin County, California
APN 043-067-16
Leigh Holmes and Jackleen Holmes, husband and wife as joint tenants (hereinafter
referred to as "Grantors") have conditionally delivered to the City of Lodi, a municipal
corporation (hereinafter "Grantee") an executed Grant Deed conveying the real property
described in attachment Exhibit "A" (attached hereto and incorporated herein by
reference), commonly referred to as 301 East Lodi Avenue, located in the City of Lodi,
San Joaquin County, California and designated as Assessor's Subject Property Number
043-067-16 (hereinafter referred as the "Parcel"), and all improvements thereon, if any,
to Grantee.
Grantor acknowledges receipt of a Statement of Summary of Basis for Appraisal
prepared for the City of Lodi by William F. Bambas, MAI, dated November 10, 2020.
Grantors further acknowledges that they may obtain their own appraisal of the Parcel
and has declined to do so.
In consideration of which, and the other considerations hereinafter set forth, it is mutually
agreed as follows:
A. Grantee requires the Parcel, property not now appropriated for
public use, for the construction of a public project known as Harmony
Homes. Harmony Homes will create four (4) units of permanent housing
for homeless individuals and families or those at risk of homelessness to
progress towards stable and independent living (hereinafter the "Public
Project").
B. Because Grantee may exercise the power of eminent domain to
acquire, Grantors are compelled to sell; and because Grantee requires
the Parcel for the Public Project, Grantee is compelled to buy. As such,
the acquisition of the Parcel is an involuntary conversion from a private to
a public use.
C. Both Grantors and Grantee recognize the expense, time, effort,
and risk to both Grantors and Grantee in resolving a dispute over
compensation for the Parcel by eminent domain litigation; and the
compensation set forth herein is in compromise and settlement, in lieu of
such litigation.
D. The parties have herein set forth the whole of their agreement.
The performance of this Agreement constitutes the entire consideration
for the Parcel and shall relieve Grantee of all further- obligation or claims
of whatever kind or nature on this account, or on account of the
J:(CAICITY/PropertyAcquisilion/HarmonyHomesProject/ContractForAcquisition.doc
construction of the Public Project in the manner proposed, including, but
not limited to, claims arising out of its location, grade, or restriction of
private access rights. Grantors acknowledge that Grantee has informed
Grantor as to the plans for the construction of the Public Project.
2. Grantee has opened an escrow with Old Republic Title (Escrow No.
1212025743) at 2020 W. Kettleman Lane, Suite D, Lodi, CA 95242, Attention: Pamela
Cotta, Title Officer, and upon execution of this Agreement will provide instructions to
carry out its terms.
A. Grantors shall convey the Parcel by depositing in an escrow
designated by Grantee a grant deed suitable for recordation upon the
following terms and conditions:
B. Grantee shall deposit in escrow the sum of $350,000 for the
Parcel payable contemporaneously with the delivery of the grant deed as
consideration for the Parcel and all improvements and landscaping
thereon, if any.
C. The Parcel shall be conveyed to Grantee free and clear of all liens
and encumbrances, taxes and assessments, penalties and costs, leases
and licenses (recorded and unrecorded), easements, rights-of-way,
bonds and any and all restrictions of record other than items numbered 1
through 6 in Preliminary Title Report No. 1212025743 -PC, dated as of
November 10, 2020, issued by Old Republic Title, a true and correct copy
of which is attached hereto as Exhibit C.
E. Grantee shall pay all escrow and recording fees incurred in this
transaction. Grantee shall pay the cost of title insurance, if requested by
GrantW Evidence of title shall be a standard policy of tile insurance
issued by the Old Republic Title
V 3. The parties agree that the interests conveyed by Grantors are not eligible
for relocation assistance or benefits under the California Relocation Assistance and Real
Property Acquisition Guidelines.
4. Grantors acknowledge and agree that they continue to be responsible for
the payment(s) of any mortgage, deed of trust, promissory note and/or liens secured by
the Parcel through the close of escrow, if any,
5. In the event that a dispute arises between Grantors and Grantee or
Grantors and any third -party claimant prior to payment to Grantors and it becomes
necessary for Grantee to file a condemnation action then:
A. The compensation provided for in this Agreement shall draw
interest as prescribed at the apportionment rate calculated by the State
Controller as the rate of earning by the Surplus Money Investment Fund
for each six-month period. Grantors shall be entitled to receive interest
on the sum received as compensation pursuant to this Agreement for
Grantors' interest in the Parcel beginning at the date of possession of the
Parcel by Grantee as provided for in paragraph 2B of this Agreement.
B. Grantors waive all claims and defenses challenging Grantee's
right to acquire the Parcel by eminent domain in the event that Grantee
JJCA/CITY/ProperlyAcquisition/HarmonyHomesProjecl/ContracfforAcquisition.doc 2
files any subsequent eminent domain action proceeding, and agrees that
the City of Lodi has the right to acquire the Parcel by eminent domain and
that the public interest and necessity require the Public Project; that the
Public Project is planned or located in the manner that will be the most
compatible with the greatest public good and the least private injury; that
the Parcel is necessary for the Public Project; and an offer in an amount
no less than the full amount of the City's approved appraisal was made to
Grantors. Grantors and Grantee agree that the total amount of
compensation that shall be awarded is the sum provided in paragraph 2B
of this Agreement plus interest as provided in paragraph 5A hereinabove.
6. Any notice required to be given by the terms of this Agreement shall be in
writing signed by an authorized representative of the sender and shall be deemed to
have been given when the same is personally served or upon receipt by express or
overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by
first class or certified mail, postage prepaid, addressed to the respective parties as
follows:
To GRANTEE: City of Lodi
Community Development Department
221 West Pine Street
P.O. Box 3006
Lodi, CA 95241-1910
Attention: John Della Monica, Director
To GRANTORS: Leigh Holmes and Jackleen Holmes
20075 North Highway 99
Acampo, CA 95220
7. This Agreement and other documents to be delivered pursuant to this
Agreement may be executed in one or more counterparts, each of which will be deemed
to be an original copy and all of which, when taken together, will be deemed to constitute
one and the same agreement or document, and will be effective when counterparts have
been signed by each of the parties and delivered to the other parties. Further, that each
party agrees that the electronic signatures, whether digital or encrypted, of the parties
included in this Agreement are intended to authenticate this writing and to have the
same force and effect as manual signatures. Delivery of a copy of this Amendment or
any other document contemplated hereby, bearing an original manual or electronic
signature by facsimile transmission (including a facsimile delivered via the Internet), by
electronic mail in "portable document format" (".pdf') or similar format intended to
preserve the original graphic and pictorial appearance of a document, or through the use
of electronic signature software will have the same effect as physical delivery of the
paper document bearing an original signature.
The parties will recognize no obligations other than those set forth in this Agreement
hereto.
J:/CA/CITY/PropertyAcquisition/HarmonyHomesProject/ContractForAcquisition.doc
The undersigned hereby represent and warrant that they are authorized by the parties
they purport to represent to execute this Contract for Acquisition for Purchase of Real
Property ("Agreement').
,r h
IN WITNESS WHEREOF, the parties have executed this Agreement on the 7- day of
December 2020, at Lodi, San Joaquin County, California.
"Owners"/'Grantors"
LeigK Holmes
*4&�"
ckleen Holmes
City of Lodi, a municipal corporation
By 0"'A .r Xaw
on behalf of Stephen Schwabauer
City Manager
Attest:
Jennifer Cusmir
City Clerk
Approved as to Form
JANICE D. MAGDICH
CITY ATTORNEY
By
Janice D. Magdich
City Attorney
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