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RES-2014-047 RESOLUTION NO. 2014 -047 A RESOLUTION OF THE CITY OF ANAHEIM APPROVING THE ACQUISITION OF A 3.073 -ACRE (APPROXIMATE) UNIMPROVED PARCEL OF REAL PROPERTY KNOWN AS ASSESSOR'S PARCELS NOS. 073 - 083 -33 AND 073 - 083 -34 IN THE CITY OF ANAHEIM FROM KARCHER PARTNERS, LLC AND DETERMINING THAT SAID ACQUISITION IS EXEMPT FROM THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER SECTION 15004(B)(2)(A) OF THE STATE CEQA GUIDELINES. WHEREAS, the City of Anaheim ( "City ") is a municipal corporation exercising governmental functions and powers, .organized and existing under the laws of the State of California, and authorized under Section 37350 of the Government Code of the State of California to purchase, lease, receive, hold, and enjoy real and personal property, and control and dispose of it for the common benefit; and WHEREAS, Karcher Partners, LLC, a California limited liability company (herein referred to as the "Seller "), is the owner of a 3.073 -acre (approximate) unimproved parcel of real property known as Assessor's Parcels Nos. 073 - 083 -33 and 073 - 083 -34 (herein referred to as the "Property"). The Property is more particularly described on Exhibit A, attached hereto and incorporated herein by this reference; and WHEREAS, the Seller and the City have heretofore entered into that certain Option Agreement for Purchase of Real Property, dated March 4, 2014 ( "Option Agreement "), whereby the City obtained an option to purchase the Property for the sum of Three Million and No /100 Dollars ($3,000,000.00) upon certain terms and conditions including entering into a contract for such purchase and sale; and WHEREAS, the City desires to exercise its option to purchase the Property in accordance with the Option Agreement for the sum of Three Million and No /100 Dollars ($3,000,000.00) pursuant to the terms and provisions of an Agreement for Acquisition of Real Property (herein referred to as the "Purchase Agreement ") in the form presented at this meeting, which shall also include payment to Seller by the City of the sum of One Hundred Twelve Thousand Five Hundred and No /100 Dollars ($112,500.00) in consideration for Seller's agreement, as more particularly described in the Purchase Agreement, to install certain right -of -way improvements along Carl Karcher Way and Harbor Boulevard for the benefit of the Property (the "Roadway Fee "); and WHEREAS, the Property has a fair market value of not less than the purchase price set forth in the Purchase Agreement; and WHEREAS, the City Council of the City has duly considered all of the terms and conditions of the Purchase Agreement, as set forth in the agenda report presented to it and any testimony received at the meeting at which this matter was considered, and believes that the acquisition of the Property is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. WHEREAS, by authorizing acquisition of the Property, the City Council hereby finds and determines that it is not committing itself to or agreeing to undertake any other acts or activities requiring the subsequent independent exercise of discretion by the City Council or any representative or department thereof. Any disposition of the Property or future use thereof shall be preceded by, and is conditional and contingent upon, environmental assessment and review under, and in compliance with, the California Environmental Quality Act ( "CEQA "). NOW, THEREFORE, the City Council of the City of Anaheim resolves, on the basis of the facts set forth in the agenda report presented to it and any testimony received at the meeting at which this matter was considered, as follows: Section 1. The foregoing recitals are true and correct. Section 2. The acquisition of the Property by the City pursuant to the Purchase Agreement is exempt from the provisions of CEQA under Section 15004(b)(2)(A) of the State CEQA Guidelines because any subsequent disposition or action taken by the City Council with respect to the future use of the Property shall be preceded by, and is conditional and contingent upon, environmental assessment and review under, and in compliance with, CEQA. Section 3. The City Manager is hereby authorized and directed to exercise the City's option to purchase the Property by the date and in accordance with the terms of the Option Agreement. All actions previously taken by the City in connection with the Option Agreement are ratified and approved. Section 4. The acquisition by the City from the Seller of the fee simple estate in and to the Property, subject to easements, covenants, rights and rights -of -way of record, for the sum of Three Million and No /100 Dollars (53,000,000.00), and payment of the Roadway Fee, and related escrow and title costs through escrow in accordance with the terms and provisions of the Purchase Agreement, is hereby approved. Section 5. The terms and provisions of the Purchase Agreement between the City and Seller with respect to the acquisition of the Property in the form as submitted by the City Manager is hereby approved, with such changes as may be mutually agreed upon by the Seller and the City Manager (or his duly authorized representative), in consultation with the City Attorney, as are minor and in substantial conformance with the form of the Purchase Agreement submitted herewith. 2 Section 6. The City Manager is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest, the Purchase Agreement on behalf of the City, including the acceptance in the name and on behalf of the City of a grant deed conveying to this City the above - described interest in the Property. In such regard, the City Manager is authorized to sign the final version of the Purchase Agreement after completion of any such non - substantive, minor revisions. Copies of the final form of the Agreement, when duly executed and attested, shall be placed on file in the office of the City Clerk. Section 7. Except as otherwise provided hereinabove, the City Manager is hereby authorized and directed to do any and all things and to execute and deliver any and all escrow instructions and documents, which in consultation with the City Attorney, he may deem necessary or advisable in order to carry out and implement the Purchase Agreement and otherwise effectuate the purposes of this Resolution and to administer the City's obligations, responsibilities and duties to be performed under the Purchase Agreement. The City Manager (or his duly authorized representative) is hereby authorized to the extent necessary during the implementation of the Purchase Agreement to make technical or minor changes and interpretations thereto after execution as may be necessary to properly implement and carry out the Purchase Agreement, provided any and all such changes shall not in any manner materially affect the rights and obligations of the City provided under the Purchase Agreement approved hereby. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 25th day of March, 2014, by the following roll call vote: AYES: Mayor Tait, Council Members Eastman, Murray, Brandman and Kring NOES: None ABSENT: None ABSTAIN: None CITY NAHE MA OR OF 1"HE ITY OF ANAHEIM ATTEST i jI � _ CITY CLERK OF THE C Y OF ANAHEIM 100711v4 /TJR 3 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 5 OF THE PARCEL MAP NO. 2012-105 RECORDED MAY 6, 2013 IN OFFICIAL RECORDS OF ORANGE COUNTY, INSTRUMENT NO. 2013-000270875. [APN 073 - 083 -33 AND 073 - 083 -34] 4