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HomeMy WebLinkAboutCO 2025-080 - John Alvarez -1- 11231-0001\3099035v8.doc PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (the “Agreement”) is dated as of July 16, 2025 (the “Effective Date”) and is entered into by and between John Alvarez and/or assignee (“Buyer”), and the CITY OF RANCHO CUCAMONGA, a municipal corporation (“Seller”). RECITALS A. Seller owns the land described on Exhibit “A” and all improvements thereon (the “Property”), having a street address of 7368 Archibald Avenue, Rancho Cucamonga, California 91730 (APNs: 0208-031-17-0000, 0208-031-54-0000, 0208-031-55-0000, 0208-031-56-0000, and 0208-031-57-0000) in the County of San Bernardino. B. Buyer desires to acquire the Property from Seller, and Seller desires to convey the Property to Buyer. C. Seller desires to lease back the property from buyer after purchase, as provided in a separate lease agreement (the “Lease”), a form of which is attached hereto as Exhibit “C”. NOW, THEREFORE, in consideration of Ten Dollars ($10.00), the mutual covenants in this Agreement, and other consideration the sufficiency of which is hereby acknowledged, Buyer and Seller hereby agree as follows: 1. Purchase and Sale. Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from Seller, subject to and in accordance with the terms and conditions hereinafter set forth. Buyer shall have the right to assign this Agreement to any entity that is owned or controlled solely by Buyer prior to the close of Escrow. 2. Opening and Closing of Escrow. Within five (5) business days after the Effective Date, Buyer and Seller shall deliver a copy of this fully executed Agreement to, and shall open an escrow (the “Escrow”) with, Town & Country Escrow Corp., Attn: Pam Walker, 391 Main Street, Suite 112, Corona, California 92880 (the “Escrow Holder”) (Phone No. (909) 985-9950). The “Title Company” shall be First American Title Company at 777 South Figueroa Street, Suite 200, Los Angeles, CA 90017. As used herein, the term “Close of Escrow” shall mean that a grant deed for the Property in favor of Buyer in the form attached hereto as Exhibit “B” is recorded in the Official Records of the San Bernardino Recorder’s Office in accordance with and subject to the terms hereof. The Close of Escrow or Closing shall occur within thirty (30) days after the end of the Contingency Period, as defined in Section 6.1 below (the “Closing Date”). 3. Purchase Price. The purchase price for the Property (“Purchase Price”) is TWO MILLION EIGHT HUNDRED FIFTY THOUSAND DOLLARS ($2,850,000.00). 4. Deposit. Within two (2) business days following the Effective Date, Buyer shall deliver funds, by check, wire transfer or other means, in the amount of TWO HUNDRED THOUSAND DOLLARS ($200,000.00), to the Escrow Holder to be deposited in an interest- bearing account and held as an earnest money deposit under the Escrow pursuant to the terms and provisions hereof (which earnest money deposit, together with the interest thereon, is herein called City of Rancho Cucamonga CONTRACT NUMBER 2025-080 Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -2- 11231-0001\3099035v8.doc the “Deposit”). The Deposit shall be: (i) applicable to the Purchase Price; (ii) refunded to Buyer if the Close of Escrow does not occur due to a failure of a condition to closing or if the Seller defaults or pursuant to Buyer’s termination rights pursuant to the terms of this Agreement; and (iii) retained by the Seller as liquidated damages in accordance with the following. If Buyer breaches any obligation hereunder which Buyer is to perform prior to the Close of Escrow, and Buyer fails to cure such breach within five (5) business days after receipt of written notice from Seller, then Seller may terminate this Agreement and the Escrow by giving written notice of such termination to Buyer and Escrow Holder, and the Deposit shall then be retained by Seller as liquidated damages for Buyer’s uncured default, as Seller’s sole and exclusive remedy for Buyer’s uncured default. IF CLOSING FAILS TO OCCUR SOLELY BECAUSE OF BUYER’S UNCURED DEFAULT, SELLER WILL BE DAMAGED AND WILL BE ENTITLED TO COMPENSATION FOR THOSE DAMAGES, BUT SUCH DAMAGES WILL BE EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN. BUYER DESIRES TO LIMIT THE AMOUNT OF DAMAGES FOR WHICH BUYER MIGHT BE LIABLE SHOULD BUYER BREACH THIS AGREEMENT. BOTH BUYER AND SELLER WISH TO AVOID THE COSTS AND LENGTHY DELAYS THAT WOULD RESULT IF SELLER FILED A LAWSUIT TO COLLECT ITS DAMAGES FOR A BREACH OF THIS AGREEMENT. IF CLOSING FAILS TO OCCUR BECAUSE OF BUYER’S UNCURED DEFAULT, THEN THE DEPOSIT SHALL BE DEEMED TO CONSTITUTE A REASONABLE AND FINAL ESTIMATE OF SELLER’S DAMAGES AND SHALL BE RETAINED BY SELLER AS LIQUIDATED DAMAGES AS SELLER’S SOLE AND EXCLUSIVE REMEDY. SELLER AND BUYER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE PROVISIONS OF THIS SECTION AND BY THEIR INITIALS IMMEDIATELY BELOW AGREE TO BE BOUND BY ITS TERMS. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. BUYER’S INITIALS SELLER’S INITIALS 5. Title. 5.1 Condition of Title; Title Policy. It is a condition to the Close of Escrow that the Title Company be committed to issue to Buyer at Seller’s expense, upon Close of Escrow, a standard owner’s policy of title insurance (“Title Policy”) in an amount equal to the Purchase Price, showing the Property subject only to the Permitted Exceptions (as defined in Section 5.2). Buyer may instead elect to obtain an extended coverage owner’s policy of title insurance (“Extended Policy”) provided: (a) Buyer pays for all additional premiums and any other fees and Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -3- 11231-0001\3099035v8.doc costs attributable thereto, and (b) Buyer shall be solely responsible for the additional requirements for the issuance of the Extended Policy (such as an ALTA survey). 5.2 Permitted Exceptions. The term “Permitted Exceptions” as used herein shall mean the following described conditions and exceptions to title: 5.2.1 Matters affecting the condition of title created by or with the written consent of Buyer. 5.2.2 Liens for property taxes and assessments not yet payable. 5.2.3 Other exceptions to title disclosed by the Title Report (defined below) that have not been disapproved in writing by Buyer prior to the end of the Contingency Period. 5.2.4 The Lease on the form attached hereto as Exhibit “C.” 5.3 Representations. Buyer hereby represents and warrants to Seller as of the date hereof that: (i) Buyer has authorized and approved this Agreement; and (ii) This Agreement does not violate any other agreements by which Buyer is bound. Seller hereby represents and warrants to Buyer that as of the Closing Date: (i) Seller has the full power and authority to enter into this Agreement and to consummate the transactions contemplated herein. The execution and delivery of this Agreement and the performance of Seller’s obligations hereunder have been duly authorized. (ii) Seller is the lawful owner of the Property and has good and marketable title to the Property, free and clear of all liens, encumbrances, claims, and interests, except for the Permitted Exceptions. (iii) The execution, delivery, and performance of this Agreement by Seller will not violate any provision of any law, regulation, order, agreement, or instrument to which Seller is a party or by which Seller or the Property is bound. (iv) To Seller’s knowledge, the Property is in compliance with all applicable federal, state, and local laws, ordinances, rules, and regulations, including, but not limited to, zoning and environmental laws. (v) There is no action, suit, or proceeding pending or, to Seller’s knowledge, threatened against Seller or the Property that could affect Seller’s ability to perform its obligations under this Agreement or that could affect the Property. Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -4- 11231-0001\3099035v8.doc (vi) Seller has not entered into any other agreements regarding the sale, lease, or transfer of the Property that would conflict with this Agreement. (vii) To Seller’s knowledge, except as previously disclosed to Buyer, there have been no releases of hazardous materials on or about the Property, and the Property is in compliance with all environmental laws. (viii) Buyer and Seller’s representations and warranties contained herein shall survive the Close of Escrow for a period of six (6) months, and each party shall be entitled to pursue any remedies available at law or in equity if any of the foregoing representations are untrue or incorrect. 5.4 Title Report, Review and Approval. Following the Effective Date, Buyer shall obtain a preliminary report from the Title Company, together with the underlying documents relating to the Schedule B exceptions set forth in such report (collectively, the “Title Report”). Buyer shall have until the end of the Contingency Period (defined in Section 6.1) to review and approve the Title Report and any survey (“Survey”) obtained by Buyer. Buyer shall email a copy of the title report to Seller (john.gillison@cityofrc.us) and Seller’s counsel at (abragin@rwglaw.com). Buyer shall notify Seller in writing on or before the Contingency Date (defined in Section 6.1) of any disapproved matters in the Title Report and Survey, and if Seller indicates it will not remove them by Close of Escrow (or if they are not so removed), Buyer may terminate the Agreement by written notice to Seller and the Deposit will be returned to Buyer. Any matters not so disapproved shall be a part of the Permitted Exceptions; however, Buyer hereby objects to any and all monetary encumbrances that may appear in the Title Report (except for the lien for assessments, if any, not yet due), all of which shall be removed therefrom by Seller at no cost to Buyer, and none of which shall be a Permitted Exception. 6. Suitability of Documents/Property; Tenant Estoppel. 6.1 Contingency Period. It is a condition precedent to the Close of Escrow for Buyer’s benefit that Buyer has determined, in Buyer’s sole discretion, on or before the date that is forty-five (45) days after the Effective Date (the “Contingency Period”) that the Property and title to the Property (including all title exceptions) are acceptable to Buyer. Seller shall deliver copies of all material non-privileged documents in Seller’s possession relating to the Property to Buyer within five (5) business days after the Effective Date. If Buyer determines that any such documents or the Property is not acceptable, then Buyer may terminate this Agreement by written notice to Seller on or before the end of the Contingency Period. 6.2 Right of Entry; Inspections, Testing. Prior to the end of the Contingency Period, Buyer may conduct, at Buyer’s sole expense, such inspections and testing of the Property, including the improvements thereon, as Buyer may desire or deem appropriate, in Buyer’s sole and absolute discretion, to determine the suitability of the Property for Buyer’s intended uses. Buyer shall reasonably repair and restore areas of the Property affected by Buyer’s inspections so that they are in substantially the same condition as before such inspections as soon as reasonably Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -5- 11231-0001\3099035v8.doc possible; however, Buyer shall have no obligation to repair conditions discovered during inspections or minor surface disturbances from non-invasive testing. Seller hereby grants to Buyer and its authorized employees, representatives, agents and contractors, permission and a license, upon forty-eight (48) hours prior written notice to Seller, to enter upon the Property at all reasonable times prior to the end of the Contingency Period for the purpose of conducting such inspections and testing. Buyer shall indemnify, protect, defend (with legal counsel reasonably acceptable to Seller) and hold Seller harmless from and against any and all claims, liabilities, damages, costs and expenses arising from, related to or caused by, Buyer’s entry upon the Property or the performance of any inspection or test conducted by or at the request of Buyer or its contractors or agents. 7. Seller’s Acts. Seller shall not encumber, sell or transfer, or agree to encumber, sell or transfer, the Property or any portion thereof or interest therein during the period from the Effective Date to the earlier of: (i) the Close of Escrow, or (ii) the date of the termination of this Agreement. 8. Deposit of Documents and Funds into Escrow. Seller and Buyer shall make the following deliveries to Escrow Holder at least one (1) business day prior to the Close of Escrow: 8.1 Buyer shall deliver the Purchase Price (less the Deposit), and any additional funds required to pay costs payable by Buyer under Section 10 below. 8.2 Seller shall deliver the Grant Deed (duly executed by Seller and acknowledged), and federal and state tax withholding certificates so that the tax withholding is not required of Escrow Holder or Seller. 8.3 Both Buyer and Seller shall deliver executed counterparts of the Lease between Buyer and Seller for the Property in the form attached hereto as Exhibit C. 9. Authorization to Record Documents and Disburse Funds. Escrow Holder is hereby authorized to record the Grant Deed, disburse funds to pay any liens encumbering the Property, apply funds to costs, deliver any remaining funds to Seller, and provide copies of the federal and state tax withholding certificates to Buyer (showing no withholding is required), provided each of the following conditions has then been fulfilled: 9.1 The Title Company can issue the Title Policy in favor of Buyer, with a liability amount equal to the Purchase Price, showing fee title to the Property vested in Buyer, subject only to the Permitted Exceptions. 9.2 Seller and Buyer shall have deposited in Escrow the documents and funds required pursuant to Section 8 above. 9.3 Escrow Holder shall have delivered the fully executed Lease to Buyer and Seller. Unless otherwise instructed in writing, Escrow Holder is also authorized to record at the Close of Escrow any instrument delivered through Escrow if necessary or proper for the issuance of the Title Policy. Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -6- 11231-0001\3099035v8.doc 10. Costs and Prorations. 10.1 Seller shall pay: (i) fifty percent (50%) of the fees and charges of Escrow Holder, and (ii) the cost of the premium for the Title Policy (excluding extended coverage, which shall be paid by Buyer) and (iii) all documentary or other local transfer taxes on the transfer of the Property (if any). Buyer shall pay for the other fifty percent (50%) of the fees and charges of Escrow Holder, and the cost for extended title insurance coverage (if required by Buyer). 10.2 If the Escrow shall fail to close due to Buyer’s default, then Buyer shall pay all Escrow and title cancellation charges. If the Escrow shall fail to close due to Seller’s default, Seller shall pay all Escrow and title cancellation charges. 10.3 If the Escrow shall fail to close for any reason other than Seller’s or Buyer’s default, Buyer and Seller shall each pay one-half (½) of any applicable Escrow cancellation charges. 10.4 Property taxes and assessments shall be apportioned and prorated with respect to the Property as of 12:01 a.m., on the day on which the Close of Escrow occurs, as if Buyer were vested with title to the Property during the entire day upon which the Close of Escrow occurs. To the extent that the actual assessments for the current year differ from the amount apportioned at the Close of Escrow, the parties shall make all necessary adjustments by appropriate payments between themselves following the Close of Escrow. All delinquent taxes and assessments (and any penalties therein) for periods prior to the Close of Escrow, if any, affecting the Property shall be paid by Seller. 10.5 All prorations shall be determined on the basis of a 360-day year. 10.6 The provisions of this Section 10 shall survive the Close of Escrow. 11. Buyer’s Conditions. Buyer’s obligations under this Agreement are expressly made subject to the following conditions precedent solely for the benefit of Buyer. The Close of Escrow and Buyer’s obligation to consummate the purchase of Property shall be contingent upon and subject to written notice to Escrow Holder by Buyer of the occurrence of all of the following (or Buyer’s written waiver thereof, it being agreed that Buyer can waive any or all such contingencies) on or before the Close of Escrow: 11.1 Title Company committing to issue an owner’s title policy in favor of Buyer with a liability amount in the amount of the Purchase Price showing Buyer’s fee interest in the Property subject only to the Permitted Exceptions (the “Title Policy”). 11.2 Seller’s delivery of all documents and funds required to be delivered by Seller under Section 8.2. If any of the foregoing conditions precedent has not been either met or expressly waived in writing by Buyer on or prior to the last date for the Close of Escrow, then Buyer may terminate this Agreement upon written notice to Seller. Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -7- 11231-0001\3099035v8.doc 12. Seller’s Conditions. For the benefit of Seller, the Close of Escrow and Seller’s obligation to consummate the sale of the Property shall be contingent upon and subject to the Buyer delivering all documents and funds required to be delivered by Buyer under Section 8.1 above on or before the Close of Escrow. 13. Condemnation; Destruction. All risk of loss with respect to the Property shall remain with Seller until the Close of Escrow. If at any time after the Effective Date but prior to the Close of Escrow, the Property, or any portion thereof, is damaged by fire or other casualty or taken or appropriated through eminent domain or similar proceedings, or is condemned for any public or quasi-public use, and escrow actually closes, then Buyer, at Buyer’s sole option, shall be entitled to terminate this Agreement and receive a full refund of the Deposit, or Buyer shall be entitled to waive Buyer’s termination rights of this Agreement pursuant to this section and instead receive all insurance proceeds payable to Seller or all condemnation proceeds actually paid for that portion of the Property taken or, if such proceeds have been paid to Seller, Buyer shall receive a credit against the Purchase Price equal to the amount of proceeds actually paid to Seller. 14. Notices. All notices and demands shall be given in writing by certified mail, postage prepaid, and return receipt requested, or by reputable overnight messenger service. Notices shall be considered given upon the earlier of (a) one (1) business day following delivery to a reputable overnight messenger service (such as Federal Express for overnight delivery), or (b) two (2) business days following deposit in the United States mail, postage prepaid, certified or registered, return receipt requested (provided the notice is also given by mail). Notices shall be addressed as provided below for the respective party; provided that if any party gives notice in writing of a change of name or address, notices to such party shall thereafter be given as demanded in that notice: Buyer: John Alvarez 1711 Chimney Oaks Lane San Dimas, CA 91773 Seller: City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Attn: City Manager 15. Broker’s Commissions. Each party represents to the other that it has not engaged any broker, finder or salesperson in connection with this transaction. Each party shall defend, indemnify and hold the other party harmless from and against any and all claims for any other broker’s commissions or similar compensation that may be payable to any other broker, finder or other person or entity based upon such party’s statement or acts. The provisions of this Section shall survive the Close of Escrow. 16. Standard Escrow Instructions. Each party agrees to execute Escrow Holder’s supplemental reasonable standard instructions as may be necessary or proper in order to consummate the transactions contemplated by this Agreement. Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -8- 11231-0001\3099035v8.doc 17. Time is of the Essence. Time is of the essence with respect to each term, condition and covenant hereof in which time is a factor. 18. Successors and Assigns. The provisions of this Agreement are expressly binding upon, and shall inure to the benefit of, the parties hereto and their successors in interest and assigns. 19. Entire Agreement. This Agreement, together with all exhibits hereto, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. 20. Severability. Invalidation of any of the terms, conditions, covenants, or other provisions contained herein by judgment or court order shall in no way affect any of the other terms, conditions, covenants, or provisions hereof, and the same shall remain in full force and effect. 21. Attorneys’ Fees. In the event that suit is brought for the enforcement of this Agreement or as the result of any alleged breach thereof, the prevailing party or parties in such suit shall be entitled to recover their reasonable attorneys’ fees, costs, and expenses from the losing party or parties, and any judgment or decree rendered in such proceedings shall include an award thereof. 22. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 23. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. For purposes of this Agreement, emailed (PDF) signatures shall be deemed to be original signatures, and shall be followed by the prompt overnight delivery of original signature pages. This Agreement may be executed using DocuSign, in which case original signatures need not be provided. 24. Authority of City Manager. The City Manager of Seller shall have the authority to give all consents, approvals and notices by the Seller hereunder provided they are in writing. 25. Further Assurances. Buyer and Seller agree to execute such other and further documents and instruments as may be reasonably necessary or appropriate to carry out the purposes of this Agreement and to effectuate the transfer of the Property to Buyer. 26. No Third Party Beneficiaries. There are no third party beneficiaries of this Agreement. 27. References. Except where otherwise stated, all references to days are to calendar days. Whenever under the terms of this Agreement the time for performance of a covenant or condition falls on a Saturday, Sunday, or California state holiday, such time for performance will be extended to the next business day. “Business Day(s)” means days other than Saturday, Sunday, and California state holidays. The headings used in this Agreement are provided for convenience only and this Agreement will be interpreted without reference to any headings. Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -9- 11231-0001\3099035v8.doc 28. Cure Rights for Default. Neither Buyer nor Seller shall be in default hereunder unless it fails to cure the alleged default with five (5) business days after written notice of the default is delivered by the party alleging the default to the party who is alleged to be in default. 29. AS OF THE CLOSING, EXCEPT FOR (I) SELLER’S EXPRESS REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT, (II) SELLER’S FRAUD OR INTENTIONAL MISREPRESENTATION, THE BUYER, ON BEHALF OF ITSELF AND ITS SUCCESSORS, HEREBY FULLY AND ENTIRELY RELEASES AND DISCHARGES THE SELLER (INCLUDING, BUT NOT LIMITED TO, THE SELLER’S OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES, SUCCESSORS, ADMINISTRATORS, ASSIGNS, AND ATTORNEYS (COLLECTIVELY, “RELEASED PARTIES”) FROM CLAIMS ARISING FROM THE PHYSICAL CONDITION OF THE PROPERTY, INCLUDING THE PRESENCE OF ANY HAZARDOUS MATERIALS IN, ON, UNDER, OR ABOUT THE PROPERTY OR IN CONNECTION WITH, OR IN ANY WAY RELATED TO THE PROPERTY. THIS RELEASE CONSTITUTES AN EXPLICIT WAIVER BY THE BUYER, AND ITS SUCCESSORS AND ASSIGNS, OF EACH AND ALL OF THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH STATES AS FOLLOWS: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” Buyer’s Initials: ________________ [Remainder of this page intentionally left blank] [Signatures appear on next page] Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -10- 11231-0001\3099035v8.doc IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written. BUYER: SELLER: JOHN ALVAREZ By: Print Name: John Alvarez CITY OF RANCHO CUCAMONGA, a California municipal corporation By: L. Dennis Michael, Mayor Attest: ___________________________________ Kim Sevy City Clerk APPROVED AS TO FORM: By: ________________________________ Nicholas Ghirelli, City Attorney Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -A-1- 11231-0001\3099035v8.doc EXHIBIT “A” LEGAL DESCRIPTION OF THE LAND Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -B-1- 11231-0001\3099035v8.doc EXHIBIT “B” FORM OF GRANT DEED (Attached.) Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -B-2- 11231-0001\3099035v8.doc RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO (AND MAIL PROPERTY TAX STATEMENT TO): John Alvarez 7168 Archibald Avenue Rancho Cucamonga, CA 91730 APNs: 0208-031-17-0000, 0208-031-54-0000, 0208-031-55-0000, 0208-031-56-0000, and 0208- 031-57-0000 ______________________________________________________________________________ [SPACE ABOVE FOR RECORDER’S USE ONLY] THE UNDERSIGNED GRANTOR DECLARES AS FOLLOWS: DOCUMENTARY TRANSFER TAX $ _____________________ …Computed on the consideration or value of property conveyed; OR …Computed on the consideration or value less liens or encumbrances remaining at time of sale. SPACE ABOVE THIS LINE FOR RECORDER’S USE _________________________________________________ Signature of Declarant or Agent determining tax - Firm Name GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF RANCHO CUCAMONGA, a California municipal corporation (“Grantor”) hereby grants to JOHN ALVAREZ (“Grantee”), the land located in the City of Rancho Cucamonga, County of San Bernardino, State of California, more particularly described on Exhibit “A”, and all improvements and fixtures thereon, subject to all matters of record as of the Closing and all matters that would be revealed by an ALTA survey and physical inspection of the property. IN WITNESS WHEREOF, Grantor has duly executed this Grant Deed. CITY OF RANCHO CUCAMONGA, a California municipal corporation By: _________________________________ Print Name: L. Dennis Michael Title: Mayor Attest: Kim Sevy, City Clerk Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -B-3- 11231-0001\3099035v8.doc EXHIBIT “A” TO GRANT DEED LEGAL DESCRIPTION Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -C-1- 11231-0001\3099035v8.doc EXHIBIT “C” FORM OF LEASE Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 -C-2- 11231-0001\3099035v8.doc CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF _________________ On before me, ________________________________________ Notary Public, personally appeared ________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public Docusign Envelope ID: 2A69B828-5167-4CA7-8260-E9067723BB7DDocusign Envelope ID: 03ADBC7C-5459-4264-B7BB-CF3E42318886 Certificate Of Completion Envelope Id: 03ADBC7C-5459-4264-B7BB-CF3E42318886 Status: Completed Subject: Complete with Docusign: Complete_CO_2025-080_Purchase _Sale Agreement.pdf Source Envelope: Document Pages: 16 Signatures: 5 Envelope Originator: Certificate Pages: 5 Initials: 1 Elizabeth Thornhill AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) elizabeth.thornhill@cityofrc.us IP Address: 199.201.174.250 Record Tracking Status: Original 7/17/2025 10:11:23 AM Holder: Elizabeth Thornhill elizabeth.thornhill@cityofrc.us Location: DocuSign Signer Events Signature Timestamp Kim Sevy kim.sevy@cityofrc.us City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 2a09:bac3:6439:1232::1d0:d9 Signed using mobile Sent: 7/17/2025 10:15:38 AM Viewed: 7/17/2025 10:45:19 AM Signed: 7/17/2025 10:45:42 AM Electronic Record and Signature Disclosure: Accepted: 7/17/2025 10:45:19 AM ID: e355f612-ba35-4bfc-823f-ab69ca16872b L. Dennis Michael dennis.michael@cityofrc.us Mayor/President City of Rancho Cucamonga Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 172.116.88.134 Signed using mobile Sent: 7/17/2025 10:15:37 AM Viewed: 7/17/2025 11:35:48 AM Signed: 7/17/2025 11:36:12 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Nicholas Ghirelli NGhirelli@rwglaw.com Shareholder Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 208.87.233.201 Sent: 7/17/2025 10:15:38 AM Viewed: 7/17/2025 4:50:27 PM Signed: 7/17/2025 4:51:20 PM Electronic Record and Signature Disclosure: Accepted: 7/17/2025 4:50:27 PM ID: 4b803bf1-a873-4c34-ac73-a7a5ed841fb7 In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Certified Delivery Events Status Timestamp City Clerk's Office Review ClerkContracts@cityofrc.us City Clerk City of Rancho Cucamonga Security Level: Email, Account Authentication (None) Using IP Address: 199.201.174.250 Sent: 7/17/2025 10:15:39 AM Viewed: 7/17/2025 1:54:44 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 7/17/2025 10:15:39 AM Certified Delivered Security Checked 7/17/2025 4:50:27 PM Signing Complete Security Checked 7/17/2025 4:51:20 PM Completed Security Checked 7/17/2025 4:51:20 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Rancho Cucamonga City Clerk's Office (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/22/2022 12:08:29 PM Parties agreed to: Kim Sevy, Nicholas Ghirelli Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. How to contact City of Rancho Cucamonga City Clerk's Office: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: jasmin.oriel@cityofrc.us To advise City of Rancho Cucamonga City Clerk's Office of your new email address To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at jasmin.oriel@cityofrc.us and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address. If you created a DocuSign account, you may update it with your new email address through your account preferences. To request paper copies from City of Rancho Cucamonga City Clerk's Office To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email to jasmin.oriel@cityofrc.us and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Rancho Cucamonga City Clerk's Office To inform us that you no longer wish to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an email to jasmin.oriel@cityofrc.us and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: https://support.docusign.com/guides/signer-guide- signing-system-requirements. Acknowledging your access and consent to receive and sign documents electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system. By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:  You can access and read this Electronic Record and Signature Disclosure; and  You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and  Until or unless you notify City of Rancho Cucamonga City Clerk's Office as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by City of Rancho Cucamonga City Clerk's Office during the course of your relationship with City of Rancho Cucamonga City Clerk's Office.