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HomeMy WebLinkAboutFunding Agreement FUNDING AGREEMENT THIS FUNDING AGREEMENT ("Agreement") is entered into as of FEB .04 toll j (the "Effective Date") by and between the CITY OF ARROYO GRANDE, a California municipal corporation (the "City") and the HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO, a public agency, corporate and politic ("HASLO"). City and HASLO are collectively referred to as the"parties". RECITALS A. WHEREAS, I-IASLO provides programs and services to assist low and moderate income citizens in securing and maintaining housing in San Luis Obispo County. B. WHEREAS, City desires to enhance the availability of housing within the City of Arroyo Grande for low and moderate income citizens. C. WHREAS, HASLO has identified certain unimproved real property consisting of approximately 28,997 square feet and located at 224 South Halcyon, Arroyo Grande, California (the"Property"), which may be suitable for an affordable housing development. D. WHEREAS, HASLO desires to purchase the Property for the purpose of pursuing an affordable housing development thereon. E. WHEREAS, City desires to provide funding to HASLO for the purchase of the Property, with the expectation that HASLO will subsequently pursue additional funding for the development of the Property. NOW THEREFORE, for and in consideration of the foregoing Recitals, which are incorporated herein by this reference, and the mutual covenants contained in this Agreement, the receipt and sufficiency of which are acknowledged, the parties to this Agreement agree as follows: I. HASLO shall enter into an agreement to purchase the Property from the owner thereof (the "Property Owner") for a purchase price of $600;000.00 (the "Purchase Price"). Upon opening of an escrow for the sale of the Property to HASLO (the "Escrow") City shall deliver Thirty Thousand Dollars ($30,000) (the "Deposit") to the escrow officer (the "Escrow Officer") handling the Escrow for immediate release to the Property Owner. 2. Upon HASLO's completion of its due diligence on the Property, HASLO shall decide whether to complete the purchase of the Property. Should HASLO decide to complete the purchase of the Property, HASLO shall provide written notice to City of said determination. Provided HASLO has provided to City said notification, and subject to the provisions of Section 2 and Section 3 below, then not less than five (5) business days prior to the close of the Escrow (the"Close of Escrow), which is estimated to occur on or around July 15, 2014, City will deliver funds in the amount of Five Hundred Seventy Thousand Dollars ($570,000.00) (which, collectively with the Deposit, shall constitute the "City Funding") to the Escrow Officer. City's Page I of 8 delivery of the City Funding shall be pursuant to written escrow instructions (the "Escrow Instructions") that instruct the Escrow Officer to (i) upon the Close of Escrow, record a Memorandum of Affordable Housing Restrictions and City Right to Acquire Property substantially in the form attached hereto and incorporated herein as Exhibit "A" (the "Memorandum"), and (ii) carry out the activities of the Escrow Officer described in Section 3 below. 3. Notwithstanding anything to the contrary in this Agreement, with the exception of the Deposit, City's obligation to deliver all or any portion of the City Funding to the Escrow Officer shall not be effective or enforceable against City until such time as City's proposed use of the City Funding has been included in an approved, valid, and then-effective "recognized obligation payment schedule" ("ROPS") (as that term is defined in Health and Safety Code section 34171(h)). With respect to the foregoing, City agrees that it shall notify the Successor Agency to the Dissolved Redevelopment Agency of the City of Arroyo Grande of its intent to use the City Funding for the purposes set forth in this Agreement not less than twenty (20) days prior to the deadline for submittal of ROPS 14-15A, which. covers the period July I, 2014- December 31, 2014, to the Oversight Board to the Successor Agency to the Dissolved Redevelopment Agency of the City of Arroyo Grande for approval. In the event the City Funding has not been approved on a then-effective ROPS by July 15, 2015, City and HASLO shall meet and confer to determine whether to extend the Escrow. In the event the event City and HALSO determine, each in their sole and absolute discretion, to extend the Escrow, City acknowledges that City shall be obligated to pay and provide an additional Five Thousand Dollars ($5,000) (each, an "Extension Deposit") for each additional month by which the Escrow • is extended beyond July 15, 2014. The Escrow Instructions shall instruct the Escrow Officer to apply the Deposit towards the Purchase Price. The Extension Deposits, if any, shall be consideration above and beyond, and shall not be applied towards, the Purchase Price. 4. Notwithstanding anything to the contrary in this Agreement, in the event that prior to the Close of Escrow City has not concluded the sale of that certain Promissory Note executed by Court land Arroyo Grande, L.P., a California limited partnership, pursuant to that certain Note Purchase and Sale Agreement entered into between City and Meta Housing Corporation, a California corporation, then City shall provide the City Funding as follows: a. $500,000.00 shall be provided to HASLO prior to the Close of Escrow. b. $100,000.00 shall be provided to HASLO in four (4) installments of $25,000.00 each, to be delivered to HASLO on or before the following dates: i. First Installment: One year after the Close of Escrow. ii. Second Installment: Two years after the Close of Escrow. iii. Third Installment: Three years after the Close of Escrow iv. Fourth Installment: Four years after the Close of Escrow 5. HASLO will use the City Funding only for the purchase of the Property. 6. After purchasing the Property, I-IASLO intends, either independently or through an affiliate non-profit organization (a "HAS LO Entity"), to pursue the development of a housing Page 2 of 8 project on the Property (the "Housing Development"), which is currently anticipated to be a 15- unit apartment building whereby 50% of the apartments are used for transitional housing (a "Transitional Housing Development"). Both parties agree that the definition of"transitional housing" as used herein shall not conflict with the funding requirements of the Low Income Housing Tax Credit Program. The parties acknowledge that the exact scope and nature of the Housing Development may change in the future. The parties also acknowledge that due to extreme cutbacks in state and federal affordable housing resources, HASLO may not be able to secure sufficient funding to build the desired Housing Development on the Property, and/or there may be other obstacles to completing the desired Housing Development. Notwithstanding the foregoing, HASLO agrees that if the Housing Development contemplated for development on the Property is anything other than a Transitional Housing Development, HASLO shall be required to obtain the prior written consent of City, which consent shall not be unreasonably withheld provided the Housing Development will be restricted to rental to and occupancy by low, very low, or extremely low income households pursuant to the "Regulatory Agreement" (as that term is defined in Section 7 below). Notwithstanding anything to the contrary in this Agreement, the Housing Development shall comply with the income and rental requirements of Health and Safety Code section 34176.1(a)(3)(A). 7. Prior to development of the Housing Development, HASLO shall record or provide for the recordation of a regulatory agreement against the Property that restricts the use of the Property, for a period of not less than fifty-five (55) years, to use as a Transitional Housing Development or other use approved by City pursuant to Section 6 above (the "Regulatory Agreement"). Prior to execution and recordation of the Regulatory Agreement, City shall have the option of being a party to the Regulatory Agreement or being expressly designated as a third party beneficiary with the right, but not the obligation, to enforce the terms thereof. Notwithstanding City's election with respect to the foregoing options, City shall have the right to review and approve (which approval shall not be unreasonably withheld) the form of the Regulatory Agreement to ensure that it complies with the requirements of this Agreement. 8. In the event that by the date that is five (5) years after the Close of Escrow (the "Transfer Date"), HASLO or the HASLO Entity has not obtained (i) all entitlements and other approvals required to develop the Housing Development on the Property (collectively, the "Development Approvals"), and (ii) funding commitments in amounts sufficient to develop the Housing Development in accordance with the Development Approvals (collectively, the "Funding Approvals"), then, subject to the terms of this paragraph, HASLO agrees to transfer or to cause the transfer of fee title ownership of the Property to the City within four (4) months after the Transfer Date. Within the six (6) month period prior to the Transfer Date, I-IASLO or the HASLO Entity may request additional time to obtain the Development Approvals and/or Funding Approvals. City shall reasonably consider any such request provided HASLO or the HASLO Entity is diligently pursuing the obtainment of the Development Approvals and Funding Approvals. If 1-IASLO or the HASLO Entity does not request such additional time, and/or if HASLO or the HASLO Entity does request such additional time but City disapproves such request, then on or before the Transfer Date HASLO shall notify City, in writing, of its intent to transfer the Property to City ("HASLO's Notice of Intent to Transfer"). Upon City's receipt of HASLO's Notice of Intent to Transfer, City shall have the right to elect not to acquire the Property, provided such election is made, in writing, within thirty (30) days after City receives Page 3 of R HASLO's written notice of its intent to transfer the Property to City. Commencing on the date City receives HASLO's Notice of Intent to Transfer, City shall have a period of ninety (90) days (the "Investigation Period") to investigate the environmental condition of the Property and the condition of title to the Property. At any time during the Investigation Period, City may elect to refuse the transfer of the Property to City by providing written notice thereof to HASLO ("City's Refusal Notice"). If City does not provide to HASLO City's Refusal Notice prior to or on the expiration of the Investigation Period, then within thirty (30) days after the expiration of the Investigation Period the parties shall record a deed transferring fee title to the Property to City. As a condition to said transfer City may obtain, at City's sole cost, an ALTA owner's policy of title insurance on the Property. 9. If fee title ownership of the Property is transferred to City pursuant to Section 8 above, the Property shall be transferred in its then AS IS condition, with no representations or warranties of any kind, express or implied, except that any representations and/or warranties provided to HASLO by the Property Owner shall be transferred and assigned to City to the extent such representations and/or warranties are assignable and still enforceable. Notwithstanding any of the foregoing, in the event of any such transfer to City, HASLO agrees that the Property shall be free of any monetary liens or encumbrances other than the lien of taxes and assessments not yet due and payable, and free of any leases, use agreements, license agreements, or any other agreement granting a third party any rights with respect to the Property. 10. If fee title ownership of the Property is transferred to City pursuant to Section 8 above, and City wishes to also obtain any entitlements, reports, architectural drawings, plans, specifications or other materials or intangibles relating to the use or development of the Property (collectively, the "Development Rights"), then City shall pay l-IASLO its actual out-of-pocket costs incurred in connection with the Development Rights, which shall be paid concurrently with the transfer of title to the Property to the City. I I. If City declines to acquire the Property pursuant to Section 8 above, then upon request by 1-IASLO or the HASLO Entity, City shall, within thirty(30) days of the request being made, execute, acknowledge, and deliver a quitclaim deed to HASLO or the HASLO Entity, as applicable, and to execute, acknowledge, and deliver any other documents reasonably required by any title company to remove the cloud of the Memorandum of Acquisition Right and/or this Agreement from the Property. 12. The covenants established in this Agreement with respect to the use of the Property shall, without regard to technical classification and designation, be binding on the part of HASLO and any successors and assigns to the Property or any part thereof, and the tenants, lessees, sublessees and occupants of the Property, for the benefit of and in favor of City and its successors and assigns and any successor in interest'thereto and may be enforced by City and its successors and assigns. 13. Any notice or other communication required or permitted to be delivered to any party under this Agreement shall be in writing and shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by reputable courier or overnight delivery service that provides a receipt with the time and date of delivery) to the address or set forth Page 4 of 8 beneath the name of such party below (or to such other address as such party shall have specified in a written notice given to the other parties hereto): HASLO: Housing Authority of the City of San Luis Obispo Attn: Scott Smith, Executive Director 487 Leff Street San Luis Obispo, CA 93406-1289 CITY: City of Arroyo Grande Ann: Steve Adams, City Manager 300 East Branch Street Arroyo Grande, CA 93420 14. This Agreement is not intended to and does not create a partnership,joint venture, employment or agency relationship between the parties. 15. This Agreement may not be assigned or transferred by either party, without the prior written consent of the other, which may be given in the sole and absolute discretion of the party from whom consent is required. Any assignment or transfer made or attempted to be made in the absence of such prior written consent shall be null and void and shall confer no rights on the party to which such assignment or transfer was attempted to be made. 16. The parties agree that they will execute such other instruments and documents as are or may become necessary or convenient to carry out the intent and purposes of this Agreement. 17. Pursuit of any one remedy shall not preclude pursuit of any other remedies provided for herein or by law. No waiver of one violation of this Agreement shall be deemed or construed to constitute a waiver of any similar violations subsequently occurring, or any other violation whatsoever. 18. The Parties reserve to themselves the right to initiate and to pursue any legal action necessary to enforce the terms of this Agreement. In the event of legal action, the prevailing party shall be entitled to recover from the non-prevailing party its reasonable attorneys' fees and costs actually incurred, including expert witness fees. 19. No officer, official, member, employee, agent, or representative of City shall be personally liable to HASLO, or any successor in interest to HASLO, in the event of any default or breach by City or for any amount which may become due to HASLO or successor or on any obligations under the terms of this Agreement. 20. No officer, official, member, employee, agent, or representative of HASLO shall be personally liable to City, or any successor in interest to City, in the event of any default or breach by HASLO or for any amount which may become due to City or successor or on any obligations under the terms of this Agreement. Page 5 of 8 21. This Agreement will be construed in accordance with, and governed by, the laws of the State of California. 22. This instrument contains all of the understandings and agreements of whatsoever kind and nature existing between the parties hereto with respect to this Agreement, and the rights, interests, understandings, agreements and obligations of the respective parties and their prior oral agreements. 23. Except as herein and otherwise expressly stipulated to the contrary, this Agreement shall be binding upon and inure to the benefit of the parties signatory hereto, and their respective heirs and successors. 24. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same Agreement. Facsimile • and electronic copies of signatures shall be.deemed to be originals. 25. If any one or more of the provisions contained in this Agreement are held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect any other provision hereof, and the intent manifested thereby shall be recognized. 26. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, other than the parties hereto and their respective heirs and successors, any legal or equitable rights, remedy or claim under or in respect to this Agreement, or any provisions herein contained. 27. This Agreement may not be amended, altered or modified except by a written instrument, signed by all of the parties. 28. Time is agreed to be of the essence with respect to this Agreement. 29. The execution, delivery and performance of this Agreement by the undersigned have been duly and validly authorized by all necessary actions and proceedings, and no further action or authorization is necessary on the part of any party in order to consummate the transactions contemplated herein. [Signatures appear on the.following page] Page 6 of 8 IN WITNESS WHEREOF, the parties have duly executed this Agreement. CITY: CITY OF ARROYO GRAN), By: - / Date: 11/4/2.0/g Print Name: ON_ e Rats Title: y9/04-- HASLO: HOUSING AUTHORITY OF THE CITY OF SAN LUIS O .b . .te.and politic By: i i... Date: 7 /1--/1 Print Nam, : Title: 1�[o_.w1V� Page 7 of 8 EXHIBIT "A" LEGAL DESCRIPTION OF SITE PARCEL 1 AT 224 S. HALCYON ROAD ALL THAT CERTAIN PROPERTY SITUATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: THAT PORTION OF LOT 106 OF THE SUBDIVISION OF RANCHOSE CORRAL DE PIEDRA, PISMO AND BOLSA DE CHEMISAL, IN THE CITY OF ARROYO GRANDE, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED FOR RECORD IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WESTERLY LINE OF CIENEGA ROAD (NOW HALCYON ROAD) DISTANT THEREON SOUTH 0°08' WEST, 57.5 FEET FROM STAKE S.4 AS SHOWN ON MAP OF FOLSOM TRACT FILED FOR RECORD SEPTEMBER 26, 1891, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE NORTH 89° 52'WEST, 239.65 FEET TO THE WEST LINE OF THE PROPERTY CONVEYED TO ADDISON B. WOOD, ET US., BY DEED DATED MAY 2, 1960 AND RECORDED MAY 18, 1950 IN BOOK 565, PAGE 86 OF OFFICIAL RECORDS; THENCE SOUTH 0° 08' WEST ALONG THE WESTERLY LINE OF THE PROPERTY SO CONVEYED 100 FEET TO THE NORTHWEST CORNER OF THE PROPERTY CONVEYED TO JAMES BROWN, ET US., BY DEED DATED AUGUST 7, 1951 AND RECORDED AUGUST 21, 1951 IN BOOK 623, PAGE 186 OF OFFICIAL RECORDS; THENCE NORTH 89° 42' EAST ALONG THE NORTHERLY LINE OF THE PROPERTY SO CONVEYED 100 FEET TO THE SOUTHEAST CORNER THEREOF; THENCE SOUTH 89° 52' EAST, 64.65 FEET TO THE SOUTHWEST CORNER OF THE PROPERTY CONVEYED TO ADDISON B. WOOD ET UX., BY DEED DATED MARCH 27, 1952 AND RECORDED APRIL 1, 1952 IN BOOK 651 , PAGE 572 OF OFFICIAL RECORDS. THENCE NORTH 0° 08' EAST ALONG THE WESTERLY LINE OF THE PROPERTY CONVEYED 100 FEET TO THE NORTHWEST CORNER THEREOF; THENSE SOUTH 89° 52' EAST ALONG THE NORTHERLY LINE OF THE PROPERTY CONVEYED TO WOOD, AS AFORESAID, 75 FEET TO THE EASTERLY LINE OF CIENEGA ROAD (NOW HALCYON ROAD); THENCE NORTH 0° 08' EAST ALONG SAID EASTERLY LINE 100 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION OF SAID LAND IN DEED TO THE CITY OF ARROYO GRANDE, RECORDED NOVEMBER 25, 1964 IN BOOK 1325, PAGE 698 OF OFFICIAL RECORDS. EXH1131'1' A RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City of Arroyo Grande 300 East Branch Street Arroyo Grande, CA 93420 Attn: City Clerk (SPACE ABOVE TillS LINE FOR RECORDER'S USE) This Memorandum of City Right to Acquire Property is recorded at the request and for the benefit of the City of Arroyo Grande and is exempt from the payment of a recording fee pursuant to Government Code Section 27383. MEMORANDUM OF AFFORDABLE HOUSING RESTRICTIONS AND CITY RIGHT TO ACOUIRE PROPERTY This MEMORANDUM OF AFFORDABLE HOUSING RESTRICTIONS AND CITY RIGHT TO ACQUIRE PROPERTY ("Memorandum") is entered into this day of , by and between the CITY OF ARROYO GRANDE, a California municipal corporation ("City"), and the HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO, a public body, corporate and politic ("HASLO"). This Memorandum is made with reference to the following: I. HASLO is the owner of that certain real property located in the City of Arroyo Grande, County of San Luis Obispo, State of California, more particularly described in the legal description attached hereto as Exhibit "A" and incorporated herein by this reference ("Site"). 2. On or about , I-IASLO and City entered into that certain Funding Agreement ("Agreement"), pursuant to which City agreed to provide financial assistance to I-IASLO to enable HASLO to acquire the Site for purposes of developing thereon an affordable housing project. 3. The Agreement provides (i) for HASLO or an affiliate non-profit organization (a "l-IASLO Affiliate") to develop affordable housing on the Property in compliance with the terms of the Agreement and record an affordable housing regulatory agreement against the Property, or (ii) HASLO or, (ii) if a HASLO Affiliate owns the Property, for the 1-IASLO Affiliate to transfer fee ownership of the Property to City if certain approvals have not been obtained within the timeframes set forth therein. 4. The Agreement further provides for HASLO and City to enter into this Memorandum and to record the same in the Official Records of San Luis Obispo County, California, to provide notice to all persons of the existence of said Agreement, which Agreement is binding on l-IASLO and HASLO's successors-in-interest as to the Site. 882/021484-0005 6602301.2 e00100;00 4. This Memorandum is not intended as a full description of the terms and conditions of the Agreement. This Memorandum shall not replace, alter, or modify any term or condition set forth in the Agreement, nor shall it be used to interpret the terms and conditions of the Agreement. 5. This Memorandum may be executed in several counterparts, and all so executed shall constitute one agreement binding on both parties hereto, notwithstanding that both parties are not signatories to the original or the same counterpart. IN WITNESS WHEREOF, City and HASLO have entered into this Memorandum as of the date first set forth above. "CITY" CITY OF ARROYO GRANDE, a California municipal corporation By: Print Name: Its: "AUTHORITY" HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO, a public body, corporate and politic By: Print Name: Its: 883N31484.0005 6602301.2 600/00/00 -2- State of California County of On , before me, (lumen name and title of the officer) 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(ies), and that by his/her/their 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 California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) State of California County of On , before me, (insert name and title oldie officer) Notary Public, personally appeared who proved to nie 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(ies), and that by his/her/their 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 California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/021484-0005 6602301.2.00:00(00 -3- EXHIBIT "A" LEGAL DESCRIPTION OF SITE PARCEL 1 AT 224 S. HALCYON ROAD ALL THAT CERTAIN PROPERTY SITUATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: THAT PORTION OF LOT 106 OF THE SUBDIVISION OF RANCHOSE CORRAL DE PIEDRA, PISMO AND BOLSA DE CHEMISAL, IN THE CITY OF ARROYO GRANDE, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP FILED FOR RECORD IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WESTERLY LINE OF CIENEGA ROAD (NOW HALCYON ROAD) DISTANT THEREON SOUTH 0°08' WEST, 57.5 FEET FROM STAKE S.4 AS SHOWN ON MAP OF FOLSOM TRACT FILED FOR RECORD SEPTEMBER 26, 1891, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE NORTH 89° 52' WEST, 239.65 FEET TO THE WEST LINE OF THE PROPERTY CONVEYED TO ADDISON B. WOOD, ET US., BY DEED DATED MAY 2, 1960 AND RECORDED MAY 18, 1950 IN BOOK 565, PAGE 86 OF OFFICIAL RECORDS; THENCE SOUTH 0° 08' WEST ALONG THE WESTERLY LINE OF THE PROPERTY SO CONVEYED 100 FEET TO THE NORTHWEST CORNER OF THE PROPERTY CONVEYED TO JAMES BROWN, ET US., BY DEED DATED AUGUST 7, 1951 AND RECORDED AUGUST 21 , 1951 IN BOOK 623, PAGE 186 OF OFFICIAL RECORDS; THENCE NORTH 89° 42' EAST ALONG THE NORTHERLY LINE OF THE PROPERTY SO CONVEYED 100 FEET TO THE SOUTHEAST CORNER THEREOF; THENCE SOUTH 89° 52' EAST, 64.65 FEET TO THE SOUTHWEST CORNER OF THE PROPERTY CONVEYED TO ADDISON B. WOOD ET UX., BY DEED DATED MARCH 27, 1952 AND RECORDED APRIL 1, 1952 IN BOOK 651, PAGE 572 OF OFFICIAL RECORDS. THENCE NORTH 0° 08' EAST ALONG THE WESTERLY LINE OF THE PROPERTY CONVEYED 100 FEET TO THE NORTHWEST CORNER THEREOF; THENSE SOUTH 89° 52' EAST ALONG THE NORTHERLY LINE OF THE PROPERTY CONVEYED TO WOOD, AS AFORESAID, 75 FEET TO THE EASTERLY LINE OF CIENEGA ROAD (NOW HALCYON ROAD); THENCE NORTH 0° 08' EAST ALONG SAID EASTERLY LINE 100 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION OF SAID LAND IN DEED TO THE CITY OF ARROYO GRANDE, RECORDED NOVEMBER 25, 1964 IN BOOK 1325, PAGE 698 OF OFFICIAL RECORDS.