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HomeMy WebLinkAboutSubordination Agreement (2) � , . . JULIE RODEWALD asK �curd�d at the Request of San Luis Obispo Counry—ClerklRecorder 4/0312013 -� c�id Republic Title Cosnpany 9:47 AM ' ��k�.-^3�d i I� 0.ecn�ded al IAO repnesl ol rublic RECORDINGREQUESTEDBY coca : ZO13O18888 THlas: 1 Pages: 16 CND WA oyo GraO�RDED MAIL TO: IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Othe s o 00 3 0 0 E a s t B r a n c h S t r e e t p A l p 5 0.0 0 Arroyo Grande, CA 9342U Atm: City Clerk (Space Above For Recorder's Use) (Exempt from Recording fee per Gov. Code §27383) SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR RIGHTS UNDER CERTAIN AGREEMENTS RELATING TO CERTAIN REAL PROPERTY BECOMING SUBJECT TO, AND OF LOWER PRIORITY THAN,THE LIEN OF A SECUR[TY INTEREST. THIS SUBORDINATION AGREEMENT(this "AgreemenP'), dated as of March 28, 2013, by and between SAN LUIS OBISPO COUNTY HOUSING TRUST FUND, a Califomia non- profit public benefit corporation, whose address is 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ("Subordinating Party"), and CITY OF ARROYO GRANDE, a California municipal corporation, whose address is 300 East Branch Street, Arroyo Grande, CA 93421("City"), is made with reference to the following facts: A. Courtland Street Apartments, L.P., a California limited partnership ("Borrower"), is the owner(or, concurrenNy with the recording of this Agreement, will be the owner) of certain real property, which real property is more particularly described in Exhibit "A" attached hereto and made a part hereof(the "Property"). B. Borrower and Subordinating Party have heretofore entered into or, concurrenUy herewith, are entering into, that certain: (i) Development Loan Agreement ("Subordinating Party's Loan AgreemenP') dated March 28, 2013, pursuant to which Subordinating Party has agreed to make a loan to Borrower in the original principal amount of Three Hundred Sixty Thousand Dollars ($360,000.00) ('`Subordinating Party's Load'); (ii) Promissory Note Sccured by Dced of Trust ("Subordina[ing Party's Note") dated March 28, 2013. evidencing Subordinating Party's Loan, which is secured by, among other things, that certain Deed of Trust with Assignment of Rents ("Subordinating Party's Deed of Trust') dated March 28, 2013 executed by Borrower for the benefit of Subordinating Party, and recorded concurrendy herewith in the Official Records (the "Official Records") of the County of San Luis Obispo, Califomia, and encumbering the Property and all improvements to be constructed thereon, and saz,oz,booaom ratecuted in counterpart 51605]2 7 a012811J , I� (iii) Affordable Housing Regulatory Agreement ("Subordinating Party's Regula[ory AgreemenP'), pursuant to [he terms of which Borrower has agreed, among other things, for itself and its successors and assigns, to operate a residential rental affordable housing development to be developed on the Property ("the ProjecP') as a low income apartment project in accordance with the terms and conditions set forth therein. Subordinating Party's Loan Agreement, Subordinating Party's Note, Subordinating Party's Deed of Trust, Subordinating Party's Regulatory Agreement and all other documents evidencing, securing or pertaining to Subordinating Party's Loan are hereinaRer collectively referred to as "Subordinating PaRy's Loan Documents". C. People's Self-Help Housing Corporation, a Califomia nonprofit public benefit corporation ("PSHH"), and the former Arroyo Grande Redevelopment Agency, a public body, corporate and politic `'("Agency"), previously entered into an Affordable Housing and Loan Agreement (the "AHDA"), which AHDA has been assigned by PSHH to Borrower. Pursuant to the AHDA, the Agency agreed to make [o Borrower a loan (the "RDA Loan") to cover a portion of the costs to be incurred by Borrower in connection with the construction of the Project. D. Pursuant to Assembly Bill 26 from the 201 I-12 First Extraordinary Session of the Califomia Legislature, which was signed by the Govemor on June 28, 201 I ("ABxI 26"), all redevelopment agency activities, except continued performance of "enforceable obligations," were immediately suspended. A lawsuit was filed, challenging the constitu[ionality of ABxI 26 and companion bill ABxI 27 (which would have allowed redevelopmen[ agencies to remain in existence and continue redevelopment, if the legislative bodies that established the agencies elected to participa[e in a "voluntary altemative redevelopment program" and make certain remittance payments). The Califomia Supreme Court upheld the constitutionality of ABxI 26, revising the effective dates of certain provisions, and struck down as unconstitutional ABxI 27. (Calrjornia Redevelopmeni Assn. v. Marosanlos (201 I) 53 Cal.4th 231 (the "CRA Case"). ABx I 26 is chapter 5, Statutes 2011, First Extraordinary Session, which added Part 1.8 (suspension provisions) and Part I.85 (dissolution provisions) ("Part 1.85") of Division 24 of the Health and Safety Code. Under the CRA Case, all redevelopment agencies dissolved February I, 2012. On lune 27, 2012, the Califomia Legislature passed, and Ihe Governor signed, Assembly Bill 1484 (`AB 1484"), which, among o[her [hings, made certain revisions to certain of the statutes added by ABx I 26, and added Chapter 9 to Part I.85. E. Pursuant to Health and Safety Code section 34176(a), added by Part 1.85 and amended by AB 1484, the Ciry Council of the City adopted its Resolution No. 4421 on January 10, 2012, electing to retain the housing assets and functions previously performed by the Agency. Pursuant to said resolution, all housing assets of Ihe Agency were transferred to City on February I, 2012. Pursuant to subdivision (e)(2) of Health and Safety Code section 34176, which subdivision was added by AB 1484, the RDA Loan proceeds are one of the "housing assets"of the Agency that was so transferred to City. F. As a condition to receiving [he RDA Loan, Bortower has executed or will execute on or about the same date hereof, (i) that certain Promissory Note Secured by Deed of Trust that evidences the RDA Loan (the "City Note"), (ii) that certain Deed of Trust with Assignment of Rents that secures Borrower's repayment under the City Note (the "City Deed of TrusC'), and sazoz�coo�000� 51607711 o0JR8l13 '2" (iii) tha[ certain Regulatory Agreement and Declaration of Covenants and Restrictions (the "City Regulatory Agreement°). Each of the City Deed of Trust and City Regulatory Agreement will be recorded against the Property concurrendy herewith in [he Official Records. G. The AHDA, Ciry Note, City Deed of Trust, and City Regulatory Agreement are sometimes collectively referred to as the "City Documents". H. As a condition precedent to funding the proceeds of the RDA Loan, City requires [hat the City Documents shall unconditionally be and remain at all times a lien or charge upon [he Project and the other collateral secured thereby which is prior and superior to the liens or charges of Subordinating Pany's Deed of Trust and Subordinating Party's Regulatory Agreement. NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by [his reference, the City's making of the RDA Loan, the mutual promises and agreements hereinafter contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement do hereby agree as fol lows: I. SUBORDINATION OF SUBORDfNATING PARTY'S DEED OF TRUST AND SUBORDINATING PARTY'S REGULATORY AGREEMENT. The City Documents, and any and all renewals or extensions thereof and all amendments and modifications hereafter made there[o shall unconditionally be and remain at all times a lien or charge against the Project and all other collateral secured by the City Documents that is prior and superior [o the liens or charges of Subordinating Party's Deed of Trust and Subordinating Party's Regulatory Agreement. Notwithstanding the foregoing, City shall not amend or modify the tertns of any of the City Documents without the prior written consent of the Subordinating Party if such amendment or modification has the effect of: (i) increasing or decreasing the amount of the RDA Loan, except in the case of sums advanced by Ciry in exercisin� its rights and remedies under [he City Documents or as othenvise provided in Paragraph 2 of this Agreement; (ii) increasing the annual interest rate(s), including the default rate, above the rate(s) described in the Ciry Note; or (iii) modifying the maturity date [o be sooner than the stated maturiry date of the Ciry Note. 2. ALL AMOUNTS OWING TO CITY SECURED BY THE CITY DEED OF TRUST. Notwithstanding anything to the contrary set forth in the City Documents or any other agreement between City and Borrower with respect to any amounts owing to City pursuant to the City Documents and notwithstanding anything to the contrary contained in this Agreement, including, but not limited to, limitations on additional advances pursuant to Paragraph I, above, any and all amounts owing to Ciry pursuant to the City Documents in connection with: (a) any costs or expenses incurred in complyin� with any laws, rules, regulations, or statutes or any directives of any governmental agencies or authorities having or exercising jurisdiction over the Projecr, and aevozaeoo-0oo� 31603]2 2 o07R8/13 '3' (b) any sums advanced by City for the payment of real estate taxes or assessments or insurance premiums, or any other sums advanced or obligations incurred by City in connec[ion with the protection or preservation of any security given to City with respect to any of the City Documents, shall be deemed to be, and in all events shall be, secured by the City Deed of Trust and, as so secured, and regardless of whether Borrower at the time of any such disbursements may have been in default under any of the City Documents, the City Deed of Trust and City Regulatory Agreement shall be and remain liens or charges against the Project [hat are unconditionally prior and superior to the liens and effects of Subordinating PaRy's Deed of Trust and Subordinating Party's Regulatory Agreement. 3. SUBORDINATING PARTY'S RIGHT TO CURE DEFAULTS. Upon the occurrence of an event of default under any of the City Documents, City shall (and does hereby expressly represent, warrant, covenant and agree that it shall) prior to exercising any right or remedy under the Ciry Documents (including, without limita[ion, instituting any foreclosure proceedings), (a) promptly notify Subordinating Party at its address set forth above of the occurrence of such event of default; (b) permit Subordinating Party to cure or correct (provided that such event of default is curable) any such event of default within thirty (30) calendar days after receipt of such notice; and (c) accep[ all payments and all acts done by Subordinating Pany on behalf of Borrower within such thirty (30) day period as though the same had been timely done and perfortned by Borrower, so that such acts and payments shall fully and totally cure and correct all such defaults, breaches, failures or refusals for all purposes. 4. CITY'S RELEASE OF SECURiTY SHALL NOT AFFECT SUBORDINATION. City's release of any securiry for the Borrower's obligations pursuant to the City Documents, including, without limitation, the reconveyance of any portion(s) of the Project from the lien of [he City Deed of Trust, shall not cons[itute a waiver or relinquishment of Subordinating Party's unconditional subordination of Ihe liens or charges of Subordinating Party's Deed of Trust and Subordinating Party's Regulatory Agreement against the Project to the lien or charge of the Ciry Documents. 5. RECEIPT AND APPLICATION OF INSURANCE PROCEEDS AND CONDEMNATION AWARDS; RECEIPT AND APPLICATION OF PROCEEDS FROM BONDS. (a) Receiot and Application of Insurance Proceeds and Condemnation Awards. Notwithstanding anything stated to the contrary in any of Subordinating Party's Loan Documents, so long as the City Deed of Trust and/or Ciry Regulatory Agreement continue to 887N1�600-000J 7160572 2 a0J28/Il -4- encumber all or portions of the Project, all insurance proceeds that may become available from time to time as a result of damage or destruction to all or portions of the Project and all condemnation awards that may become available from time to time as a result of Ihe condemnation of all or portions of the Project shall be held by City, disbursed by City and applied by Ciry in accordance with the terms and conditions of the City Deed of Trust and the other the City Documents and Subordinating Party shall have no right to hold, disburse or apply any of such proceeds and/or awards. City will consult with Subordinating Party prior to disbursing insurance proceeds and condemnation awards. Subordinating Party shall execute such documents as City may require from time to time in order to assure compliance with the provisions ofthis Paragraph 5(a). (b) Receipt and Application of Proceeds from Bonds. With respect to all labor and material bonds and/or completion bonds lhat are issued from time to [ime to assure payment and completion of the Project and which name City and Subordinating Party (or any other party) as dual obligees, all proceeds that may become available from time to time under such bonds shall be held by City and disbursed by City and Subordinating PaRy shall have no right to hold or disburse any of such proceeds. Subordinating Party shall execute such documents as City may require from time to time in order to assure compliance with the provisions of this Paragraph 5(b). 6. CITY'S RELIANCE. City would not agree to provide the RDA Loan absent the execution of this Agreement by Subordinating Party. 7. NOTICES. Any notice, demand or request required or pertnitted to be delivered hereunder shall be deemed to have been duly and properly given at [he time of such delivery if personally delivered (which shall include delivery by means of reputable, professional ovemight courier service which confirms receipt in writing), or if mailed, seventy-two (72) hours after deposit in Uniced States registered or certified mail, postage prepaid, retum receipt requested, addressed to Subordinating Party or Agency, as the case may be, at their addresses set forth above. 8. NOTICE OF DEFAULT BY CITY AND SUBORDINATING PARTY. City and Subordinating Party hereby agree that they shall each deliver to the other a copy of any notice (and all subsequent communications relating thereto) given to the Borrower with respect to any default (or potential default) under any of the Ciry Documents or the Subordinating Patty's Loan Documents, as applicable. Such copy shall be delivered in the same manner and at the same time as the corresponding notice of communication to Borrower. If a default occurs for which no notice is required by the tertns of the respective City Documents or the Subordinating Party's Loan Documents, City or Subordinating Party, as appropriate, shall nonetheless deliver notice of such default to the other no less than thirty (30) days before exercising any right or remedy under any of the City Documents or Subordinating Party's Loan Documents, as applicable (including, without limitation, instituting any foreclosure proceedings.) nsvozaeoomoa 5160592 2 a0J28113 'S' 9. ENTIRE AGREEMENT. This A�reement shall be the whole and only agreement with respect to the subordination of the effect of Subordinating Party's Deed of Trust and Subordinating Party's Regulatory Agreement to the lien or charge of the City Documents, and all disbursements and advances made thereunder, and shall supersede and cancel any prior agreements as to such subordination, including without limitation any provisions contained in Subordinating Party's Loan Documents that provide for the subordination of the effect thereof to one or more deeds of trus[. 10. SUBORDINATING PARTY'S ACKNOWLEDGEMENTS. Subordinating Party hereby declares, agrees, and acknowledges as follows: (a) Subordinating Party has had the opportunity to review the City Documents; (b) City, in permitting disbursements of the proceeds of the City Loan pursuant to the AHDA, is under no obligation or dury to insure, nor has City represented that it will insure, the proper application of such proceeds, and any application or use of such proceeds for purposes other than as provided in any such a�reement shall not defeat or render invalid, in whole or in part, the subordination provided for in this Agreement; (c) Subordinating Party intentionally and unconditionally subordinates the eft'ect of Subordinating Party's Deed of Trust and Subordinating Party's Regulatory Agreement against the Project and Property in favor of the liens or charges of the City Documents and Subordina[ing Party understands that, in reliance upon and in consideration ofthis subordination, specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into that would not be made or entered into absent said reliance upon this subordination; (d) City has not made any wartanty or representation of any kind or nature whatsoever to Subordinating Party with respect to (i) the application of the proceeds of any disbursement made by City for the account of Borrower, upon the security of the City Deed of Trust, (ii) the value of the Property, the Project, or the marketability or value thereof upon completion of such construction, or (iii) the ability of Borrower to honor its covenants and agreemen[s with City or Subordinating Party; (e) The Subordinating Party's Loan Documents as described in Recital B above are all of the documents evidencing, sewring or pertaining to Subordinating Party's Loan, true, correct and complete copies thereof have been delivered to City, and the Subordinating Party's Loan Documents have not been amended or modified except as reflected thereon; (� Borrower is not obligated to commence construction of the Project prior to the recordation of the City Deed of Trust, and construction of the Project need not be completed until the date tha[ is one (I) year after Borrower commences construction of the Project. (g) Notwithstanding anything stated to the contrary in the Subordinating Party's Loan Documents, Subordinating Pany's interest in the plans and specifications and all BBN12J600-0007 5160512 2 e07R81U '6' data, drawings, contracts and agreements relating [hereto and all contracts and agreements relating to the construction of the Project shall be subject and subordinate to City's interest in the same; (h) Notwithstanding anything stated to the contrary in Ihe Subordinating Party's Loan Documents, in the event that the sole cause of a default under the Subordinating Party's Loan Documents is the occurrence of a default or Event of Default under the City Documents, Subordinating Party agrees that if City waives such default or Event of Default or accepts a cure of the default or Event of Default then the default under the Subordinating Party's Loan Documents shall be deemed waived or cured; and (i) Subordinating Party has made such independent legal and factual inquiries and examinations as Subordinating Party deems necessary or desirable, and Subordinating PaRy has relied solely on said independent inquiries and examinations in entering into this Agreement. I I. ATTORNEYS' FEES. If either Subordinating Party or City shall bring an action agains[ the other by reason of the breach of any covenant, provision, or condition of this Agreement, or otherwise arising out of this Agreement, the unsuccessful pany shall pay to [he prevailing pany reasonable attomeys' fees, which fees shall be payable whether or not any action is prosecuted to judgment. The tertn "prevailing party" shall include, withou[ limita[ion, a party who brings an action against the other by reason of the other's breach or default and obtains substantially the relief sought, whether by compromise, settlement, orjudgment. 12. NO WAIVER BY CITY. It is unders[ood by the parties to this Agreement that in no event shall City's permitting Subordina[ing Party's Deed of Trust and Subordinating Party's Regulatory Agreement to continue to burden the Project be cons[rued as a waiver of City's right to prohibit the creation of any further liens or charges against the Project, nor shall the granting of such consent be construed as a waiver of Borrower's obligation to obtain City's consent as a condition to creating any additional liens or charges against the Project in the future. 13. GOVERNING JURISDICTION. This Agreement shall be govemed by the intemal laws of the State of Califomia, without regard to conflict of law principles, and shall be binding upon, and shall inure to the benefi[ of, the parties to this A�reement and their respective successors and assigns. 14. SEVERABILITY. In case one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respec[, such invalidity, illegality or unenforceability shall not affect any other provisions hereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein unless the effect thereof would materially alter the benefits or burdens hereof to the parties hereto. eavoz�boo�000a 51605]2 7 a07R8117 '7' I5. COUNTERPARTS. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute but one and the same instrument. [Signawre page follows] BBN02J600-0003 31603]1 3 a0J/IB/13 'g' WHEREAS, this Subordination Agreement has been executed by the parties as of the date first written above. `'City" ''Subordinating Party" CITY OF ARROYO GRANDE, SAN LUIS OBISPO COUNTY HOUSING a Califomia municipal corporation TRUST FUND, a California nonprofit public benefi[corporation By. � StevenAdams, City Manager Gerald L. Rioux, Exewtive Director ATTEST: �li�i�- `7')��. .� ��' C�.� �'P�,.�� y�i/�.CityCl ,k �����1 (/ APPROVED AS TO FORM: RUTAN & TUCKER, LLP Special Counsel to the City eaD07J600-000J 5160513 2 a0328/13 -9- WHEREAS, this Subordination Agreement has bcen executed by [hc parties as of the date first wriuen above. `City" "Subordinating Party" CITY OF ARROYO GRANDE, SAN LUIS OBISPO COUNTY HOUSING a Califomia municipal corporation TRUST FUND, a California nonprofit public benefit corporation [3y: Steve Adams, City Manager Gerald L. Rioux, Executive Director ATTCST: Ciry Clerk APPROVED AS TO PORM: RUTAN & TUCKER, LLP ��4�� Special Counsel to the City �,i,�.L���P/li R82/0?JG00-0007 s i aonz��o,asiu -9- WHEREAS, this Subordination Agreement has been executed by the panies as of the date first written above. "City" "Subordinating Party" CITY OF ARROYO GRANDE, SAN LUIS OB1SP0 COUNTY HOUSING a Califomia municipal corporation TRUST FUND, a Califomia nonprofit public benefit c rporation By: � Steve Adams, City Manager Gerald L. Rioux, Execu ve Director BBL02d600-000J sieos�z i�.neiu -9- State of Califomia ) County of San Luis Obispo ) On {Y�urcl� a9, a0/3 , before me, �%7�s�OS�'7�c.. , �r un/� e and title of�he of5ca) Notary Public, personally appeared �e��dLLl�Y!5 , who proved to me on the basis of satisfactory evidence to be the person(� whose name(� is/ar�. subscribed to the within inswment and acknowledged to me that he/skeff4�e� executed the same in his/�erliF+ei� authorized capacity(+esj, and that by his/kerkheir signature(ej on the instrument the personEs�j, or the entity upon behalf of which the person(sj acted, executed Ihe instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. W ITNESS my hand and ofticial seal. Kirrr NoRTON Commiseion a i820921 Notary PuEllc -Callfomla ��^ Sen Luls ODlepo County ��-• Co m. Iree Mu 9.2015 Signature !�� K, (1�,�-n'1 State of Califomia ) County of San Luis Obispo ) On , before me, , (inscn namc and�itic of the afTcer) 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 [he within instrument and acknowledged to me that he/she/they executed the same in his/hedtheir authorized capacity(ies), and tha[ by his/hedtheir signature(s) on the ins[rument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) saxaueoomm eiaona.zoo�rzaiu -� �- JOINDER Unless expressly defined herein, all capitalized terms used herein shall have the same meanings ascribed to them in the Subordina[ion Agreement (the `Subordination AgreemenP') to which this Joinder is attached. The undersigned hereby acknowledges receipt of a copy of the Subordination Agreement and hereby consents to, approves and agrees to be bound by all of the terms and conditions set forth in the Subordination Agreement. Courtland Street Apartments, L.P., a Califomia limited partnership By: Peoples' Self-Help Housing Corpora[ion, a Califomia nonprofit public benefit corporation, its general partner By: �'li�_ Name: AN�77E Ju.vr4.c� Ics: , R Es l,jj�,� BBL01J600-0007 5160572.7 o07/IB/U '�Q' ACKNOWLEDGMENT CERTIFICATE State of Califomia, County of San Luis Obispo }ss. On March 28, , 2013, before me, Inigo F. Garate, Notary Public for said State, personally appeared Jeanette Duncan and Gerald L. Rioux , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) -i� subscribed to the within instrument and acknowledged to me that lae,�sk�e executed the same in l�isf�ed�e authorized capacity(ies), and that by ' ei signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. INIGO F.GARATE WITNESS my hand and official seal. comm�seion r te23482 � .r Notary PuDlic•Calllomle San Lufs O�ispo County M Comm-E� ves FeG 20.2015 r �src�i � ��i� S�gnature of Notary �,h��� ��,��� Place Notary Seai Above EXHIBIT"A" LEGAL DESCRIPTION All that certain real property situated in the CITY OF ARROYO GRANDE, County of SAN LUIS OBISPO, State of CALIFORNIA, described as follows: PARCEL 2 AS DESCRIBED IN THAT CERTAIN CERTIFICATE OF COMPLIANCE RECORDED JULY I5, 2009 AS DOCUMENT NO. 2009-038586 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER AND MORE FULLY DESCRIBED AS FOLLOWS: A PORTION OF LOT I OF THE ].F. BECKETT'S GRAND AVENUE TRACT, iN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED SEPTEMBER 26, 1891 IN BOOK B, PAGE 75 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND THAT PORTION OF BLOCK I 14 OF THE TOWN OF GROVER, IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED NOVEMBER 23, 1892 IN BOOK A, PAGE 6 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND THAT PORTION OF REMAINDER OF TRACT 2471, IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED AUGUST 16, 2004 IN BOOK 24, PAGES 9, 10 AND I I OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND BEING THE SOUTH 172.25 FEET OF THE FOLLOWING DESCRIPTION; BEGINNING AT THE NORTHEAST CORNER OF LOT I OF TRACT 2158, IN THE CITY OF GROVER BEACH, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED MAY 2, 1994 IN BOOK 17, PAGE 23 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE EASTERLY LINE THEREOF AND ALONG THE EAST LINE OF THE LAND DESCRIBED IN DEED TO 10HN BRADLEY FORDE AND ANITA MADELINE FORDE IN DOCUMENT NO. 2003-122906 FILED OCTOBER 22, 2003 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SOUTH 03° 14' S1" WEST, 645.07 FEET TO THE NORTH WEST CORNER OF LOT 7 OF SAID TRACT 2471; THENCE ALONG THE NORTHERLY LINE OF SAID TRACT 2471 AND THE NORTHERLY LINE OF TRACT 2260 PHASE 1, IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED NOVEMBER 3, 2000, IN BOOK 19, PAGE 43 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY THEREOF, SOUTH 86° 45' 35" EAST, 411.86 FEET TO A POINT ON THE WESTERLY LINE OF AN EXISTING 50-FOOT EASEMENT FOR ROAD PURPOSES, AS SHOWN ON PARCEL MAP AG 00-301, IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED JUNE 25, 2002 IN BOOK 56, PAGE 54 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, WHICH POINT IS 88LON600-0007 51605'!7 3 o0JR8�13 '�3- SOUTH 86° 45' 35" EAST, 7.00 FEET FROM THE NORTHEAST CORNER OF LOT 84 OF SAID TRACT 2260 PHASE I; THENCE ALONG THE WESTERLY LINE OF SAID 50-FOOT EASEMENT FOR ROAD PURPOSES, NORTH 03° 14' 46" EAST, 645.00 FEET TO A POINT ALONG THE SOUTHERLY RIGHT-OF-WAY OF EAST GRAND AVENUE; THENCE ALONG SAID SOUTHERLY RIGHT-OF-WAY LINE THEREOF, NORTH 86° 45' 00" W EST, 41 1.84 FEET TO THE POINT OF BEGINNING. Assessor Parcel No(s).: 077-I 31-053 077-131-055 sazoz+aao-000� sieosn,a ao�asiu -14- END OF DOCUMENT