DONALD S STADLER, JOHN BIPPART - Laserfiche WebLink

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OPTION TO PURCHASE 1.0 PARTIES AND DATE THIS AGREEMENT is entered into by and between DONALD S. STALDER, JOHN D. BIPPART, AND ALGER J. FAST, TRUSTEES UNDER THAT CERTAIN TRUST AGREEMENT ENTITLED "THE S.F.&B. TRUST" DATED JUNE 26, 1984 ("Optionor") and REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE, a public agency ("Optionee"). 2.0 RECITALS 2.1 Optionor owns certain real property located at 3650 Market Street (also having addresses of 3757-3789 Mission Inn Avenue and 3660-3666 Market Street) in the City of Riverside, California, bearing Assessor Parcel Nos. 213-222-002 and 213-222-003 (the "Property"). 2.2 Optionee desires to enter into an irrevocable option to purchase the Property. 2.3 The parties desire by this Agreement to provide the terms and conditions for the option to purchase the Property. 3.0 AGREEMENT 3.1 Purchase Price. If the option hereunder is exercised by Optionee pursuant to this Agreement, then the total consideration to be paid by Optionee to Optionor for the Property shall be the lump sum of One Million Two Hundred Fifteen Thousand Dollars ($1,215,000) ("Purchase Price"). 3.2 Option Money. Upon approval and ratification of this Agreement by Optionee's governing board, Optionee shall pay to Optionor the sum of Fifteen Thousand Dollars ($15,000) as consideration for this option to purchase ("Option Money"). Said funds shall apply to the Purchase Price of the Property. 3.3 Option Period. Optionor hereby grants to Optionee the irrevocable option to purchase Optionor's rights, title and interest in the Property on the terms generally stated in the attached Agreement of Purchase and Sale ("Option") for a period commencing with the execution this Agreement (for option to purchase), and expiring on December 31, 2000 ("Option Period"). Optionee may, however, at its sole and absolute discretion, extend the Option Period for up to two (2) 90-day- periods upon payment to Optionor the sum of Seven Thousand Five Hundred Dollars ($7,500) for each such extension. Notice of Optionee's intention to extend the Option Period shall be given to Optionor in writing at least two-weeks prior to the expiration of the then-applicable Option Period. All payments for extension of the Option Period shall also be considered Option Money, and shall apply to the Purchase Price of the Property. 3.4 Exercise of Option. Optionee may exercise this Option at any time during the Option Period by executing the Agreement of Purchase and Sale, an unexecuted copy of which is attached to this Agreement, and opening escrow for the purchase of the Property. Optionee shall give Optionor at least two weeks' advance written notice of its election to exercise the Option. Optionor shall then update the Rent Roll to be attached as Exhibit B to the Agreement of Purchase and Sale prior to execution of the Agreement by Optionee. 3.5 Expiration of Offer to Sell. This offer to sell shall be deemed expired if not accepted by exercise of Option during the Option Period, including any extension(s) thereto pursuant to Section 3.3 above. In the event that there is a failure to exercise the Option, Optionor shall be entitled to retain the Option Money already paid by Optionee, and shall not be entitled to any further compensation or payment from Optionee. 3.6 Inspection of Property. Optionee shall have complete access to the Property at reasonable times, and shall have the right to conduct, at Optionee's sole cost and expense, a Phase I Environmental Site Assessment, soil tests, tests for the presence of asbestos and lead-based paint, Page I of 4