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HomeMy WebLinkAbout1992-316 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 - 27 28 . .. .. RESOLUTION NO. 92-316 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A CERTAn' DISPOSITION AND' DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND BILLY ARDT, INC. (UPTOWN REDEVELOPMENT PROJECT AREA) . WHEREAS, the Redevelopment Plan for the Uptown Redevelopment Project (the "Redevelopment Plan") ~laS approved and adopted by the Mayor and Common Council of the City of San Bernardino (the "Mayor and Common Council") by Ordinance No. MC-527, dated June 18, 1986; and WHEREAS, the the Redevelopment Plan provides for redevelopment of real property pursuant to the Redevelopment Plan by owners thereof or by parties seeking to acquire real property from the Redevelopment Agency of the City of San Bernardino (the "Agency"); and WHEREAS, Section 33391 of the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section 33000) of the Heal th and Safety Code of the Sta1:e of California) (the "Act") provides that a redevelopment agency may acquire any real or personal property wi thin a redevelc.pment proj ect area or for the purposes of redevelopment and Section 33430 of the Act provides that a redevelopment agency may diJpose of any real or personal property within a redevelopment project area or for the purposes of redevelopment; and WHEREAS, the Agency and Billy Ardt, Inc. (the "Redeveloper") desire to enter into a certain Disposition and Development Agreement (the "Agreement"), a copy of which is attached hereto as Exhibit "A" incorporated herein by reference, pursuant to which, among other matters, the Redeveloper would acquire from the Agency DAB/ses/Ardt.res 1 July 15. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. . the Site which is described in Attachment "2" to Exhibit "A", which is attached hereto and incorporated herein by this reference. The Site is located within the area subject to the Redevelopment Plan (the "Project Area"). The acquisition would be for purposes of the redevelopment thereof, as described in the Agreement, including remodeling of the structure on the Site by the Redeveloper and the establishment of a games rehabilitation and distribution business (the "Project"); and WHEREAS, the Agency Staff has prepared and made available for public inspection a certain Summary Report (the "Summary") concerning the proposed Agreement, as required by Health and Safety Code Section 33433, a copy of which is on file with the Executive Director of the Agency and the City Clerk of the City of San Bernardino and is incorporated herein by referertce; and WHEREAS, the Mayor and Common Council have duly noticed and conducted a public hearing in accordance with the requirements of Health and Safety Code Section 33433 concerning the proposed sale of the Site by the Agency to the Redeveloper pursuant to the proposed Agreement; and WHEREAS, the Community Development Commission of the City of San Bernardino (the "Commission") on behalf of the Agency has duly noticed and conducted a public hearing in accordance with the requirements of Health and Safety Code Section 33431 concerning the proposed sale of the Site by the Agency to the Redeveloper pursuant to the proposed Agreement; and WHEREAS, based upon the evidence and testimony submitted to the Commission and the Mayor and Common Council, it is reasonable and appropriate for the Agency to enter into the proposed 2 DAB/ses/Ardt.res May 12, 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 .. . Agreement, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION I. The Mayor and Common Council hereby find and determine that the development of the Site as described in the proposed Agreement is within the scope, terms and provisions of the Redevelopment Plan. SECTION 2. The Mayor and Common Council hereby accept and approve the Summary. SECTION 3. The Mayor and Common Council hereby find and determine that the consideration to be paid by the Redeveloper to the Agency for the conveyance of the Site pursuant to the Agreement is not less than the fair market value of the Site. However, to the extent that the sale of the Site by the Agency to the Redeveloper pursuant to the proposed Agreement may be deemed to be less than the fair market value thereof, the Mayor and 17 the Site for less than fair market value is reasonable and Common Council hereby find and determine that the conveyance of 18 19 20 21 22 23 24 25 26 27 28 necessary to effectuate the purposes of the Redevelopment Plan, in that the conveyance for less than the fair market value will permit the Redeveloper to acquire the Site for redevelopment and in order to eliminate blight, to create employment opportunities, to increase the value of real property in the Project Area and to cause the City and the Agency to receive additional tax revenues as a result of redevelopment. Absent the conveyance of the Site for less than fair market value, the Redeveloper would likely not proceed with the purchase thereof and redevelopment of the Site. III DAB/sesjArdt.res 3 May 12. 1992 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 < 1 RESOLUTION...DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND 2 LOMA LINDA UNIVERSITY (UPTOWN REDEVELOPMENT PROJECT 'AREA). (Sale of 101 North "I" St. Bldg.) 3 4 SECTION 4. The Mayor and Common Council hereby approve the 5 proposed Agreement and the conveyance of the Agency's interest in 6 the Site by the Agency to the Redeveloper. 7 I HEREBY CERTIFY that the foregoing resolution was duly 8 adopted by the Mayor and Common Council of the City of San Bernardino at a regular meeting thereof, held on the 3rd day of Auaust: , 1992, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA x REILLY x HERNANDEZ x MAUDSLEY y MINOR y POPE-LUDLAM y MILLER x c!l~ ~ of The foregoing t/M;J day , 1992. Approved as to form and legal content: JAMES F. PENMAN, City Attorney B~~/ DAB/ses/Ardt.res 4 May 12. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DAB/aea/Games.agr ~ DISPOSITION AND DEVELOPMENT AGREEMENT (Approved per City of San Bernardino Res 92-316 adopted 8/3/92) Between The Redevelopment Agency of the City of San Bernardino and Billy Ardt, Inc. doing business as Games For Fun International and Billiards Surplus (Uptown Redevelopment Project Area) .JUly 9. 1992 1 2 3 4 I. 5 6 7 8 9 10 11 12 13 II. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . DISPOSITION AND DEVELOPMENT AGREEMENT TABLE OF CONTENTS [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement A. B. C. D. E. F. G. H. I. J. K. L. M. B. C. D. [200] [102] The Redevelopment Plan [103] The Site [104] Parties to the Agreement 1. [105] The Agency 2. 3. [201] [202] [203] [204] [205] [206] [207] [208] [209] [210] [211] [212] [213] DAB/aea/Games.agr [106 ] [107] The Developer Prohibition Against Change in Ownership, Management and Control of the Developer DISPOSITION OF THE SITE Purchase Price Disposition of the Site Conditions Precedent Escrow Conveyance of Title and Delivery of Possession Form of Deed for the Disposition Conveyance Condition of Title Time for and Place of Delivery of Agency Deed Recordation of Documents Title Insurance Taxes and Assessments Condition of the Site Preliminary Work July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 III. [300] B. C. D. E. F. DAB/.ea/C.....agr A. . DEVELOPMENT OF THE SITE [301] Development of the Site by the Developer 2. 1. [302] Scope of Development 3. 4. 5. 6. 7. 8. 9. 10. [312] [313] [314] 1. 2. 3. 4. [319] [320] [303] [304] Design Concept Drawings Construction Drawings and Documents Related [305] [306] [307] Cost of Construction Construction Schedule Bodily Injury and Property Insurance Damage [308] City and other Governmental Agency Permits [309] [310] [311] Rights of Access Local, State and Federal Laws Antidiscrimination During Construction or Remodeling Taxes, Assessments, Encumbrances and Liens Prohibition Against Transfer of the Site, the Buildings or Structures thereon and Assignment of Agreement Mortgage, Deed of Trust, Sale and Lease-Back Financing; Rights of Holders [315] No Encumbrances Except Mortgages, Deeds of Trust, or Sale and Lease-Back for Development [316] Holder Not Obligated to Construct Improvements [317] Notice of Default to Mortgages or Deed of Trust HOlders; Right to Cure [318] Failure of Improvements Holder to Complete Right of the Agency to Satisfy Other Liens on the Site After Title Passes Certificates of Completion July 9. 1992 I IV. 2 3 4 5 6 7 v. 8 9 10 II 12 13 VI. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 D. A. B. C. D. E. F. [400] USE OF THE SITE A. [401] [402] [403] Uses B. Maintenance of the Site C. Rights of Access D. [404] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction [500] GENERAL PROVISIONS A. [501] Notices, Demands and Communications Between the Parties B. [502] [503] Conflicts of Interest; Nonliability C. Enforced Delay; Extension of Times of Performance [504] Inspection of Books and Records [600] DEFAULTS AND REMEDIES [601] [602] Defaults - - General Legal Actions 1. [603] [604] [605] Institution of Legal Actions 2. Applicable Law 3. Acceptance of Service of Process [606] [607] [608] Rights and Remedies are Cumulative Inaction Not a Waiver of Default Remedies and Rights of Termination 1. [609] Damages 2. [610] Action for Specific Performance 3. [611] Termination by the Developer 4. [612] Termination by the Agency [613] Remedies of the Agency and the Developer for Default After Passage of Title and Prior to Completion of Construction DAB/aea/Gamea.egr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1. [614] [615] [616] Damages 2. 3. Action for Specific Performance Reentry and Revesting of Title in the Agency VII. [700] SPECIAL PROVISIONS A. [701] Submission of Documents to Agency for Approval B. [702] Successors In Interest VIII. [800] ENTIRE AGREEMENT, WAIVERS IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY DAB/ae8/Gamea.egr July 9. 1992 1 DX8P08XTXON AND DEVELOPMENT AGREEMENT 2 THIS AGREEMENT IS ENTERED INTO THIS 20 day of July 3 1992 by and between the REDEVELOPMENT AGENCY OF THE CITY OF 4 SAN BERNARDINO (the "Agency"), and BILLY ARDT, INC., a Delaware 5 Corporation, doing business as Games For Fun International and 6 Billiards Surplus (the "Developer"). Agency and Developer hereby 7 agree as follows: 8 1. [100] SUBJECT OF AGREEMENT 9 A. [101] Purpose of Agreement 10 The purpose of this Agreement is to effectuate the 11 Redevelopment Plan for the Uptown Redevelopment Project (the 12 "Project") by providing for the development of the Site, which is 13 situated within the uptown Redevelopment Project Area (the 14 "Project Area") of the Project. That certain real property to be 15 developed pursuant to this Agreement (the "Site") is depicted on 16 the "Site Map," which is attributed hereto as Attachment No.1 and 17 incorporated herein by reference. This Agreement is entered into 18 for the purpose of remodeling and developing the 8i te and for 19 facili tating the operation of a light industrial enterprise on the 20 Site and not for speculation in land hOlding. The completion of 21 the remodeling, development and occupancy of the Site pursuant to 22 this Agreement is in the vital and best interest of the City of 23 San Bernardino, California (the "City") and the health, safety and 24 welfare of its residents, in accord with the public purposes and 25 provisions of applicable state and local laws and requirements 26 under which the Project has been undertaken, and will benefit the 27 Project Area by providing needed industry and jobs within the 28 Project Area. DAB/.e./ea.....gr 1 July 9. 1992 ,- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. [102] The Redevelopment Plan The Redevelopment Plan was approved and adopted on June 18, 1986 by Ordinance No. MC-527 of the Common Council of the City of San Bernardino; said ordinance and the Redevelopment Plan as so approved (the "Redevelopment Plan") are incorporated herein by reference. C. [103] The Site The Site is that certain real property designated on the Site Map (Attachment No.1) and described in the "Legal Description of the Site", which is attached hereto as Attachment No. 2 and is incorporated herein by this reference. The Site is held in fee by the Agency. D. [104] Parties to the Agreement 1. [105] The Agency The Agency is a public body, cOrPOrate and politic, exercising governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020 et seq.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, the Development Department of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. III DAB/aea/Ga.e..a;r 2 July 9. 1992 1 2. [106] The Developer 2 The Developer is Billy Ardt, Inc., a Delaware 3 Corporation. The principal office and mailing address of the 4 Developer for purposes of this Agreement is 895 W. Rialto Ave., 5 San Bernardino, CA 92410 or such successor as may purchase all or 6 any part of Site. 7 3. [107] Prohibition Against Change in 8 Ownership, Management and Control 9 of the Developer 10 The qualifications and identity of the Developer 11 are of particular concern to the City and the Agency. It is 12 because of those qualifications and identity that the Agency has 13 entered into this Agreement with the Developer. No vOluntary or 14 involuntary successor in interest of the Developer shall acquire 15 any rights or powers under this Agreement except as expressly set 16 forth herein. 17 The Developer shall not assign all or any part of 18 this Agreement or any rights hereunder without the prior written 19 approval of the Agency which approval the Agency may not 20 unreasonably withhold. In the event of such transfer or 21 assignment: (1) the assignee shall expressly assume the 22 obligations of the Developer pursuant to this Agreement in writing 23 satisfactory to the Agency; and (2) any guarantees provided to 24 assure the performance of the Developer's obligations under this 25 Agreement shall remain in full force and effect; and (3) the 26 original Developer shall remain fully responsible for the 27 performance and liable for the obligations of the Developer 28 pursuant to this Agreement. DAB/.e./~e...gr 3 July 9. 1992 1 In the absence of specific written agreement by 2 the Agency, no such transfer, assignment or approval by the Agency 3 shall be deemed to relieve the Developer or any other party from 4 any obligation under this Agreement. All of the terms, covenants 5 and conditions of this Agreement shall be binding upon and shall 6 inure to the benefit of the Developer and the permitted successors 7 and assigns of the Developer. Whenever the term "Developer" is 8 used herein, such term shall include any other permitted 9 successors and assigns as herein provided. 10 The restrictions of this Section 107 shall 11 terminate and be of no further force and effect upon the issuance 12 by the Agency of a Certificate of Completion in the form attached 13 hereto as Attachment No. 5 as provided in Section 324 upon 14 completion of the Developer Improvements described in Section 302 15 of this Agreement and Attachment No.4. 16 II. [200] DISPOSITION OF THE SITE 17 A. [201] Purchase Price 18 Subject to applicable terms and conditions of this 19 Agreement, the Agency agrees to sell to the Developer and the 20 Developer shall purchase from the Agency the Site for an amount 21 equal to Two Hundred Twenty Five Thousand Dollars (the "Purchase 22 Price") due and payable concurrently with close of escrow: 23 B. [202] Disposition of the Site 24 The Developer shall purchase from the Agency the Site 25 and the Agency agrees to sell to the Developer the Site, in 26 accordance with and subject to all of the terms, covenants and 27 conditions of this Agreement. Thereupon, the Developer agrees to 28 and shall develop the Site within the times, for the uses and DAB/ae./Gallea.agr 4 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 subject to the terms, conditions and provisions as hereinafter provided. In addition to the consideration set forth in Sections 201 and 202, the Developer shall pay all of those costs, charges, fees and expenses as hereafter expressly provided to be paid by Developer pursuant to this Agreement and shall, except as herein provided, at its cost, provide all of the improvements required by this Agreement to be provided by the Developer including external beautification improvements in the amount of at least Fifty Thousand Dollars (the "Developer Improvements"), above and beyond the cost of such improvements required by the Ci ty of San Bernardino Development Code. At the option of Developer, the cost of purchasing and installing a fire sprinkler system to code requirements may be included within the cost of such improvements. C. [203] Conditions Precedent The following are conditions precedent to the conveyance of the Site by the Agency to the Developer: 1. the Developer shall have paid or shall have caused to be paid to escrow all closing costs and charges which Developer is obligated to pay pursuant to this Agreement: 2. the Developer shall have provided proof (certificates) conforming to Section 307 of insurance Agreement: of this 3. the Developer shall have obtained all building and other permits needed to commence construction or rehabilitation of the Developer Improvements: 4. the Agency shall execute and deliver to the Escrow Agent the Grant Deed (Attachment No.6). 5 DAB/ae./Gamea.agr July 9. 1992 1 The foregoing conditions numbered 1 to 4, inclusive, as 2 set forth in this Section 203, shall cOllectively constitute the 3 "Conditions Precedent." All of the Conditions Precedent shall be 4 satisfied prior to the Disposition Conveyance. 5 D. [204] Escrow 6 This Agreement constitutes the joint basic escrow 7 instructions of the Agency and the Developer for the conveyance of 8 the Site by the Agency to the Developer (the "Conveyance"). The 9 Agency and the Developer shall provide such additional escrow 10 instructions as may be necessary, provided that such instructions 11 shall be consistent with this Agreement. 12 An escrow holder mutually acceptable to the parties 13 (the "Escrow Agent") is hereby empowered to act under this 14 Agreement, and the Escrow Agent shall carry out its duties as 15 Escrow Agent hereunder. Escrow Agent shall open a separate escrow 16 to handle the delivery and recordation of documents provided for 17 under this Agreement. 18 Upon execution of this Agreement Developer shall 19 deposit with the Escrow Agent the amount of $22,500 as a portion 20 of the purchase price of the Site. Such deposit is nonrefundable 21 unless the failure to complete the Project is due to a cause not 22 the fault of the Developer. 23 Upon delivery of the Grant Deed (Attachment No.6). the 24 Escrow Agent shall cause to be recorded the Grant Deed (Attachment 25 No.6), when title can be vested in the Developer in accordance 26 with the terms and provisions of this Agreement. The Developer 27 shall accept conveyance of title and possession of the Site by the 28 time set forth in the Schedule of Performance (Attachment No.3) DAB/aea/Cuea.egr 6 July 9. 1992 1 subject to the satisfaction of the Conditions Precedent. The 2 Escrow Agent shall cause to be paid any applicable transfer tax 3 with funds provided by the Developer. 4 The Developer and the Agency shall pay in escrow to the 5 Escrow Agent the following fees, charges, deposits and costs with 6 respect to the Conveyance promptly after the Escrow Agent has 7 notified the Developer and the Agency of the amount of such fees, 8 charges and costs: 9 a. Good faith deposit of 10% ($22,500) of the 10 purchase price. (as noted above) 11 b. The premium for the title insurance policy to be 12 paid by the Agency as set forth in Section 208 of this Agreement; 13 c. Recording fees to be paid by Developer; 14 d. Notary fees to be evenly divided between Agency 15 and Developer; 16 e. Any State, County or City documentary transfer tax 17 to be paid by Developer; 18 f. Ad valorem taxes, if any, upon the Site for any 19 time prior to transfer of title to be paid by Agency. 20 g. Escrow costs to be evenly divided between Agency 21 and Developer. 22 The Escrow Agent is authorized to: 23 a. Pay, and charge the Agency and the Developer, 24 respectively, for any fees, charges and costs payable under this 25 Section 204 of this Agreement. Before such payments or charges 26 are made, the Escrow Agent shall notify the Agency, and the 27 Developer of the fees, charges and costs necessary to clear title 28 and close the Escrow. DAB/.es/Gamea.agr 7 July 9. 1992 ,---- - 1 b. Disburse funds and deliver the deed and other 2 documents to the parties entitled thereto when the conditions of 3 this Escrow have been fulfilled by the Agency and the Developer. 4 c. Record any instruments delivered through this 5 Escrow, if necessary or proper, to vest title in the Developer in 6 accordance with the terms and provisions of this Agreement. 7 All funds received in this Escrow shall be deposited by 8 the Escrow Agent with other escrow funds of the Escrow Agent in a 9 general escrow account or accounts with any state or national bank 10 doing business in the State of California. Such funds may be 11 transferred to any other general escrow account or accounts. All 12 disbursements shall be made by check of the Escrow Agent. All 13 adj ustments are to be made on the basis of a thirty (30) day 14 month. All interest earned shall be credited to the benefit of 15 the party depositing the corresponding funds. 16 If the Escrow is not in condition to close on or before 17 the time for conveyance established in Section 205 of this 18 Agreement, any party who then shall have fully performed the acts 19 to be performed before the conveyance of title may, in writing, 20 demand from the Escrow Agent the return of its money, papers or 21 documents deposited with the Escrow Agent. No demand for return 22 shall be recognized until twenty (20) days after the Escrow Agent 23 shall have mailed copies of such demand to the other party or 24 parties at the address of its or their principal place or places 25 of business. Objections, if any, shall be raised by written 26 notice to the Escrow Agent and to the other party wi thin the 27 twenty (20) day period, in which event the Escrow Agent is 28 authorized to hold all money, papers and documents with respect to DAB/us/Gomes. sgr 8 July 9. 1992 1 the Site until instructed by a mutual jurisdiction. If no written 2 reply to an objection is delivered to the Escrow Agent within said 3 twenty (20) day period, to any demand, then the Escrow Agent shall 4 comply with such original demand and cancel the escrow forthwith. 5 If such demand and reply are complied with wi thin such twenty (20) 6 day period, Escrow shall close in accordance with the terms 7 hereinabove set forth. 8 In the event of an objection to any demand to release 9 money, papers or documents, the Escrow Agency shall not be 10 obligated to return any such money, papers or documents except 11 upon the written instructions of the Agency and the Developer or 12 until the party entitled thereto has been determined by a final 13 decision of a court of competent jurisdiction. 14 Any amendment to these Escrow instructions shall be in 15 writing and signed by the Agency and the Developer. At the time 16 of any amendment, the Escrow Agent shall agree to carry out its 17 duties as Escrow Agent under such amendment. 18 All communications from the Escrow Agent to the Agency 19 or the Developer shall be directed to the addresses and in the 20 manner established in Section 501 of this Agreement for notices, 21 demands and communications between the Agency and the Developer. 22 The liability of the Escrow Agent under this Agreement, 23 insofar as it acts in the capacity of escrow holder and without 24 limitation to its responsibility or liability insofar as it may 25 act in another capacity, is limi ted to performance of the 26 obligations imposed upon it under Sections 203 and 208, both 27 inclusive, of this Agreement. 28 III DAB/aea/Gamea.agr 9 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 E. [205] Conveyance of Title and Delivery of Possession Subject to any extensions of time mutually agreed upon between the Agency and the Developer, the Conveyance shall be completed on or prior to the date specified therefor in the Schedule of Performance (Attachment No.3). Said Schedule of Performance (Attachment No.3) is subject to revision from time to time as mutually agreed upon in writing between the Developer and the Agency. The Developer shall accept title and possession on or before the date established in the Schedule of Performance (Attachment No.3) for the Conveyance provided all conditions to performance by Developer have been satisfied. F. [206] Form of Deed for the Disposition Conveyance Subject to the requirements of Section 201, and all applicable terms and conditions of this Agreement, the Agency shall convey to the Developer title to the Site in the condition provided in Section 205 of this Agreement by grant deed in the form of the Grant Deed (Attachment No.6). G. [207] Condition of Title The Agency shall convey to the Developer fee simple merchantable title to the Site, excepting therefrom mineral rights, free and clear of all recorded or unrecorded liens, encumbrances, covenants, assessments, easements, leases and taxes, except for covenants and easements of record at the time of execution of this Agreement which the Developer has approved in writing, the Redevelopment Plan, the provisions contained in the Grant Deed (Attachment No.6) and such other encumbrances to which 10 DAB/ae./Game..agr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the Developer may consent. The condition of title shall be compatible with and not preclude development of the Developer Improvements, and the Developer shall review easements prior to and as a condition of closing consistent with the foregoing. The parties shall act reasonably in evaluation of any encumbrances and shall act diligently and promptly to conform the condition of title to that required for the Developer to proceed with development of the Developer Improvements. In no event shall the Developer be required to accept title subject to a deed of trust or mortgage. H. [208] Time for and Place of Delivery of Agency Deed Subject to any mutually agreed upon extension of time, the Agency shall deposit the Grant Deed (Attachment No.6) with. . the Escrow Agent on or before the date established for the date of the Conveyance pursuant to the Schedule of Performance (Attachment No.3). 1. [209] Recordation of Documents The Escrow Agent shall file among the land records in the Office of the County Recorder for San Bernardino County those instruments enumerated in Section 204. J. [210] Title Insurance Concurrently with recordation of the Grant Deed (Attachment No.6), a title insurance company mutually acceptable to the parties (the "Title Company") shall provide and deliver to the Developer a title insurance policy issued by the Title Company insuring that the title to the Site is vested in the Developer in the condition required by Section 207 of this Agreement. The amount of such title insurance policy shall be $225,000; provided 11 DAB/ae./Game...gr July 9. 1992 1 that the Agency shall bear that portion of the premium for such 2 pOlicy as would be applicable for a CLTA policy based upon the 3 Purchase Price. The Title Company shall provide the Agency with 4 a copy of such title policy. 5 K. [211] Taxes and Assessments 6 Ad valorem taxes and assessments, if any, on the Site, 7 levied, assessed or imposed for any period commencing prior to the 8 Conveyance shall be the responsibility of the Agency, and shall be 9 paid through escrow. Any of such taxes imposed after the 10 Conveyance shall be borne by the Developer. 11 L. [212] Condition of the Site 12 The Developer assumes all responsibility for any 13 demolition and clearance of the Site as necessary for the. 14 provision of the Developer Improvements and the Developer assumes 15 all responsibility for the suitability of the Site, for the 16 operation of a light industrial business (as hereinafter defined 17 in Section 401 of this Agreement). The Agency makes no 18 representations or warranties concerning the Site, its sui tabili ty 19 for the use intended by the Developer, the condition of the 20 building or other improvements, or the surface or subsurface 21 condi tions of the Site. In the event Developer completes its 22 acquisi tion of the Site and if the soil or other surface or 23 subsurface conditions of the Site are not in all respects entirely 24 suitable for the use or uses to which the Site will be put as of 25 the conveyance of the Site, then it is the responsibility and 26 obligation of Developer (and such third parties, if any, as may be 27 legally responsible for the removal of hazardous substances) and 28 not the Agency to take such action as may be necessary to place DIIB/.../GaII....gr 12 July 9. 1992 1 the Site in a condition entirely suitable for the commencement, 2 development and completion of the Developer Improvements. 3 The Developer shall defend, indemnify and hold harmless 4 the Agency for any claim related to or arising out of hazardous 5 waste contamination occurring after transfer of title to Developer 6 which claim against the Agency is based upon the fact that the 7 Agency held title to the property. 8 M. [213] Preliminary Work 9 Any preliminary work undertaken on the Site by 10 Developer prior to conveyance of title thereto shall be done only 11 after obtaining the written consent of the Agency, and at the sole 12 expense of Developer. 13 The Developer shall save and protect the Agency and the 14 Ci ty against any claims resulting from all preliminary work, 15 access or use of the Site undertaken by the Developer pursuant to 16 this Section 213. Any preliminary work by the Developer shall be 17 undertaken only after securing any and all necessary permits from 18 the appropriate governmental agencies. 19 III. [300] DEVELOPMENT OF THE SITE 20 A. [301] Development of the Site by the Developer 21 1. [302] Scope of Development 22 The Site shall be developed as provided in the 23 Scope of Development, which is attached hereto as Attachment No. 24 4 and is incorporated herein. The Developer Improvements shall 25 consist of a warehouse and related improvements. 26 The development shall include any plans and 27 specifications submitted to Agency or the City for approval, and 28 / / / DAB/aea/Gam.a.agr 13 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall incorporate or show compliance with all applicable mitigation measures. By the time set forth in the Schedule of Performance (Attachment No.3) for completion of the Developer Improvements, the Developer shall have completed renovation and construction of improvements on the Site. 2. [303] Design Concept Drawings By the respective times set forth therefor in the Schedule of Performance (Attachment No.3), the Developer shall prepare and submit to the City for its approval Design Concept Drawings and related documents containing the overall plan for development of the Si te. The Si te shall be developed as established in this Agreement and such documents except as changes may be mutually agreed upon between the Developer and the Agency. Any such changes shall be within the limitations of the Scope of the Development (Attachment No.4). 3. [304] Construction Drawings and Related Documents By the time set forth therefor in the Schedule of Performance (Attachment No.3), the Developer shall prepare and submit to the City, construction drawings, landscape plan and related documents for rehabilitation and development of the Site for architectural review and written approval. The landscaping and finish grading plans shall be prepared by a professional landscape architect who may be the same firm as the Developer's architect. During the preparation of all drawings and plans, staff of the Agency and the Developer shall hold regular progress 14 DAB/.../Gamea.8gr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 meetings to coordinate the preparation of, submission to, and review of drawings, plans and related documents. The staff of Agency and the Developer shall communicate and consult informally as frequently as is necessary to insure that the formal submittal of any documents to the Agency can receive prompt and speedy consideration. 4. [305] Cost of Construction Except as herein provided, the cost of developing the Site and remodeling and constructing all improvements thereon shall be borne by the Developer. 5. [306] Construction Schedule The Developer shall promptly begin and thereafter diligently prosecute to completion the remodeling and construction, of the Developer Improvements and the development of the Site. The Developer shall begin and complete all construction and development within the times specified in the Schedule of Performance (Attachment No.3). The Developer shall strictly conform to all time requirements and limitations set forth in this Agreement. 6. [307] Bodily Injury and Property Damage Insurance The Developer shall defend, assume all responsibili ty for and hold the Agency, the City, and their respective officers and employees, harmless from all claims or sui ts for, and damages to, property and injuries to persons, including accidental death (including attorneys fees and costs), which may be caused by any of the Developer's activities under this Agreement, to the extent the activities of the Developer are 15 DAB/aea/G..ea.agr July 9. 1992 1 performed negligently, constitute intentional misconduct, or are 2 breaches of the obligations of the Developer under this Agreement, 3 whether such activities or performance thereof by the Developer or 4 anyone directly or indirectly employed or contracted with by the 5 Developer and whether such damage shall accrue or be discovered 6 before or after termination of this Agreement. The Developer 7 shall take out and maintain until (i) the issuance of a 8 Certificate of Completion for all of the Developer Improvements 9 pursuant to Section 320 of this Agreement (if an "occurrence" 10 policy is obtained) or (ii) the second anniversary of the 11 completion of the Developer Improvements (if a "claims made" 12 policy is obtained), a comprehensive liability policy in the 13 amount of One Million Dollars ($1,000,000) combined single limit 14 pOlicy, including contractual liability, as shall protect the 15 Developer, City and Agency from claims for such damages. 16 The Developer shall furnish a certificate of 17 insurance countersigned by an authorized agent of the insurance 18 carrier on a form of the insurance carrier setting forth the 19 general provisions of the insurance coverage. This countersigned 20 certificate shall name the City and the Agency and their 21 respective officers, agents, and employees as additional insureds 22 under the policy. The certificate by the insurance carrier shall 23 contain a statement of obligation on the part of the carrier to 24 notify City and the Agency of any material change, cancellation or 25 termination. Coverage provided hereunder by the Developer shall 26 be primary insurance and not contributing with any insurance 27 maintained by the Agency or City, and the pOlicy shall contain 28 such an endorsement. The insurance policy or the certificate of DAB/aea/GaIlea.."r 16 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . insurance shall contain a waiver of subrogation for the benefit of the City and the Agency. The required certificate shall be furnished by the Developer at the time set forth therefor in the SchedUle of Performance (Attachment No.3). Upon request the Developer shall furnish Agency with copies of the subject insurance policy(ies). The Developer shall also furnish or cause to be furnished to the Agency evidence satisfactory to the Agency that it or any contractor with whom it has contracted for the performance of work on the Site or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 7. [308] City and Other Governmental Agency Permits Before commencement of construction or development of any buildings, structures or other works of improvement upon the Site, the Developer shall, at its own expense, secure or cause to be secured any and all permits which may be required by the City or any other governmental agency affected by such construction, development or work. 8. [309] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of the Agency and the City shall have the right of access to the Site, without charges or fees, at normal construction hours during the period of construction for the purposes of this Agreement including, but not limited to, the inspection of the work being performed in constructing the improvements, so long as they comply with all safety rules and DAB/.e./G_ea.agr 17 July 9. 1992 1 have given prior notice to the Developer. Such representatives of 2 the Agency or of the City shall be those who are so identified in 3 writing by the Executive Director of the Agency. The Agency shall 4 hold the Developer harmless from any bodily injury or related 5 damages arising out of the activities of the Agency and the City 6 as referred to in this Section 309. This Section 309 shall not be 7 deemed to diminish or limit any rights which the City or the 8 Agency may have by operation of law irrespective of this 9 Agreement. 10 9. [310] Local, State and Federal Laws 11 The Developer shall carry out the construction of 12 the improvements in conformity with all applicable laws, including 13 all applicable federal and state labor standards; provided, 14 however, Developer and its contractors, successors, assigns, 15 transferees and lessees are not waiving their rights to contest 16 any such laws, rules or standards. 17 10. [311] Antidiscrimination During Construction 18 or Remodeling 19 The Developer, for itself and its successors and 20 assigns, agrees that in the construction of the improvements 21 provided for in this Agreement, the Developer shall not 22 discriminate against any employee or applicant for employment 23 because of race, color, creed, religion, age, sex, marital status, 24 handicap, national origin or ancestry. 25 B. [312] Taxes, Assessments, Encumbrances and Liens 26 The Developer shall pay when due all ad valorem taxes 27 and assessments on the Site and levied subsequent to the 28 acquisi tion of title heretofore by the Developer. Prior to DlIB/aea/G...ea.agr 18 July 9. 1992 1 issuance of a Certificate of Completion with respect to all of the 2 Developer Improvements pursuant to this Agreement, the Developer 3 shall not place or allow to be placed on the Site or any part 4 thereof any mortgage, trust deed, encumbrance or lien other than 5 as expressly allowed by this Agreement. The Developer shall 6 remove or have removed any levy or attachment made on any of the 7 Si te or any part thereof, or assure the satisfaction thereof 8 wi thin a reasonable time but in any event prior to a sale 9 thereunder. 10 C. [313] Prohibition Against Transfer of the Site, 11 the Buildings or Structures Thereon and 12 Assignment of Agreement 13 Prior to the issuance by the Agency of a Certificate of. 14 Completion as to any building or structure, the Developer shall 15 not, except as permitted by this Agreement, without the prior 16 written approval of the Agency (whiCh may be given by the 17 Executive Director of the Agency on behalf of the Agency), make 18 any total or partial sale, transfer, conveyance, assignment or 19 lease of the whole or any part of the Site or of the buildings or 20 structures on the Site. This prohibition shall not be deemed to 21 prevent a transfer expressly permitted pursuant to Section 108 of 22 this Agreement, or the granting of temporary or permanent 23 easements or permits to facilitate the development of the Site. 24 III 25 III 26 III 27 I I I 28 I I I DAB/ae./G..e8.agr 19 July 9. 1992 1 D. [314] Mortgage, Deed of Trust, Sale and Lease-Back 2 Financing; Rights of Holders 3 1. [315] No Encumbrances Except Mortgages, Deeds 4 of Trust, or Sale and Lease-Back for 5 Development 6 Mortgages, deeds of trust and sales and 1eases- 7 back are to be permitted before completion of the construction of 8 the improvements, but only for the purpose of securing loans of 9 funds to be used for financing the acquisition of the Site, the 10 construction of improvements on the Site, and any other purposes 11 necessary and appropriate in connection with development under 12 this Agreement, and only if the instruments effecting such 13 mortgages, deeds of trust and sales and leases-back contain the. 14 provisions of Sections 319 and 320 of this Agreement. The 15 Developer shall notify the Agency in advance of any mortgage, deed 16 of trust or sale and lease-back financing, if the Developer 17 proposes to enter into the same before completion of the 18 construction of the improvements on the Site. The words 19 "mortgage" and "trust deed" as used hereinafter shall include sale 20 and lease-back. The Developer shall not enter into any such 21 conveyance for financing without the prior written approval of the 22 Agency, which approval the Agency agrees to give if any such 23 conveyance for financing is given to a bank, savings and loan 24 association, or other similar lending institution and such lender 25 shall be deemed approved unless rejected in writing by the Agency 26 within fifteen (15) days after written notice thereof is received 27 / / / 28 / / / DAB/.../Gaaea.agr 20 July 9. 1992 1 by the Agency. The form of approval by the Agency shall be a 2 writing which references this Section 315, executed by the 3 Executive Director of the Agency. 4 The Agency, by its Executive Director, agrees to 5 approve financing by a recognized commercial lender in an amount 6 reasonably determined to represent the Developer's cost to 7 construct the Developer Improvements so long as the loan documents 8 (i) contain the provisions of Section 318 and 319 of this 9 Agreement and (ii) provide that, in the event of foreclosure by 10 the lender (or acceptance of a deed in lieu of foreclosure) the 11 lender would take the Site free of this Agreement (except for 12 Section 318) but subject to the terms of the Grant Deed 13 (Attachment No.6) which do not terminate upon recordation of the 14 Certificate of Completion. 15 16 17 18 19 20 improvements or to guarantee such construction or completion; nor 21 shall any covenant or any other provision in the deed for the Site 22 be construed so to obligate such holder. Nothing in this 23 Agreement shall be deemed to construe, permit or authorize any 24 such holder to devote the Site to any uses or to construct any 25 improvements thereon, other than those uses or improvements 26 provided for or authorized by the Redevelopment Plan. 27 I I I 28 III 2. [316] Holder Not Obligated to Construct Improvements The hOlder of any mortgage or deed of trust authorized by this Agreement shall not be obligated by the provisions of this Agreement to construct or complete the DAB/aea/Gaae..agr 21 July 9. 1992 1 3. [317] Notice of Default to Mortgagee or Deed 2 of Trust HOlders: Right to Cure 3 Wi th respect to any mortgage or deed of trust 4 granted by Developer as provided herein, whenever the Agency shall 5 deliver any notice or demand to Developer with respect to any 6 breach or default by the Developer in completion of construction 7 of the improvements, the Agency shall at the same time deliver to 8 each holder of record of any mortgage or deed of trust authorized 9 by this Agreement a copy of such notice or demand. Each such 10 hOlder shall (insofar as the rights of the Agency are concerned) 11 have the right, at its option, within thirty (30) days after the 12 receipt of the notice, to cure or remedy or commence to cure or 13 remedy any such default and to add the cost thereof to the 14 mortgage debt and the lien of its mortgage. Any such holder shall 15 be entitled, upon compliance with the requirements of Section 320 16 of this Agreement, to a Certificate of Completion (as therein 17 defined) . 18 4. [318] Failure of Holder to Complete 19 Improvements 20 In any case where, thirty (30) days after default 21 by the Developer in completion of construction of improvements 22 under this Agreement, the holder of any mortgage or deed of trust 23 creating a lien or encumbrance upon the Site or any part thereof 24 has not elected to construct the Developer Improvements, or if it 25 has elected to construct the Developer Improvements but has not 26 proceeded diligently with construction, the Agency may purchase 27 the mortgage or deed of trust by payment to the hOlder of the 28 amount of the unpaid mortgage or deed of trust debt, including DAB/e.o/G_o.ogr 22 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 principal and interest and all other sums secured by the mortgage or deed of trust. E. [319] Right of the Agency to Satisfy Other Liens on the Site After Title Passes Prior to the completion of construction of the Developer Improvements, and after the Developer has had written notice and has failed after a reasonable time, but in any event not less than fifteen (15) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on the Site which are not otherwise permitted under this Agreement, the Agency shall have the right but no obligation to satisfy any such liens or encumbrances. [320] Certificate of Completion The Executive Director of the Agency, without further approval by the City or the Agency and as a ministerial act hereunder, shall execute, and deliver the Certificate of Completion and Release in the form attached hereto as Attachment No. 5 after final inspection of the Developer Improvements. Such Certificate of Completion shall be a conclusive determination of satisfactory completion of the construction required by this Agreement upon the Site and the Certificate of Completion shall so state. The Agency may also furnish the Developer with a Certificate of Completion for portions of the improvements upon the Site as they are properly completed and ready to use if the Developer is not in default under this Agreement. After recordation of such Certificate of Completion, any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest therein shall not (because of such ownership, 23 F. DAB/aea/Gaaea.agr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 purchase, lease or acquisition), incur any obligation or liability under this Agreement except that such party shall be bound by any covenants contained in the Grant Deed, which by their terms survive recordation of the Certificate of Completion. A Certificate of Completion of construction for the entire improvement and development of the Site shall be in such form as to permit it to be recorded in the Recorder's Office of San Bernardino County. If the Agency refuses or fails to furnish a Certificate of Completion for the Site, or part thereof, after written request from the Developer, the Agency shall, within thirty (30) days of wri tten request therefor, provide the Developer with a written statement of the reasons the Agency refused or failed to furnish a Certificate of Completion. The statement shall also contain Agency's opinion of the actions that the Developer must take to obtain a Certificate of Completion. If the reason for such refusal is confined to the immediate availability of specific items of materials for landscaping, the Agency will issue its Certificate of Completion upon the posting of a bond by the Developer with the Agency in an amount representing a fair value of the work not yet completed. If the Agency shall have failed to provide such written statement wi thin said thirty (30) day period, the Developer shall be deemed entitled to the Certificate of Completion. Such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any hOlder of any mortgage, or any insurer of a mortgage securing money loaned to finance the improvements, or any 24 OAB/aea/G..ea.agr ,July 9. 1992 1 part thereof. Such Certificate of Completion is not a notice of 2 completion as referred to in the California Civil Code, Section 3 3093. 4 IV. [400] USE OF THE SITE 5 A. [401] Uses 6 The Developer covenants and agrees that Developer shall 7 develop, remodel or operate improvements on the Site in accordance 8 wi th the Scope of Development (Attachment No.4). Developer shall 9 devote the Site to the uses specified in the Redevelopment Plan as 10 may be amended from time to time for the periods of time specified 11 therein. The Developer further covenants and warrants that the 12 Developer shall develop on the Site a light industrial business 13 involving the assembly and distribution of indoor recreational 14 games and equipment. Developer covenants to develop and operate 15 the Site (or cause it to be operated) in conformity with all 16 applicable laws. The foregoing covenants shall run with the land 17 as provided in the Grant Deed. The Developer and its successors- 18 in-interest shall be liable for compliance with the foregoing only 19 so long as they own or lease the Site or any portion thereof. 20 The Developer covenants by and for itself and any 21 successors in interest that there shall be no discrimination 22 against or segregation of any person or group of persons on 23 account of race, color, creed, religion, sex, marital status, age, 24 handicap, national origin or ancestry in the sale, lease, 25 sublease, transfer, use, occupancy, tenure or enjoyment of the 26 Site, nor shall Developer itself or any person claiming under or 27 through it establish or permit any such practice or practices of 28 discrimination or segregation with reference to the selection, DAB/.../C......gr 25 July 9. 1992 1 location, number, use or occupancy of tenants, lessees, 2 subtenants, sublessees or vendees of the Site. The foregoing 3 covenants shall run with the land. 4 Developer shall refrain from restricting the rental, 5 sale or lease of the Site on the basis of race, color, creed, 6 religion, sex, marital status, handicap, national origin or 7 ancestry of any person. All such deeds, leases or contracts shall 8 contain or be subject to substantially the following 9 nondiscrimination or non-segregation clauses: 10 1. In deeds: "The grantee herein covenants by and for 11 himself or herself, his or her heirs, executors, 12 administrators and assigns, and all persons claiming 13 under or through them, that there shall be no 14 discrimination against or segregation of, any person or 15 group of persons on account of race, color, creed, 16 religion, sex, marital status, age, handicap, national 17 origin or ancestry in the sale, lease, sublease, 18 transfer, use, occupancy, tenure or enjoyment of the 19 land herein conveyed, nor shall the grantee himself or 20 herself or any person claiming under or through him or 21 her, establish or permit any such practice or practices 22 of discrimination or segregation with reference to the 23 selection, location, number, use or occupancy of 24 tenants, lessees, subtenants, sub lessees or vendees in 25 the land herein conveyed. The foregoing covenants 26 shall run with the land." 27 I I I 28 III DAB/.ea/Gaaea.agr 26 July 9. 1992 1 2. In leases: "The lessee herein covenants by and for 2 himself or herself, his or her heirs, executors, 3 administrators and assigns, and all persons claiming 4 under or through him or her, and this lease is made and 5 accepted upon and subject to the following conditions: 6 "There shall be no discrimination against or 7 segregation of any person or group of persons on 8 account of race, color, creed, religion, sex, marital 9 status, handicap, age, ancestry or national origin in 10 the leasing, subleasing, transferring, use, occupancy, 11 tenure or enjoyment of the premises herein leased nor 12 shall the lessee himself or herself, or any person 13 claiming under or through him or her, establish or 14 permi t any such practice or practices of discrimination 15 or segregation with reference to the selection, 16 location, number, use or occupancy of tenants, lessees, 17 sublessees, subtenants or vendees in the premises 18 herein leased." 19 3. In contracts: "There shall be no discrimination 20 against or segregation of, any person, or group of 21 persons on account of race, color, creed, religion, 22 sex, marital status, age, handicap, ancestry or 23 national origin, in the sale, lease, sublease, 24 transfer, use, occupancy, tenure or enjoyment of the 25 premises, nor shall the transferee himself or herself 26 or any person claiming under or through him or her, 27 establish or permit any such practice or practices of 28 discrimination or segregation with reference to the DAB/.../G......1Jr 27 July 9. 1992 I ! 1 selection, location, number, use or occupancy of 2 tenants, lessees, subtenants, sublessees or vendees of 3 the premises." 4 B. [402] Maintenance of the Site 5 Developer shall maintain the Developer Improvements and 6 all other improvements on the Site and shall keep the Property 7 free from any accumulation of debris or waste materials. 8 Developer further agrees to maintain the Site in a neat 9 and attractive manner until construction or remodeling of the 10 improvements described in this Agreement is complete so as not to, 11 in the reasonable determination of an appropriate officer of the 12 City, be a public nuisance, or be detrimental to the health, 13 safety and welfare, or impair value of property within one. 14 thousand (1,000) feet of the Site, and agrees that in the event 15 Developer fails to do so, Agency may enter upon the Site for the 16 purposes of performing necessary and desirable maintenance, that 17 Developer will be responsible for the cost of any such maintenance 18 undertaken by Agency, which shall be paid within thirty (30) days 19 after receipt by Developer of written demand therefor. 20 Developer agrees to prepare and record Covenants, 21 Conditions and Restrictions approved by Agency, consistent with 22 this Section 402 inCluding the ongoing maintenance 23 responsibili ties outlined in this Agreement which may not be 24 amended nor revoked without the approval of Agency. 25 Developer shall also maintain the landscaping required 26 to be planted under the Scope of Development (Attachment No.4) in 27 a healthy condition. If, at any time, Developer fails to maintain 28 said landscaping, and said condition is not corrected after DAB/.e./Game...~ 28 July 9. 1992 1 expiration of thirty (30) days from date of written notice from 2 Agency, Agency may perform the necessary landscape maintenance and 3 Developer agrees to pay such costs as are reasonably incurred for 4 such maintenance. Failure to pay the costs incurred pursuant to 5 this Section 402 within thirty (30) days shall permit Agency to 6 place a lien on the property. 7 Issuance of a Certificate of Completion by Agency shall 8 not affect Developer's obligations under this Section. 9 C. [403] Rights of Access 10 Agency, for itself and for the City and other public 11 agencies, at their sole risk and expense, reserves the right to 12 enter the Site or any part thereof at all reasonable times for the 13 purpose of construction, reconstruction, maintenance, repair or 14 service of any public improvements or public facilities located on 15 the Site. Any such entry shall be made only after reasonable 16 notice to Developer, and Agency shall indemnify and hold Developer 17 harmless from any costs, claims, damages or liabilities pertaining 18 to any entry. This Section 403 shall not be deemed to diminish or 19 limi t any rights which the City or Agency may have by operation of 20 law irrespective of this Agreement. 21 D. [404] Effect of Violation of the Terms and 22 Provisions of this Agreement After Completion 23 of Construction 24 The covenants established in this Agreement and the 25 deeds shall, without regard to technical classification and 26 designation, be binding for the benefit and in favor of Agency, 27 its successors and assigns, as to those covenants which are for 28 / / / DAB/8e./Gaae..agr 29 July 9. 1992 1 its benefit. The covenants contained in this Agreement shall 2 remain in effect until the termination date of the Redevelopment 3 Plan. The covenants against racial discrimination shall remain in 4 perpetui ty . 5 Agency is deemed the beneficiary of the terms and 6 provisions of this Agreement and of the covenants running with the 7 land, for and in its own right and for the purpose of protecting 8 the interests of the community and other parties, public or 9 private, in whose favor and for whose benefit this Agreement and 10 the covenants running with the land have been provided. The 11 Agreement and the covenants shall run in favor of Agency, without 12 regard to whether Agency has been, remains or is an owner of any 13 land or interest therein in the Site or in the Project Area. 14 Agency shall have the right, if the Agreement or covenants are 15 breached, to exercise all rights and remedies, and to maintain any 16 actions or suits at law or in equity or other proper proceedings 17 to enforce the curing of such breaches to which it or any ot~er 18 beneficiaries of this Agreement and covenants may be entitled. 19 V. [500] GENERAL PROVISIONS 20 A. [501] Notices, Demands and Communications Between 21 the Parties 22 Wri tten notices, demands and communications between 23 Agency and Developer shall be sufficiently given if delivered by 24 hand (and a receipt therefor is obtained or is refused to be 25 given) or dispatched by registered or certified mail, postage 26 prepaid, return receipt requested, to the principal offices of 27 Agency and Developer. Such written notices, demands and 28 communications may be sent in the same manner to such other Dl\B/.../G......gr 30 JUly 9. 1992 1 addresses as such party may from time to time designate by mail as 2 provided in this Section 501. 3 Any written notice, demand or communication shall be 4 deemed received immediately if delivered by hand and shall be 5 deemed received on the tenth day from the date it is postmarked if 6 delivered by registered or certified mail. 7 B. [502] Conflicts of Interest; Nonliability 8 No member, official or employee of Agency shall have 9 any personal interest, direct or indirect, in this Agreement. No 10 member, official or employee shall participate in any decision 11 relating to the Agreement which affects his personal interests or 12 the interests of any corporation, partnership or association in 13 which he is directly or indirectly interested. No member, 14 official or employee of Agency shall be personally liable to 15 Developer, or any successor in interest, in the event of any 16 default or breach by Agency or Developer, or for any amount which 17 may become due to Developer or its successor or on any obligations 18 under the terms of this Agreement. 19 Developer represents and warrants that it has not paid 20 or given, and shall not payor give, any third party any money or 21 other consideration for obtaining this Agreement. 22 C. [503] Enforced Delay; Extension of Times of 23 Performance 24 In addition to specific provisions of this Agreement, 25 performance by either party hereunder shall not be deemed to be in 26 default, and all performance and other dates specified in this 27 Agreement shall be extended, where delays or defaults are due to: 28 war; insurrection; floods; earthquakes; fires; casualties; acts of DAB/aea/aa..a.agr 31 July 9. 1992 1 God; acts of the public enemy; freight embargoes; governmental 2 restrictions or priority; litigation; unusually severe weather; 3 acts or omissions of another party; acts or failures to act of the 4 City of San Bernardino or any other public or governmental agency 5 or entity (other than the acts or failures to act of Agency which 6 shall not excuse performance by Agency); or any other causes 7 beyond the control or without the fault of the party claiming an 8 extension of time to perform. Notwi thstanding anything to the 9 contrary in this Agreement, an extension of time for any such 10 cause shall be for the period of the enforced delay and shall 11 commence to run from the time of the commencement of the cause, if 12 notice by the party claiming such extension is sent to the other 13 party within thirty (30) days of the commencement of the cause. 14 Times of performance under this Agreement may also be extended in 15 writing by the mutual agreement of Agency and Developer. 16 Except as otherwise provided in this Agreement, 17 Developer is not entitled pursuant to this Section 503 to an 18 extension of time to perform because of past, present, or future 19 difficulty in obtaining suitable temporary or permanent financing 20 for the development of the Site. 21 D. [504] Inspection of Books and Records 22 Agency has the right at all reasonable times to inspect 23 the books and records of Developer pertaining to the Site as 24 pertinent to the purposes of this Agreement. Developer has the 25 right at all reasonable times to inspect the public records of 26 Agency pertaining to the Site as pertinent to the purposes of the 27 Agreement. 28 III DAB/eee/Gaaea.agr 32 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 [600] DEFAULTS AND REMEDIES A. [601] Defaults - - General Subject to the extensions of time set forth in Section 503, failure or delay by any party to perform any term or provision of this Agreement constitutes a default under this Agreement. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. B. [602] Legal Actions 1. [603] Institution of Legal Actions In addition to any other rights or remedies hereunder, Agency or Developer may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Agreement. Any legal actions initiated pursuant to this Agreement or otherwise with respect to its subject matter must be instituted in the Superior Court of the County of San Bernardino, State of California, or in an appropriate municipal court in that county. In the event of any such action the prevailing party shall be entitled to reasonable attorneys fees. 33 VI. DAB/aea/Ga.ea.agr July 9. 1992 1 2. [604] Applicable Law 2 The laws of the State of California shall govern 3 the interpretation and enforcement of this Agreement. 4 3. [605] Acceptance of Service of Process 5 In the event that any legal action is commenced by 6 Developer against Agency, service of process on Agency shall be 7 made by personal service upon the Executive Director or in such 8 other manner as may be provided by law. 9 In the event that any legal action is commenced by 10 any party against Developer, service of process on such party 11 shall be made by personal service upon Developer or in such other 12 manner as may be provided by law, and shall be valid whether made 13 within or without the State of California. 14 C. [606] Rights and Remedies are Cumulative 15 Except as otherwise expressly stated in this Agreement, 16 the rights and remedies of the parties are cumulative, and the 17 exercise by any party of one or more of such rights or remedies 18 shall not preclude the exercise by it, at the same or different 19 times, of any other rights or remedies for the same default or any 20 other default by any other party. 21 D. [607] Inaction Not a Waiver of Default 22 Any failures or delays by any party in asserting any of 23 its rights and remedies as to any default shall not operate as a 24 waiver of any default or of any such rights or remedies, or 25 deprive any party of its right to institute and maintain any 26 actions or proceedings which it may deem necessary to protect, 27 assert or enforce any such rights or remedies. 28 III DAB/.../ea.ea..gr 34 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 [608] Remedies and Rights of Termination 1. [ 609 ] Damages If either Developer or Agency defaults with regard to any of the provisions of this Agreement, the non-defaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured by the defaulting party wi thin thirty (30) days after service of the notice of default, the defaulting party shall be liable to the other for any damages caused by such default. 2. [610] Action for Specific Performance If either Developer or Agency defaults under any of the provisions of this Agreement prior to the recordation of a Certificate of Completion for the Developer Improvements to be made thereon, the non-defaulting party shall serve written notice of such default upon the defaulting party. If the default is not commenced to be cured by the defaulting party within thirty (30) days after service of the notice of default, the non-defaulting party at its option may institute an action for specific performance of the terms of this Agreement. 3. [611] Termination by the Developer In the event that: (a) the Conditions Precedent are not satisfied by the time established therefor in the Schedule of Performance (Attachment No.3), and such failure is not caused or contributed to by the Developer; or (b) the Agency does not tender conveyance of the Site or possession thereof, in the manner and condition, and by the date provided in this Agreement, and any such failure shall 35 E. OAB/.../Gaae..8gr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 not be cured within thirty (30) days after the date of written demand therefor by the Developer; then this Agreement may, at the option of the Developer, be terminated by written notice thereof to the Agency. Upon such termination, neither the Agency nor the Developer shall have any further rights against or liability to the other with respect to the Site. In the event of the failure or default by the Agency with respect to any event set forth in Section 611(a) or 611(b) above, said right of termination of this Agreement, all monies or documents deposited by any party into escrow shall be returned to the party making such deposit. 4. [612] Termination by the Agency In the event that prior to the Conveyance: ( a) The Developer (or successor in interest) assigns or attempts to assign the Agreement or any rights therein or in the Site in violation of this Agreement; or (b) The Developer does not submit certificates of insurance, construction plans, drawings and related documents as required by this Agreement, in the manner and by the dates respectively provided in this Agreement therefor, any such default or failure shall not be cured within thirty (30) days after the date of written demand therefor by the Agency; or (c) Any Conditions Precedent are not satisfied by the time established therefor in the Schedule of Performance (Attachment No.3); then this Agreement may at the option of the Agency, be terminated by the Agency by written notice thereof to the Developer. Upon such termination, neither the Agency nor the Developer shall have any further rights against or liability to the other. Upon termination of this Agreement, all monies or 36 DAB/.../Ga.ea.agr July 9. 1992 1 documents deposited by any party into escrow shall be returned to 2 the party making such deposit. 3 F. [613] Remedies of the Agency and the Developer 4 for Default After Passage of Title and Prior 5 to Completion of Construction 6 1. [614] Damages 7 After the conveyance and prior to the recordation 8 of a Certificate of Completion with respect to all of the 9 Developer Improvements, if either the Developer or the Agency 10 defaults with regard to any of the provisions of this Agreement, 11 the non-defaulting party shall serve written notice of such 12 default upon the defaulting party with a copy to the remaining 13 party. If the default is not cured by the defaulting party within 14 thirty (30) days after service of the notice of default, the 15 defaul ting party shall be liable to the other for any damages 16 caused by such default. 17 2. [615] Action for Specific Performance 18 If either the Developer or the Agency defaults 19 under any of the provisions of this Agreement after the conveyance 20 of title and prior to the recordation of a Certificate of 21 Completion for the improvements and development to be made 22 thereon, the non-defaulting party shall serve written notice of 23 such default upon the defaulting party with a copy to the 24 remaining party. If the default is not commenced to be cured by 25 the defaulting party within thirty (30) days after service of the 26 notice of default, the non-defaulting party at its option may 27 institute an action for specific performance of the terms of this 28 Agreement. DAB/.../G.....agr 37 July 9. 1992 . 1 3. [616] Reentry and Revesting of Title in the 2 Agency 3 The Agency has the additional right, at its 4 option, to reenter and take possession of the Site, with all 5 improvements thereon, and terminate and revest in the Agency the 6 estate conveyed to the Developer if after conveyance of title and 7 prior to the issuance of the Certificate of Completion pursuant to 8 Section 320, the Developer (or its successors in interest) shall: 9 1. Fail, within thirty (30) days after the date of 10 recordation of the Grant Deed (Attachment No.6), 11 to commence construction on the Site of the 12 Developer Improvements in conformity with plans 13 and specifications which are approved in the 14 manner required by this Agreement; or 15 2. Abandon or substantially suspend construction of 16 the Developer Improvements in conformity with 17 plans and specifications which are approved in 18 the manner required by this Agreement; or 19 3. Fail to complete construction of the Developer 20 Improvements to the condition required for the 21 issuance of a Certificate of Completion pursuant 22 to Section 320 wi thin the time required by the 23 SChedule of Performance (Attachment No.3); or 24 4. Transfer or suffer any involuntary transfer of 25 the Site in violation of this Agreement. 26 III 27 I I I 28 I I I DAB/.../Gaaea.agr 38 July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . All time periodS stated in this Section 616, Paragraphs 1 and 2 above and elsewhere in this Agreement are subject to extension by force majeure as more particularly provided in Section 503 above. Such right to reenter, terminate and revest shall be subject to and be limited by and shall not defeat, render invalid or limit: 1. Any mortgage or deed of trust permitted by this Agreement; or 2. Any rights or interests provided in this Agreement for the protection of the holders of such mortgages or deed of trust. Upon the revesting in the Agency of title to the Site as provided in this Section 616, the Agency shall, pursuant to its responsibilities under state law, use its best efforts to resell the Site as soon and in such manner as the Agency shall find feasible and consistent with the objectives of such law and of the Redevelopment Plan, as it may be amended, to a qualified and responsible party or parties (as determined by the Agency) who will assume the obligation of making or completing the improvements, or such other improvements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified for such Site or part thereof in the Redevelopment Plan. Upon such resale of the Site, the proceeds thereof shall be applied: 1. First, to satisfy the loan of the construction lender, then to reimburse the Agency, on its own behalf or on behalf of the City, for all costs 39 July 9. 1992 DAB/.../Ga.ea.agr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DAB/.e./G......gr and expenses incurred by the Agency including, but not limited to, any expenditures by the Agency or the City in connection with the recapture, management and resale of the Site or part thereof (but less any income derived by the Agency from the Site or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the Site or part thereof which the Developer has not paid (or, in the event the Site is exempt from taxation or assessment or such charges during the period of ownership thereof by the Agency, an amount, if paid, equal to such taxes, assessments, or charges as would have been payable if the Site were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Site or part thereof at the time of revesting of title thereto in the Agency, or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Site, or part thereof; and any amounts otherwise owing the Agency and its successors or transferees; and 40 July 9. 1992 .. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Second, to reimburse the Developer or its successor or transferee (if applicable), up to the amount equal to the sum of ( a ) the cost incurred for the acquisition and development of the Site and for the improvements existing on the Site at the time of the entry and repossession, less (b) any gains or income withdrawn or made by the Developer from the Site or the improvements thereon. Any balance remaining after such reimbursements shall be retained by the Agency as its property. The rights established in this Section 616 are to be interpreted in light of the fact that the Site was conveyed to. the Developer for development, and not for speculation in real property. VII. [700] SPECIAL PROVISIONS A. [701] Submission of Documents to Agency for Approval Whenever this Agreement requires Developer to submit plans, drawings or other documents to Agency for approval, which shall be deemed approved if not acted on by Agency wi thin the specified time, said plans, drawings or other documents shall be accompanied by a letter stating that they are being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Developer may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 41 DAB/.e./G.....agr July 9. 1992 1 B. [702] Successors In Interest 2 The terms, covenants, conditions and restrictions of 3 this Agreement shall extend to and shall be binding upon and inure 4 to the benefit of the heirs, executors, administrators, successors 5 and assigns of Developer. 6 Upon the termination of the restrictions imposed by 7 Section 107 of this Agreement, which terminate upon the issuance 8 by Agency of a Certificate of Completion with respect to all of 9 the Developer Improvements pursuant to this Agreement, all of the 10 terms, covenants, conditions and restrictions of this Agreement 11 which do not terminate upon the issuance of such Certificate of 12 Completion shall be deemed to be, and shall, constitute terms, 13 covenants, conditions and restrictions running with the land. 14 VIII. [800] ENTIRE AGREEMENT, WAIVERS 15 This Agreement is executed in three (3) duplicate originals, 16 each of which is deemed to be an original. This Agreement 17 includes pages 1 through 43 and Attachments I through 6, which 18 constitute the entire understanding and agreement of the parties. 19 No private entity shall be deemed to be a third party 20 beneficiary with respect to any provisions of this Agreement. 21 This Agreement integrates all of the terms and conditions 22 mentioned herein or incidental hereto, and supersedes all 23 negotiations or previous agreements among the parties or their 24 predecessors in interest with respect to all or any part of the 25 subject matter hereof. 26 All waivers of the provisions of this Agreement must be in 27 writing by the appropriate authorities of Agency and Developer, 28 III DAB/aea/Gaaea.agr 42 July 9. 1992 1 and all amendments hereto must be in writing by the appropriate 2 authorities of Agency and Developer. 3 Each individual signing below represents and warrants that 4 he has the authority to execute this Agreement on behalf of and 5 bind the party he purports to represent. 6 IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY 7 This Agreement, when executed by Developer and delivered to 8 Agency, must be authorized, executed and delivered by Agency on or 9 before thirty (30) days after signing and delivery of this 10 Agreement by Developer or this Agreement shall be void, except to 11 the extent that Developer shall consent in writing to a further 12 extension of time for the authorization, execution and delivery of 13 this Agreement. The date of this Agreement shall be the date when 14 it shall have been signed by the Agency as evidenced by the date 15 first above shown. 16 I I I 17 I I I 18 I I I 19 I I I 20 III 21 I I I 22 III 23 III 24 III 25 III 26 III 27 I I I 28 III DAB/.../ea.ea.agr 43 July 9. 1992 1 AGREEMENT RE: BXLLY ARDT, XNC. 2 (Res 92-316) 3 IN WITNESS WHEREOF, Agency, and Developer have executed this 4 Agreement on the day and date first above shown. 5 "Agency" 6 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 7 8 9 By: Execu ive Di ector Kenneth J. Rend rson APPROVED AS TO PROGRAM: 10 11 B' 12 fo.- AP ROVED AS TO FORM 13 AND LEGAL CONTENT: 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 "Developer" BILLY ARDT, INC., doing business as GAMES FOR FUN INTERNATIONAL and BILLIARDS SURPLUS By: DAB/aea/Gaaea.agr 44 July 9. 1992 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 STATE OF CALIFORNIA 2 COUNTY OF SAN BERNARDINO ) )ss. ) On this 23,d day of ~ ' in the year /9~2, before me, the undersigned, a No ary ublic in and for the State of California, personally appeared Kenneth J. Henderson personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument as the Executive Director of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and acknowledged to me said Agency executed it. ~ ~ . . . ~ & . . - - - - - A, . . ALBERT JAY MUNOZ " ;: Comm. if 893257 .. IAJII 8i1lHIllDINO COUNTY eft G: NOTARY PUBLIC .CALlFOIHflA ... (!J M1 CoMm. bpo. Oct. 1, 1"4 I , .... .... .... - .... - - - .;. :.. .... - - - ... (SEAL) DAB/.../C.-e..agr Si~N6~~ ~~ 45 July 9. 1992 -"':mi!;:;.;~~i':ti,' 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 i6 17 18 19 20 21 22 23 24 25 26 27 28 . . STATE OF CALIFORNIA ) )ss. ) COUNTY OF SAN BERNARDINO On JULY 14. 1992 , before me, the undersigned, a Notary Public in and for said State, personally appeared DR IlEBFII.OE ------------------------------------------------- , personally known to me or proved to me on the basis of satisfactory evidence to be the person------------ who executed the wi thin instrument as the President aad--'&he------------------------ of the corporation that executed the within instrument, and acknowledged to me that such corporation executed the same. ~ ... ... ~ ~ E8 J..., .. .., .. . ... ... ... ~ ~ ... .... .... ALBERT JAY MUNOZ Gl Comm. II 893257 :0 W BERNARDIMO COUNn en NOTARY PUBLIC-CALIFORNIA ~ M, Comm, [_liP, OCl. 1, 1994 I ....,..-.......,..~ ~~Aj ~~ WITNESS my hand and official seal. (SEAL) l lss. l ,.. o & E o " G F 'I .. ~ u. W G Iii ~ I ~ 8 '" STAlE OF CALIFORNIA COUNTY OF SAIl BEJl}(A]l])D10 On JULY 14. 1992 belore me, personally appeared LYJIII llEIIFROE. _______________________ personally known to me (or proved -------------------- to me on the basis of satisfactory evidence) to be the person~ whose name~) is/aPe subscribed to the within instrument and acknowledged to me thatfrle/she~executed the same in ~her/t+'tetf authorized capacity(teso), and that by fris/herA+'teir signature(iio) on the instrument the person(.et or the entity upon behalf of which the person(e) acted, executed the instrument. .: ... ... ... ... ... ~ER; ~y MUNOZ ... ~ ;: eomm. f. 893257 :0 1M 8UJW;DlIIO toUIl1Y .. WITNESS my hand and official seal. IOI'AIY PU8LIC-CAUfOlItlA ,.. ~ CD ,.,CDII..bSl,0ct.1,l994 I ~/L._r;1u, J_JJJ--.-.-~.----- Signalure~~, 0 (/ ~ (This area for official notarial seal) AT.llRRT JAY lItIROZ SECRKTAKY --------------------------- DAB/.../~...gr 46 July 9. 1992 ATTACHMENT NO. 1 - .' l't) - lor'l.- ~ @) [; .: l't) ~ I I. . ~n~ ~ L .~.- T-.m- -T- --- At- l. - .. s! ~ I - :ll @ - .. I la~ .. ~ , .. III 1.0 , i . .2~ ,~.", 1~ I , II 1 ~ -Gl' . .. . I-I ~ ~, lGl! t ~~. .. +. iGl @ ......" . . , ., ~Ul".-, ..... ~ a:i ~ ~ ; I .. If ~ ~ , iGl iGl ~ " ~,. r" I -/1 . """'.'IJ)";"II,,I'IIIO-I'..';."'I ~., @ . ~ . '22UI. 0.;.. .... . I f \ ! ~0 .. C 'lGl @ I, J~ . ~--l;. iGl ... i ,.,. "\, : . ~ 1:!!!i11lfmW~~~lfIl/fflfjlffflff!1"'" FIlliJ~IIWllljIUlqUIIIlIlIIllIlIIl:I!I!! .. c::: I ",.,."",,,,.,,.,,,. .. I ; aID i .. z .. I ~ .. .. @- >0 . \. '\ '_._--~--- ~- . 0 ~ ~ . @ " " 1 II ~ ; I JIo,."bl.Ct ..t I ~~ I _1_ - I $'b. ~ -;.-t..lDUS ,,1.1 --, I I .c.tHl~) ~ 0 0 0 ~ ::s_ ..- :i~ ~~ 15 !I !! l_ i I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTACHMENT NO. 2 PARCEL NO.1: ALL THAT PORTION OF BLOCK 8, J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE SOUTH LINE OF LOT 12, BLOCK 8, 131.33 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 12 (SAID POINT OF BEGINNING BEING THE SOUTHEAST CORNER OF THE LANDS CONVEYED BY JAMES MC NAIR PAVING COMPANY TO CILIA ROSE, BY DEED OF DATED DECEMBER 1, 1923, AND RECORDED IN BOOK 826, PAGE 175 OF DEEDS), THENCE NORTH ALONG THE EAST LINE OF SAID LANDS CONVEYED TO SAID ROSE, AND SAID LINE EXTENDED, 186.2 FEET, MORE OR LESS, TO THE NORTH LINE OF LOT 11, BLOCK 8; THENCE EAST ALONG THE NORTH LINES OF SAID LOT 11 AND THE UNNUMBERED LOT OR PORTION OF SAID BLOCK 8, 268.67 FEET, MORE OR LESS, TO THE NORTHWEST CORNER OF LOT 13, BLOCK 8, THENCE SOUTH ALONG THE WEST LINE OF SAID LOT 13; AND THE WEST LINE OF LOT 14 OF SAID BLOCK. 139.29 FEET, MORE OR LESS, TO THE NORTHWEST CORNER OF THE SOUTH ONE-HALF OF SAID LOT 14; THENCE NORTH 89 DEGREES 53 MINUTES WEST ALONG THE EXTENSION (WESTERLY) OF THE NORTH LINE OF SAID SOUTH ONE-HALF OF SAID LOT 14, 10.55 FEET; THENCE SOUTH 0 DEGREES 04 MINUTES EAST, 46.43 FEET, MORE OR LESS. TO THE WESTERLY EXTENSION OF THE SOUTH LINE OF SAID LOT 14; THENCE WEST ALONG SAID SOUTH LINE OF SAID WESTERLY EXTENSION PORTION OF SAID BLOCK, 258.12 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142 IN OFFICIAL RECORDS. PARCEL NO.2: ALL THAT PORTION OF BLOCK 8, J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 149.6 FEET NORTH OF THE SOUTHWEST CORNER OF SAID BLOCK 8; THENCE NORTH 36.5 FEET TO AN ALLEY; THENCE EAST 298.6 FEET TO THE NORTHWEST CORNER OF LOT 19 OF SAID BLOCK; THENCE SOUTH ALONG THE WEST LINE OF SAID LOT 19, 36.5 FEET TO THE NORTHEAST CORNER OF THE LOT MARKED "SCHOOL LOT" ON SAID MAP; THENCE WEST ALONG THE NORTH LINE OF SAID "SCHOOL LOT", 298.6 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142, IN OFFICIAL RECORDS. Page 1 of 2 DAB/.../G......gr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PARCEL NO.3: LOT 2, BLOCK 8, CITY OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7 OF MAPS, PAGE 1, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. SAID PROPERTY IS SHOWN AS "SCHOOL LOT" ON THE MAP OF J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142 OF OFFICIAL RECORDS. Page 2 of 2 DAB/.e./G......gr July 9. 1992 ATTACHMENT NO. 3 SCHEDULE OF PERFORMANCE Execution of Agreement by Agency. Agency shall approve and execute this Agreement, and shall deliver one (1) copy thereof to Developer. Not later than thirty (30) days after the date of execution and submission of three ( 3 ) copies of this Agreement to Agency by Developer. Open Escrow. Developer shall provide a deposit of lOt ($22,500) of the purchase to open escrow. Not later than 60 days after execution of Agreement. Provide Certificates of insurance. Developer shall provide the required Certificates of insurance. Not later than ninety (90) days after the effective date of this Agreement. Obtain Design Review Approval. Agency and Ci ty approve Design Concept Drawings where required. (sufficient time should be allowed for possible initial denial by either Agency or City). Obtain Bidding and Selection of Contractor Process Approval. Agency approves process for bidding and selection of contractor. Not later than one-hundred twenty (120) days after the effective date of this Agreement. Not later than one hundred fifty (150) days after the effective date of this Agreement. Submit Completed Construction Plans. Developer will submit completed construction or remodeling and all other plans and documents required by Section 304. Not later than two hundred ten ( 210 ) days after the effective date of this Agreement. DAB/.e./C......gr 1 July 9. 1992 1 7. 2 3 4 5 8. 6 7 8 9. 9 10 11 12 13 10. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Obtain plan check approval, and obtain bUilding permits, Developer shall obtain necessary plan check approval, and obtain all building permits. Commence Construction and RemOdeling. Commence actual construction and remodeling. Complete Construction and RemOdeling. Developer shall complete construction or remodeling, move onto Site and obtain a Certificate of Completion. Close Escrow. Pay all fees into and close escrow. Ti tie to be conveyed to Developer. Upon forty five (45) days written notice to Agency, Developer may opt to close at any time fOllowing receipt of all planning approvals and all building permits, from the City of San Bernardino, but not later than the receipt of the Certificate of Completion. DAB/.e./ea.....gr 2 Not later than three hundred thirty (330) days after the effective date of this Agreement. Within three hundred sixty (360) days after close of escrow. Not later than seven hundred twenty (720) days from the effective date of this Agreement. Not later than seven hundred fifty (750) days after the effective date of this. Agreement. July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ATTACHMENT NO. 4 SCOPE OF DEVELOPMENT I. GENERAL DESCRIPTION The Site is specifically delineated (Attachment NO.1) and the Legal Description pursuant to Section 103 of this Agreement. on the Site Map (Attachment No.2) II. DEVELOPMENT The Developer business providing indoor recreational shall develop the Site with a light industry assembly, restoration and distribution of equipment. Developer shall complete construction and remodel of all of the improvements set forth in this Scope of Development (Attachment No.4) to be constructed in one phase. All of the improvements to be provided by the Developer on the Site constitute the "Basic Developer Improvements." The Basic Developer Improvements and all those off-site improvements, which are required in connection with this development (if any), and which are required to be provided by the Developer (the "Off-Site Improvements") together constitute the "Developer Improvements". The Developer shall commence and complete the Developer Improvements by the respective times established therefor in the Schedule of Performance (Attachment No.3). Upon approval by City and Agency, existing improvements may be deemed to meet the requirements of this provision. 17 III. DEVELOPMENT STANDARDS 18 19 20 21 22 23 24 25 26 27 28 The Developer Improvements shall be developed and maintained in accordance with City specifications and requirements of the City Engineer and the following development standards. A. Signs. Signs shall be limited in size, subdued and otherwise designed to contribute positively to the environment. Signs identifying the building use will be permitted, but their height, size, location, color, lighting and design will be subject to Agency and City approval. B. Screening. All outdoor storage of materials or equipment shall be enclosed or screened to the extent and in the manner required by the Agency and the City. C. Landscaping. The Developer shall provide and maintain landscaping wi thin the public rights-of-way and the proposed public rights-of-way and within setback areas along all street frontages and conforming with the Design Concept Drawings as approved by the Agency. Page 1 of 3 DAB/.e./G......gr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Landscaping shall consist of trees, shrubs and installation of an automatic irrigation system adequate to maintain such plant material. The type and size of trees to be planted, together with a landscaping plan, shall be subject to approval by the City's Planning Department prior to planting. Upon approval by City and Agency existing landscaping may be deemed to meet the requirements of this provision. D. Utilities. Sewer, drainage and utility lines, conduits or systems shall not be constructed or maintained above the ground level of the Site unless such installations are within approved enclosed structures, and shall conform to requirements of the City of San Bernardino or other applicable governmental or private agency having jurisdiction of the work. If required to be installed, storm drainage for all hard surfaced areas shall be drained or may be sheet flowed to storm sewers. No drainage shall flow across public sidewalks. All non polluted waste water, such as waste air conditioning water, shall be drained to the storm or sanitary drainage systems as permitted by local codes. E. Painting. All exterior walls shall be painted by the Developer with color(s) subject to approval by the City's Planning Department. F. Beautification Improvements. Developer shall provide beautification improvements, subject to the approval of the Agency, to upgrade the appearance of the property at a cost of at least Fifty Thousand Dollars. These Beautification Improvements may include landscaping improvements, new paint, signage, fencing, walls and other facade treatments: but must be in addition to those improvements required to bring the building up to current Code standards, landscape specifications, and parking and sign requirements pursuant to the Development Code as adopted by City Council on May 19, 1992, as amended. Included within these Beautification Improvements is the actual cost of purchasing and installing a fire sprinkler system to code requirements. IV. PUBLIC IMPROVEMENTS AND UTILITIES The Developer, at its own cost and expense, shall provide or cause to be provided all public improvements which are specified in the City's conditions of approval to Developer's development of the Developer Improvements. Those of the improvements required to be provided pursuant to this part IV of the Scope of Development (Attachment No.4) constitute the "Off-Site Improvements." III III III Page 2 of 3 DAB/aea/aa....agr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 V. DEMOLITION AND SOILS Developer assumes all responsibility for surface and subsurface conditions at the Site, and the suitability of the Site for the Developer Improvements. If the surface and subsurface conditions are not entirely suitable for such development and use, Developer shall at its cost take all actions necessary to render the Site entirely suitable for such development. Developer has undertaken all investigation of the Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Developer shall undertake at its cost any and all demolition required in connection with the development of Developer Improvements. Page 3 of 3 DAB/a.a/Gaaea.agr July 9. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTACHMENT NO. 5 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: ) ) ) ) ) ) ) ) ) [Space above for Recorder.] CERTIFICATE OF COMPLETION FOR CONSTRUCTION AND DEVELOPMENT WHEREAS, pursuant to that certain Disposi tion and Development Agreement entered into between the Agency and Billy Ardt, Inc., a Delaware Corporation, doing business as Games For Fun International and Billiards International ("Developer") dated as of ("DDA"), relating to that certain real property described on Exhibit 1, attached hereto and incorporated herein, the Developer is entitled to the issuance of a Certificate of Completion upon the completion of those improvements required by the DDA to be developed by the Developer (the "Developer Improvements"): and WHEREAS, such certificate shall be conclusive determination of satisfactory completion of the construction required by the DDA: and WHEREAS, the Agency has conclusively determined that the construction on the above described real property required by the DDA has been satisfactorily completed: III III III III III III III III Page 1 of 3 DAB/.e./Cam....gr July 23. 1992 ] 2 3 4 5 6 7 8 9 10 11 12 13 14 ]5 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW THEREFORE, 1. The Agency does hereby certify that the construction or remodeling of the Developer Improvements has been fully and satisfactorily performed and completed. 2. Nothing contained in this instrument shall modify in any other way other provisions of the DDA. All executory obligations of the Developer pursuant to the DDA shall remain in full force and effect. IN WITNESS WHEREOF, the Agency has executed this certificate this day of , 19___ REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Executive Director /II III III III III III III III III III III III III III III III III Page 2 of 3 DAB/.../Gaaea.agr .July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 (SEAL) 12 13 14 15 16 17 18 19 20 21 ~ ~ 24 25 26 27 28 STATE OF CALIFORNIA ) )ss. COUNTY OF SAN BERNARDINO ) On this day of , 19 before me, the undersigned, a Notary Public in and for said State, personally appeared , known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument as the Executive Director of the Redevelopment Agency of the City of San Bernardino and acknowledged to me that the Redevelopment Agency of the City of San Bernardino executed it. Signature of Notary Public Page 3 of 3 DAB/.../Gam....gr July 23. 1992 1 2 8 4 5 6 7 8 9 10 11 12 18 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 1 That certain parcel of land in the City of San Bernardino, County of San Bernardino, State of California, described as follows: PARCEL NO.1: ALL THAT PORTION OF BLOCK 8, J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE SOUTH LINE OF LOT 12, BLOCK 8, 131.33 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 12 (SAID POINT OF BEGINNING BEING THE SOUTHEAST CORNER OF THE LANDS CONVEYED BY JAMES MC NAIR PAVING COMPANY TO CILIA ROSE, BY DEED OF DATED DECEMBER 1, 1923, AND RECORDED IN BOOK 826, PAGE 175 OF DEEDS), THENCE NORTH ALONG THE EAST LINE OF SAID LANDS CONVEYED TO SAID ROSE, AND SAID LINE EXTENDED, 186.2 FEET, MORE OR LESS, TO THE NORTH LINE OF LOT 11, BLOCK 8; THENCE EAST ALONG THE NORTH LINES OF SAID LOT 11 AND THE UNNUMBERED LOT OR PORTION OF SAID BLOCK 8, 268.67 FEET, MORE OR LESS, TO THE NORTHWEST CORNER OF LOT 13, BLOCK 8, THENCE SOUTH ALONG THE WEST LINE OF SAID LOT 13; AND THE WEST LINE OF LOT 14 OF SAID BLOCK. 139.29 FEET, MORE OR LESS, TO THE NORTHWEST CORNER OF THE SOUTH ONE-HALF OF SAID LOT 14; THENCE NORTH 89 DEGREES 53 MINUTES WEST ALONG THE EXTENSION (WESTERLY) OF THE NORTH LINE OF SAID SOUTH ONE-HALF OF SAID LOT 14, 10.55 FEET; THENCE SOUTH 0 DEGREES 04 MINUTES EAST, 46.43 FEET, MORE OR LESS TO THE WESTERLY EXTENSION OF THE SOUTH LINE OF SAID LOT 14; THENCE WEST ALONG SAID SOUTH LINE OF SAID WESTERLY EXTENSION PORTION OF SAID BLOCK, 258.12 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142 IN OFFICIAL RECORDS. PARCEL NO.2: ALL THAT PORTION OF BLOCK 8, J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 149.6 FEET NORTH OF THE SOUTHWEST CORNER OF SAID BLOCK 8; THENCE NORTH 36.5 FEET TO AN ALLEY; THENCE EAST 298.6 FEET TO THE NORTHWEST CORNER OF LOT 19 OF SAID BLOCK; THENCE SOUTH ALONG THE WEST LINE OF SAID LOT 19, 36.5 FEET TO THE NORTHEAST CORNER OF THE LOT MARKED "SCHOOL LOT" ON SAID MAP; THENCE WEST ALONG THE NORTH LINE OF SAID "SCHOOL LOT", 298.6 FEET TO THE POINT OF BEGINNING. Page 1 of 2 DAB/aea/Gamea.agr July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142, IN OFFICIAL RECORDS. PARCEL NO.3: LOT 2, BLOCK 8, CITY OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7 OF MAPS, PAGE 1, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. SAID PROPERTY IS SHOWN AS .SCHOOL LOT" ON THE MAP OF J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142 OF OFFICIAL RECORDS. Page 2 of 2 DAB/aea/Gamea.agr July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTACHMENT NO. 6 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO AND MAIL TAX STATEMENTS TO: ) ) ) ) ) ) [Space above for recorder] GRANT DEED For a valuable consideration receipt of which is hereby acknowledged, The SAN BERNARDINO REDEVELOPMENT AGENCY, a public body, corporate and pOlitic, of the State of California, herein called "Grantor," acting to carry out the Redevelopment Plan, herein called "Redevelopment Plan," for the uptown Redevelopment Project, herein called "Project", under the Community Redevelopment Law of California, hereby grants to BILLY ARDT, INC., a Delaware Corporation, doing business as Games For Fun International and Billiards Surplus, herein called "Grantee", the real property hereinafter referred to as "Property", described in Exhibit "A" attached hereto and incorporated herein, subject to the existing easements, restrictions and covenants or record described herein. 1. Said Property is conveyed in accordance with and subject to the Redevelopment Plan which was approved and adopted by Ordinance No. MC-52? of the Common Council of the City of San Bernardino, and that certain Disposition and Development Agreement, between Grantor and Grantee dated (the "DDA"), a copy of which is on file with the Grantor at its offices as a publiC record and which is incorporated herein by reference. 2. The Grantee hereby covenants and agrees, for itself and its successors and assigns, that during construction and thereafter, the Grantee shall not use the Property for other than the uses specified in the Redevelopment Plan and the DDA. No use other than as a light industrial business and associated uses shall be allowed on the Property without the prior written approval of the Agency (Which the Agency may grant or deny at its sole discretion). The Grantee covenants to operate uses on the Property in conformity with all applicable federal, state and local laws. 3. The Property is conveyed to grantee at a purchase price, herein called "Purchase Price", determined in accordance with the uses permitted. Therefore, Grantee hereby covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Property that the Grantee, such successors and such assigns, shall develop, maintain, and use the Property only as follows: DAB/.../ea.ea.agr 1 July 23. 1992 1 2 :I 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (a) Grantee shall develop the Property as required by the DDA, and with parking conforming to the requirements of the San Bernardino City Code. (b) Grantee shall maintain the improvements on the Property and shall keep the Property free from any accumulation of debris or waste materials. Grantee shall also maintain the required landscaping in a healthy condition. If, at any time, Grantee fails to maintain the said landscaping, and said condition is not corrected after expiration of thirty (30) days from the date of written notice from the Grantor, either the Grantor, or the City of San Bernardino may perform the necessary maintenance and Grantee shall pay such costs as are reasonably incurred for such maintenance. Either the Grantor or the City of San Bernardino may place a lien on the property for the costs incurred in providing such maintenance. (c) Grantee shall only sell, transfer or convey the Property as a whole and is not permitted to subdivide the Property for the duration of the Redevelopment Plan without the prior approval of the Grantor, or the City of San Bernardino if the Agency is no longer in existence at the date of request for approval. 4. Prior to recordation of a Certificate of Completion issued by the Grantor for the improvements to be constructed on the Property: (a) The Grantee shall not make any sale, transfer, conveyance, or assignment of the Property or any part thereof or any interest therein, without the prior written consent of the Grantor except as permitted by paragraph S(b) of this Grant Deed. In the event that the Grantee does sell, transfer, convey, or assign any part of the Property, buildings, or structures thereon prior to the recordation of a Certificate of Completion, the Grantor shall be entitled to increase the Purchase Price paid by the Grantee by the amount that the consideration payable for such assignment or transfer is in excess of the Purchase Price paid by the Grantee, plus the cost of improvements, including carrying charges. The consideration payable for the assignment or transfer, to the extent it is in excess of the amount so authorized, shall belong and be paid to the Grantor and until so paid the Grantor shall have a lien on the Property and any part involved for such amount. This prohibition shall not be deemed to prevent the granting of easements or permits to facilitate the development of the Property. (b) The Grantee shall not place or suffer to be placed on the Property any lien or encumbrance other than mortgages, deeds of trust, or any other form of conveyance required for financing of the acquisition of the Property, the construction of improvements on the Property, and any other expenditures necessary and appropriate to develop the Property. The Grantee shall not enter into any such conveyance for financing without prior written DAB/.e./Cam....gr 2 .:July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 approval of Grantor. No approval will be given for a conveyance of the property to finance the construction or improvements on real property other than the real property described in Exhibit A hereto. 5. issued by Property: Prior to recordation of any Certificate of Completion Grantor for the improvements to be constructed on the (a) The Grantor shall have the right at its option to reenter and take possession of the Property hereby conveyed with all improvements thereon and to terminate and revest in the Grantor the Property hereby conveyed to the Grantee if the Grantee (or its successors in interest) shall: (i) Fail to commence the construction of the improvements as required by paragraph 3(a) of this Grant Deed for.a period of 45 days after written notice thereof from the Grantor, provided that Grantee shall not have obtained an extension or postponement to which Grantee may be entitled; or (ii) Abandon or substantially suspend construction of the improvements for a period of 45 days after written notice thereof from the Grantor, provided that Grantee shall not have obtained an extension or postponement to which Grantee may be entitled; or (iii) Transfer, or suffer an involuntary transfer of the Property or any part thereof in violation of this Grant Deed. (b) revest shall be render invalid, The right to reenter, repossess, terminate and subject to and be limited by and shall not defeat, or limit: ( i ) Any mortgage or deed of trust or other security interest permitted by paragraph 4(b) of this Grant Deed; or ( ii) Any rights or interests provided for the protection of the holders of such mortgages or deeds of trust or other securi ty interests. (c) The right to reenter, repossess, terminate and revest with respect to the Property shall terminate when the Certificate of Completion regarding the improvements to be constructed under paragraph 3 on the Property has been recorded by the Grantor. DAB/.../G......gr 3 July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (d) In the event title to the Property or any part thereof is revested in the Grantor as provided in this paragraph 5, the Grantor shall, pursuant to its responsibilities under State law, use its best efforts to resell the Property or any part thereof as soon and in such manner as the Grantor shall find feasible and consistent with the objectives of such law and of the Redevelopment Plan to a qualified party or parties (as determined by the Grantor) who will assume the obligation of making or completing the improvements or such other improvements in their stead as shall be satisfactory to the Grantor and in accordance with the uses specified for such Property or part thereof in the Redevelopment Plan. Upon such resale of the Property the proceeds thereof shall be applied: (i) First, to reimburse the Grantor, on its own behalf or on behalf of the City of San Bernardino, for all costs and expenses incurred by the Grantor, including but not limited to, salaries to personnel engaged in such action (but excluding Grantor's general overhead expense), in connectj,on with the recapture, management, and resale of the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof ( or, in the event the Property is exempt from taxation or assessment or such charges during the period of ownership thereof by the Grantor), an amount, if paid, equal to such taxes, assessments, or charges, as determined by the County assessing official, as would have been payable if the Property were not so exempt; any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Grantor or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Grantee, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Property or part thereof; and any amounts otherwise owed to the Grantor by the Grantee and its successor or transferee; and (ii) Second, to reimburse the Grantee, its successor or transferee, up to the amount equal to the sum of (1) the Purchase Price paid to the Grantor by the Grantee for the Property (or allocable to the part thereof); (2) the costs incurred for the development DAB/.../G......gr 4 July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 of the Property and for the improvements existing on the Property at the time of reentry and repossession, less (3) any gains or income withdrawn or made by the Grantee from the Property or the improvements thereon. (iii) Any balance reimbursements Grantor. remaining after such shall be retained by the (e) To the extent that this right of reverter involves a forfeiture, it must be strictly interpreted against the Grantor, the party for whose benefit it is created. This right is to be interpreted in light of the fact that the Grantor hereby conveys the Property to the Grantee for development and not for speculation in real property. 6. The Grantee agrees for itself and any successor in interest not to discriminate upon the basis of race, color, creed or national origin in the sale, lease, or rental or in the use or occupancy of the Property hereby conveyed or any part thereof. Grantee covenants by and for itself, its successors, and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection,location, number, use or occupancy of tenants, lessees, sub-tenants, sublessees, or vendees in the Property. The foregoing covenants shall run with the land. 7. No violation or breach of the covenants, conditions, restrictions, proviSions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest permitted by paragraph 4(b) of this Grant Deed; provided,however, that any subsequent owner of the Pzoperty shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 8. All covenants contained in this Grant Deed shall be covenants running with the land. The covenants contained in paragraphs 4 and 5 and Grantee's obligation to develop the improvements on the Property provided in paragraph 3(a) of this Grant Deed shall be released upon recordation of a Certificate of Completion issued by Grantor for the Property. The obligation to use the Property in conformity with the Redevelopment Plan shall terminate on June 15, 2026 (the expiration date of the Redevelopment Plan). Every covenant contained in this Grant Deed against discrimination contained in paragraph 6 of this Grant Deed DAB/.e./Gam....gr 5 July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall remain in perpetuity. 9. All covenants without regard to technical classification or designation shall be binding for the benefit of the Grantor, and such covenants shall run in favor of the Grantor for the entire period during which such covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land or interest therein to which such covenants relate. The Grantor, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. 10. Both before and after recordation of a Certificate of Completion, both Grantor, its successors and assigns and the successors and assigns of Grantee in and to all or any part of the fee title to the Property shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements or restrictions contained in this Grant Deed without the consent of any tenant, lessee, easement holder, licenses, mortgagee, trustee, beneficiary under a deed of trust or any other person or entity having any interest less than a fee in the Property. The covenants contained in this Grant Deed, without regard to technical classification shall not benefit or be enforceable by any owner of any other real property within or outside the Project Area, or any person or entity having any interest in any other such real ty. Any amendments to the Redevelopment Plan which change the uses or development permitted on the Property, or otherwise change any of the restrictions or controls that apply to the Property, shall require the written consent of Grantee or the successors and assigns of Grantee in and to all or any part of the fee title to the Property, but any such amendment shall not require the consent of any tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust or any other person or entity having 'any interest less than a fee in the Property. 11. Grant Deed and not as Except for paragraph 5, the covenants contained in this shall be construed as covenants running with the land conditions which might result in forfeiture of title. 12. The Grantor makes no representations or warranties concerning the Property, its suitability for the use intended by Grantee, the condition of the building or other improvements, or the surface or subsurface conditions of the property. The Grantee takes the property "as is." III III III III III III III III DAB/.../Gam.a.egr 6 July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, the Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized, this day of , 1992. SAN BERNARDINO REDEVELOPMENT AGENCY BY: ATTEST: Secretary The Grantee agrees to be bound by the covenants set forth above. BILLY ARDT, INC., doing business as GAMES FOR FUN INTERNATIONAL and BILLIARDS SURPLUS BY: KEN RENFROE Its: President BY: LYNN RENFROE Its: Secretary OA8/.../G......gr 7 July 23. 1992 1 2 3 4 5 6 7 8 9 10 1] 12 13 14 15 16 17 18 19 20 2] ~ ~ 24 ~ 26 27 28 . STATE OF CALIFORNIA ) )ss. ) COUNTY OF SAN BERNARDINO On this day of , 19 before me, the undersigned, a Notary Public in and for said State, personally appeared , known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument as the Executive Director of the Redevelopment Agency of the City of San Bernardino and acknowledged to me that the Redevelopment Agency of the City of San Bernardino executed it. Signature of Notary Public (SEAL) DAB/.../Game..agr 8 July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . " EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY PARCEL NO.1: ALL THAT PORTION OF BLOCK 8, J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: ' BEGINNING AT A POINT ON THE SOUTH LINE OF LOT 12, BLOCK 8, 131.33 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 12 (SAID POINT OF BEGINNING BEING THE SOUTHEAST CORNER OF THE LANDS CONVEYED BY JAMES MC NAIR PAVING COMPANY TO CILIA ROSE, BY DEED OF DATED DECEMBER 1, 1923, AND RECORDED IN BOOK 826, PAGE 175 OF DEEDS), THENCE NORTH ALONG THE EAST LINE OF SAID LANDS CONVEYED TO SAID ROSE, AND SAID LINE EXTENDED, 186.2 FEET, MORE OR LESS, TO THE NORTH LINE OF LOT 11, BLOCK 8; THENCE EAST ALONG THE NORTH LINES OF SAID LOT 11 AND THE UNNUMBERED LOT OR PORTION OF SAID BLOCK 8, 268.67 FEET, MORE OR LESS, TO THE NORTHWEST CORNER OF LOT 13, BLOCK 8, THENCE SOUTH ALONG THE WEST LINE OF SAID LOT 13; AND THE WEST LINE OF LOT 14 OF SAID BLOCK. 139.29 FEET, MORE OR LESS, TO THE NORTHWEST CORNER OF THE SOUTH ONE-HALF OF SAID LOT 14; THENCE NORTH 89 DEGREES 53 MINUTES WEST ALONG THE EXTENSION (WESTERLY) OF . . THE NORTH LINE OF SAID SOUTH ONE-HALF OF SAID LOT 14, 10.55 FEET; THENCE SOUTH 0 DEGREES 04 MINUTES EAST, 46.43 FEET, MORE OR LESS TO THE WESTERLY EXTENSION OF THE SOUTH LINE OF SAID LOT 14; THENCE WEST ALONG SAID SOUTH LINE OF SAID WESTERLY EXTENSION PORTION OF SAID BLOCK, 258.12 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142 IN OFFICIAL RECORDS. PARCEL NO.2: ALL THAT PORTION OF BLOCK 8, J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 149.6 FEET NORTH OF THE SOUTHWEST CORNER OF SAID BLOCK 8; THENCE NORTH 36.5 FEET TO AN ALLEY; THENCE EAST 298.6 FEET TO THE NORTHWEST CORNER OF LOT 19 OF SAID BLOCK; THENCE SOUTH ALONG THE WEST LINE OF SAID LOT 19, 36.5 FEET TO THE NORTHEAST CORNER OF THE LOT MARKED "SCHOOL LOT" ON SAID MAP; THENCE WEST ALONG THE NORTH LINE OF SAID "SCHOOL LOT", 298.6 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142, IN OFFICIAL RECORDS. Page 1 of 2 DAB/.../ea.....gr July 23. 1992 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . . PARCEL NO.3: LOT 2, BLOCK 8, CITY OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7 OF MAPS, PAGE 1, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. SAID PROPERTY IS SHOWN AS "SCHOOL LOT" ON THE MAP OF J.W. WATERS SUBDIVISION OF BLOCKS 7, 8, 9 AND 10, OF THE TOWN OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 OF MAPS, PAGE 47, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 3, 1956, IN BOOK 4054, PAGE 142 OF OFFICIAL RECORDS. Page 2 of 2 DAB/.../ea.....gr July 23. 1992