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HomeMy WebLinkAboutCDC/2001-18 (See Companion Resolution 2001-82) RESOLUTION NO. CDC/2001-18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AN AMENDMENT TO LETTER AGREEMENT WITH THE CITY OF SAN BERNARDINO REGARDING MAP ASSISTANCE FOR DR. IRVING M FELDKAMP WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is organized and existing under the Community Development Law (Health and Safety Code Section 33000, et ~.) and is authorized thereunder to purchase and sell property in order to carry out its redevelopment purposes; and WHEREAS, in 1994, the City of San Bernardino (the "City") entered into a Settlement Agreement ("Original Settlement Agreement") wi th Dr. Irving Feldkamp in connection with the property wi thin Community Facilities District 995 ("CFD 995") owned by Dr. Feldkamp; and WHEREAS, said Settlement Agreement was amended in 1997 (the "First Amendment"), in 1998 (the "Second Amendment") and in 1999 (the "Third Amendment") ("Settlement Agreement" herein shall refer to the Original Settlement Agreement, as amended); and WHEREAS, in October, 1997 the Agency executed a Letter Agreement (the "Letter Agreement") with the City which was amended in 1999 because the terms of the Settlement Agreement were extended; and 25 26 27 28 582001:10655.1 1 CDC/2001-18 WHEREAS, the Letter Agreement states that the Agency shall use its best efforts to provide mortgage assistance to all buyers of the Feldkamp lots who qualify for the Agency's Mortgage Assistance 1 2 3 4 5 6 7 WHEREAS, the City and Dr. Feldkamp desire to amend the 8 original Settlement Agreement to extend the provision of MAP 9 assistance to: 2001 \02 - $50,000; 2002\2003 - $100,000; 2003\04 - 10 $50,000 and the Agency desires to amend the Letter Agreement to 11 provide for such changes. Program ("MAP") in the following years: 1999/2000 - $50,000; 2000/01 - $100,000; 2001/02 - $50,000; and 12 13 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION, ACTING 14 ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, 15 DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 16 17 Section 1. Execution of Revised Letter Agreement with 18 City. The Agency hereby approves the form of Letter Agreement 19 attached hereto with such changes as shall be approved by the 20 Executive Director upon recommendation of counsel. The Agency hereby 21 agrees to use its best efforts to provide mortgage assistance to all 22 buyers of the Feldkamp lots who qualify, as provided in the Letter 23 Agreement, for the Agency's MAP funds for the following period: 24 2001\02 - $50,000; 2002\2003 - $100,000; 2003\04 - $50,000 25 26 27 28 SB2001:10655.1 2 CDC/2001-18 1 Section 2. Official Action. The Chairman, Executive 2 Director, Secretary, counsel and any and all other officers of the 3 Agency are hereby authorized and directed, for and in the name and on 4 behalf of the Agency, to do any and all things and take any and all 5 actions, including execution and delivery of any and all assignments, 6 certificates, requisitions, agreements, notices, consents, instruments 7 of conveyance, warrants and other documents, which they, or any of 8 them, may deem necessary or advisable in order to consummate the 9 transactions contemplated herein. Whenever in this Resolution any 10 officer of the Agency is authorized to execute or countersign any 11 document or take any action, such execution, countersigning or action 12 may be taken on behalf of such officer by any person designated by 13 such officer to act on his or her behalf in the case such officer 14 shall be absent or unavailable. The Agency hereby appoints its 15 Chairperson and Executive Director as agents of the Agency for 16 purposes of executing any and all documents and instruments which any 17 officer of the Agency is authorized to execute hereunder. 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 28 582001:10655.1 3 CDC/2001-18 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AN 1 AMENDMENT TO LETTER AGREEMENT WITH THE CITY OF SAN BERNARDINO REGARDING MAP ASSISTANCE FOR DR. IRVING M FELDKAMP 2 3 4 5 6 7 8 Section 3. This Resolution shall take effect upon the date of its adoption. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at an adjourned regular meeting thereof, held on the 9 16th day of April, 2001, by the following vote, to wit: 10 - 11 Commission AYES NAYS ABSTAIN ABSENT 12 ESTRADA X LIEN X 13 McGINNIS X SCHNETZ _x___ 14 SUAREZ --- ANDERSON --X---- 15 McCAMMACK ---- X 16 17 18 The foregoing resolution is approved this I OJ-r'c\ day of April, 2001. 19 20 21 22 23 24 By: 25 26 27 28 S82001:l0655.1 I! /L- alles, Chairperson Co u ity Development Commission of t e City of San Bernardino gal content: 4 CDC/2001-18 EXHIBIT A 1 2 3 4 5 6 April 2001 Redevelopment Agency of the City of San Bernardino 201 North "E" Street, 3rd Floor San Bernardino, CA 92401 Re: Mortgage Assistance for Feldkamp Properties Dear Mr. Van Osdel: 7 By this letter the City of San Bernardino ("City") and the Redevelopment Agency of the City of San Bernardino ("Agency") hereby 8 agree that pursuant to the Fourth Amendment to Mutual Release and Settlement Agreement between the City and Irving M. Feldkamp III 9 ("Developer") dated as of April , 2001, the Agency shall use its best efforts to provide mortgage assistance to all buyers of the subject 10 lots who qualify for the Agency's Mortgage Assistance Program ("MAP"). However, MAP funds will be available on a first come first serve 11 basis. Under the MAP, the Developer's buyers will receive assistance, if available, of no more than the following amounts in the following 12 years: 2001\02 - $50,000; 2002\2003 - $100,000; 2003\04 - $50,000. 13 In the event the foregoing amounts are not used by Developer's buyers in the years granted, said amounts shall not be 14 carried forward, and thus shall not be available to the Developer's buyers in any subsequent year. The foregoing grants shall be subject 15 to all of the terms, conditions and qualifying criteria as may be specified in the MAP as such terms, conditions and criteria exist at 16 such time and consistent with the requirements imposed by the funding source and other discretionary criteria as may be established by the 17 Agency. Developer shall not receive any waivers of terms in connection herewith. 18 19 20 21 Very truly yours, CITY OF SAN BERNARDINO 22 23 AGREED AND ACCEPTED: 24 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 25 26 By: Gary Van Osdel Executive Director 27 28 SB2001:10655.1 By: Judith Valles Mayor 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO )ss CITY OF SAN BERNARDINO ) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I, Secretary of the Community Development Commission of the City of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of Community Development Commission of the City of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Community Development Commission of the City of San Bernardino this day of , 2001. Secretary of the Community Development Commission of the City of San Bernardino 16 17 18 19 20 21 22 23 24 25 26 27 28 SB2001:10655.! RECORDING REQUESTED BY: CITY OF SAN BERNARDINO WHEN RECORDED RETURN TO: LEWIS D' AMATO, BRISBOIS & BISGAARD, LLP 221 No. FIGUEROA STREET SUITE 1200 LOS ANGELES, CALIFORNIA 90012 ATTN: ALEXIS G. CRUMP Recordation Fee Not Applicable Pursuant to Government Code Section 6103 (Space Above For Recorder's Use Only) FOURTH AMENDMENT TO MUTUAL RELEASE AND SETTLEMENT AGREEMENT 882001:10569.1 SBEO\0121F\DOC\18.6 7\20\99 910 jg FOURTH AMENDMENT TO MUTUAL RELEASE AND SETTLEMENT AGREEMENT This Fourth Amendment to Mutual Release and Settlement Agreement (this "Fourth Amendment") is entered into this _ day of April, 2001, by and between the city of San Bernardino, a California municipal corporation ("City") and Irving M. Feldkamp III or his assignees as herein provided ("Developer"). The City and the Developer are collectively referred to as the "Parties". SECTION 1. RECITALS 1.1. On June 18, 1990, the City created Community Facilities District No. 995 ("District") pursuant to the Mello-Roos Community Facilities Act of 1982, codified at Government Code Section 53311 et. seq. (the "Act"). Pursuant to the Act, in December, 1990, theCity issued $7,440,000 Special Tax Bonds ("Bonds"), which were secured by the special taxes authorized to be levied against all parcels wi thin the District. The Bonds were then refunded with the $3,315,000 Community Facilities District No. 995 of the City of San Bernardino (Verdemont Area) Special Tax Refunding Bonds (the "Refunding Bonds") . 1.2. The Developer owns or has an interest in unimproved property located within the District as more fully described in Exhibit "A" attached hereto (the "Property"). On or about January 14, 1994, the City commenced an action for judicial foreclosure of special tax liens in the Superior Court of the State of California for the County of San Bernardino, against certain named defendants therein, including Developer, bearing Case No. SCV09593 ("Action") for failure to pay the special taxes levied against the Property. 1.3. The Parties desired to resolve their differences and to avoid the expense and inconvenience of any future litigation, including without limitation, litigation of the Action, and thus entered into a Mutual Release and Settlement Agreement dated as of August 29, 1994 (the "Original Settlement Agreement") under which the Developer agreed to make payments to the City for delinquent special taxes, San Bernardino Unified School District ("School District") fees, interest, penalties and costs provided in said Original Settlement Agreement. 1.4. The Original Settlement Agreement was amended by that certain First Amendment to Mutual Release and Settlement Agreement dated October 21, 1997 (the "First Amendment") which 382001:10569.1 1 modified the terms of payment and amounts due to the City under the Original Settlement Agreement and provided for the concurrent execution of the Purchase and Sale Agreement for the purchase by the Developer from the City of certain real property located within the District which real property is included in the definition of Property contained in Section 1.2 hereof; and 1.5. On or about October 7, 1998, the Original Settlement Agreement was amended by that certain Second Amendment to Mutual Release and Settlement Agreement (the ~Second Amendment") which further modified certain terms and conditions of the Original Settlement Agreement. 1.6. On or about June 1, 1999, the Original Settlement Agreement was again amended by that certain Third Amendment to Mutual Release and Settlement Agreement (the ~Third Amendment") which further modified certain terms and conditions of the Original Settlement Agreement. (Whenever used herein and unless otherwise specified, the ~Original Settlement Agreement" shall refer to the Original Settlement Agreement as amended by the First Amendment, Second Amendment and Third Amendment.) 1.7. Pursuant to the First Amendment it has been established between the parties hereto that, as of the date of the First Amendment, the total amount of delinquent special tax, interest, penalties, School District Fees and costs due to the City with respect to the Property for the period from Fiscal Year 1991- 92 to Fiscal Year 97-98 was Eight Hundred Twenty Two Thousand, Four Hundred Ninety Three Dollars and Eighty Eight Cents ($822,493.88) (the ~Debt"). This amount represented $10,822.29 per lot for the 76 lots existing on the Property (the ~Home Release Payment"). Of this amount Five Thousand Four Hundred Forty Six and 29/100 Dollars ($5,446.29) was attributable to special taxes, interest and penalties and the remainder to other costs of the City associated with San Bernardino Unified School District fees. 1.8. Since the date of the First Amendment, the Developer has paid Thirty Five Thousand Three Hundred Fifty Nine Dollars and Ninety Four Cents ($35,359.94) of the Debt which has been credited, as follows: DATE OF PAYMENT June 98 CFD CITY WATER DEPT TOTAL RMBRSMT RMBRSMT 3,059.94 -0- -0- 3,059.94 16,473 11,951 3,876 32,300 19,532.94 11,951 3,876 35,359.94 2 oct 97 SB2001:10569.1 1.9. As of the date of the Third Amendment the amount of the Debt equaled Seven Hundred Eighty Seven Thousand One Hundred Thirty Three and 94/100 Dollars ($787,133.94) of which Three Hundred Ninety Four Thousand Three Hundred Eighty Four and 94/10 ($394,384.94) was attributable to special taxes, interest, penalties and costs (the "Special Tax Debt") and the remaining balance was attributable to outstanding amounts paid to reimburse the City for amounts owed to the San Bernardino Unified School District. 1.10. In August, 1999, the Developer paid the full amount of the outstanding balance of Special Tax Debt from amounts he received from the Redevelopment Agency of the City of San Bernardino in consideration for restricting the sale of an aggregate of 22 lots of the Property for residents of low- and moderate-income. 1.11. The City applied the money it received from the Developer, along with other amounts, to pay the outstanding balance of Special Taxes, defease the District's outstanding Refunding Bonds and extinguish the District. 1.12. Currently, the amount due and owing from the Developer to the City (the "Remaining Debt") equals Five Hundred Forty Four Thousand Seven Hundred Forty Nine Dollars ($544,749). 1.13. The parties hereto now mutually desire to further amend and supercede the Original Settlement Agreement to revise certain terms concerning the performance obligations of Developer as hereinafter set forth. 1.14. In consideration of the covenants, conditions and promises herein contained, the Parties agree as, set forth. SECTION 2. SETTLEMENT TERMS AND CONDITIONS 2.1. The amount due and owing from the Developer to the City hereunder (the "Remaining Debt") equals Five Hundred Forty Four Thousand Seven Hundred Forty Nine Dollars ($544,749), and shall be paid in the following manner: Developer shall be required to pay a fee equal to $7,167.75 per home (the "Modified Home Release price"): The Modified Home Release Price includes: 882001:10"69.1 3 (i)$3,884.75 per home as reimbursement to the City for School District fees totaling Two Hundred Ninety Five Thousand Two Hundred Forty One Dollars ($295,241) ("School District Reimbursement"); (ii) $1,283 per home as reimbursement to the City General Fund for amounts due to the City Water District totaling Ninety Seven Thousand Five Hundred Eight Dollars ($97,508) ("General Fund Water Reimbursement"); and (iii) $2,000 per home as reimbursement to the city General Fund totaling One Hundred Fifty Two Thousand Dollars ($152,000) (the "General Fund Payment") . 2.2. (a) The Modified Home Release Price shall be due and payable upon final inspection and clearance of utilities prior to authorizing occupancy for each lot whether or not the home is sold, or upon the close of escrow of the home, but in no event later than two (2) months after final inspection and clearance of utilities. Notwithstanding the foregoing, Developer shall not be required to pay the Modified Home Release Price for four (4) model homes until the earlier of (i) the sale of such home or (ii) two (2) years from the date of construction. (b) Late charges shall accrue in the event the payment required hereunder is not paid within thirty (30) days of its due date and shall bear interest at the rate of ten percent (10%) per annum until paid. (c) Except as provided in Section 2.3 hereof, Developer may not transfer title to all or any portion of the Property unless and until it has remitted the Modified Home Release price payment. Upon payment of the Modified Home Release Price, the City shall execute a notice of satisfaction of lien which shall be recorded to release the lot from this Fourth Amendment. 2.3. Notwithstanding the above, with the consent of the City, which consent shall not be unreasonably withheld, the Developer may enter into a construction or sales contract for construction on the Property or sale of the Property with a licensed contractor or a developer who, (1) between the period of January, 1997 through January, 2001: (i) has constructed or is scheduled to construct at least one hundred (100) single family housing units, (ii) has developed at least 100 parcels of real property or (iii) has achieved any combination of (i) and (ii) totaling 100 and (2)assumes all of the duties and obligations under this Fourth Amendment. 882001:10569.1 4 2.4. The City shall not require the Developer to pay additional school fees to the extent that the school fees included in the calculation of the Remaining Debt are sufficient to compensate the School District for all school fees. The Developer shall have the sole responsibility to obtain any and all consents or other waivers as may be required by the School District acknowledging that the amounts set forth herein are the only School District fees applicable to the Property. Property Fees") . Fees on 2.5. In addition to being within the District, the was also subj ect to Verdemont Infrastructure Fees ("VI However, the Developer shall not be required to pay any VI the Property. 2.6. The Developer has requested down payment assistance be made available to their buyers from the Mortgage Assistance Program ("MAP") of the Redevelopment Agency of the city of San Bernardino ("Agency"). The City hereby confirms that it has entered into a letter agreement in the form attached hereto as Exhibit "B" with the Agency ( the "Letter Agreement") directing the Agency to use its best efforts to provide MAP assistance on a first come first serve basis to all of the Developer's buyers who qualify for MAP assistance. Under the MAP, the buyers shall receive no more than the following amounts in the following years: 2001/2002 - $50,000; 2002/03 - $100,000; 2003/04 - $50,000. In the event the foregoing amounts are not used by Developer's buyers in the years granted, said amounts shall not be carried forward and thus shall not be available to the Developer's buyers in any subsequent year. The foregoing grants shall be subject to all of the terms, conditions and qualifying criteria as may be specified in the MAP as such terms, conditions and criteria exist at such time and consistent with the requirements imposed by the funding source and other discretionary criteria as may be established by the Agency. Developer shall not receive any waivers of terms in connection with this Amendment. 2.7. The Parties hereto acknowledge that pursuant to the (Feldkamp/Agency Agreement) dated as of , the Agency and the Developer have agreed that in consideration for the amounts paid by the Agency on behalf of the Developer to extinguish the Special Tax Debt, the Developer shall restrict the sale of an aggregate of 22 lots of the Property for residents of low- and moderate-income. SECTION 3. DEFAULT TERMS 582001: 1(;')69.1 5 3.1. The following shall constitute events of default by the Developer hereunder: (i) Failure to remit any payment to the city pursuant to Section 2.1 hereof within forty five (45) days of its due date; (ii) Failure to record the Final Map for Tract No. 14193 on or before August 1, 2001; (iii) Default on the part of the Developer under any provisions of its long term construction loan financing of the Property. (iv) Failure to commence construction of on-site building by January 1, 2002, and thereafter proceed with said construction with due diligence until completion, subject to Section 3.2 hereof. 3.2. (a) Performance by either party hereunder shall not be deemed to be in default, or considered to be a default, where delays or defaults are due to the force maj eure events of war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes or weather-caused delays (that are not attributable to the fault of the party claiming an extension of time) or acts or failure to act of any public or governmental agency or entity. An extension of time for any such force maj eure cause shall be for the period of the enforced delay and shall commence to run from the date of occurrence of the delay; provided, however, that the party claiming the existence of the delay first provide the other party with written notice of the occurrence of the delay within fifteen (15) calendar days of the occurrence of the event giving rise to delay. The parties hereto expressly acknowledge and agree that changes in ei ther general economic conditions or changes in the economic assumptions of any of them which may have provided a basis for entering into this Agreement and which occur at any time after the execution of this Agreement, are not force majeure events and do not provide any party with grounds for asserting the existence of a delay in the performance of any covenant or undertaking which may arise under this Agreement. Each party expressly assumes the risk tha t changes in general economic conditions or changes in such economic assumptions relating to the terms and covenants of this Agreement could impose an inconvenience or hardship on the continued performance of such party under this Agreement, but that such inconvenience or hardship is not a force majeure event and does not excuse the performance by such party of its obligations under this Agreement. Furthermore, submittal of incomplete or defecti ve applications, plans or drawings to any governmental 88200] :10569.1 6 agency, including the City, shall not be grounds for the exercise by the Developer of any provisions of this Section. (b) Except for the requirement of recording the Final Tract Map by August 1, 2001, the City agrees to extend the dates for the performance of the duties of the Developer hereunder for the construction of the homes on the Property as long as the Developer proceeds with the construction of said homes with due diligence and in a workmanlike manner in accordance with normal industry standards. 3.3. Developer shall not be in default under subsections (i), (ii) or (iv) of Section 3.1 in the event that such default is the result of unlawful or unreasonable actions by the City. "Unreasonable actions" shall not include any discretionary action, taken by the City in its standard process of approving the final Tract Map No. 14193 for the Property or other discretionary approval of the City in connection with completion of the homes on the Property. 3.4. Subject to Section 3.2 hereof, upon the happening of an event of default, Developer shall immediately, upon written request of the City, execute a quitclaim deed to the Property, and deli ver said quitclaim deed and the Property to the City. Upon delivery to the City and recordation of a quitclaim deed to the Property, the City shall release Developer from any and all obligations arising from the Debt against the Property. SECTION 4. TERMS OF PURCHASE OF PARCEL 2 4.1. The Developer purchased Parcel 2 of the Property (as described on Exhibit A hereto) from the City for a total consideration of Four Hundred Thirty Thousand Dollars ($430,000) of which One Hundred Ninety Seven Thousand, Four Hundred Twenty Seven Dollars and Fifteen Cents ($197,427.15) of the purchase price was to be paid upon the sale of each lot to an individual purchaser and the remainder of Two Hundred Thirty Two Thousand, Five Hundred Seventy Two Dollars and Eighty Five Cents ($232,572.85) shall be deemed to be paid by the Developer upon development of street improvements (including but not limited to curbs, gutters, sidewalks, fill-in street paving and lighting) by the Developer on Ohio, Olive and Walnut Avenues as described in the site plans which were prepared by MAPCO and submitted and approved by the City. The amount due per lot equaled Four Thousand Seven Hundred Dollars and Sixty Five Cents ($4,700.65) for each of the 42 lots for a total of ($197,427.15/42 lots) and was included in the Eight Hundred Twenty Two Thousand Four Hundred Ninety Three Dollars and Eighty Eight 882001: 10'J69.1 7 Cents ($822,493.88) set forth in Section 2.1 of the First Amendment. The amounts described in Section 2.1 hereof include the One Hundred Ninety Seven Thousand, Four Hundred Twenty Seven Dollars and Fifteen Cents ($197,427.15) amount described in this Section 4.1. Thus, payment under Section 2.1 hereof constitutes satisfaction of the One Hundred Ninety Seven Thousand, Four Hundred Twenty Seven Dollars and Fifteen Cents ($197,427.15) due hereunder. SECTION 5. MISCELLANEOUS PROVISIONS 5.1. This Fourth Amendment contains the entire understanding of the Parties with respect to the subject matter hereof, and supercedes all prior agreements both written or oral relating hereto, except that certain Bailey Creek Agreement between the City and the Developer and the Agreement between the Agency and the Developer which requires the Developer to restrict 22 lots for low- and moderate-income residents. No modification or waiver of any of the provisions hereof shall be valid unless in writing and executed by the Parties to be bound. 5.2. This Fourth Amendment shall be governed in accordance with the laws of the State of California. Any action brought to enforce or interpret this Fourth Amendment, or any part thereof, shall be brought in the State of California, in the County of San Bernardino. 5.3. Each Party hereto certifies that he, she or it has read all of this Fourth Amendment and fully understands all of the same. 5.4. This Fourth Amendment shall be recorded in the appropriate real property records of San Bernardino County, California and shall constitute a lien on the Property described in Exhibit "A" for the amounts set forth herein. 5.5. The effective date of the Fourth Amendment is the date set forth in the first paragraph of hereof. 5.6. This Fourth Amendment has been duly authorized the City, through the action of its Mayor and Common Council taken on April 16, 2001. The representatives signing this Fourth Amendment on behalf of the City expressly represent that he, she or they do so with the full authority and c~nsent of the City. SB2001:10S69.1 8 [PLEASE NOTE THAT SIGNATURES OF ALL PARTIES TO THIS AMENDMENT MUST BE NOTARIZED] DATED: Apr il , 2001 CITY OF SAN BERNARDINO, a California municipal corporation By: APPROVED AS TO FORM AND CONTENT: DATED: April ,2001 LEWIS D'AMATO BRISBOIS & BISGAARD, LLP By: Attorneys for the City of San Bernardino DEVELOPER By: Irving M. Feldkamp III C: \25426-103\docs\ STATIC-3 .1agc. wpd S82001:10569.1 9 STATE OF CALIFORNIA COUNTY OF On before me, (here insert name and title of the officer), personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) 882001:10569.1 10 STATE OF CALIFORNIA COUNTY OF On before me, (here insert name and title of the officer), personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) 882001:10569.1 11 EXHIBIT "Au [DESCRIPTION OF PROPERTY] 38200]:] 0069.1 [Date] Redevelopment Agency of the City of San Bernardino 201 North "E" Street, 3rd Floor San Bernardino, CA 92401 Re: Mortgage Assistance for Developer Properties Dear Mr. Van Osdel: By this letter the City of San Bernardino ("City") and the Redevelopment Agency of the City of San Bernardino ("Agency") hereby agree that pursuant to the Fourth Amendment to Mutual Release and Settlement Agreement between the City and Irving M. Feldkamp III ("Developer") dated as of April 16, 2001, the Agency shall use its best efforts to provide mortgage assistance to all buyers of the subject lots who qualify for the Agency's Mortgage Assistance Program ("MAP"). However, MAP funds will be available on a first come first serve basis. Under the MAP, the Developer's buyers will receive assistance, if available, of no more than the following amounts in the following years: 2001/2002 - $50,000; 2002/03 - $100,000; 2003/04- $50,000. In the event the foregoing amounts are not used by Developer's buyers in the years granted, said amounts shall not be carried forward, and thus shall not be available to the Developer's buyers in any subsequent year. The foregoing grants shall be subject to all of the terms, conditions and qualifying criteria as may be specified in the MAP as such terms, conditions and criteria 8B2001:10569.1 exist at such time and consistent with the requirements imposed by the funding source and other discretionary criteria as may be established by the Agency. Developer shall not receive any waivers of terms in connection herewith. Very truly yours, CITY OF SAN BERNARDINO By: Judi th Valles Mayor AGREED AND ACCEPTED: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Gary Van Osdel Executive Director 382001:10569.1