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HomeMy WebLinkAboutBDHOV, LP, LEHOV, LP, WRHOV, LP and JDHOV, LP - Agreement and Compromise to Improve Property - 05-31-23AGREEMENT AND COMPROMISE TO IMPROVE PROPERTY This Agreement and Compromise to Improve Property (Agreement) is entered into and effective the last date written below (Effective Date), by and among the City of Fresno, a municipal corporation (the City), and BDHOV, LP, LEHOV, LP, WRHOV, LP, and JDHOV, LP. (the Owners) (collectively, the Parties). RECITALS WHEREAS, a dispute arose between the Parties relating to the property located at 510, 512, 514, 516, 518, 520, 522, and 524 West Hammond Avenue, Fresno, California, Assessor's Parcel Number 450-153-12 (Property), commonly known as 510 West Hammond Avenue, and whether the Property was in compliance with certain provisions of the Fresno Municipal Code (Dispute); WHEREAS, the City issued a Notice and Order (A.S.E.T.) to Repair and Rehabilitate Substandard Building(s) (Notice and Order) dated March 1, 2023, to the Owners alleging one hundred thirty-seven (137) violations of the Fresno Municipal Code at the Property, with a deadline to complete all corrections by March 31, 2023 (See Notice and Order attached as Exhibit A); WHEREAS, the Owners have requested additional time to comply with the Notice and Order to remove the violations on the Property; WHEREAS, the City is legally entitled to take further action regarding the violations on the Property, up to and including the issuance of citations and the filing of a civil action in Fresno Superior Court; WHEREAS, without admitting liability, either expressly or impliedly, of any fact or liability with respect to any matter relating to the Agreement, except as expressly set forth in this Agreement, and without waiving the City's right to cite the Owners for new or later discovered violations of the Fresno Municipal Code, it is the mutual intention and desire of the Parties to settle, compromise, and resolve all of the differences, disputes, disagreements, and claims between them, known and unknown, which exist or may hereafter exist arising out of the facts, circumstances, and events described in the subject matter of this "Recitals" section; WHEREAS, the Parties enter into this Agreement solely for the purpose of compliance and to avoid the further expense, delay, and risk of litigating the claims and defenses raised specific to those referenced above; and WHEREAS, the Parties have reached terms of compromise and execute this Agreement in accordance therewith. NOW, THEREFORE, in consideration of the foregoing, and in consideration of the mutual promises and agreements as hereafter set forth, and for other good and valuable consideration hereby acknowledged, the Parties agree and compromise as follows: AGREEMENT 1. Extension of Deadlines to Correct Violations. The original deadline to complete corrections as set forth in the Notice and Order expired on March 31, 2023. Owners have requested additional time to complete those corrections. The City agrees to extend the deadlines for full compliance of all violations, contingent upon Owners complying with the following, to include applying for and finalizing all required permits: a. All violations noted on the Notice and Order, with the exception of violation #135 pertaining to the fire -damaged garage, must be completed no later than thirty days from the Effective Date. b. Violation #135 on the Notice and Order, pertaining to the fire -damaged garage, must be completed no later than sixty days from the Effective Date. c. The time for completion may be extended if the City determines reasonable progress has been made, and the granting of such an extension will not be detrimental to the public safety or welfare. No extension will be made except upon written application by Owners and submitted to the City prior to the expiration of the period for performance or any extension thereof stating the reasons and facts supporting such extension. 2. Owners' Performance. The performance of the work and improvements shall comply with the Fresno Municipal Code and current Building Codes. All repairs and improvements shall be inspected and accepted by the City upon completion. a. Improvement Costs. All work and improvements shall be done at the sole cost and expense of the Owners. The costs of engineering, inspection, testing, permits, and all applicable fees as required by the Fresno Municipal Code shall be the sole responsibility of the Owners. b. Sale or Transfer of Property. If Owners wish to sell transfer, assign or otherwise dispose of all or a material part of any interest it might hold in the Property prior to the City's final inspection and approval of Owners' repairs and corrections of the violations noted on the Notice and Order, Owners shall provide the City with the Buyer's contact information, a scope of work, and a timeline for repairs within five business days of the opening of escrow. Failure to provide the Buyer's contact information, a scope of work, and a timeline for repairs may result in a breach of this agreement and an immediate Compliance Inspection. 3. Compliance Inspections. Following execution of this Agreement, the City will schedule compliance inspection(s) to occur following the deadlines for completion listed in section one (1) above for the purpose of determining that Owners have completed the repairs. The City will schedule the compliance inspection(s) on dates that are mutually agreeable to all Parties, on or shortly thereafter the completion deadlines stated above. Owners or Owners' Representative shall be present at the Property at the time of the inspection(s) and shall provide access to City representatives to enter and inspect the Property. The City representatives' time is uncontested hard costs, and the fees for the compliance inspection(s) will be determined after the inspections have taken place, and will be due and payable within thirty days of the date of the City's invoices related to the inspection(s). 4. Site Visits. Prior to the City's final inspection and approval of Owners' repairs and corrections of the violations noted on the Notice and Order, the City will conduct periodic site visits for the purpose of determining the progress that Owners are making in completing the repairs listed in section one (1) above by the stated deadlines. Owners need not be present at the Property at the time of the site visit; and Owners will not be billed for the City representatives' time for conducting the site visits. 5. Vacant Units. Owners shall not move any tenants into the Property without inspection and clearance by City representatives of each Unit that is to be occupied. 2 6. Failure to Comply. Failure by Owners to complete the corrections at the Property referenced in section one (1) above, on or before the deadlines set forth in section one (1) above, will result in further action by the City, including but not limited to, the termination of this Agreement, the re -inspection of all units, the issuance of citations by the City, and may result in the institution of legal action. 7. Citations. Pursuant to the Fresno Municipal Code and the Master Fee Schedule, should Owners fail to meet the stated deadlines set forth above, Owners will be cited up to $800.00 per violation for each existing code violation on the Property not corrected on or before the stated deadlines. 8. _Ongoing Compliance_ Owners agree to maintain the Property in compliance with the Fresno Municipal Code. Failure to maintain the Property may be cause for termination of this Agreement and may subject the Property to future liens and citations by the City. 9. Action by City. The City agrees to refrain from issuing citations or taking further legal action against the Property and Owner as it relates to the Notice and Order so long as Owners cure all violations and make the necessary repairs by the deadlines set forth above. In the event of a breach of this Agreement, the City reserves the right to issue a citation for each outstanding violation as authorized by the Fresno Municipal Code and/or institute legal action in the Fresno Superior Court. 10. General Provisions. a. _Amendment, Modification. and Waiver. No provision hereof may be waived unless in writing and signed by the Parties. Waiver of any one provision herein shall not be deemed a waiver of any other provision herein. This Agreement may be amended or modified only by a written agreement executed by the Parties. b. Attorneys' Fees. Each party shall bear its own attorneys' fees and costs related to the Dispute. Should either party need to take any action, including, but not limited to, mediation, fee arbitration, collections, or civil action, to enforce or interpret this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs incurred. c. Authority to Execute and Execution. The Parties represent and warrant that all necessary action has been taken to authorize the undersigned to execute this Agreement and to bind the Parties to the performance of their respective obligations hereunder. Each individual executing this Agreement hereby represents and warrants that he or she has the full power and authority to execute this Agreement on behalf of the named Parties. d. Binding on All Successors and Assigns. Unless otherwise expressly provided in this Agreement, all the terms and provisions of this Agreement shall be binding on and inure to the benefit of the Parties hereto, and their respective heirs, successors, assigns, and legal representatives. e. Compliance with Law. In providing the services required under this Agreement, Buyer shall at all times comply with all applicable laws of the United States, the State of California, and City, and with all applicable regulations promulgated by federal, state, regional, or local administrative, and regulatory agencies, including prevailing wages, if applicable, now in force and as they may be enacted, issued, or amended during the term of this Agreement. 3 f. Counterparts. This Agreement may be executed in counterparts, each of which when executed and delivered will be deemed an original, and all of which together will constitute one instrument. The execution of this Agreement by any party hereto will not become effective until counterparts hereof have been executed by all Parties hereto. g. Cumulative Remedies. No remedy or election hereunder by City shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. h. Disclaimer of Relationship. Nothing contained in this Agreement, nor any act of the City or of Buyers, or of any other person, shall in and by itself be deemed or construed by any person to create any relationship of third -party beneficiary, or of principal and agent, of limited or general partnership, or of joint venture. i. Effective [late. This Agreement shall be effective upon the City and Buyer's complete execution of all documents. j. Entire Agreement. This Agreement represents the sole and entire agreement and understanding of the Parties with respect to the subject matter hereof. This Agreement supersedes all prior negotiations, representations, or agreements, either written or oral. k. Exhibits. Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement. I. Governing Law and Venue. Except to the extent preempted by applicable federal law, the laws of the State of California shall govern all aspects of this Agreement, including execution, interpretation, performance, and enforcement. Venue for filing any action to enforce or interpret this Agreement will be Fresno, California. m. Headings. The headings of the articles, sections, and paragraphs used in this Agreement are for convenience only and shall not be read or construed to affect the meaning or construction of any provision. n. Indemnification. To the furthest extent allowed bylaw, Owners shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents, and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time, and property damage) incurred by City, Owners or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of performance of this Agreement or the performance of any or all work to be done in and upon the Property pursuant to this Agreement. Owners' obligations under the preceding sentence shall apply regardless of whether Owners or any of its officers, officials, employees or agents are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused by the active or sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. If Owners should subcontract all or any portion of the services to be performed under this Agreement, Owners shall require each subcontractor to indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers in accordance with the terms of 4 the preceding paragraphs. This section shall survive termination or expiration of this Agreement. o. Independent Counsel. The Parties agree that this Agreement was prepared with the joint input of all Parties, and shall not be construed in favor of or against any party to the Agreement. The Parties further acknowledge that this Agreement was executed freely and voluntarily and with the opportunity for each Party to receive the advice of independent legal counsel. p. Interpretation. This Agreement in its final form is the result of the combined efforts of the Parties. Any ambiguity will not be construed in favor or against any party, but rather by construing the terms in accordance with their generally accepted meaning. q. Limitation on Remedies. City may enforce this Agreement in any manner available at law or in equity. Except as provided by Section 7(b) entitled "Attorney's Fees," in no event shall City, or its officers, agents or employees, be liable in damages for any breach or violation of this Agreement, it being expressly understood and agreed Buyer's sole legal remedy for breach or violation of this Agreement by City shall be a legal action in mandamus, specific performance or other injunctive or declaratory relief to enforce the provisions of this Agreement. r. No Third -Party Beneficiary_. No contractor, subcontractor, mechanic, material man, laborer, vendor, or other person hired or retained by Buyer shall be, nor shall any of them be deemed to be, third -party beneficiaries of this Agreement, but each such person shall be deemed to have agreed: (a) they shall look to Buyer as their sole source of recovery if not paid, and (b) except as otherwise agreed to by the City and any such person in writing, they may not enter any claim or bring any such action against the City under any circumstances. Except as provided by law, or as otherwise agreed to in writing between the City and such person, each such person shall be deemed to have waived in writing all right to seek redress from the City under any circumstances whatsoever. s. No Waiver. Neither failure nor delay on the part of the City in exercising any right under this Agreement shall operate as a waiver of such right, nor shall any single or partial exercise of any such right preclude any further exercise thereof or the exercise of any other right. No waiver of any provision of this Agreement or consent to any departure by Owners therefrom shall be effective unless the same shall be in writing, signed on behalf of the City by a duly authorized officer thereof, and the same shall be effective only in the specific instance for which it is given. No notice to or demand on Owners in any case shall entitle Owners to any other or further notices or demands in similar or other circumstances, or constitute a waiver of any of the City's right to take other or further action in any circumstances without notice or demand. t. Notice. Any notice to be given to either party under the terms of this Agreement shall be given by certified United States mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the Parties. 5 If to the CITY: City of Fresno Office of the City Attorney, Code Enforcement Division 2600 Fresno Street, Room 2031 Fresno, CA 93721-3602 If to OWNERS: BDHOV, LP, LEHOV, LP, WRHOV, LP & JDHOV, LP Attn: David & Linda Hovannisian, General Partners P.O. Box 3668 Pinedale, CA 93650 u. Precedence of Documents. In the event of any conflict between the body of this Agreement and any exhibit or attachment hereto, the terms and conditions of the body o-; ti his P.grce,rent will control. v. Severability. The invalidity, illegality, or un-enforceability of any one or more of the provisions of this Agreement shall not affect the validity, legality, or enforceability of the remaining provisions hereof or thereof. w. Wai-ver of Civil Code Section 1542. The Parties each agree that this is a full and finai release app ying to ail unknown and unanticipated injuries, harm, detriment, damages, claims, and causes of action arising out of or in any way relating to the incidents =vt; its Which form the basis of the Dispute concerning the Subject Properly, the i= arties eaach waive all rights or benefits which each now has or in the t:,turc- r: sy !-._ewe under the tears of Section 1542 of the Civil Code of the State of California. which reads as follows: A refe-�-r does not extend to claims v&ch the creditor does r;r cfi to e.:ls`. fnl his fa)for at the time of executing the if k_r cirvE-i by hirn roust have materially affected his ;e >.[:e�',a 11 1. i r.s debtor. Tne r a; lies eacr, represent that each has read the above -quoted language of Civil Code szaii,,r, 1542, consulted vlith his or its attorney regarding this waiver, and once~�:�nds ar acknowledoes that as a minimum consequence of such specific wai. " ;^-2, �7y clam) related to any injury of which he or it is not aware or in inj";ry vio'�Gh '.-s not yet manifested is forever released and discharged. This I I �a �c; ,.; zii r co--s not extend to properties other than the Subject Prope1ly IN WITME'z:S ',:! le Parties nave executed this Agreement on the date last below written p, c jide that they have authority to represent their respective Parties in OWNERS: By: G ._ B. i,��:;r,. �,, General Partner Lino:. .vas s : �n, r enera artner �s�30� a3 Date 5�3� z3 Date CITY: CITY OF FRESNO A municipal co par By: - Cam ena ief Assistant City Attorney ATTEST: TODD STERMER, CMC City Clerk By: i7eputy APPROVED AS TO FORM. ANDREW JANZ City Attorney By:. -- -- `8a('rah P&gzian Deputy City Attorney Date 5- 3i - zo 23 Date Date Attachments: Exhibit A — Notice and Order (A.S.E.T.) to Repair and Rehabilitate Substandard Building(s) dated 3/1/2023 SPAN 7