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HomeMy WebLinkAboutCDC/2001-20 (See Resolutions CDC/2001-21, 2001-125, 2001-126, 2001-127, 2001-128) RESOLUTION NO. CDC/2001-20 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERT AIN FINDINGS AND DETERMINATIONS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433, MAKING OTHER FINDINGS AND DETERMINATIONS IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND SBT PARTNERS, LLC, AND APPROVING OTHER ACTIONS IN CONNECTION THEREWITH (HUB PROJECT) 3 4 5 6 7 8 9 10 WHEREAS, an area of the City of San Bernardino (the "City") generally situated along the west side of Tippecanoe Avenue to the north of the right-of-way of the Interstate 10 Freeway 12 referred to as the "HUB Project Site" or the "Site" is included within the redevelopment project area of the Inland Valley Development Agency, a joint powers authority formed pursuant to 13 Health and Safety Code Sections 33492.10 et seq., for the purpose of assisting in the conversion and civilian reuse of the former Norton Air Force Base and other lands situated in the City; and 11 14 WHEREAS, the Inland Valley Development Agency, the City and the Redevelopment 15 Agency of the City of San Bernardino (the "Agency") entered into an agreement entitled "1999 16 Redevelopment Cooperation Agreement" dated as of July 12, 1999 (the "Redevelopment Cooperation Agreement"), pursuant to which the Inland Valley Development Agency granted the 17 Agency the right, power and authority to act for and on behalf of the Inland Valley Development Agency for the purposes of exercising the redevelopment powers of the Inland Valley 18 Development Agency; and 19 WHEREAS, the Site contains residential and commercial developed properties, and the 20 Agency has initiated certain studies and proposals to address a number of issues of community concern on the Site relating to blight and conditions associated with obsolete commercial design, deferred maintenance, traffic circulation and conflicting commercial-residential neighborhood 22 property use and community design in an effort to eliminate and prevent the spread of blight from the Site; and 21 23 WHEREAS, SBT Partners, LLC (the "Developer") submitted a redevelopment proposal 24 for the Site that was the subject of study and evaluation by the City and the Agency, and the City 25 prepared and certified a Final Environmental Impact Report for the HUB Project (State Clearinghouse No. 2000081074) in connection with the Agency's consideration and approval of 26 5/1~. m SB2001 4609.1 28 1 CDC/2001-20 I a Disposition and Development Agreement, dated as of May 21, 2001, (the "Agreement"), by and 2 between the Agency and the Developer; and 3 WHEREAS, the Agency also prepared a report dated May 7,2001, (the "33433 Report") analyzing the Agreement, in accordance with Health and Safety Code Section 33433. 4 5 WHEREAS, the City and the Agency scheduled a joint public hearing to consider the receipt and approval of the 33433 Report and the Agreement. 6 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE 7 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: 8 9 Section 1. On May 21, 2001, the Community Development Commission ofthe City of San Bernardino (the "Commission"), as the governing board of the Agency, conducted a full 10 and fair joint public hearing with the Mayor and Common Council ofthe City of San Bernardino and considered the written Agency staff report, the 33433 Report the Final Environmental Impact Report for the HUB Project Site (the "FEIR") and the testimony submitted relating to the 12 disposition and redevelopment ofa substantial portion ofthe Site (the "Property" or collectively, the "Phase I Site and the "Phase II Site") by the Developer pursuant to the terms and conditions 13 of the Agreement. The minutes of the Agency Secretary for the May 21,2001, meeting of the Commission shall include a record of all communication and testimony submitted to the Commission by interested persons relating to the joint public hearing, the 33433 Report, the FEIR 15 and the approval of the Agreement. 11 14 16 Section 2. This Resolution is adopted in satisfaction of the provisions of Health and Safety Code Section 33433 relating to the disposition and sale of the Property by the Agency to 17 the Developer on the terms and conditions set forth in the Agreement. A copy of the Agreement in the form submitted at this joint public hearing is on file with the Agency Secretary. The 18 Commission hereby finds and determines that: 19 (i) the disposition and redevelopment of the Property by the Developer in accordance with the Agreement is consistent with the Redevelopment Plan for the Inland Valley Redevelopment Project Area and the Inland Valley Development Agency Implementation Plan; 20 21 22 23 24 25 26 (ii) the terms and conditions of the Agreement contain assurances that the Property will be redeveloped by the Developer as permitted under the Redevelopment Plan for the Inland Valley Redevelopment Project Area; (iii) the consideration payable by the Developer to the Agency as the purchase price for the Property, subject to the satisfaction of the terms and conditions of the Agreement, is an amount which: 511 'J:iJ. m SB2001: 4609.1 28 2 CDC/2001-20 I 21 (A) in the case ofthe "Phase I Site", as defined in the Agreement, is not less than fair market value, and is more than the fair reuse value at its highest and best use, as set forth in the 33433 Report; and 3 4 5 6 7 8 9 10 11 12 13 14 (B) in the case of the "Phase II Site", as defined in the Agreement, is not less than the current fair market value as set forth in the 33433 Report, if the Developer elects to purchase the Phase II Site within 18 months following the execution ofthe Agreement, and if the Developer elects to purchase the Phase II Site after 18 months but before 60 months from the execution of the Agreement, then the amount payable by the Developer shall be the then current fair market value, increased by any increases in the Agency acquisition costs, all as more fully set forth in the Agreement; (iv) the disposition of the Property to the Developer on the terms set forth in the Agreement shall assist in the elimination of blight on the Property; (v) the Agency is satisfied that the information set forth in the draft of the "Tri- City Project Area Relocation Plan" dated as of May 8,2001, for the Phase I Site contains a relocation needs assessment, and assessment of replacement housing requirements and a description of the steps and procedures which the Agency shall follow in connection with the acquisition of the portions of the Site as required for the Phase I Project which is feasible to implement and that Agency funds are available therefor. Section 3. Prior to the opening of the joint public hearing at which this Resolution is 15 adopted, the Commission received the Final EIR and Facts, Findings and Statement of Overriding 16 Considerations Regarding the Environmental Effects from the Environmental Impact Report for the HUB Project (State Clearinghouse No. 2000081074) that were certified and adopted, 17 respectively, by the City, regarding the development proposed to occur under the Agreement and the HUB Project. The Commission has independently reviewed the Final EIR certified by the 18 City for the HUB Project. In its independent discretion, the Commission hereby finds that the 19 Final EIR adequately describes the Agreement and the Phase I Project and the Phase II Project as shall be undertaken by the Developer and assesses all of the significant environmental effects or 20 impacts of the implementation of the Agreement. 21 The Commission further finds and determines that there are no other significant 22 environmental effects or any differences in the severity of environmental effects associated with the implementation of the Agreement from those assessed in the Final EIR that would require 23 additional environmental review under Public Resources Code Section 21060 or Title 14 California Code of Regulations Sections 15162 or 15163. 24 25 In the independent discretion of the Commission, the Facts, Findings and Statement of Overriding Considerations Regarding the Environmental Effects from the Environmental Impact 26 Report for the HUB Project (State Clearinghouse No. 2000081074) as adopted by the City 5/1~. m S82001 4609.1 28 3 5/1~. m SB2001 4609.1 28 CDC/2001-20 regarding the HUB Project are applicable to the Commission's consideration and approval ofthe 2 Agreement. The Commission hereby approves and adopts as the findings of the Commission, under Title 14 California Code of Regulations Sections 15091 and 15093, regarding the approval 3 ofthe Agreement, the Facts, Findings and Statement of Overriding Considerations Regarding the Environmental Effects from the Environmental Impact Report for the HUB Project (State 4 Clearinghouse No. 2000081074) as adopted by the City. The Facts, Findings and Statement of 5 Overriding Considerations Regarding the Environmental Effects from the Environmental Impact Report for the HUB Project (State Clearinghouse No. 2000081074) as adopted by the City are 6 incorporated into this Resolution by this reference. 7 Further, the Commission's approval ofthe Agreement is conditioned upon the Developer's compliance with the Mitigation Monitoring Plan adopted by the City of San Bernardino in 8 conjunction with the certification of the Final EIR for the Phase I Project and the Phase II Project, 9 as applicable. The terms and provisions ofthe Agreement contractually require compliance with the Mitigation Monitoring Plan and provide for contractual enforcement of this obligation of the 10 Developer. The City, as lead agency, remains responsible for ensuring implementation of the mitigation measures in accordance with the Mitigation Monitoring Plan. 11 12 The Commission hereby authorizes and directs the Agency Secretary to file a Notice of Determination with respect to the Commission's approval of the Agreement, in accordance with 13 Public Resources Code Section 21152 and Title 14 California Code of Regulations Sections 15096(i) and 15094, consistent with the approvals, findings and determinations set forth in this 14 Resolution. 15 Section 4. The Commission hereby receives and approves the 33433 Report and the 16 other written materials submitted to the Agency at the meeting at which this Resolution is adopted. The 33433 Report contains the information required under Health and Safety Code Section 33433. 17 18 Section 5. The Commission hereby approves the Agreement. The Chairperson of the 19 Commission and the Agency Secretary are hereby authorized and directed to execute the Agreement on behalf of the Agency together with testimonial and conforming changes as may be 20 recommended by the Executive Director and Agency Counsel. The Executive Director is hereby authorized to take all appropriate action as set forth in the Agreement to implement the redevelopment of the Site. 21 22 23 24 25 26 4 CDC/2001-20 I I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE 2 CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND DETERMINATIONS PURSUANT TO HEAL TH AND SAFETY CODE SECTION 33433, 3 MAKING OTHER FINDINGS AND DETERMINATIONS IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND APPROVING A 4 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND SBT 5 PARTNERS, LLC AND APPROVING OTHER ACTIONS IN CONNECTION 6 THEREWITH (HUB PROJECT) 7 Section 6. This Resolution shall take effect upon adoption. 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 9 Development Commission of the City of San Bernardino at a joint regular meeting thereof, held on the 21st day of May ,2001, by the following vote, to wit: 10 Commission 11 ESTRADA 12 LIEN McGINNIS 13 SCHNETZ SUAREZ 14 ANDERSON 15 McCAMMACK AYES X X X X X X X NAYS ABSTAIN ABSENT 16 17 18 The foregoing Resolution is hereby approved this :)$71-1 day of May ,2001. 19 20 21 22 23 24 25 By: 26 511~ . m SB200 !. 4609.1 28 J 1 a 1es, Chairperson o munity Development Commission o the City of San Bernardino 5 I! II 1 I STATE OF CALIFORNIA ) 2 COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) 3 I, Secretary of the Community Development 4 Commission of the City of San Bernardino, DO HEREBY CERTIFY that the foregoing and 5 attached copy of Community Development Commission ofthe City of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. 6 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official 7 seal ofthe Community Development Commission ofthe City of San Bernardino this day 8 of , 2001. 9 10 11 12 13 Secretary of the Community Development Commission of the City of San Bernardino 14 15 16 17 18 19 20 21 22 23 24 25 26 5/12J; . m S82001 4609.] 6 28 P.:t;::~'.'f.=' ~:y " DISPOSITION AND DEVELOPMENT AGREEMENT., " " e -'1 n r '1 1,:1 L Ji:_;L- l) I " , ., ,. ) -- , .l. (Tippecanoe Study Area) S i\ N d i~, ~~:: ,','~ ,) I N 0 --Inland Valley Redevelopment Project Area-- THIS DISPOSITION AND DEVELOPMENT AGREEMENT (the "Agreement") is dated as of May 21, 2001, by and between SBT Partners, LLC, a California limited liability company (the "Developer") and the Redevelopment Agency of the City of San Bernardino (the "Agency"), and this Agreement is entered into in light of certain facts set forth in the following Common Recitals: --COMMON RECITALS-- 1. The lands included in the Site (as this term is defined herein) display a number of symptoms of blight, and the Agency has determined that the redevelopment of the Site, in accordance with the terms of this Agreement, shall assist the community to eliminate the conditions of blight on the Site, and prevent the spread of conditions of blight into other areas of the community including into the redevelopment project area of the Tri-Cities Redevelopment Project of the Agency. 2. The Agency has also determined that: 5/15/01 ct SB2001:7B25.B . the redevelopment of the Site will also assist the City of San Bernardino to implement its general plan by providing for the design and installation of the Harrison Place Improvement Project (as this term is defined herein), subject to the terms and conditions set forth belowj . as part of the redevelopment of the Site, the Agency shall provide for the relocation of families and households who currently reside there, with safe, sanitary and decent housingj and . the redevelopment of the site, in accordance with the terms of this Agreement, shall compliment the efforts of the Inland Valley Development Agency to provide for the redevelopment of the former Norton Air Force Base. I-I NOW THEREFORE, THE DEVELOPER AND THE AGENCY AGREE AS FOLLOWS: SECTION 1.1. Scope of the Redevelopment Pro;ect. The redevelopment project activities to be undertaken by the Developer and shall consist of the development of approximately 268,600 square feet of gross interior commercial space structures to be situated on approximately twenty four and five tenths (24.5) "acres of land generally situated at the northwest corner of the Tippecanoe Avenue undercrossing of the Interstate 10 Freeway in San Bernardino, California. The Developer's improvements on the proposed site will be developed in two (2) phases of improvement. The initial phase of improvement ("Phase I Project") will be developed by the Developer (and in part by the Developer's tenant) and shall include the improvement of approximately 198,600 square feet of gross interior commercial space structures which shall be situated on approximately seventeen and sixty six hundredths (17.66) acres of land. The Phase I Project will be situated on the "Phase I Site" which generally includes the lands located to the south of the new public street alignment of Harriman Street. Approximately 130,400 square feet of commercial structures improvements of the Phase I Project will be reserved for occupancy by a retail discount center business (as provided herein), and 45,000 square feet of other retail, together with two (2) freestanding pad-structures of approximately 10,000 square feet each, will also be included in the Phase I Project. The second phase of improvement (the "Phase II Project") will include the development of up to approximately 70,000 square feet of gross interior area commercial space structures on approximately five and seven tenths (5.7) acres of land. The Phase II Project will be situated on the "Phase II Site" which is generally situated along the north side of the new public street alignment of Harriman Street. The Phase II Project will include the improvement by the Developer of up to approximately 70,000 square feet of gross interior commercial building area wl).ich may be allocated among retail buildings of between 25,000 to 30,000 square feet in size and freestanding buildings/pads measuring from 5,000 to 10,000 square feet in gross interior building area. SECTION 1.2. Inland Valley Redevelopment Pro;ect and the Redevelopment Cooperation Aqreement By and Amonq the Inland Valley Development Aqency, the City of San Bernardino and the Aqency. The Site is situated in the redevelopment project area of the Inland Valley Redevelopment Project Area which was adopted by the Inland Valley Development Agency (the "IVDA"). The IVDA has delegated certain responsibilities for the redevelopment of the 5/15/01 ct 5B2001:7825.8 1-2 Site to the Agency pursuant to the terms of a Redevelopment Study Agreement, dated as of July 1, 1999, by and among the City of San Bernardino (the "City"), the Agency and the IVDA. The redevelopment of the Site and the implementation of certain provisions of this Agreement as relate to the Condemnation Parcels, as set forth herein, may require certain additional consultations from time-to-time by and between the Agency and the IVDA. To the extent that the IVDA may be requested by the Agency to provide redevelopment assistance to the Agency, in addition to any such assistance contemplated under the Redevelopment Study Agreement, such redevelopment assistance of the IVDA shall be provided in the sole discretion of the IVDA. SECTION 1.3. Site Acquisition and Redevelopment Proiect Environmental Impact Report. An Environmental Impact Report (State Clearinghouse No. 2000081074) has been prepared and considered for the Site Acquisition Program, the Harriman Place Improvement Project, the Phase I Project, the Phase II Project and various alternatives to these, including the proposed separated OPA with a third party property owner. SECTION 1.4. Defined Terms. In addition to the usage of certain terms which have defined meanings as set forth in the preceding paragraphs of this Agreement, or in other sections of this Agreement, certain other words and phrases are used in this Agreement to refer to the following unless the particular context of usage of a word or phrase may otherwise require: . "Certificate of Completion" means the written confirmation of the Agency as more fully described in Section 3.7, which evidences that the Developer has satisfactorily completed the redevelopment of the Phase I and later, the Phase II Project, as applicable. . "Certificate of Subdivision Compliance" means and refers to the certificate (s) of subdivision compliance which shall be issued by the City to the Developer at the time of the Site Transfer Escrow Closing for the Phase I Site, or later for the Phase II Site. . "City" means City of San Bernardino. The City is not a party to this Agreement. "Condemnation Parcel" means and refers to a Site Parcel which the Agency has been unable to satisfactorily . 5/15/01 ct SB2001:7B25.B 1-3 complete a negotiated purchase with the owner within a reasonable period of time following the Agency's transmittal of an offer to purchase to such owner. . "Corner Parcel" means and refers to a portion of the Site generally situated near the southwesterly corner of the intersection of Tippecanoe Avenue and Harriman Street which abut the Phase I Site and which shall be available for disposition and redevelopment by either In-N-Out Burger, as provided in Section 2.14 or by the Developer, as provided in Section 2.16, if applicable. A legal description of the Corner Parcel is included in Attachment No. 1D. · "Developer Improvement Plan Concept" means and refers to the concept plan for the Phase I Project and the Phase II Project, as depicted on Attachment No.2. · "Developer Investigations" means and refers to the Developer's due diligence investigation of each Site Parcel to determine the suitability of such lands for development. The Developer Investigations shall include an investigation of environmental and geotechnical suitability of such lands as determined at the sole discretion of the Developer. · "Development Project Application" means and refers to the completed application(s) of the Developer for the review and discretionary approval by the City of the plan of improvement of the Phase I Project and/or the Phase II Project, as applicable, to be undertaken by the Developer. Each Development Project Application shall include all of the information necessary for the City to issue its development project approvals for the Phase I proj ect and/or the Phase I I proj ect, as appl icable, including all development compliance conditions. At the time of its submittal to the City, the Development proj ect Application shall be substantially consistent with the Developer Improvement Concept. Promptly following the approval of the Development Project Application by the City, the Developer shall prepare and complete the Project-related development improvement plans and specifications, including without limitation exterior sign and lighting plans and landscape plans in sufficient detail to obtain the issuance of all necessary Development Project Permits from the City. 5/15/01 ct SB2001:7825.8 1-4 5/15/01 ct SB2001:7825.8 . . . . . . "Development Project Permits" means and refers to all of the regulatory and building permits which the Developer shall obtain from the City {and each of the other agencies with regulatory jurisdiction over the Phase I Project and the Phase II Project, as applicable} for the construction and improvement of the Phase I Project, and later the Phase II Project, as applicable, by the Developer. "Escrow Agent" means and refers to First American Title Company, or such successor entity as may be mutually designated by the Developer and the Agency. The Escrow Agent shall administer the Site Transfer Escrow. "In-N-Out Burger Site" means and refers to the lands which abut the Phase I Site which may be redeveloped by In-N-Out Burger under a separate agreement with the Agency. Provided that In-N-Out has exercised its election to acquire the portion of the lands included in the In-N-Out Site which it does not own {e.g.: the Corner Parcel} under the terms of such an agreement with the Agency, the Developer and In-N-Out shall enter into the In-N-Out Driveway REA. A legal description of the In-N- Out Burger Site is included in Attachment No. 1F. "In-N-Out Lands" means and refers to the land improvements which abut the Phase I Site and which are presently owned by In-N-Out. A legal description of In- N-Out Lands is included in Attachment 1E. "IVDA" means and refers to the Inland Valley Development Agency, a joint powers authority established under Health and Safety Code Section 33492.40 et seq. The IVDA has delegated certain responsibilities for the redevelopment of the Site to the Agency pursuant to the terms of the Redevelopment Study Agreement, dated as of July 1, 1999 by and among the IVDA, the City and the Agency. A copy of the Redevelopment Study Agreement is on file with the Agency Secretary. "Harriman Construction Agreement" means and refers to the public street construction improvement and financing agreement by and between the City and the Agency for the Harriman Place Improvement Project. The Harriman Construction Agreement shall provide for the financing, design and installation of the Harriman Place Improvement proj ect . Such agreement shall provide, among other things, for an identification of a source of funds to pay I-S for the Harriman Place Improvement Project, including all right of way acquisition and relocation costs, design engineering, construction costs and contingency and financing costs. The Harriman Construction Agreement shall also set forth a commencement date for the work of improvement to occur within 90 days following the close of the Site Transfer Escrow (Phase I Site), and for such work of improvement to be diligently prosecuted to completion within 270 days following the close of such escrow. · "Harriman Place Charge" refers to the sum payable to the Agency by the Developer as specified in Section 2.2(a)(ii). · "Harriman Place Improvement Project" means and refers to the public street improvement project to be undertaken by the Agency (and administered by the City) concurrently with the construction and installation of the Phase I proj ect by the Developer. The Harriman Place Improvement Project is described in Section 2.12 and Attachment No. 12. · "New Store" means and refers to approximately 129,000 square foot commercial retail sales facility to operate on the Site by a nationally recognized merchandiser of high-volume consumer retail products. The Developer shall certify to the Agency the readiness of the operator of the New Store to proceed with the redevelopment of the New Store on the Site subject to the terms of its written lease agreement with the Developer as set forth in Section 1.8. · "Phase I Project" means and refers to the development project to be undertaken by the Developer on the Phase I site promptly following the close of the Site Transfer Escrow (Phase I Site). The Phase I Project shall include the construction and improvement by the Developer, or its tenants (including the New Store) of a total of approximately 198,600 square feet of gross interior area commercial buildings. The Phase I proj ect shall not include the improvement by the Developer of the In-N-Out Burger Lands except to the extent set forth in Section 2.16, if applicable, or the Harriman Place Improvement Project. A more detailed description of the functional elements of the PhaseI Project is included as Attachment No. 4A. 5/15/01 ct 5B2001:7825.8 I-6 . . . . 5/15/01 ct SB2001:7825.8 "Phase I Site" means and refers to the portion of the Site which the Agency shall transfer to the Developer at the close of the Site Transfer Escrow (Phase I Site). The Phase I Site is approximately 17.66 acres in size (including therein portions of Lot 24 and Lot 25 as described in the next sentence, but excluding therefrom the portion of the public street right-of-way area of the new alignment of Harriman Place). The Phase I Site shall include portions of "Lot 24 and Lot 25" as described in Attachment 1Gj provided that, the Agency first enters into a third-party agreement as described in Section 2.14. The lands described in Attachment 1G may be transferred to the Developer following the close of Site Transfer Escrow as provided in Section 2.14(d). A legal description of the Phase I Site which excludes the lands described in Attachment 1G is attached hereto as Attachment No. 1H. The Developer shall cause the Phase I Project to be constructed and installed on the Phase I Site as set forth herein. A tentative legal description of the Phase I Site is included as Attachment No. lB. The Phase I Site does not include the Corner Parcel or the In-N-Out Burger Site. "Phase II Project" means and refers to the development project to be undertaken by the Developer on the Phase II Site promptly following the close of the Site Transfer Escrow (Phase II Site). The Phase II Project shall include the construction and improvement by the Developer of a total of up to approximately 70,000 square feet of gross interior area of commercial buildings. The Phase II Project shall not include the improvement of the Harriman Place Improvement proj ect. A more detailed description of the functional elements of the Phase II Project is included as Attachment No. 4B. "Phase II Site" means and refers to the portion of the Site which the Agency shall transfer to the Developer at the close of the Site Transfer Escrow (Phase II Site). The Phase II Site is approximately 5.7 acres in size (excluding therefrom the portions of the public street right-of-way area of the new alignment of Harriman Place). The Developer shall cause the Phase II Project to be constructed and installed on the Phase II Site as set forth herein. A tentative legal description of the Phase II Site is included as Attachment No. lC. "Project REA" means and refers to the shopping center covenants, conditions and restrictions which shall be I-7 . . . . . 5/15/01 ct SB2001:7825.8 applicable to the Phase I Site. The Project REA provides for the coordination, administration, maintenance and replacement of on-site driveways, traffic circulation, pedestrian walkways, landscaping and shopping center operation and use controls in order to assure and preserve the character and quality of the Phase I Project as a first-class community shopping center. "Schedule of Performance" means and refers to the time schedule for the performance of key steps for the assembly of the Site by the Agency and the construction of the Harriman Place Improvement Project and the redevelopment of the Phase I Project, and later the Phase II Project by the Developer. The Schedule of Performance is included as Attachment No.6, and is deemed approved by the parties concurrently upon the approval of this Agreement by the governing board of the Agency. "Site" means and refers to all of the lands necessary for the Harriman Place Improvement proj ect, the Phase I Project and Phase II Project of the Developer, and the project as may be undertaken by In-N-Out under a separate agreement with the Agency. The Site includes approximately twenty seven and twelve tenths (27.12) acres of land, more or less. A plat map and a legal description of the lands included in the Site is annexed to this Agreement as Attachment No. lA. "Site acquisition costs" means and refers to each of the various categories of cost associated with the assembly and acquisition of the Site by the Agency. An estimate of the total amount of the Site acquisition costs as of the date of this Agreement is included in Section 2.4 as the Preliminary Site Assembly Budget. "Site Parcel" means and refers to each of the legal parcels of land which comprise the Site. As of the date of this Agreement the Agency does not own or possess any equitable interest in any Site Parcel. A legal description of all of the Site Parcels which comprise the Site is included as Attachment No. lA. "Site Parcel Acquisition Agreement" means and refers to the general form of the real estate purchase agreement by and between the Agency and each owner of a Site Parcel. The general form of the Site Parcel Acquisition Agreement is included as Attachment No.7. I-8 · "Site Parcel Escrow" means and refers to each of the individual escrow transaction accounts established by the Agency with each record owner of a Site Parcel for the acquisition of such Site Parcel by the Agency. · "Site Transfer Escrow" means and refers to the escrow transaction account established by the Developer and the Agency for the transfer of the Phase I Site, or later than Phase II Site, to the Developer. · "Site Transfer Escrow Closing" means and refers to the time when the conditions for the transfer of title and/or possession of the Phase I Site or later, than Phase II Site, as applicable from the Agency to the Developer have been satisfied by the parties and the applicable form of the Agency Grant Deed and other necessary documents are recorded. SECTION 1.5. Parties to the Aqreement. (a) Agency. Agreement. The parties to this Agreement are the Developer and the Neither the City or the IVDA are parties to this (b) The Developer is as identified above. The principal office of the Developer for purposes of this Agreement is located at 13 Corporate Plaza, Newport Beach, California 92660. The Developer has provided the Agency with satisfactory evidence of the legal formation and existence of the Developer and the good standing of the Developer to transact business within the State, to hold title to the Site and to develop the Project. (c) The Agency is a public body, corporate and politic, exercising governmental functions and powers, and organized and existing under the Community Redevelopment Law of the State of California, Health and Safety Code Section 33000, et seq. SECTION 1.6. [RESERVED -- NO TEXT] SECTION 1.7. Chanqe in Ownership Manaqement and Control of the Developer--Assiqnment and Transfer. (a) Transfer as used in this Section 1.7, the term "Transfer" means: (1) Any total or partial sale, assignment or conveyance, or any trust or power, or any transfer in any other mode or 5/15/01 et SB2001:7825.8 I-9 form by the Developer of more than 49% interest (or series of such sales, assignments and the like which in the aggregate exceed a disposition of more than a 49% interest) with respect to its interest in this Agreement, the Phase I Site, the Phase II Site or any part thereof or any interest therein or of the improvements constructed thereon, or any contract or agreement to do any of the same; or (2) Any total or partial sale, assignment, conveyance, or transfer in any other mode or form, of or with respect to any ownership interest in Developer (or series of such sales, assignments and the like which in the aggregate exceeded a disposition of more than a 49% interest); or (3) Any merger, consolidation, sale or lease of all or substantially all of the assets of the Developer in the Agreement, the Phase I, the Phase II Site or any part thereof or any interest therein or the improvements construction thereon (or series of such sales, assignments and the like which in the aggregate exceeded a disposition of more than a 49% interest) except for the sale of pads (the "Pads") for the construction by third parties (or by the Developer for the account of such third parties) for the construction of a portion of the Phase I Project or the Phase II Project, as applicable, provided that such Pads are encumbered by the Project REA; or (4) The leasing of part or all of the Phase I Site or the Phase II Site or any part thereof or any interest therein except for the lease of a portion of the Phase I Site for the New Store, and further excepting leases for individual retail occupancies of the other portions of the Phase I Site or the Phase II Site not occupied by the New Store where the Developer retains control under the Project REA. (b) This Agreement is entered into solely for the purpose of the redevelopment of the Site and the improvement of the Phase I Project, and later the Phase II Project. The Developer recognizes that the qualifications and identity of Developer are of particular concern to the Agency, in view of: (1) The importance of the redevelopment of the Site to the general welfare of the community; (2) The fact that a Transfer by the Developer of the Phase I Site and/or the Phase II Site is for all practical purposes a transfer or disposition of the responsibilities of 5/15/01 ct SB2001:7825.8 1-10 the Developer, with respect to the Phase I Site and the Phase II Site, as applicable. The Developer further recognizes and acknowledges that it is because of the qualifications and identity of the Developer that the Agency is entering into this Agreement wi th the Developer, and, as a consequence, Transfers are permitted only as provided in this Agreement. (c) The limitations on a Transfer as set forth in this Section 1.7 by the Developer shall apply until such time as the New Store has opened for business to the general public as set forth in Section 4.6 and a Certificate of Completion is approved by the Agency for the Phase I Project. Except as expressly permitted in this Agreement, the Developer represents and agrees that it has not made or will create or suffer to be made or created, any Transfer, either voluntarily or by operation of law without the prior written approval of the Agency until such time as a Certificate of Completion has been recorded. After the date of recordation of a Certificate of Completion, certain other provisions of this Agreement shall nonetheless be applicable to subsequent conveyances of interest in the Phase I Site and/or the Phase II Site, or portions thereof, as provided in Article IV of this Agreement. Any Transfer made in contravention of this Section 1.7 shall be deemed to be a default under this Agreement whether or not the Developer knew of or participated in such Transfer, and shall be voidable at the election of the Agency. (d) The following types of a Transfer shall be permitted and approved by the Agency and are referred to herein as a "Permitted Transfer": (1) Any Transfer by the Developer following the Site Transfer Escrow Closing (Phase I Site) creating a "Security Financing Interest" in the Phase I Project which conform to the provisions of Section 3.2 and Section 3.3; (2) Any Transfer directly resulting from the foreclosure of a Security Financing Interest created by the Developer in the Phase I Project or the granting of a deed in lieu of foreclosure of a Security Financing Interest; (3) A Transfer under (1) or (2) above, involving the Phase II Site; (4) Any Transfer of stock or equity of the Developer which does not change management or operational control of the Project; 5/15/01 ct SB2001:7825.8 1-11 (5) Any Transfer of any interest in Developer to any affiliate of or other entity related to the Developer. (e) No Permitted Transfer of this Agreement or any interest in the Phase I Site or the Phase II Site, or the Phase I Project or the Phase II Project by the Developer (other than a Permitted Transfer created pursuant to a Security Financing Interest under Section 3.3) shall be effective unless, at the time of the Permitted Transfer, the person or entity to which such Transfer is made, shall expressly assume the obligations of Developer under this Agreement and such person also agrees to be subject to the conditions and restrictions to which Developer is subject under this Agreement. Such an assumption of obligation shall be evidenced by a written instrument delivered to the Agency in a recordable form which is satisfactory to the Agency. (f) Provided the particular transaction satisfies the applicable provisions of Section 1.7 (d), the Developer is not required to give the Agency advance notice of such a Permitted Transfer. The Agency may, in its reasonable discretion, approve in writing any other Transfer as requested by the Developer provided such proposed transferee can demonstrate successful and satisfactory experience in the ownership, operation, and management of regional shopping center facility comparable in size and quality to the Phase I Project. Any such transferee for itself and its successors and assigns, and for the benefit of the Agency shall expressly assume all of the obligations of the Developer to the Agency under this Agreement. There shall be submitted to the Agency for review all instruments and other legal documents proposed to effect any such other Transfer; and the approval or disapproval of the Agency shall be provided to the Developer in writing within thirty (30) days of receipt by the Agency of Developer I s request, and the Agency approval of a transfer and shall not be unreasonably withheld or delayed. (g) Following opening of the New Store for business to the general public, and the issuance of a Certificate of Completion, the Developer shall be released by the Agency from any liability under this Agreement which may arise from a default of a successor in interest occurring after the date of such a Transfer; provided, however that the covenants of the Developer as set forth in Article IV of this Agreement shall run with the land for the term as provided in the Agency Grant Deed. SECTION 1.8. Approval bv the Operator of the New Store for the Phase I Proiect. The Developer has represented to the Agency that Sam's Real Estate Business Trust ("Sam's") has expressed an intention to approve the operation of the New Store on the Phase I 5/15/01 ct 5B2001:7825.8 I-12 Site, subject to certain conditions. The Developer has disclosed to the Agency the relevant and material terms of the arrangement by and between Sam's and the Developer for the purpose of inducing the Agency to enter into this Agreement. By the date not later than the first of the following events to occur, the Developer shall provide the Agency with written confirmation satisfactory to the Agency Executive Director which shall not be unreasonably withheld, conditioned or delayed, that the written lease agreement by and between the Developer and Sam's is in full force and effect: (i) the date on which the Agency transmits one or more offers to acquire one or more Site Parcels to the owners thereof, unless the Agency elects to defer satisfaction of these conditions with respect to one or more specific offers to acquire one or more such Site Parcels; (ii) the date on which the City deems the Development Project Application for the Phase I Project to be complete; (iii) ninety (90) days following the approval of this Agreement by the Agency; or SECTION 1.9. Redevelopment Planninq and Participation Aqreement. When this Agreement has been approved by the governing board of the Agency at the conclusion of a public hearing, and this Agreement has been fully executed by the authorized officers of the parties, the obligations and covenants of the parties as arise under the Redevelopment Planning and Participant Agreement, dated as of November , 1999, as amended shall be of no further force or effect; provided however, that all outstanding invoices of the Agency for costs incurred by the Agency under the Redevelopment Planning and Participation Agreement shall have been paid by the Developer pursuant to and limited by the terms of the Redevelopment Planning and Participation Agreement. SECTION 1.10. List of Attachments to Aqreement. Each of the following items or documents are hereby deemed to be approved by the parties as of the date of approval of this Agreement by the governing board of the Agency and each such item or document is incorporated into the text of this Agreement by this reference: Attachment No. lA Legal Description of the Site and Plat Map Attachment No. IB Tentative Legal Description of the Phase.I Site and Plat Map 5/15/01 ct S82001:7825.8 I-13 Attachment No. 1C Tentative Legal Description of the Phase II Site and Plat Map Attachment No. 1D Legal Description of the Corner Parcel and Plat Map Attachment No. 1E Legal Description of In-N-Out Lands and Plat Map Attachment No. 1F Legal Description of In-N-Out Burger Site (Existing Location) and Plat Map Attachment No. 18 Portions of Lot 24 and Lot 25 to be transferred by Agency to Developer following completion of In-N-Out Burger relocation as provided in Section 2.14 Attachment No. 1H Phase I Legal Description With Portions of Lot 24 and Lot 25 Attachment No. 2 Developer Improvement Plan Concept Attachment No. 3 Site Parcel Identification List Attachment No. 4A Attachment No. 4B Attachment No. 5 Attachment No. 6 Attachment No. 7 Attachment No. 8 Attachment No. 9 Attachment No. 10 Attachment No. 11 Attachment No. 12 5/15/01 ct SB2001:7825.8 Description of the Phase I Project Description of the Phase II Project RESERVED - NO TEXT Schedule of Performance Site Parcel Acquisition Agreement (general form) [RESERVED-NO TEXT] Form of Agency Grant Deed [RESERVED-NO TEXT] Certificate of Completion Harriman Place Improvement Project Description I-14 ARTICLE II SECTION 2.1. Transfer of the Phase I Site by the Aqency to the Developer for Redevelopment. The Phase I Site is comprised of all or part of approximately sixty one (61) separate legal parcels of land. Each such separate legal parcel of land is referred to as a "Site Parcel" regardless of whether the acquisition of such parcel by the Agency is necessary for the Harriman Place Improvement Project, disposition to the Developer either in whole or in part as a portion of the Phase I Site or for disposition to In-N-Out as part of its separate project. As of the date of approval of this Agreement by the governing board of the Agency, the Agency owns none of the Site Parcels. A major portion of the Site Parcels have been improved for residential purposes and are presently occupied by owners or residential tenants. It is the intent of the Developer and the Agency that the Agency shall use best efforts to acquire each of the Site Parcels directly from the current owners thereof by negotiated purchase, subject to the terms and conditions of the Agreement. Nothing contained in this Agreement shall require the Agency to pay an amount for the acquisition of any Site Parcel from its owner, which the Agency has determined, based upon its approved real property appraisal report for such Site Parcel, exceeds the fair market value for such Site Parcel. The obligation of the Developer to construct and complete the Phase I Project and later, the Phase II Project shall not arise until such time as the Site Transfer Escrow (Phase I Site) is in a condition to close in accordance with the terms of this Agreement. If the necessary Site Parcels for the Phase I Site cannot be assembled, and the Site Transfer Escrow placed in a condition to close on or before January 18, 2002, subject to such extensions of time as may be approved by the Developer and the Agency as set forth in Section 2.3(f), this Agreement shall be subject to termination by either party as provided in Section 5.10. SECTION 2.2. Developer. Phase I Site Purchase Price Payable By (a) Subj ect to the provisions of Section 2.8, the Agency hereby agrees to exercise its best efforts to assemble the Site Parcels as necessary or appropriate for the Phase I Site, and to transfer the Phase I Site to the Developer, and thereafter cause the Harriman Place Project to be constructed and installed, and the Developer hereby agrees to: 5/15/01 ct 5132001:7825.8 I-15 (i) purchase the Phase I Site from the Agency for the sum of Four Dollars and Fifty One Cents ($4.51) per square foot of land included in the Phase I Site. The product of the total number of square feet included in the Phase I Site (which is 769,385 square feet - - net of the number of square feet of such land included within the new public street right- of-way area of Harriman Place, as realigned which abuts the Phase I Site), multiplied by the amount payable by the Developer per square foot of land in the Phase I Site is referred to herein as the uPhase I Site Purchase Price"; (ii) pay to the Agency, in addition to the Phase I Site Purchase Price, the Harriman Place Charge at the times and in the amounts provided in Section 2.12; and (iii) cause the Phase I Project improvements to be constructed on the Phase I Site following the close of the Site Transfer Escrow (Phase I Site) in accordance with the Development Project Application. (b) As of the date of this Agreement, the Agency and the Developer estimate that there are approximately 893,000 square feet of land in the Phase I Site, more or less. This figure includes certain areas within existing public street rights of way which shall be subject to the Harriman Place Improvement Project. In the event that the final survey of the Phase I Site prepared by the Developer at the time of the close of the Site Transfer Escrow (Phase I Site) may indicate a different area calculation for the Phase I Site, then in such event the Phase I Site Purchase Price shall be subject to an adjustment as provided in Section 2.9(g). (c) In the event that the Agency may determine that it is necessary or appropriate to refer the acquisition of one or more Site Parcels to the IVDA as provided in Section 2.3 (d), the Developer shall prepay a portion of the Phase I Site Purchase Price which corresponds to such Site parcel(s) to the Agency outside of the Site Transfer Escrow (Phase I Site) as set forth in this Section 2.2(c). Within ten (10) days following written request of the Agency which identifies the particular Site Parcel referred to the IVDA for acquisition as a uCondemnation Parcel", the Developer shall pay to the Agency the portion of the Phase I Site Purchase Price which corresponds to such property; provided however, that the Developer shall have first determined in its sole discretion that such payment for a Condemnation Parcel is indicated. Upon receipt of such sum from the Developer as provided in this Section 2.2(c), the Agency shall instruct the Escrow Holder under the Site Transfer Escrow (Phase I Site) to credit the Developer the amount of the Phase I Site Purchase Price as paid to the Agency outside of 5/15/01 ct SB2001:7825.8 I-16 such escrow transaction. In the event that any such payment is made by the Developer to the Agency under this subsection, and thereafter the Agency, or the IVDA, as applicable, may fail to initiate eminent domain proceedings for the acquisition of such Condemnation Parcel under Section 2.3(d), or later, the IVDA may fail to obtain an order for prej udgment possession for such Condemnation Parcel (s) under applicable law, or later the Site Transfer Escrow (Phase I Site) may fail to close as provided in Section 2.5(c), then the Agency shall immediately return to the Developer the sums paid by the Developer to the Agency pursuant to this Section 2.2(c) plus such interest as may have accrued on the Phase I Site Purchase Price as deposited with the IVDA or a court, as applicable, upon the written request of the Developer. The Agency shall not refer any such Condemnation Parcel to the IVDA until the Developer has provided the Agency with the portion of the Phase I Site Purchase Price which corresponds to such Condemnation Parcel. SECTION 2.3. Site Parcel Assembly Consultations and Site Parcel Assembly Proqram. (a) Commencing upon the approval of this Agreement by the governing board of the Agency, and thereafter during the Site Parcel assembly program through the close of the Site Transfer Escrow (Phase I Site) and later for the Phase II Site, the Developer and Agency staff shall conduct regular meetings at the Agency offices to review the status of each of the following matters of mutual interest as applicable: (i) all pending offers of the Agency to purchase Site Parcels from the owners thereof; provided however, that the Agency may defer the transmittal of offers to the owners of certain lands included in the Phase II Site until after the Developer has exercised its option to acquire such lands as set forth in Section 2.15; (ii) the Developer Investigations; (iii) administration of the Site Parcel Escrows and the Site Transfer Escrow; (iv) the preparation of the Development Project Application, including, in the case of the Phase I Project, the initiation of the public street closure and vacation proceedings by the City as necessary or appropriate to accommodate the Development Project Application, and the submission of an application to the City for the issuance of 5/15/01 ct SB200l:7825.8 I-17 one or more Certificates of Subdivision Compliance at the time of close of the Site Transfer Escrow; (v) consideration and approval by the City. of the matters included in (iv), above; (vi) review by the Developer and the Agency of the conditions of approval by the City of matters covered in (iv) and (v), above; (vii) administration of the acquisition of the Condemnation Parcels as referred by the Agency to the IVDA, if any; (viii) administration of the Site occupant relocation program; (ix) administration of the Harriman Place Improvement Project by the Agency; (x) coordination of the administration of the Harriman Place Improvement Project, undertaken by the City under the terms of the Harriman Construction Agreement with the improvement of the Phase I Project by the Developer; (xi) coordination of (x) above, with the development project undertaken by In-N-Out on the In-N-Out Lands, if applicable; (xii) (x), above, Project; administration and coordination of (iii) through as applies to the Phase II Site and the Phase II (xiii) review and confirmation of the dates and times set forth in the Schedule of Performance for the performance of certain obligations and satisfaction of various conditions precedent with respect to the redevelopment of the Site and within thirty (30) days following the approval of this Agreement, review the Schedule of Performance for conformity with this Agreement and if appropriate, revise for conformity with this Agreement. (b) The Agency shall initiate the Site Parcel assembly program following the approval of this Agreement by the governing board of the Agency and confirmation by the Executive Director that each of the following conditions has been satisfied: 5/15/01 ct SB2001:7825.8 1-18 (i) the Developer has delivered its written request that the Agency proceed with the Site Parcel assembly program; (ii) the Executive Director has accepted the evidence provided by the Developer that the Developer has the funds necessary to pay the Phase I Site Purchase Price, the Harriman Place Charge and the Phase I Project improvement construction costs; (iii) the Executive Director has confirmed that the funds then estimated by the Executive Director to be required and necessary to pay for Agency acquisition costs under items Section 2.4 (a) (i) , (ii) and (iv) inclusive, are available to the Agency; (iv) the Developer has provided the certificate as set forth in Section 1.8; (v) the Developer has provided the Agency with the evidence of insurance as set forth in Section 2.20; (vi) the Condemnation Parcel Acquisition Memorandum by and among the IVDA, the City and the Agency, as described in Section 2.3(d), has been accepted by the governing board of the IVDA, the Mayor and Common Council and the governing board of the Agency, in the sole and absolute discretion of each of them; (vii) the Developer and the Agency have approved the public improvement scheduling memoranda for the Harriman Place Improvement Project as provided in Section 2.12(b), and the City and the Agency have entered into the Harriman Construction Agreement, as provided in Section 2.12(e); (viii) the public appropriate substantial Concept; the City has taken appropriate action to initiate street vacation proceedings as necessary or to accommodate the redevelopment of the Site in accordance with the Development Improvement Plan (ix) the governing real property appraisal required for the Phase Improvement Project; board of the Agency has approved a report for each Site Parcel as I proj ect and the Harriman Place (x) no information ):las come to the attention of the Executive Director which may cause the aggregate amount of the Site acquisition cost estimate as presented in Section 2.4(a) 5/15/01 ct 5B2001:7825.8 I-19 to materially exceed the sum of Three Million Four Hundred Ninety Three Thousand Eight Hundred Seventy Two Dollars ($3,493,872) . In the event that the Executive Director may fail to confirm that each of the foregoing items has been accomplished by no later than August 1, 2001, either party may terminate this Agreement as provided in Section 5.10, unless at least ten (10) days prior to such date, the parties agree, as provided by Section 2.3(f), to a specific extension of the date by which the Executive Director may confirm the satisfaction of one or more specific conditions as set forth above. (c) Within thirty (30) days following the Executive Director's confirmation of satisfaction of the matters described in Section 2.3 (b), the Agency shall transmit written offers to purchase Site Parcels as necessary or convenient for the Harriman Place Improvement Project and the Phase I Project, to each owner of record thereof. Each such written offer shall be based upon a real property appraisal report for the subject Site Parcel which has been approved by the Agency. The Agency reserves the discretion to engage in discussions and negotiations with the owner of each Site Parcel regarding the terms and conditions of each offer of the Agency, and the Agency further reserves the discretion to modify or withdraw any pending offer of the Agency at any time prior to acceptance by the owner of each Site Parcel. Upon acceptance by the owner of a Site Parcel of the offer of the Agency, the Agency shall promptly open a Site Parcel Escrow affecting such property as provided in Section 2.7. In the event that an Agency offer is either rejected or no response is forthcoming from the owner of the Site Parcel within thirty (30) days following the date of transmittal of the Agency offer, or in the event the Executive Director determines that further discussion, negotiation or modification of a pending Agency offer is unlikely to be accepted by the owner of a Site Parcel, then inoevent the Executive Director may refer the acquisition of such a Site Parcel to the IVDA for its disposition as a Condemnation Parcel under Section 2.3(d). (d) The Agency may request the IVDA to consider the initiation of proceedings to acquire a Condemnation Parcel in accordance with the terms and provisions of a Condemnation Parcel Acquisition Memorandum by and among the IVDA, the City and the Agency (the "Condemnation Memorandum"). The Developer and the Agency each acknowledge and agree that the IVDA and the City each reserve the sole and absolute discretion to approve the terms of the Condemnation Memorandum and that the IVDA shall for itself reserve the discretion to consider whether evidence supports the basis of each of the findings set forth at Code of Civil Procedures 5/15/01 ct SB2001:7B25.B I-20 Sections 1240.030 and 1245.230 with respect to its consideration of the referral of any Condemnation Parcel for acquisition by exercise of the power of eminent domain. The Agency shall request the IVDA to consider the acquisition of each Condemnation Parcel by an exercise of the eminent domain powers of the IVDA, if necessary after the Executive Director has determined that an Agency offer has been rejected or that further discussion, negotiation or modification of a pending Agency offer is unlikely to be accepted by the owner of a particular Site Parcel. A referral by the Agency of a Condemnation Parcel to the IVDA shall be accompanied by the delivery of a sum in cash to the IVDA equal to the Agency's approved real property appraisal for such Condemnation Parcel. The IVDA shall use and apply such funds (together with other funds as may be subsequently transferred by the Agency to the IVDA) to acquire the Condemnation Parcels by exercise of the power of eminent domain or by negotiated purchase in lieu of or in compromise and settlement of any such condemnation proceeding as set forth in the Condemnation Memorandum. Upon its acquisition of each Condemnation Parcel (by judgment of condemnation or otherwise), the IVDA shall transfer all of its right, title and interest in such Condemnation Parcel to the Agency for disposition and redevelopment. The Agency shall be responsible for the payment and reimbursement of all of the following costs incurred by the IVDA in connection with the consideration and acquisition by the IVDA of any Condemnation Parcel: (i) all amounts of just compensation payable to the owner of the Condemnation Parcelj (ii) expert witnesses and real property appraisal fees of the IVDAj (iii) escrow agent costs, title insurance and civil engineering expenses of the IVDAj (iv) trial costs and expenses, including attorney fees of the IVDAj (v) interest and other sums payable by the IVDA to the owner of each Condemnation Parcel as a court may directj (vi) relocation benefits and expenses of persons in lawful possession of such property as provided by applicable lawj (vii) all costs and expenses allocated by a court or payable by the IVDA in the event of an abandonment or 5/15/01 ct SB2001:7825.B 1-21 dismissal of any condemnation proceeding, relating to an Condemnation Parcel. (e) In the event that the Developer may exercise its option to acquire the Phase II Site, the provisions of Section 2.5(c) and Section 2.5(d) shall be applicable to the Site Parcels within the Phase II Site which the Agency may not have previously acquired in connection with the Harriman Place Improvement Program, or otherwise. (f) The Schedule of Performance sets forth various dates and times relating to the Site Parcel assembly program and the accomplishment of the various tasks assigned to the responsible party and the satisfaction of the conditions precedent for the Close of the Site Transfer Escrow - for both the Phase I Site, and later the Phase II Site. The parties agree and declare that time is of the essence in the performance of such tasks and the satisfaction of conditions precedent in view of the large investment of resources which both parties recognize will be required for the redevelopment of the Site and the undertaking of the Harriman Place Improvement Project and the Phase I Project. In the event that the date or time for the performance of a task or the satisfaction of a condition relating to the Site Parcel assembly program and/or the close of the Site Transfer Escrow (Phase I Site) as set forth either in the text of this Agreement or in the Schedule of Performance may not be achieved, then prior to such date or time set forth in the Schedule of Performance the parties shall, as part of their consultations under Section 2.3(a), consider whether a modification to the Schedule of Performance may be indicated. Any decision to approve a modification to a time or date as provided in either this Agreement or the Schedule of Performance shall be subject to the sole discretion of each party. A modification of a time or date for performance of a particular matter relating to the Site Parcel assembly program and/or the close of the Site Transfer Escrow (Phase I Site) which does not result in a change of more than sixty (60) days may be approved on behalf of the Agency by the Executive Director in his or her reasonable discretion. A modification of a time or date for performance (or a series of such modifications) relating to the Site Parcel assembly program and/or the close of the Site Transfer Escrow (Phase I Site) which results in a change of more than sixty (60) days shall be subject to the approval of the governing board of the Agency in its sole discretion. SECTION 2.4. Evidence of Funds Sufficient to Initiate Assemblv of the Site. 5/15/01 ct SB2001:7825.8 I-22 (a) This Preliminary Site Assembly Budget sets forth an estimate of the various costs and expenses for the assembly of the Site and the disposition of the Phase I Site to the Developer (and later, subject to the exercise of the Developer's option with respect to the Phase II Site) which the Developer and the Agency believe to be reasonable in light of the facts and assumptions known to each of them as of the date of approval of this Agreement by the governing board of the Agency. The various sources of the funds necessary for the assembly of the Site and undertaking the Harriman Place Improvement Project and the Phase I Project are as follows: (i) Site Acquisition Costs for Site Parcels - Phase I Site and Corner Parcel $5,540,000 (ii) Site Acquisition Costs for new public street right-of-way alignment for Harriman Place Improvements, including demolition of structures in or adj acent to right-of-way $1,400,000 (iii) Phase I Site Purchase Price amount payable by Developer (subject to land area adjustment under Section 2.9 (g)) ($3,476,128) (iv) Agency relocation assistance payments to occupants of portions of the Site for Phase I Project and Harriman Place Improvement proj ect, including Corner Parcel (not-to- exceed) $1,130,000 (v) Amount payable by Developer to the Agency as the Harriman Place Charge ($1,100,000) Total net estimated Agency Site acquisition costs for the Harriman Place right-of-way, and Phase I Site $3,493,872 In the event that at any time preceding the date when the parties shall confirm that the Site Transfer Escrow (Phase I Site) is in a condition to close under Section 2.8, the Agency reasonably determines that any element of Agency Site Acquisition Costs identified in subparagraphs (i), (ii), and/or (iv), above may exceed 5/15/01 ct 582001:7825.8 1-23 the estimate as set forth, then the parties shall consider the arrangements by which such additional cost for an item, or additional aggregate cost in excess of $100,000, may be allocated between the parties and paid in accordance with Section 2;18. (b) The obligation of the Agency to exercise its best efforts to complete the assembly of the Site, cause the Site Transfer Escrow (Phase I Site) to be in a condition to close and provide for the improvement of the Harriman Place Improvement Project, is contingent upon and subject to confirmation by the Agency that the funds necessary to pay the Agency acquisition cost, and to pay for the Harriman Place Improvement Project, are available to the Agency. (c) As of the date of this Agreement the Developer has provided the Agency with satisfactory evidence that the Developer is financially qualified to undertake the Phase I Project and the Phase II Project. (d) As a condition precedent to the transmittal of any offer of the Agency to purchase a Site Parcel, the Developer shall submit to the Agency evidence reasonably satisfactory to the Executive Director that the Developer: (i) has obtained sufficient equity capital for the payment of the Phase I Site Purchase Price, including any prepayment of a portion (or such portions) of the Phase I Site Purchase Price as may be requested by the Agency under Section 2.2(c) with respect to one or more Condemnation Parcels; (ii) either has obtained or can obtain, as evidenced by a letter of intent or similar instrument, sufficient equity capital and firm and binding commitments for construction financing for the Phase I Project; and (iii) either has obtained or can obtain, as evidenced by a letter of intent or similar instrument, sufficient equity capital and firm and binding commitments for permanent financing; all as may be necessary for the payment of the full amount of the Site Purchase Price and the Harriman Place Charge, to the Agency and the construction of the Phase I Project in accordance with this Agreement. In lieu of the foregoing, the Developer may submit evidence to the Agency that it has sufficient funds of its own for the purposes set forth in this Section, which evidence shall be acceptable to the Agency in its sole discretion. (e) Any and all Developer financing for the redevelopment of Phase I the Project (and later, the Phase II Project) shall be obtained by the Developer from reputable, recognized and well- established financial institutions or lending sources including, but not limited to, banks, savings and loan institutions, insurance companies, real estate investment trusts, pension programs and the like. Whenever the source of financing for all or part of the 5/15/01 ct SB2001:7825.8 I-24 development is from other than the Developer, the Developer shall promptly submit the following to the Agency: (1) Copies of all construction and/or Phase I/Phase II Site Parcel purchase financing commitments received by the Developer; and (2) Proof of acceptance of each such loan commitment by the Developer and proof of payment of all up-front loan commitment fees, if any. (f) The Executive Director shall approve or disapprove such documents and/or financing commitments or sources within fifteen (15) business days of receipt by the Agency of the documents and information required hereunder; provided, however, that the failure of the Executive Director to disapprove any of the foregoing matters in writing within said fifteen (15) business day period shall be deemed to constitute approval thereof. (g) Prior to submitting documents and evidence to the Agency as required by this Section, the Developer shall obtain approval by its lender(s) for the Development Project Application as provided in this Agreement. (h) A preliminary Site Assembly Budget for the Phase II Project is presented as follows: (i) Agency acquisition costs for the Site Parcels - Phase II Site $2,070,000 (ii) Agency relocation assistance payments to occupants of portions of the Site for the Phase II Site $680,000 (iii) Phase II Site Purchase Price amount payable by Developer ($922,260) (iv) Agency miscellaneous costs payable by Agency to third parties not included in (i) or (ii), above $200,000 Total net estimated Agency Site acquisition costs Phase II Site $2,027,740 . (i) In the event that by the latest date set forth in the Schedule of Performance, the Developer may not have submitted the 5/15/01 ct SB2001:7825.8 1-25 evidence of each of the financing commitments as set forth in this Section 2.4, then in such event either party may terminate this Agreement as provided in Section 5.10. SECTION 2.5. Site). Site Transfer Escrow (Phase I Site and Phase II (a) The Agency and the Developer shall establish an appropriate escrow for the exchange of documents and the payment of the Site Purchase Price for the transfer of the portions of the Site as necessary or appropriate for the redevelopment of the Phase I Site, and later the Phase II Site, as provided in Section 2.5(e), to the Developer (i.e.: the Site Transfer Escrow). The Developer and the Agency shall execute such additional escrow instructions as consistent with the assembly, transfer and conveyance of the Phase I Site to the Developer. The Escrow Agent is hereby empowered to act under this Agreement, and upon indicating its acceptance of this Section 2.5 in writing, shall carry out its duties as Escrow Agent hereunder. The Agency and Developer each agree to deliver to the Escrow Agent all documents necessary for the transfer of the indicated portions of the Site to the Developer at the time of closing of the Site Transfer Escrow in conformity and, within the times, as provided in this Agreement. The Developer also shall pay the Escrow Agent (separate and apart from and in addition to the Phase I Site Purchase Price): (i) one half (~) of cost of the applicable Site Transfer Escrow fees, including the escrow fees, costs and expenses of the Escrow Agent, recording fees, messenger fees and the like, promptly after the Escrow Agent has notified the Developer of the amount of such escrow fees, charges and costs allocated to the Developer; (ii) all of the escrow costs allocated to the Agency under Section 2.7 at the close of each Site Parcel Escrow; and (iii) the Developer shall also pay the documentary transfer taxes due upon the recordation of the Agency Grant Deed for the transfer of the Phase I Site. The Agency shall pay the Escrow Agent as a miscellaneous cost item under Site acquisition costs, one-half (~) of the applicable Site Transfer Escrow Fees as set forth in (i) of the preceding sentence. (b) The Escrow Agent is authorized to: 1. serve concurrently as the escrow agent under each of the Site Parcel Escrows; 5/15/01 ct SB2001:782S.8 I-26 2. pay and charge the Developer and the Agency for their respective shares of the applicable Site Transfer Escrow fees, charges and costs payable under the Agreement; and 3. record any instruments delivered through the Site Transfer Escrow at the instruction of the parties. (c) The Site Transfer Escrow (Phase I Site) shall close when the conditions set forth in Section 2.8 have been satisfied; provided however that such Site Transfer Escrow shall be in a condition to close and shall close by a date not later than January 18, 2002, unless at least thirty (30) days before such date, the parties agree to an extension of the date for the close of the Site Transfer Escrow as provided in Section 2.3(f). (d) Notwithstanding any other provision of this Section 2.5 to the contrary, if a Site Parcel has been referred by the Agency to the IVDA for acquisition as a Condemnation Parcel, the Developer shall deliver the portion of the Site Purchase Price allocated on a gross land area basis to such Condemnation Parcel to the Agency in immediately available funds outside of the Site Transfer Escrow within ten (10) days following the written request of the Agency as provided in Section 2.2(c). The Agency shall use and apply such portion of the Phase I Site Purchase Price as allocated to the particular Condemnation Parcel, together with other Agency funds, to cause the IVDA to acquire such Condemnation Parcel as provided in Section 2.2(d). The Escrow Agent shall acknowledge a credit in favor of the Developer in the Site Transfer Escrow for the portion of the Site Purchase Price delivered by the Developer to the Agency for each Condemnation Parcel. (e) In the event that the Developer may exercise its option to acquire the Phase II Site, the provisions of this Section 2.5(a) through Section 2.5(d) inclusive shall be applicable to the Site Transfer Escrow (Phase II Site). Where references in the preceding subsections of this Section 2.5 are to the "Phase I Site," such references for the purposes of the Developer's exercise of its option to acquire the Phase II Site, shall mean and refer to the "Phase II Site". SECTION 2.6. Aqencv Relocation Assistance Proqram. (a) Provided that the Site Parcel assembly program is commenced by the Agency for the acquisition of the Site Parcels necessary for the Harriman Place Improvement Project and the Phase I Site, the Agency shall take all necessary and appropriate steps to provide for the relocation of occupants of each affected Site Parcel; provided however, that the relocation program for certain 5/15/01 ct SB2001:7825.8 1-27 Site Parcels included in the Phase II Site may be deferred by the Agency at its discretion. The relocation of each such occupant of the affected portions of the Site shall be accomplished in accordance with the provisions of Government Code Section 7260 et sea., the relocation assistance plan for the Site as approved by the governing board of the Agency and other applicable law; The Agency shall be responsible for paying for all relocation assistance benefits payable to occupants of the Site Parcels (both commercial and residential occupants) as part of the Site acquisition costs. The Agency shall have the sole discretion to select and retain the services of consultants to assist the Agency with the evaluation processing and administration of each relocation assistance transaction. (b) Prior to the time of the close of each Site Parcel Escrow, the occupant(s) of the affected Site Parcel shall be given an appropriate written notice of displacement by the Agency which instructs the occupant to vacate the premises and surrender possession thereof to the Agency (or to the Developer, if applicable), within the following times: (i) ninety (90) days following the date of such notice of displacement, or (ii) ninety (90) days following the close of such escrow; or (iii) such other date designated by the Agency. Each notice of displacement shall advise the occupant that the Agency shall pay relocation assistance benefits to each qualifying occupant in accordance with applicable law. The Developer acknowledges and agrees that no work of improvement of the Phase I Project, or later the Phase II Project, other than on-site geotechnical testing and survey work, shall occur on a Site Parcel (or a Condemnation Parcel, as applicable) until the occupants thereof have surrendered possession of such Site Parcel under a notice of displacement or otherwise. (c) In the event that the Agency may elect to cause the Site Transfer Escrow to close with one or more occupants still in possession of any affected Site Parcel, then in such event, the Agency shall be responsible for enforcing its notice of displacement against each such occupant, including without limitation, the payment of all costs associated with either the Agency or the Developer obtaining a writ of possession against such occupant in any case where such occupant may not comply with the notice of displacement or otherwise be in breach of the occupants lawful right of possession of such Site Parcel. (d) Notwithstanding anything in this Section 2.6 to the contrary, no occupant of the Site shall be deemed to be a beneficiary of any obligation of the Agency to pay relocation assistance benefits until such time as the Agency has issued its written notice of displacement to such occupant. 5/15/01 ct SB2001:7825.8 1-28 SECTION 2.7. Site Parcel Escrows. (a) The Escrow Agent shall serve as the escrow agent for each Site Parcel Escrow. The Developer and the Agency shall be jointly responsible for paying for all of the customary and reasonable costs, fees and charges of the Escrow Agent in connection with the performance of its duties as escrow agent for each Site Parcel Escrow. The Site Parcel Escrow fees allocated to the Agency shall be payable by the Developer as set forth in Section 2.6(a) at the time of close of the applicable Site Transfer Escrow. (b) Promptly following the opening of each Site Parcel Escrow the Agency shall cause the Title Company to deliver a preliminary title report for the particular Site Parcel (together with legible copies of the recorded exceptions to title noted in such report), to the Agency, and to the extent that a Site Parcel, or portion thereof, may be included in the Phase I Site or the Phase II Site, then a copy of such preliminary title report shall also be provided to the Developer (together with legible copies of the recorded exceptions to title noted in such report), for the review and approval by each of them as provided in Section 2.9. The Agency shall acquire lien-free merchantable title from the owner of each such Site Parcel, subject only to utility service easements and other matters approved by the Agency (or approved by the Agency in consultation with the Developer, as applicable) and the possessory interests of month-to-month tenants in lawful possession of such Site Parcel. The Developer shall have twenty (20) days from its receipt of a preliminary title report for a particular Site Parcel (together with copies of each tenant rental agreement, if applicable) to approve or reject the condition of title in such Site Parcel. In the event that the Developer may not confirm its acceptance or rejection of the condition of title in a particular Site Parcel within such period of time, the condition of title in such Site Parcel shall be deemed rejected by the Developer. (c) Within ten (10) days following Agency notification to the Developer that a Site Parcel is available for inspection, the Developer may request the Agency to schedule and conduct an on-site inspection of such Site Parcel within thirty (30) days thereafter, at a time which is reasonably convenient for the owners and occupants of each Site Parcel. The Developer may accompany the Agency staff during an inspection, and the Developer or its agents may take intrusive samples of the soils and any structure thereon to conduct such tests as its may deem appropriate for the detection of any hazardous waste or substance and the characteristics of the geotechnical condition of the soils of each such Site Parcel. 5/15/01 ct 582001:7825.8 1-29 Within thirty (30) days following the date on which the Developer accompanies the Agency staff on any such inspection of a Site Parcel, the Developer shall confirm in writing to the Agency whether: (i) the Developer accepts the environmental and geotechnical condition of the particular Site Parcel; or (ii) the Developer requires additional time to conduct further testing or analysis; or (iii) the Developer rejects the environmental or soil condition of the Site Parcel. (d) In connection with the Site Parcel Escrows, the Escrow Agent is authorized to: (1) serve concurrently as the escrow agent for the Developer and the Agency under Section 2.5 for the Site Transfer Escrow; (2) pay and charge the Agency for Site Parcel Escrow costs and charges; (3) [RESERVED -- NO TEXT] (4) record any instruments delivered through a Site Parcel Escrow as instructed by the Agency. (e) Unless otherwise instructed by the Agency, the Escrow Agent shall coordinate and schedule the close of each Site Parcel Escrow to occur concurrently when the conditions set forth in Section 2.8 have been satisfied; provided however, that each Site Parcel Escrow as necessary or appropriate for the initiation of the improvement of the Phase I Project by the Developer shall be in a condition to close and shall close by a date not later than January 18, 2002, or such later date as confirmed in writing to the Escrow Agent by the Agency. (f) [RESERVED - NO TEXT] Escrow details] [Other close of Site Parcel (g) [RESERVED - NO TEXT] (h) The Developer shall not be a party to any Site Parcel Escrow and no instruction of the Developer to the Escrow Agent under the Site Transfer Escrow shall have any force or effect as to 5/15/01 ct 8B2001:7825.8 I-30 the Agency on the Escrow Agent in any Site Parcel Escrow transaction. SECTION 2.8. Condi tions For Close of Phase I Si te Escrow and Site Parcel Escrows. (a) The Developer shall not be obligated to pay the Phase I Site Purchase Price and accept the transfer of the Phase I Site from the Agency and cause the close of the Site Transfer Escrow (Phase I) to occur until the following conditions have been satisfied: (1) the Developer has approved condition of each site Parcel set forth in Section 2.10(b); the environmental (Phase I Site) as (2) the Developer has approved the environmental condition of each Condemnation Parcel (Phase I Site), as set forth in Section 2.10(c); (3) the Developer has approved the condition of title of each Site Parcel (Phase I Site), including each Condemnation Parcel except as to the effect on insurable title of the pending Condemnation proceedings, as set forth in Section 2.9(e); (4) the Developer has confirmed within 110 days following the date of the order for prejudgment possession for each such particular Condemnation Parcel that the Title Company has agreed to provide insurable title in favor of the Developer for each such Condemnation Parcel on terms reasonably acceptable to the Developer as set forth in Section 2.9(e); (5) the Developer has obtained the approval of its Development Project Application for the Phase I on terms and conditions reasonably acceptable to the Developer by not later than the date indicated in the Schedule of Performance; (6) the Developer and the Agency have jointly approved the Harriman Place improvement coordination memorandum as provided in Section 2.12(b); (7) the Title Company shall be in a position to deliver its policy of title insurance in favor of 5/15/01 ct 5B2001:7825.8 I-31 the Developer as provided in Section 2.9 at the close of the Site Transfer Escrow (Phase I); (8) the Agency has confirmed to the Developer the satisfaction of its conditions under Section 2.8(b); and (9) the Agency is not then in default under this Agreement. (b) The Agency shall not be obligated to transfer the Phase I Site, or any portion thereof, to the Developer and cause the close of the Site Transfer Escrow (Phase I) to occur until the following conditions have been satisfied: (1) each Site Parcel Escrow for the Phase I Site is in a condition to close concurrently with the close of the Site Transfer Escrow; (2) the IVDA has provided for the transfer of each Condemnation Parcel in the Phase I Site to the Agency, either in fee or subject to a entry of a final judgment in condemnation; (3) the Developer has confirmed to the Agency the satisfaction of its conditions under Section 2.8 (a) ; (4) the Developer has delivered the Phase I Site Purchase Price to the Escrow Holder in immediately available funds; and (5) the Developer is not then in default under .this Agreement. (c) In the event that the Developer may exercise its option to acquire the Phase II Site, the provisions of Section 2.8(a) which refer to the Developer's condition for the close of the Site Transfer Escrow "Phase I Site" shall then be deemed to apply to the Phase II Site and the provisions of Section 2.8(b) which refer to the Agency's conditions for the close of the Site Transfer Escrow "Phase I Site" shall then be deemed to apply to the Phase II Site. 5/15/01 ct SB2001:7825.8 I-32 SECTION 2.9. Obliaation of the Aaencv to Provide Title Insurance at Time of Close of Site Transfer Escrow (Phase I Site) . (a) As of the date of this Agreement, the Agency does not own fee title or have any other equitable interest to any portion of the Site. The parties intend that the Agency shall exercise its best effort to cause the condition of title in the Phase I Site, and later the Phase II Site, to be in a marketable condition for the purposes of the redevelopment of the Phase I Project and the Phase II Project, as applicable, by the Developer. (b) In addition to the preliminary title report information as shall be delivered to the Developer under Section 2.7(b) with respect to each Site Parcel Escrow, within 60 days following the approval of this Agreement by the governing board of the Agency and subject to the cooperation of the Developer in completing a survey for the Site in a form tentatively acceptable to the Title Company for purposes of this subsection (b), the Agency shall cause to be delivered to the Developer a preliminary title report for an Extended Coverage ALTA Owner's Policy (Form B 1970) for each parcel of land, or portion thereof, included in the Phase I Site, together with legible copies of all instruments referred to in the title report as a title exception. Within thirty (30) days following its receipt of either the preliminary title report information delivered to the Developer under Section 2.7 (b), or the title survey information set forth in Section 2.9 (f), the Developer shall specifically identify and give notice in writing to the Agency as part of its Developer Investigations of each exception or disapproval of any matter relating to title in the Phase I Site which the Developer may in its reasonable discretion take (each referred to as a "Title Exception"). Each Title Exception shall reference the particular Site Parcel or Condemnation Parcel, to which it corresponds, and describes in suitable detail the action which the Developer believes is indicated to cure or correct such Title Exception. If the Developer fails to disapprove a title matter in writing delivered to the Agency as a Title Exception within thirty (30) days following receipt, then each Title Exception shall remain and be deemed a Title Exception. (c) Within twenty (20) days following its receipt of notice of a Title Exception from the Developer under Section 2.9(b), the Agency may, but is under no obligation to do so, confirm in writing to the Developer whether each such Title Exception shall be cured, at the time of the Close of the Site Transfer Escrow (Phase I Site); provided however that for the purposes of this Section 2.9, a month-to-month possessory interest of an occupant in lawful possession of a Site Parcel shall be deemed cured by the Agency as provided in Section 2.6 and Section 2.8, if the Agency has issued 5/15/01 ct SB2001:7825.8 I-33 its notice of displacement to such occupant prior to or concurrently upon the close of the Site Transfer Escrow. If the Agency may fail to confirm whether one or more of such Title Exceptions shall be cured by the Agency, within such twenty (20) day period of time, then the Title Exception shall remain, and the Agency shall have no further duty to cure such Title Exception, and the Developer may, within five (5) days thereafter in writing addressed to the Agency and the Escrow Agent, elect to waive its objection to such Title Exception. (d) If by the date set forth in the Schedule of Performance, any Title Exception may remain which has not been cured by the Agency under Section 2.9(c), or which has been expressly waived in writing by the Developer, or otherwise resolved to the mutual satisfaction of the parties, then either party may upon thirty (30) days written notice to the other party which references this Section 2.9, terminate this Agreement and cancel the Site Transfer Escrow. In the event of a termination of the Agreement and cancellation of the Site Transfer Escrow on the grounds set forth in this Section 2.9, the Agency shall be responsible for paying for all of the reasonable and customary escrow cancellation and preliminary title report costs of the Title Company, if any, and the parties shall each be released from any further responsibility or liability hereunder, except as may arise under Section 2.10 or Section 6.8. (e) For the purpose hereof, the IVDA's lis pendens in its condemnation proceeding and order, or proposed order of prejudgment possession which affects a Condemnation Parcel, shall be deemed to be a "Title Exception" whether or not such a Title Exception may have been identified in the preliminary title report under Section 2.9 (b) _ With respect to any Condemnation Parcel, the provisions of Section 2.9(c) and 2.9(d) shall be applicable to the best efforts responsibility of the Agency under the Condemnation Memorandum to cure (or cause the IVDA to cure) any Title Exception affecting such a Condemnation Parcel. (f) As part of its Developer Investigation, the Developer shall prepare a survey of the Phase I Site by a civil engineer selected by the Developer to enable the Title Company to issue at the time of either the close of the Site Transfer Escrow such additional items of survey title insurance coverage or title insurance survey endorsements as the Developer may require; provided however that no exception to title as may be indicated by such survey shall be deemed to be a Title Exception for the purposes of Section 2.9(c) unless the Developer delivers written notice of such title survey exception to the Agency by no later 5/15/01 ct 5B2001:7825.8 1-34 than ninety (90) days following the opening of the Site Transfer Escrow. (g) The Phase I Site Purchase Price shall be subject to a final confirmation prior to the close of the Phase I Site Escrow based upon the area of the lands to be transferred to the Developer as confirmed by the ALTA title survey. For purposes of this Section 2.9(g), lands which may be transferred to the Developer after the Phase I Site Escrow has been closed (such as the lands described in Attachment No. 1G, or the Condemnation Parcel, as applicable) shall be excluded from the ALTA title survey land area confirmation. The area of any such excluded lands shall be confirmed at such time as such land may be transferred by the Agency to the Developer, as applicable. (h) Provided the Title Company is prepared to issue its policy of title insurance to the Developer in a form reasonably acceptable to the Developer, the Agency shall pay the cost of the premium of title insurance in favor of the Developer at the time of the close of the Site Transfer Escrow in an amount equal to the premium payable under a CLTA Owner's Standard Policy of insurance. The Developer shall be responsible for paying the additional cost of the title insurance premium charged by the Title Company to issue the final form of the policy of title insurance in favor of the Developer described in the first sentence of this subsection in excess of the amount of the CLTA Owner's Standard Policy premium payable by the Agency. (i) In the event that the Developer may exercise its option to acquire the Phase II Site, the provisions of this Section 2.9(b) through 2.9(h), inclusive shall be applicable to the Site Transfer Escrow (Phase II Site). Where references in the preceding subsections of this Section 2.9 are to the "Phase I Site," such references for the purposes of the Developer's exercise of its option to acquire the Phase II Site shall mean and refer to the Phase II Site. SECTION 2.10. Due Investiqations. Diliqence Period and Developer (a) Within ten (10) days following the date on which the Agreement is fully executed by the parties, the Agency shall make available for inspection and copying by the Developer all of the public record documents requested by the Developer pertaining to the redevelopment of the Site then in possession of the Agency. (b) The Developer shall.have 60 days following the date the opening of each Site Parcel Escrow to complete all of its Developer 5/15/01 ct 5B2001:7825.8 1-35 Investigations at its sole cost and expense subject to the provisions of Section 2.7(C}. Any of the following tasks, work, review or analysis relating to its Developer Investigations of the condition and suitability of the Phase I Site for the ..Phase I Project including any intrusive testing or engineering study of the Phase I Site or intrusive sampling of any structure on the Phase I Site subject to the applicable provisions of the Site Parcel Acquisition Agreement for the particular Site Parcel. The Agency makes no representation or warranty to the Developer relating to the suitability of the Phase I Site for use by the Developer. The Developer shall rely solely and exclusively upon the results of its Developer Investigations of the Phase I Site including geotechnical soil conditions and compliance with applicable laws pertaining to the use of the Phase I Site by the Developer and any other matters relevant to or arising from the suitability of the Phase I Site for the Phase I Project, including without limitation, a construction loan commitment in favor of the Developer from a third party construction lender on terms satisfactory to the Developer, as the Developer may deem necessary and proper. (c) Within 30 days following the date on which a Condemnation Parcel is made available by the IVDA for inspection by the Developer, the Developer shall complete its Developer Investigations and confirm whether: (i) the Developer accepts the environmental condition and geotechnical condition of the particular Condemnation Parcel; or (ii) the Developer rejects the environmental conditions or the geotechnical condition of the particular Condemnation Parcel. In the case of a Condemnation Parcel, the conduct of any such Developer Investigations on such lands shall be subject to the appropriate order of the Court and the concurrence of the IVDA. The Agency shall exercise best efforts to assist and cooperate with the Developer to undertake such investigation one or more Condemnation Parcels upon written request of the Developer. (d) The Developer shall give the Agency and the Escrow Agent written notice of its satisfaction of the condition of each Site Parcel, or portion thereof included in the Phase I Site, which references this Section 2.10 within the period of time set forth in Section 2.10(b} for each such ~ite Parcel Escrow (and within 30 days following the date on which the Condemnation Parcel is made available by the IVDA for inspection by the Developer in the case 5/15/01 ct 582001:7825.8 1-36 of a Condemnation Parcel). In the event that the Developer, in its sole and absolute discretion, is not satisfied with any aspect of the condition of a Site Parcel, or a Condemnation Parcel, as applicable, then the Developer shall deliver to the Agency and the Escrow Agent a rejection notice which references this Section 2.10 and describes the particular matter which the Developer rejects. If such notice of rejection is delivered, then the parties shall confer about the means by which such rejection may be withdrawn by the Developer for particular Site Parcel, and thereafter, until such time as the rejection may be withdrawn by the Developer at its option, the Agency shall have no further obligation to proceed with the Site assembly program. If the Developer does not accept the condition of one or more Site Parcels (or Condemnation Parcels, as applicable) by the end of the Due Diligence Period as evidenced by the appropriate written notice to Agency and the Escrow Agent, the Developer shall be deemed to have rejected the condition of the Site. The Developer acknowledges that there is a high probability that the Phase I Site and the Phase II Site contain structures which have been improved with asbestos containing materials ("ACM") and lead-based paint ("LBP") and that if the Developer delivers its notice of acceptance of the Phase I Site, and later the Site Transfer Escrow closes, that the Developer shall be solely responsible, at no cost to the Agency, for abating and transporting such ACM and/or LBP-containing demolition wastes for disposal off- site at a lawful waste disposal facility in the manner required by law. The Developer acknowledges that the Agency assumes no liability for damages for personal injury, illness, disability, or death to the Developer, or any person, including members of the general public, arising from or incident to the use, abatement, handling, removal, transportation or disposal of any ACM or LBP from or in any structure on the Phase I Site and/or the Phase II Site. The Developer further acknowledges that there is a high probability that both the Phase I Site and the Phase II Site contain buried vaults, subsurface debris and non-native soils as previously imported by unknown third persons from off-site locations, abandoned infrastructure and utilities and other man- made materials associated with the prior improvement and use of the Site. The Developer shall accept all such conditions of the Phase I Site, and later the Phase II Site, without any liability to the Agency whatsoever upon delivery of its written notice of acceptance of condition. The written notice of acceptance of condition of the Phase I Site shall evidence the acceptance of the Phase I Site in its existing "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition as of the last day ot. the Due Diligence Period. At its sole option and discretion, the Developer may elect to accept the Phase I Site in its "AS IS,""WHERE IS" and "SUBJECT TO ALL FAULTS" 5/15/01 ct SB2001:7B25.B 1-37 condition at any time before the end of the Due Diligence Period; provided however that the Developer may not commence the improvement of the Phase I Project including the demolition of any structure thereon, until all of the other conditions for the occurrence of the close of the Site Transfer Escrow have been satisfied. SECTION 2.11. Access to Site for Developer Investiqations. During the applicable Due Diligence Period for the Phase I Site, and later for the Phase II Site" the Agency shall provide the Developer and the Developer's agents with access to the Phase I Site during normal business hours as set forth in the general form of the Agency's Site Parcel Acquisition Agreement and Section 2.7(c), in order to conduct the Developer Investigations as may be indicated. The performance of any work of the Developer Investigations on the Phase I Site or later on the Phase II Site shall not unreasonably disrupt the use or occupancy of each owner of the applicable Site Parcel or the business operations of Agency. The Developer shall be liable for any damage or injury to any person occasioned by the acts of the Developer, its employees, agents or representatives during the course of performance of any Developer Investigations on the Phase I Site or the Phase II Site, as applicable, and the Developer shall, and does hereby, indemnify and hold harmless Agency and its officers, directors, agents and employees from any and all liens, claims, demands or liability resulting therefrom. Developer access to a Condemnation Parcel should be subject to an appropriate order of the Court, as set forth in Section 2.10. Prior to commencing any Developer Investigation, the Developer shall deliver evidence of insurance to the Agency as provided by Section 2.20 hereof. SECTION 2.12. Harriman Place Improvement Proiect. (a) The amount payable by the Developer as the Harriman Place Charge is One Million One ... Hundred Thousand Dollars ($1,100,000). The Developer shall provide written confirmation to the Agency that the Developer shall pay the Harriman Place Charge in accordance with the schedule set forth in Section 2.12(e). (b) By the date not later than indicated on the Schedule of Performance, the Developer and the Agency shall jointly approve a written public improvement scheduling memorandum for the Harriman Place Improvement Project. Such memorandum shall provide for the coordination of the improvement of the Harriman Place Improvement Project under the Harriman Construction Agreement, with the improvement of the Phase I Project by the Developer. 5/15/01 ct 5B2001:7825.8 1-38 (c) The Agency shall have no obligation to approve such written public improvement scheduling memorandum for the Harriman Place Improvement Project in the event that Agency is not able to confirm, in its sole discretion by the date indicated in the Schedule of Performance, that a source of funds shall be available to the Agency under either the Harriman Construction Agreement or otherwise to undertake the construction and improvement of such project. (d) Subject to the close of the Site Transfer Escrow (Phase I Site), the Agency shall cause the Harriman Place Improvement Project to be constructed and installed in accordance with the terms, conditions and schedule of completion as set forth in the joint memorandum described in Section 2.12(b). (e) Within 14 days following the approval of the Agreement by the governing board of the Agency, or as soon thereafter as feasible, the Agency intends to enter into the Harriman Construction Agreement with the City. The terms of such agreement shall be in a form acceptable to the City and the Agency in their sole discretion. The Agency covenants to the Developer that following the approval of such agreement by the City, the Agency shall not approve any material change to the new Harriman Place right-of-way alignment which abuts the Phase I Site, or approve other material changes to design elements of the Harriman Place Improvement Project set forth in Attachment No. 12 without the prior written approval of the Developer. Such approval by the Developer shall not be unreasonably withheld. Provided that the cost of the work to be performed under the Harriman Construction Agreement (including the related right-of-way acquisition costs) is funded under an infrastructure loan agreement by and between the State of California and the City in an amount of not less than $2,000,000, and the funds under such infrastructure loan agreement are available for disbursement to the City by a date not later than close of the Site Transfer Escrow (Phase I Site), subject to satisfaction of disbursement conditions as required by the State, the Developer shall pay the Harriman Place Charge to the Agency in three (3) equal installments: (i) 1/3 of the charge shall be payable by the Developer on the date of commencement of the work of improvement of the Harriman Place Improvements by the City or the Agency, as applicable, under a public works contract awarded for such purposes; and (ii) 1/3 of the charge shall be payable by the Developer within thirty (30) days following on the date when the Agency 5/15/01 ct SB2001:7B25.B 1-39 reasonably estimates that 60% of the work or improvement (by value of quantities supplied and work performed) of the Harriman Place Improvements have been completed; and (iii) 1/3 of the charge shall be payable by the Developer within thirty (30) days following the date on which the City has accepted the Harriman Place Project Improvements as complete. In the event that funds may not be available to the City under the infrastructure loan agreement with the State of California, as referenced in the preceding paragraph, for any reason by a date not later than close of the Site Transfer Escrow (Phase I Site), then in such event, the Developer shall pay the full amount of the Harriman Place Charge to the Agency concurrently upon the close of the Site Transfer Escrow (Phase I Site). (f) Off-site improvements within the Harriman Place public street right-of-way as necessary or appropriate to accommodate the redevelopment and use of the Phase II Site which are not specifically set forth in Attachment No. 12 as included improvements to be caused to be undertaken by the Agency, shall be the sole cost and responsibility of the Developer or such third person or entity which may hereafter undertake the redevelopment of the Phase II Site. SECTION 2.13. Phase I Proiect REA. The Phase I Project REA contains commercial shopping center easements, on-site vehicle parking coordination arrangements, tenant improvement development and signage controls, property maintenance standards, common area use and maintenance standards as customary for commercial shopping center projects comparable in quality and size to the Phase I Project. A copy of the Phase I Project REA is on file with the Agency and is hereby approved. The Developer shall not materially modify or amend the Phase I Project REA without the prior written consent of the Agency, and such consent shall not be unreasonably withheld, conditioned or delayed. SECTION 2. 14 . In-N-Out Burqer Owner Participation Aqreement. (a) The Agency reserves the privilege in its discretion to enter into a separate agreement (herein, an "OPA") with In-N-Out Burger which affects the In-N-Out Burger Site and the Corner Parcel, as provided in this Section 2.14. Legal descriptions of the In-N-Out Burger Site and the Corner Parcel are included in Attachment Nos. 1F and 1E, respectively. 5/15/01 ct 5B2001:7825.8 I-40 (b) The OPA shall contain the provisions set forth in Section 2.14 (c) and such other terms and conditions as may be mutually acceptable to 1n-N-Out Burger and the Agency in the discretion of each of them; provided however that the Developer shall at the request of the Agency, enter into an on-site driveway easement and maintenance agreement with 1n-N-Out Burger affecting a portion of the Site (the "1n-N-Out Driveway REA") which benefits and burdens the Site and the lands subject to the OPA (e.g.: the In-N-Out Site and the Corner Parcel). The 1n-N-Out Driveway REA shall be substantially the form as the draft of such agreement on file with the Agency Secretary on the date when this Agreement is approved by the governing board of the Agency, together with such technical and conforming changes as may be reasonably requested by In-N-Out Burger and approved by the Agency. Notwithstanding anything in the preceding sentences to the contrary, any proposed technical changes or modification to the final form of the 1n-N-Out Burger REA which may be requested by either the Agency or 1n-N-Out Burger at any time after a date which is 30 days preceding the date of approval of this Agreement by the governing board of the Agency shall not be at material variance with any other provision of the draft In-N-Out Driveway REA as on file with the Agency Secretary. (c) The OPA shall contain the following general provisions: (i) the lands subject to the OPA shall be acquired and redeveloped by 1n-N-Out Burger; (ii) such lands shall be redeveloped for a single drive- thru restaurant use only; (iii) the improvement of such lands shall be of a high quality design and site development standard of comparable quality to the Phase I Project; (iv) the improvement of such lands shall be promptly initiated and diligently prosecuted to completion by a date not later than July 1, 2002, subject to force majeure events and delays associated with Agency's acquisition of the lands included in the Corner Parcel; (v) the Developer shall not contribute to any cost of expense associated with any obligation undertaken or assumed by either party to the OPA; provided however that the Developer shall reserve space on its. shopping center on- premise advertizing sign structures for the Phase I Project (subject to compliance by 1n-N-Out of all applicable City development regulations) for occupancy by 1n-N-Out on terms which are not materially less favorable than offered by the 5/15/01 ct SB2001:7825.8 1-41 Developer to the other tenants of the Developer leasing comparably sized and valued structures within the Phase I Project; (vi) the Agency shall not consent to a material amendment to the OPA after the date on which the Developer has executed (or confirmed its readiness to execute) the final form of the In-N-Out Driveway REA, without the prior approval of the Developer, and such approval by the Developer shall not be unreasonably withheld; (vii) in the event that at any time following the close of the Site Transfer Escrow (Phase I Site), In-N-Out may be in material default with respect to the completion of its redevelopment responsibilities and covenants to the Agency under the OPA, the Developer may exercise its remedies under the In-N-Out Driveway REA. (d) In the event that In-N-Out and the Agency may fail for any reason in the sole and absolute discretion of either of them to jointly enter into the OPA by July 19, 2001, then in such event the Developer shall be under no further obligation to execute the In-N- Out Driveway REA, and the Agency shall cause the Corner Parcel to be transferred to the Developer at or following the close of the Site Transfer Escrow as provided in Section 2.16. SECTION 2.15. Developer Option to Purchase II Site and Phase II Site Transfer to Developer. (a) For the purposes of this Section 2.15 the words "Phase II Site Escrow" shall mean and refer to a land transfer transaction by and among the Developer, the Agency and the Escrow Agent which has the same elements as set forth in Section 2.5. In the event that the Developer may give the Agency its notice to initiate acquisition proceedings for the Phase II Site (the "Developer Phase II Notice") as set forth below, the parties shall execute escrow instructions to the Escrow Agent for the Phase II Site Escrow in a form as consistent with this Section 2.15 and as jointly acceptable. (b) Subject to the terms and conditions hereof and the receipt by the Agency of the Developer Phase II Notice, the Agency hereby agrees that the Agency shall exercise its best efforts to assemble the Site Parcels as necessary or appropriate for the Phase II Site and to transfer the Phase II Site to the Developer, and the Developer agrees to purchase the Phase II Site from the Agency for the sum of 5/15/01 ct SB2001:7825.8 1-42 (i) Three Dollars and Seventy One Cents ($3.71) per square foot of land included in the Phase II site - net of the number of square feet of such land included within the new public street right-of-way area of Harriman Place, as realigned which abuts the Phase II Site if the Developer Phase II Notice is received by the Agency wi thin eighteen (18) months following the date of approval of this Agreement by the governing board of the Agency; or (ii) (A) the appraised fair market value of the Phase II Site, on a land-only basis excluding the value or detriment of the structures thereon, prepared by a qualified real estate appraiser jointly selected by the Developer and the Agency, plus (B) the difference, if any, between the amount of the Agency acquisition cost estimates shown in Section 2.4(h) (i), (ii) and (iv) for the Phase II Site and a revised estimate of such Agency acquisition cost items which the Agency may then reasonably estimate and which the Developer may then agree to pay as provided in Section 2.15(e). The Developer further agrees to cause the Phase II Project improvements to be constructed on the Phase II Site following the close of the Phase II Site Escrow in accordance with the schedule of performance for the Phase II Site as provided in Section 2.15(d) or (e), as applicable. (c) The Developer may initiate its acquisition of the Phase II Site from the Agency by delivering the Developer Phase II Notice to the Agency. The Developer Phase II Notice shall be in writing and set forth the following facts: (i) that the Developer is not in default under this Agreement with respect to the Phase I Project; (ii) that improvement of the New Store is substantially complete; (iii) that the representations and warranties of the Developer under Section 2.21 are true; (iv) that the Developer has sufficient equity funds to complete the acquisition of the Phase II Site. (d) Promptly upon receipt of a Developer Phase II Notice under Section 2.15 (b) (i), the Agency and the Developer shall jointly prepare a schedule of performance for the acquisition of 5/15/01 ct SB2001:7825.8 1-43 the Phase II Site which sets forth the reasonable estimate of the parties for the amount of time necessary to complete the acquisition and assembly of the Phase II Site, and the Agency shall obtain, as necessary or appropriate, real property acquisition appraisal reports for the individual Site Parcels in the Phase II Site and an appropriate relocation assistance plan for the Phase II Site, and within ninety (90) days following the Agency's receipt of such Developer Phase II Notice, the Agency shall confirm to the Developer that the Phase II Site acquisition cost estimate does not then exceed the estimate of such costs as set forth in Section 2.4(h) (ii) and (iv). Provided the Agency reasonably determines that the estimated cost of such items is not more than as set forth in Section 2.4(h) (ii) and (iv), the parties shall cause the Phase II Site Escrow to be opened with the Escrow Agent and thereafter, Agency shall commence the acquisition of the Phase II Site in accordance with the same procedures set forth in this Agreement relating to the Agency's acquisition of the Phase I Site. (e) In the event that the Developer may deliver its Developer Phase II Notice at any time after the eighteenth (18th) month but before the sixtieth (60th) month following the date of approval of this Agreement by the governing board of the Agency, the Developer and the Agency, as applicable shall do the following: (i) within sixty (60) days following the Agency's receipt of the Developer Phase II Notice, the parties shall jointly select a real property appraiser to prepare the appraisal report described in Section 2.15 (b) (ii) (A) and concurrently the Agency shall also obtain as necessary or appropriate, real property acquisition appraisal reports for the individual Site Parcels in the Phase II Site and an appropriate relocation assistance plan for the Phase II Site; (ii) within ninety (90) days following the selection by the parties of a mutually acceptable appraisal under (i), above, the Agency shall also provide the Developer with its estimate of the difference, if any, between the amount of the Agency acquisition cost estimates shown in Section 2.4 (h) (i), (ii) and (iv) and the revised estimate of such costs as of the date of such Developer Phase II Notice; (iii) within thirty (30) days following its receipt of the opinion of value of the Phase II Site established by the appraiser under (i) above, together with the additional cost estimate of the Agency under (ii), above, the Developer shall, in its discretion, confirm 5/15/01 ct SB2001 :7825.8 1-44 in writing to the Agency that is shall pay the purchase price for the Phase II Site as set forth in Section 2.15(b) (ii) at the close of the Phase II Site Escrow; (iv) subject to the Developer's confirmation under (iii), above, the parties shall jointly prepare a schedule of performance for the Site Parcel assembly program of the Agency for the Phase II Site and the installation of the Phase II Project by the Developer following the close of the Phase II Site Escrow; and (v) subject to the Developer's confirmation under (iii), above, the parties shall jointly execute the Phase II Site Escrow instructions to the Escrow Agent and proceed with the acquisition assembly and redevelopment of the Phase II Site in accordance with the same procedures set forth in this Agreement relating to the Agency's acquisition of the Phase I Site. In the event that the Developer may fail to confirm to the Agency that it shall pay the purchase price for the Phase II Site as set forth in Section 2.15 (b) (ii) within thirty (30) days following the Developer's receipt of the information described in (ii) and (iii), above, the option of the Developer to acquire the Phase II Site shall terminate and the parties shall be mutually released from any further liability with respect to the Phase II Site. (f) Notwithstanding any of the provisions of this Section 2.15 to the contrary, in the event that at any time following the date on which the governing board of the Agency approves this Agreement and the fourth (4th) anniversary of such approval date, the Agency or the IVDA receives a written offer under Health and Safety Code Section 33399 from an owner of land with the Phase II Site, the Developer shall deliver its Developer Phase II Notice to the Agency within twelve (12) months following the date of such written offer of an owner of land within the Phase II Site. In the event that the Developer may fail to deliver its Developer Phase II Notice to the Agency within such time, the option of the Developer to acquire the Phase II Site under this Section 2.15 shall terminate and the parties shall be mutually released from any further liability with respect to the Phase II Site. SECTION 2.16. Alternate Transfer Developer and Obliaation of Developer to Out Buraer Lands Followina West Site of Widenina Pro;ect. of Corner Parcel to Accept Transfer of In-N- Tippecanoe Avenue Street 5/15/01 ct SB2001:7825.8 1-45 (a) In the event that In-N-Out and the Agency may fail to jointly execute an OPA as provided in Section 2.14 by a date not later than July 16, 2001, then the Agency shall transfer the Corner Parcel to the Developer, subject to the terms of this Section 2.16 and the other terms and conditions, including the Phase I Site Purchase Price, applicable to Site Parcels and Condemnation Parcels in the case of the other lands comprising the Phase I Site. The Corner Parcel shall be transferred to the Developer within sixty (60) days following the close of the Site Transfer Escrow, under a separate Agency deed. The Developer and the Agency hereby agree to execute and deliver an escrow instruction to the Escrow Agent in form and content reasonably acceptable to each of them to implement this Section 2.16 in the event that the Corner Parcel may not be transferred to In-N-Out. The Agency deed for the Corner Parcel shall be subject to the same redevelopment conditions as set forth in Article IV of this Agreement and the additional redevelopment covenant applicable to the Corner Parcel which shall provide substantially as follows: "Until such time as the Agency may cause the "In-N-Out Lands", as this term is defined in the Agreement, to be transferred in fee to the Grantee, the Property [e.g.: the Corner Parcel] shall be reserved for improvement, use and occupancy by the Grantee and its successors and assigns, as on-site motor vehicle parking, driveways and landscaping appurtenant to the Site [e.g.: the Phase I Site], and for no other purpose. The covenant as contained in this paragraph shall have a term of thirty (30) years following the date of recordation of this Grant Deed unless sooner released by written agreement of the Agency and the Grantee in the sole discretion of each of them." The Developer shall redevelop and improve the Corner Parcel for on-site motor vehicle parking, driveways and landscaping appurtenant to the Phase I Site, subject to the development application and approval processes of the City. The Corner Parcel shall also be annexed to the Phase I Project REA concurrently upon the recordation of the Agency grant deed transferring the Corner Parcel to the Developer. (b) It is foreseeable that the future improvement of the interstate highway interchange at the Interstate 10 Freeway overcrossing of Tippecanoe Avenue will require the acceptance of additional public street right-of-way along the section ,of 5/15/01 ct SB2001:7B25.B I-46 Tippecanoe Avenue which abuts the In-N-Out Burger Lands. It is also foreseeable that the acquisition of such additional public street right-of-way by the appropriate public agency from In-N-Out may result in the remainder portion of the In-N-Out Burger Lands (after severance from the new public street right-of-way) being deemed an uuneconomic remnant parcel" under applicable law. In the event that In-N-Out Burger and the Agency may fail to execute the OPA as provided in Section 2.14 and thereafter, a public agency acquisition of additional street right-of-way from the In-N-Out Lands results in the creation of an uneconomic remnant of a portion of such In-N-Out Burger Lands, then in such event the Agency shall exercise best efforts to acquire the unecon0mic remnant from the condemning public agency and dispose of such uneconomic remnant to the Developer on the following terms and conditions: (i) the disposition price payable by the Developer to the Agency for the uneconomic remnant shall be equal to the lesser amount of: (A) the appraised fair market value of the land area included in the uneconomic remnant based upon an appraisal assumption that such land shall be annexed to the Corner Parcel, and used for any purpose then permitted under the Phase I Project REA and applicable planning and zoning or (B) the sum paid by the Agency to the public agency which acquires the uneconomic remnant for the fee transfer of the uneconomic remnant to the Agency; (ii) the uneconomic remnant shall be transferred in fee to the Developer by the Agency in an Uas is," uwhere is," Usubject to all faults condition" described in Section 2.10(d) by a quitclaim deed; (iii) the Developer shall cause the uneconomic remnant to be joined with the Corner Parcel and the Developer shall thereafter hold the Corner Parcel and the uneconomic remnant as a single legal parcel of land, under an appropriately recorded covenant or lot merger approved by the City; and (iv) the Corner Parcel together with the uneconomic remnant shall be annexed to the Phase I Project REA and the Agency shall consent to the release of the lanct use restriction affecting the Corner Parcel which limits its use to on-site vehicle parking, driveways and landscaping appurtenant to the Phase I Project. The Developer hereby agrees to accept the transfer of the uneconomic remnant portion of the In-N-Out Lands from the Agency on the terms set forth in the preceding subparagraphs. The parties agree to execute such appropriate escrow instructions in form and 5/15/01 ct SB2001:7B25.B I-47 content reasonably acceptable to each of them as may be indicated, at such time as the uneconomic remnant parcel may be available for transfer to the Developer as provided in this Section 2.16 (b). The parties shall have no further obligation under this Section_2.16(b) on the first of the following dates to occur: (1) July 1, 2015; or (2) the date on which the public agency acquiring the public street right-of-way affecting the In-N-Out Burger Lands rejects the offer of the Agency to acquire the uneconomic remnant parcel. SECTION 2.17. [RESERVED - - NO TEXT] SECTION 2.18 Allocation of Aqency Acquisition Costs in Excess of Line Item Set Forth In Section 2.4(a) or In Preliminary Pro;ect Budqet for the Phase I Site or in Section 2.4(d) for the Phase II Site. (a) In the event that at any time before the Agency transmits an offer to acquire any Site Parcel for the Phase I Site or the Phase II Site, as applicable, the Executive Director determines that the estimated acquisition costs of the Agency in excess of the Phase I Site Purchase Price, or later, the Phase II Site Purchase Price, as payable by the Developer, may materially exceed the estimate of such acquisition cost as shown in Section 2.4 as of the date of approval of this Agreement by the governing board of the Agency, then in such event, the Executive Director shall schedule such matter for discussion and mutual consultation of the parties at the next regular meeting of the Developer and Agency staff under Section 2.3. (b) In the event that at any time after the Agency has transmitted one or more offers to acquire any Site Parcel for the Phase I Site or the Phase II Site, as applicable, the Executive Director determines that the acquisition costs payable by the Agency before the Site Transfer Escrow (Phase I Site) or (Phase II Site), is in a condition to close, as applicable, may exceed the sum as provided in Section 5.10 (a), then in such event, the Executive Director shall give the Developer written notice of such determination, and the parties shall consider in the mutual discretion of each of them, whether and on what terms, if any, the Agency acquisition costs in excess of such estimate may be allocated between the parties,. During such period of mutual consideration, the Agency may in its discretion elect to delay the transmittal of a notice of termination of this Agreement to the 5/15/01 ct 5B2001:7825.8 I-48 Developer or to defer the termination date as previously set forth in such notice as otherwise provided under Section 5.10(c). SECTION 2.19. No Assistance to the Developer in Connection with the Construction of the Phase I Site or the Phase II Site. It is understood and agreed by the Developer that the Agency shall not provide any financial assistance to the Developer in connection with the construction of the Phase I Project and/or the Phase II Project. The Developer shall be solely responsible for paying for the costs of all design work, construction, labor, materials, fees and permit expenses associated with the improvement of the Phase I Project, and later, the Phase II Project. SECTION 2.20. Insurance. Concurrently with the execution of this Agreement, the Developer shall also furnish, or shall cause to be furnished, to the Agency, one or more certificates of insurance evidencing the existence of comprehensive general liability insurance coverage in favor of the Developer in the amount of One Million Dollars ($1,000,000.00) combined single limit. Said insurance shall cover liability including, but not limited to, contractual liability and personal injury. The comprehensive general liability insurance of the Developer shall also name the City and the Agency and the officers, officials and agents of each of them as additional insureds with respect to the Project. In addition, the Developer shall provide to the Agency adequate proof of workers' compensation insurance. Any and all insurance policies required hereunder shall be obtained from insurance companies admitted in the State of California and rated at least B+(vi) in Best's Insurance Guide. Appropriate insurance means those insurance policies approved by the Agency Counsel consistent with the foregoing. Any and all insurance required herein shall be maintained and kept in force until the Agency has issued its Certificate of Completion for the Phase I Project. SECTION 2.21. Warranties Developer. and Representations by the (a) The Developer hereby makes the following representations, covenants and warranties as of the date of this Agreement and acknowledges that the execution of this Agreement by the Agency has been made in material reliance by the Agency on such covenants, representations and warranties: (1) Each of the persons acting on behalf of the Developer has been duly authorized to so act in such capacity under the laws of the State of California. The Developer has the legal power, right and authority to enter into this 5/15/01 ct SB2001:7825.8 I-49 Agreement and the instruments and documents referenced herein, and to consummate the transactions contemplated hereby. (2) The Developer has taken all requisite action and obtained all requisite consents in connection with entering into this Agreement. (3) The persons executing any instruments for or on behalf of the Developer were fully authorized to act on behalf of the Developer and that the Agreement is valid and enforceable against the Developer in accordance with its terms and each instrument to be executed by the Developer pursuant hereto or in connection therewith will, when executed, be valid and enforceable against the Developer in accordance with its terms. No approval, consent, order or authorization of, or designation or declaration of any other person, is required in connection with the valid execution and delivery of and compliance with this Agreement by the Developer. (4) There are no pending or, to the best of Developer's knowledge, threatened claims, actions, allegations or lawsuits of any kind, whether for personal injury, property damage, landlord-tenant disputes, property taxes or otherwise, that are not covered by insurance or which expose the Developer to more than $100,000.00 in any given claim, action, allegation or lawsuit, or that could materially and adversely affect the operation or value of the Project or prohibit the performance of any provision of this Agreement by the Developer. (5) For purposes of this Section 2.21, the terms "to the best of Developer's knowledge" or "to Developer's knowledge" shall mean the actual knowledge of Fred Stimler, Steven Felderman and Arthur Pearlman. (b) If the Developer becomes aware of any act or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by the Developer under this Agreement, whether as of the date given or any time thereafter whether or not such representation or warranty was based upon Developer's knowledge and/or belief as of a certain date, the Developer will give immediate written notice of such changed fact or circumstance to the Agency. SECTION 2.22. Warranties and Representations by the Aqency. The Agency hereby makes the following representations, covenants and warranties and acknowledges that the execution of this Agreement by the Developer have been made in material reliance by the Developer on such covenants, representations and warranties: 5/15/01 ct SB2001:7825.8 I-50 (1) Agency is a duly organized and validly existing community redevelopment law created under the laws of the State of California. The Agency has the legal right, power and authority to enter into this Agreement and the instruments and documents referenced herein and to consummate the transactions contemplated hereby. The persons executing this Agreement and the instruments referenced herein on behalf of the Agency hereby represent and warrant that such persons have the power, right and authority to bind the Agency. (2) The Agency has held a public hearing and obtained all requisite consent of the City in connection with entering into this Agreement. (3) This Agreement is, and all agreements, instruments and documents to be executed by the Agency pursuant to this Agreement shall be, duly executed by and are or shall be valid and legally binding upon the Agency and enforceable in accordance with their respective terms. (4) Neither the execution of this Agreement nor the consummation of the transactions contemplated hereby shall result in a breach of or constitute a default under any other agreement, document, instrument or other obligation to which the Agency is a party or by which the Agency may be bound, or under law, statute, ordinance, rule, governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to the Agency or to the Property. 5/15/01 ct 5B2001:7825.8 I-51 ARTICLE III REDEVELOPMENT OF THE PHASE I SITE AND THE PHASE II SITE SECTION 3.1. Development of Phase I Pro;ect and, If Applicable, the Phase II Pro;ect bv Developer. (a) Each phase of redevelopment of the Phase I Site and later, if applicable, the Phase II Site shall be accomplished in substantial accordance with the Project Improvement Plan Concept as approved by the Agency concurrently with the approval of this Agreement by the governing board of the Agency, together with such changes in the Developer Improvement Plan Concept as may be approved by the Agency either before or after the date of submission of the Development Project Application to the City pursuant to this Agreement. The Developer Improvement Plan Concept is attached to this Agreement as Attachment No.2. The development regulations of the City, including, but not limited to, on-site parking and on-premises outdoor advertising sign structure requirements are applicable to the use and development of the Phase I proj ect and the Phase I I proj ect pursuant to this Agreement. The Phase I Project and the Phase II Project are collectively referred to in this Article III as the "Projects" . The City is not a party to this Agreement and no provision hereof shall be deemed to confer any right or privilege upon the Developer as may otherwise arise under Government Code Section 65850 et sea. The City retains the sole and absolute discretion under its regulatory and other police powers to review and approve the Development Project Applications and the issue the Develop Project Permits for the Projects, including without limitation the power to impose such development conditions of the City as may be applicable in its discretion to: (i) the City's approval of a Development Project Application; (ii) a final order of public street vacation affecting any public street right-of-way within or adjacent to the Site as may be necessary or appropriate to accommodate the Projects; (iii) any Certificate of Subdivision Compliance as may be applicable under Section 2.8 for the close of the Site Escrow. No action by the Agency with reference to this Agreement or any of the related documents or attachments shall be deemed a waiver of any City development standard which is applicable to the improvement and redevelopment of the proj ects and the City's approval of a Development Project Application or Certificate of Subdivision Compliance or order of public street vacation or the issuance by the City of any Development Project Permit, it being understood that, on a best efforts basis, the 5/15/01 ct SB2001:7825.8 II-l Agency shall assist the Developer in obtaining any desired approval from the City as required to facilitate the redevelopment of the Projects. (b) The Developer and/or its agents shall prepare at its sole cost and expense for submission to the City, all plans, drawings, specifications and studies necessary to accompany the Development Project Application for the Projects in sufficient detail for the City to accept as complete the Development Project Application. In the event that the Developer may seek to substantially modify, revise or amend the Developer Improvement Plan Concept or submit plans and Development Project Application drawings which provide for development of either the Phase I Project or the Phase II Project (or a major functional element thereof) which the Executive Director determines is materially different from the Developer Improvement Plan Concept, then in such event, the Developer shall obtain the approval of the Agency of the indicated modification, revision or amendment of the Developer Improvement Plan Concept before the Development Project Application is submitted to the City. The Developer may request by written notice to the Agency that the Executive Director determine whether a feature of the Development Project Application is at material variance with the Developer Improvement Plan concept and the Executive Director shall respond to such a written request within five (5) business days of improvement. Agency approval of a proposed substantial modification, revision or amendment to the Developer Improvement Plan shall at the reasonable discretion of the Agency and such approval shall not be unreasonably withheld, conditioned or denied. The Agency shall cooperate with and shall assist the Developer in order to obtain the approval by the City of any and all development approval plans submitted by the Developer to the City which are consistent with the Developer Improvement Plan Concept and this Agreement. In the event that the City disapproves any element of the Development Project Application the Developer may revise and resubmit said plans to the City in accordance with the City's requirements or the Developer may appeal the rejection in the manner provided by law. . (c) Landscaping plans for the Projects shall be prepared by a licensed landscape architect. The Developer shall submit a preliminary draft of the landscaping plan to the Executive director for concurrence prior to the submission of such landscaping plan to the City either as part of the Development Project Application, or later as part of a Developer submission for the issuance of any Development Project Permit by. the City. The landscaping plans submitted for Agency concurrence shall provide for the installation 5{15{01 ct SB2001:7B25.B II-2 of high quality and attractive landscaping and related improvements on the Phase I Site or the Phase II Site, as applicable, as well as within the public parkway and rights-of-way adjacent to the Phase I Site or the Phase II Site, as applicable, consistent with the Developer Improvement Plan Concept and the Harriman Place Improvement Project. (d) The Developer shall prepare and submit all other construction drawings and related documents for the Projects (including, but not limited to, architectural review of the exterior by the City as part of its consideration of the Development Project Application) and written approval as and at the times established in the Schedule of Performance. The Developer and Agency staff shall hold regular progress meetings to coordinate the preparation, submission and review of the Development Project Application and related documents by the City as part of the Site Parcel assembly program and issuance of the Development Project Permits as set forth in Section 2.3. The Agency Staff and the Developer shall communicate and consult informally as necessary to ensure that the formal submittal of the any documents to the City and the Agency can receive prompt and speedy approval. (e) No matter relating to the Development Project Application once approved by the Agency shall be subsequently disapproved unless mutually agreed by the parties. Nothing contained herein shall preclude the City from conducting its review, modification or rej ection of all plans, drawings and documents for the development of the Projects as required by all applicable development laws and regulations. The Developer shall revise each such plan, drawing or related document in a manner that addresses the basis of proposed modification or rejection recommended by the City. The Developer shall promptly revise and resubmit to the City any plans, drawings or related documents which are conditionally approved or rejected by the City as part of the consideration and approval by the City of the Development Project Application and/or the issuance of Development Project Permits. Upon request by the Developer, the Agency shall consider one or more requests for the extension of the period of time set forth in the Schedule of Performance during which the preparation of such revision to plans or drawings may be necessary, not to exceed in the aggregate for all such extensions of ninety (90) days. Further, the Schedule of Performance shall automatically be extended for any additional period required for the resubmission of plans by the Developer to the City for approval; provided however, that the Developer makes a good faith effort to meet any and all reasons for disapproval earlier set forth by the City. 5/15/01 ct SB2001:7825.8 II-3 (f) After the approval by the City of the Development Project Application, if the Developer desires to make any material change in the final construction drawings and related documents which are not consistent with the Development Project Application as approved by the City (either before or after the time when the City has issued the Development Project Permits to the Developer), the Developer shall first submit the proposed change to the Agency for its consideration and approval. At such time the Developer may also submit a request for extension of the Schedule of Performance, if such extension is necessary. The proposed change shall be approved or rejected by the Agency in writing within twenty (20) business days after submission to the Agency. Such a change shall, in any event, be deemed approved by the Agency unless rejected by the Executive Director, in whole or in part, by written notice thereof submitted by the Agency to the Developer, setting forth in detail the reasons therefor, and such rejection shall be made within said twenty (20) business day period. The Developer, upon receipt of a disapproval, may revise such portions as are rejected, or may appeal or dispute such rejection. Once the Development Project Permits have been issued and the work of improvement of either of the Projects has commenced, the Developer shall have the right during the course of construction of the Projects to make "minor field changes" without seeking the prior approval of the Agency. Said "minor field changes" shall be defined as those changes from the final construction drawings which have no material or adverse effect on the quality or appearance of the improvements and include changes made in order to expedite the work of construction in response to field conditions. (g) All of the other costs of redeveloping the Phase I Site and the Projects, including the cost of preparing and submitting the Development Project Application to the City for its review and approval, the performance of all Developer Investigations, the costs and charges of any public agency with jurisdiction associated with the issuance of any Development Project, demolition of structures, abatement of ACM and LBP, if any, response, removal and remediation of hazardous substances, if any, the removal of all subsurface structures improvements and conditions as necessary, grading, the reorganization of existing or proposed utility services and of constructing all new structures and improvements on the Phase I Site and the Phase II Site, development project impacts as identified the City, shall be borne solely by the Developer. (h) The Developer shall begin and complete the redevelopment of the Projects within the t:i,.mes specified in the Schedule of Performance or within such reasonable extensions of time as may be granted by the Agency or as provided for in this Agreement. The 5/15/01 ct SB2001:7B25.B II-4 Schedule of Performance is also time as mutually agreed upon Developer and the Agency. subject to revision from time to in writing by and between the (i) Subject to the compliance by the Developer with all applicable development project approval procedures of the City, the Developer shall include as part of its submittal of the Development Project Application for the Phase I Project design plans for the New Store sign and, if applicable, the Developer shall cooperate with the Agency in providing for certain outdoor on-premise signage structures on the Phase I Site for use by In-N -Out i provided however, that the Developer shall not be required to offer exterior signage structures for use by In-N-Out except on terms which are commercially comparable to other tenants and users of similar structures on the Phase I Site. (j) The Developer for itself and its successors and assigns agrees that in the construction of the improvements for the Projects as provided for in this Agreement, the Developer will not discriminate against any employee or applicant for employment because of sex, marital status, race, color, religion, creed, national origin, or ancestry. (k) The Developer shall be responsible for carrying out its construction of the improvements of the Projects in conformity with all applicable laws, including all applicable federal and state labor standards and requirements. SECTION 3.2. Security Financinq No Encumbrances Except for Development Purposes. For the purposes of this Section 3.2 and Section 3.3, the words "Developer Lands" mean and refer to the lands acquired by the Developer on the Phase I Site and/or later the Phase II Site upon the close of the applicable Site Transfer Escrow. Notwithstanding any other provision of this Agreement, mortgages and deeds of trust, or any' other reasonable method of security, are permitted to be placed upon the Developer Lands for its redevelopment, but only for: (i) the purpose of securing loans of funds to be used for the design and construction of the Projects and any other expenditures necessary and appropriate to redevelop the Developer Lands under this Agreement, and costs and expenses incurred or to be incurred by the Developer in furtherance of this Agreement and/or (ii) with respect to that portion of the Developer Lands for which a Certificate of Completion has been issued by the Agency. The Developer shall provide a suitably detailed written description of the terms of any mortgage, deed of trust, sale and lease-back or other financing, conveyance, encumbrance or lien 5/15/01 ct SB2001:7825.8 II-S which the Developer may propose to create or attach to the Developer Lands or any portion thereof, to pay for any part of the Phase I Site Purchase Price or Phase II Site Purchase Price, as applicable, and/or to provide the Developer with a source of funds to construct the proj ects . The words "mortgage" and "deed of trust" as used in this Agreement include all other appropriate modes of financing the real estate acquisition, construction, and land development obligations of the Developer. Mortgages, deeds of trust and other reasonable methods of security referred to as Permitted Transfers in Section 3.2, are collectively referred to in Section 3.3 as a "Security Financing Interest." SECTION 3.3. Security Financinq Interests. (a) The holder of any Security Financing Interest authorized by this Agreement is not obligated to construct or complete any improvement of the Projects. However, nothing in this Agreement shall be deemed to permit or authorize any such holder of a Security Financing Interest to devote the Developer Lands, or any portion thereof, to any use, or to constructed any improvements thereon, other than those uses of improvements provided for or authorized by this Agreement. (b) Whenever the Agency, pursuant to its rights set forth in this Agreement, delivers any notice or demand to the Developer to cure or correct a default or breach with respect to the redevelopment of the Projects, the Agency shall at the same time deliver to each holder of record any Security Financing Interest creating a lien upon the Developer Lands or any portion thereof a copy of such notice or demand of the Agency. Each such holder shall (insofar as the rights of the Agency are concerned) have the right, but not the obligation, at its option, within ninety (90) days after the receipt of the notice, to cure or remedy or commence to cure or remedy any such default or breach affecting the Developer Lands which is subject to the lien of the Security Financing Interest held by such holder and to all the costs thereof to the security interest debt and the lien on the security interest. (c) In any case where within one hundred and eighty (180) days after the occurrence of a default or breach by the Developer for which the Agency has given notice to the holder of any Security Financing Interest under Section 3.3 (b), and such holder has exercised its option to construct the Projects, but such holder has not proceeded diligently with construction, the Agency shall thereupon be afforded the same rights against such holder for such default or breach as the Agency would otherwise have against Developer under this Agreement; provided, however that such holder 5/15/01 ct SB2001:7S25.S II-6 shall have no liability to the Agency for any failure to open the New Store or to operate the New Store the Phase I Site for so long as such holder may retain its interest in the Developer Lands. (d) In the event of a default or breach by the Developer under a Security Financing Interest prior to the completion of redevelopment of the proj ect or portion thereof, and the holder has not exercised its option to complete the improvement of the Site, the Agency, at its sole option and election, but without any obligation to do so, may cure the default or breach of the Developer to such holder, prior to the completion of any foreclosure under its Security Financing Interest. In such event the Agency shall be entitled to reimbursement from the Developer of the principal amount paid by the Agency to cure or satisfy the defaults plus all reasonable costs and expenses incurred by the Agency in curing the default of the Developer. The Developer hereby agrees that the Agency shall also be entitled to a lien upon the Developer Lands, or any portion thereof to secure the repayment of such amount to the Agency. The Agency agrees that in the event that the such a lien in favor of the Agency may arise, that the lien of the Agency shall be subordinate to any other Security Financing Interest approved or deemed approved by the Agency. The Agency shall execute from time to time any and all documentation reasonably requested by Developer to effect such subordination of the lien right of the Agency as may arise under this Section 3.3. (e) In addition to the optional right of the Agency to cure a default or breach of the Developer under a Security Financing Interest as set forth in Section 3.3(d), the Agency, at its sole option and election, shall have the right to satisfy any other lien or encumbrance affecting the Developer Lands after the Developer has received a thirty (30) day notice of intention of the Agency to pay such lien or encumbrance. The Agency shall not transmit such a notice of intention until the Developer has been accorded a reasonable period of time to challenge, cure or satisfy such a lien or encumbrance provided however, that nothing in this Agreement shall require the Developer to payor make provisions for the payment of any lien or charge (except a lien or charge for ad valorem property taxes) so long as the Developer in good faith shall contest the validity or amount therein and so long as such delay in payment by the Developer shall not subject the Developer Lands or any portion thereof to forfeiture or sale. In the event that the Agency may satisfy any such lien or encumbrance the Agency shall be entitled to reimbursement from the Developer of the principal amount paid by the Agency to cure or satisfy the lien or encumbrance, plus all reasonable costs and expenses incurred by the Agency in satisfying the lien or encumbrance. The Developer hereby agrees that the Agency shall also be entitled to a lien upon the 5/15/01 ct SB2001:7825.8 II-7 Developer Lands, or any portion thereof, to secure such repayment to the Agency. Any such lien of the Agency under this Section 3.3 shall be subordinate to each Security Financing Interest approved or deemed approved by the Agency. (f) The Developer, for itself, its successors and assignees hereby warrants and agrees that the Developer shall give to any holder of a Security Financing Interest notice of the terms and conditions contained in this Section 3.3 and shall use commercially reasonable efforts to cause each term contained herein dealing with Security Financing Interests and rights of holders of such interests either to be inserted into the relevant deed of trust or mortgage or to be acknowledged by the holder prior to its perfection of any such Security Financing Interest right or interest in the Developer Lands. SECTION 3.4. Estoppel Statement. Upon the request of the Developer or any holder or a Security Financing Interest in the Site or portion thereof, the Agency shall issue a signed estoppel statement stating that this Agreement is in full force and effect and that no default hereunder exists on the part of the Developer or any successor, or if such default is claimed to exist, such estoppel statement shall identify the nature of such default. Such estoppel statement shall be delivered by the Agency within thirty (30) days following receipt of written request therefor. SECTION 3.5. [RESERVED--NO TEXT] SECTION 3.6. [RESERVED--NO TEXT] SECTION 3.7. Certificate of Completion. (a) Upon substantial completion of the relevant phases of the Project, the Agency shall prepare a Certificate of Completion substantially in the form of Attachment No. 11, within thirty (30) days following receipt by the Agency of a written request therefor by the Developer. Upon the request of the Developer, the Agency may issue one or more Certificates of Completion when the Developer has completed (or caused third party tenants to so complete) the improvements as follows: (i) upon completion of the New Store for the portion of the Phase I Site on which the New Store is situated; (ii) upon completion of the other portion of the Phase I Site; provided that the New Store has been completed under (i), above; and 5/15/01 ct SB2001:7825.8 II-8 (iii) upon completion of the Phase II Project. The Certificate of Completion shall evidence a conclusive determination by the Agency of satisfactory completion _ of the improvement of the proj ects, as appl icable, by the Developer. After the recordation of the Certificate of Completion by the Agency, neither the Developer, nor any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Developer Lands shall (because of such ownership, purchase, lease or acquisition) have any further obligation or liability under this Agreement for matters arising prior to the date of recordation of the Certificate of Completion or thereafter; provided however, that the covenants contained in Section 4.1 through Section 4.4, shall bind each successor in interest of the Developer in the Developer Lands as covenants which run with the land. (b) If the Agency seeks to withhold the execution of Certificate of Completion, then the Agency shall, within said thirty (30) days of the date of the written request for the issuance of a Certificate of Completion provide to the Developer a written statement setting forth the reasons with respect to the Agency's refusal or failure to prepare and execute a Certificate of Completion. The statement shall also contain a detailed description of the action the Developer must take to obtain a Certificate of Completion. If the reason for such refusal is confined to minor building "punch list" items, the Agency shall issue its Certificate of Completion conditioned upon the delivery of cash or other reasonably acceptable surety in an amount and terms subject to the reasonable approval of the Executive Director. No such Certificate of Completion of the Agency shall be deemed to constitute a notice of completion as referred to in Section 3093 of the California Civil Code. 5/15/01 ct SB2001:7825.8 II-9 ARTICLE IV USE AND OPERATION OF THE PHASE I SITE AND THE PHASE II SITE SECTION 4.1. Permitted Uses of the Site bv the Developer. The Agency acknowledges that occupancy of the Phase I Site, and later the Phase II Site by the following types of tenants is consistent with the development regulations of the City of San Bernardino: Baby's-R-Us Cost Plus Krause's Custom Crafted Furniture Lakeshore Learning Marshalls Michaels Sam's Club Sports Chalet Target Toys-R-Us Wal-Mart Old Navy Sketchers Petco Kinkos The following uses on the Phase I Site and the Phase II Site are prohibited: Bars or businesses with ~on-sale" alcoholic beverage sales licenses (other than in restaurants), coin laundries or laundromats, used clothing stores, used appliance stores, used furniture stores or rummage stores, massage parlors, or so-called adult book or adult entertainment establishments. The following special retail uses as defined under applicable State law as a ~relocation" may be permitted; provided that the Agency in its reasonable discretion, has first made the finding that such retail user ~relocation" is outside the same market area," as each of these terms is defined in Health and Safety Code Section 33426.7: automobile dealership, or big box retailer, in a store greater than 75,000 square feet of gross buildable area that will generate sales or use tax pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or 5/15/01 ct SB2001:7B25.B II-IO a business entity that sells or leases land to an automobile dealership or big box retailer. The provisions of this covenant shall be included in the Agency Grant Deed. SECTION 4.2. [RESERVED - - NO TEXT] SECTION 4.3. Obliqation to Refrain from Discrimination. The Developer covenants and agrees for itself, its successors, assigns and every successor in interest to the Phase I Site and the Phase II Site or any part thereof, there shall be no discrimination against or segregation of any person, or group of persons, on account of sex, marital status, race, color, religion, creed, national original or ancestry in the sale, lease, sublease, transfer, use occupancy, tenure or enjoyment of the Phase I Site and the Phase II Site nor shall the Developer, 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 of occupancy of tenants, lessees, subtenants, sublessees or vendees of the Phase I Site and the Phase II Site. The covenant of the Developer as provided in this Section 4.3 shall be included in the Agency Grant Deed. SECTION 4.4. Form of Nondiscrimination and Nonseqreqation Clauses. The Developer shall refrain from restricting the sale, lease, sublease, rental, transfer, use, occupancy, tenure or enjoyment of the Phase I Site and the Phase II Site or part thereof on the basis of sex, marital status, race, color, religion, creed, ancestry or national original of any person. All such deeds, leases or contracts pertaining thereto shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) [in deeds] : "The grantee herein 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 sex, mari tal status, race, color, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, 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 5/15/01 ct 5B2001:7825.8 II-ll 5/15/01 ct SB2001:7B25.B reference to the selection, location, number, use of occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (2) [in leases] : UThe lessee herein covenants by and for itself, its successors and assigns, and al persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of sex, marital status, race, color, religion, creed, national origin or ancestry, in the leasing, subleasing, renting, transferring, use, occupancy, tenure or enjoyment of the land herein lease, nor shall lessee itself, or any person claiming under or through it, establish or permit such practice or practices of discrimination or segregation with reference to the selection, location, number or occupancy of tenants, lessees, sublessees, tenants or vendees in the land herein lease." (3) [in material contracts] : UThere shall be no discrimination against or segregation of, any person or group of persons on account of sex, marital status, race, color, religion, creed, national origin or ancestry in the sale, lease, sublease, rental, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee 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, subtenants, sublessees or vendees of the land." II-12 ARTICLE V DEFAULTS, REMEDIES AND TERMINATION SECTION 5.1. Defaults--General. Failure or delay by a party to perform any term or provisions of this Agreement constitutes a default under this Agreement. The party in default must immediately commence to cure, correct, or remedy such default within thirty (30) days after receipt of written notice of such default, and if the defaulting party does not diligently complete such cure, correction or remedy within a reasonable time, then a breach shall be deemed to have occurred and the non-defaulting party may assert its other rights and remedies. No default under this Agreement shall be deemed to exist during those periods of time as provided in Section 6.5 hereof during which a force majeure event has occurred and written notice has been delivered to the other parties. The party which claims that a default or breach has occurred shall give written notice of default, specifying the default complained of by the injured party in accordance with Section 5.8. Except as required to protect against further damage, 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. SECTION 5.2. Bankruptcy, Insolvency or Dissolution of Developer. The occurrence of any of the following events prior to the issuance of a Certificate of Completion for the Phase I Site and the Phase II Site shall be deemed a material default by the Developer: (1) the Developer files for bankruptcy protection or reorganization or become involved in any proceedings under the bankruptcy laws of the United States, or in the event that the Developer may be insolvent, or in the event that a receiver may be appointed for the Developer under state or federal law; (2) the Developer suspends or terminates its legal status as a California limited liability company authorized to transact business in California. In view of the special community redevelopment goals and covenants for community redevelopment covenants which affect this Agreement, in the event that either the Developer shall be adjudicate bankrupt, or become involved in any proceedings under the bankruptcy laws of the United States, or if the interest of 5/15/01 ct SB2001:7825.8 II-13 either of them in this Agreement shall be transferred by operation of law at any time prior to the issuance of a Certificate of Completion for the Phase I Project or the Phase II Project, as applicable, the trustee in bankruptcy, receiver, assignee or judgment purchaser shall be bound by all provisions of this Agreement, including but not limited to the provisions of Section 4.1. SECTION 5.3. Institution of Leqal Actions. Subject to the default provisions of Section 5.1, any party 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 action, 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. SECTION 5.4. Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. SECTION 5.5. Acceptance of Service of Process. (a) In the event that any legal action is commenced by the Developer against the Agency, service of process on the Agency shall be made by personal service upon the Agency Secretary. (b) In the event that any legal action is commenced by the Agency against the Developer, service of process on the Developer shall be made upon any of its managing members. SECTION 5.6. Riqhts and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by any other party. SECTION 5.7. Inaction Not a Waiver of Default. Any failure or delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive any party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 5/15/01 ct SB2001:7825.8 II-14 SECTION 5.8. Notice of Default and Termination Prior to Issuance of a Certificate of Completion for the Phase I proiect or the Phase II Proiect, As Applicable. Except as set forth in Section 5.10, if a party is in material breach or default with regard to any of the provisions of this Agreement prior to the issuance by the Agency of a Certificate of Completion for the Phase I Project, or the Phase II Project, as applicable, the non- defaulting party may, in addition to its assertion of any other right or remedy upon the occurrence of such default, elect to terminate this Agreement, unless such default is cured or corrected within the time period set forth in a notice of default. If the party exercises such an election of termination, such party shall include in its written notice of default to the defaulting party (with a copy to the remaining party) a statement that the Agreement shall be terminated if the default is not cured or commenced to be cured by the defaulting party within thirty (30) days after service of the notice of default (or within such other longer period as is set forth therein). The defaulting party shall be liable to the other party for any damage caused by such default and termination. SECTION 5.9. [RESERVED -- NO TEXT] SECTION 5.10. Termination Without Fault of Parties. (a) The occurrence of any of the following events prior to the date on which the close of the Site Transfer Escrow (Phase I Site) may occur constitute a basis for any party to terminate this Agreement without fault or liability: (1) Despite its good faith and diligent efforts, the Agency cannot confirm that funds are available to it to pay the Site acquisition costs; (2) The Developer has failed to deliver and/or the Agency has failed to accept the written confirmation to the Agency as set forth in Section 1.8; (3) Despite its good faith and diligent efforts, the Developer is unable to obtain any permit or approval from the City as may be necessary to construct the Phase I Project substantially in accordance with the Developer Project Improvement Plan Concept; (4) The Developer may rej ect the environmental condition of any Site Parae I as provided in Section 2.7(c); 5/15/01 ct SB2001:7B25.B II -15 (5) The City, the IVDA and the Agency have failed to approve the Condemnation Parcel Acquisition Memorandum for any reason; (6) After the Developer has provided the Agency with the necessary funds for a Condemnation Parcel as set forth in Section 2.2(c), the IVDA may fail to initiate proceedings for the acquisition of any Condemnation Parcel; (7) The City and the A~ency have not entered into the Harriman Construction Agreement, and/or the Agency has not confirmed in its reasonable discretion by the date indicated in the Schedule of Performance that sufficient funds necessary to pay for the Harriman Place Improvement Project shall be available to the Agency for the improvement of such public works project; (8) The Developer rejects or the Agency fails to cure any Title Exceptions and/or the Developer fails to waive the cure of any Title Exception under Section 2.9(c) or 2.9(d); (9) The amount of the Site acquisition costs payable by the Agency (exclusive of any sums payable by the Developer prior to the close of the Site Transfer Escrow (Phase I Site) under Section 2.5(d)) is reasonably determined by the Agency to exceed the sum of $1,000,000 before the Site Transfer Escrow (Phase I Site) may be in a condition to close; (10) The necessary Site Parcels for the Phase I Site cannot be assembled and the Site Transfer Escrow placed in a condition to close on or before January 18, 2002, subject to such extensions of time as may be approved by the Developer and the Agency as set forth in Section 2.3(f). (b) If any of the following events occurs after the Developer has exercised its option with respect to the Phase II Site under Section 2.15, then any party may terminate this Agreement with respect to its further effect on the Phase II Site, without fault or liability: (1) Despite its good faith and diligent efforts the Developer is unable to obtain any permit or approval from the City as may be necessary to construct the Phase II Project substantially in accordance with the Developer Project Improvement Plan Concept; . (2) The Developer may rej ect the environmental condition of any Site Parcel as provided in Section 2.7(c); 5/15/01 ct SB2001:7825.8 II-16 (3) After the Developer has provided the Agency with the necessary funds for a Condemnation Parcel as set forth in Section 2.2(c) with respect to a Site Parcel situated within the Phase II Site, the IVDA may fail to initiate proceedings for the acquisition of any such Condemnation Parcel; (4) The Developer rejects or the Agency fails to cure any Title Exceptions and/or the Developer fails to waiver the cure of any Title Exceptions under Section 2.9(c); (5) The amount of the Site Acquisition Cost payable by the Agency is reasonably determined by the Agency to exceed the sum of $500,000 before the Site Transfer Escrow (Phase II Site) may be in a condition to close. (c) The party which may elect to terminate this Agreement on any of the grounds described in Section 5.10 (a) or Section 5.10(b) shall transmit a written notice of intention to terminate the Agreement at least thirty (30) days prior to the date of termination specified in such written notice. The written notice of intention to terminate the Agreement shall identify this Section 5.10 and generally describe the grounds on which the termination of this Agreement is based. Upon the termination of this Agreement pursuant to this Section 5.10, no party shall have any claim upon the other for costs, reimbursement or damages against or liability to the other under this Agreement, except that if a termination occurs as a result of the occurrence of the matters described in Section 5.10(a) (6) or Section 5.10(b) (3), then any Developer funds disbursed to the Agency for Condemnation Parcels shall be returned to the Developer as provided in Section 2.2 (c) and further provided that the indemnity obligations of the parties under Section 2.8, Section 6.5(b) or Section 6.8 shall survive with respect to any matters or claim arising under any of those provisions of this Agreement. SECTION 5.11. Riqhts of Mortqaqes. Any rights of the Agency under this Article V shall not defeat, limit or render invalid any lease, mortgage, deed of trust or any other security interest permitted by this Agreement or any rights provided for in this Agreement for the protection of holder of security interests in the Site, or portion thereof. 5/J.5/0J. ct SB200J.:7825.8 II-17 ARTICLE VI GENERAL PROVISIONS SECTION 6.1. Notices, Demands and Conununications Between the Parties. Notices, demands and communications among the Agency, the Developer as required by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or, if mailed, upon receipt or rejection. If notice is given by mailing, it shall be sent by registered or certified mail, postage prepaid, return receipt requested, and properly addressed to the principal office of the party, as designated in Section 1.5. Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time to time designate in writing. SECTION 6.2. Conflict of Interest. No member, official or employee of the Agency having any conflict of interest, direct or indirect, related to this Agreement and the development of the Project, shall participate in any decision relating to the Agreement or the implementation thereof. SECTION 6.3. Warranty Aoainst Payment of Consideration for Aoreement. The Developer and the Agency each warrant that neither of them has paid or given, and will not payor given, any third- party money or other consideration for obtaining this Agreement. For the purpose of this Section 6.3, the term Uthird parties" shall not include persons to whom fees were paid for professional services if rendered by attorneys, financial consultants, accountants, engineers, architects and the like when such fees are considered necessary by the Developer. SECTION 6.4. Non-Liability of City and the Aoency Officials and Employees. No member, official or employee of the City or the Agency shall be personally liable to the Developer, or any successor in interest of either of them, in the event of any default or breach by the City or the Agency or for any amount which may become due to the Developer or to its successor or on any obligations under the terms of this Agreement. SECTION 6.5. Performance. Enforced Delay: Extension of Time of (a) In addition to specific provisions of this Agreement, 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 majeure events beyond the control of such 5/15/01 ct SB2001:7825.8 II-18 party, including without limitation war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, government imposed moratorium legislation, freight embargoes or lack of transportation, weather-caused delays, inability to secure necessary labor, materials or tools, delays of any contractors, subcontractor or supplier, which are not attributable to the fault of the party claiming that an event suspends the close of the Site Transfer Escrow, or if after the close of the Site Transfer Escrow has occurred, suspends the prosecution of the work of improvement of the Phase I Project or the Phase II Project, as applicable. An extension of time for any such force majeure 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 which claims the existence of the delay has first provided the other party with written notice of the occurrence of the delay within ten (10) days of the commencement of such occurrence of force maj eure event and thereafter takes prompt and reasonable action within its control to resume the performance of the applicable work or obligation, and if applicable restore, reconstruct, rebuild any damage to the Project caused by such force majeure event provided further that no force majeure event (or series of such events ) shall have the effect of delaying the close of the Site Transfer Escrow for more than a total of ninety (90) days. The inability of either the Developer to obtain the land acquisition or construction loans for either the Phase I Project or the Phase II Project, or the approval of the New Store or the failure of the City to approve the Development Project Application or to issue any Development Project Permit (except by virtue of the effect of moratorium legislation) or the inability of the Developer to satisfy any other condition of this Agreement relating to the redevelopment of the Phase I Project or the Phase II Project or the operation of the New Store on the Phase I Site, shall not be deemed to be a force majeure event or otherwise provide grounds for the assertion of the existence of a delay under this Section 6.5. The parties each expressly acknowledge and agree that changes in either general economic conditions or changes in the economic assumptions of any of them which may have provided a basis for entering into this Agreement occurring at any time after the execution of this Agreement, are not force maj eure 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 that changes in general economic conditions or changes in such economic assumptions could impose an inconvenience or hardship on the continued performance by such party under this Agreement, but that 5/15/01 ct 5B2001:7825.8 II-19 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. (b) The Developer acknowledges that the Agency is a "public entity" and/or a "public agency" as defined under applicable California law. Therefore, the Agency, in coordination with the City, must satisfy the requirements of certain California statutes relating to the actions of public entities, including, without limitation, the California Environmental Quality Act ("CEQA") before the redevelopment activities contemplated under this Agreement may be implemented. Also, as a public body, the action of the governing board of the Agency in approving this Agreement may be subject to proceedings to invalidate the Agreement. The Developer hereby assumes the risk of delays and any loss that may result from any such third-party legal actions related to the City's certification of the Final Environmental Impact Report (State Clearinghouse No. 2000081074) (the "FEIR") and the Agency's approval of this Agreement or the pursuit of the redevelopment activities contemplated by this Agreement, even in the event that an error, omission or abuse of discretion by the City or the Agency which a court of competent jurisdiction may determine to have occurred. If a third-party files a legal action regarding the City's certification of the FEIR and/or the Agency's approval of this Agreement or the undertaking of the Harriman Place Improvement Project, or any of the related agreements with either the City or the IVDA, the Agency may terminate this Agreement on 60 days written notice to the Developer of the Agency's intent to so terminate this Agreement, referencing this Section 6.5(b), without any further obligation to perform the terms of this Agreement and whereupon the parties shall be mutually released from any further responsibility under this Agreement. Within 10 days of receipt of the Agency's notice of intent to terminate this Agreement as provided in the preceding sentence, the Developer may offer to defend the City and the Agency, as applicable in the third-party legal action and pay all of the court costs, attorney fees, monetary awards, sanctions, attorney fee awards and the expenses of any and all financial or performance obligations that may result from the disposition of the legal action. Any such offer from the Developer must be in the form of a written agreement to be considered by the Agency. The Agency is under no obligation to accept any such offer from the Developer and may elect to terminate this Agreement, under this subsection (b) notwithstanding any offer from the Developer under this subsection (b). SECTION 6.6. Approvals. Approvals required by the Agency shall not be unreasonably withheld and approval or disapproval shall be given within the time set forth in the Schedule of 5/15/01 ct 8B2001:7825.8 II-20 Performance, or as set forth in this Agreement or, if no specific time is set forth for such approval, within thirty (30) days. If no disapproval is given within the time stated therefor, the item in question shall conclusively be deemed approved. SECTION 6.7. No Real Estate Commissions Pavable. Each party to this Agreement represents and warrants to the others that said party has not dealt with any broker or real estate agent in connection with this transaction, and that insofar as that party knows no broker, real estate agent, or other party is entitled to any commission or fee in connection herewith. Each party to this Agreement agrees to indemnify, defend and hold harmless the other parties from and against any and all broker or real estate commissions or finder fees by any person or entity claiming to have been retained by such indemnifying party in connection with this transaction. SECTION 6.8. Indemnification. (a) The Developer agrees to indemnify, defend and hold the City and the Agency, and each of them, harmless from and against all damages, judgments, costs, expenses, and fees, including attorneys fees and expenses, arising from any act or omission of the Developer in performing its obligations hereunder. (b) The Developer and the Agency hereby jointly and severally agree to indemnify, defend and hold the IVDA harmless from and against all damages, judgments, costs, expenses and fees, including attorneys fees and expenses, arising from any claim or liability asserted against the IVDA or any matter described in Section 2.3(d) (vi) with respect to any claim of inverse condemnation relating to any Site Parcel or Condemnation Parcel which may be asserted against the IVDA. (c) Except to the extent provided in Section 6.S(b), the Agency agrees to indemnify and hold the Developer harmless from and against all damages, judgments, costs, expenses and fees arising from any act or omission of the Agency in performing its obligations hereunder. (d) the parties hereby agree to serve written notice on the other within one (1) year following the time when a party becomes aware, or should be aware, that a claim under this Section 6.8 has arisen. SECTION 6.9. No Partnership. Nothing in the Agreement nor any acts of the parties hereto shall be deemed or construed by the parties hereto, or any of them, or by any third person, to create 5/15/01 ct 882001:7825.8 II-21 the relationship of principal and agent, or of partnership, or of joint venture, or of any association between any of the parties to this Agreement. SECTION 6.10. Attorney's Fees. If any party hereto files any action or brings any action or proceeding against the other arising out of this Agreement, then as between the Developer and the Agency, the prevailing party shall be entitled to recover as an element of its costs of suit and not as damages, its reasonable attorney's fees as fixed by the Court in such action or proceeding or in a separate action or proceeding brought to recover such attorney's fees. For the purposes hereof, the words "reasonable attorney's fees" include in the case of the City and/or the Agency, the salaries and fringe benefits of attorneys employed in the Office of City Attorney allocated on an hourly basis for legal services performed on behalf of the Agency hereunder. SECTION 6.11. Severability. If any clause, sentence or term or condition of this Agreement is held invalid or unenforceable for any reason by a court of competent jurisdiction, the remaining portions of this Agreement will remain in full force and effect, provided the resulting agreement preserves the material economic effect of this Agreement. 5/15/01 ct 882001:7825.8 II-22 ARTICLE VII ENTIRE AGREEMENT, WAIVERS AND AMENDMENT SECTION 7.1. Attachments. This Agreement shall be executed in three (3) duplicate originals, each of which is deemed to be an original. The Agreement includes ~ pages and +; ~~~. ~ ~ attachments which constitute the entire understanding and agreement (I ~~ of the parties. ../ SECTION 7.2. amended from time parties. Amendment of Aqreement. This Agreement may be to time by written agreement executed by the SECTION 7.3. Operatinq Memoranda. It is recognized and acknowledged that the implementation of the development of the Phase I Project and/or the Phase II Project will require a close degree of cooperation between the Developer and the Agency. Therefore, any written operating memorandum shall be given reasonable and fair consideration, as necessary, and such approval shall not be unreasonably withheld. Such memoranda shall, upon approval, become an addendum hereto and become a part hereof. Additionally, in the event that a lender, which proposes to loan funds to the Developer with respect to the Phase I Project and/or the Phase II Project, requires commercially reasonable amendments or modifications to this Agreement, the Agency shall promptly give due consideration to the written request of such lender. SECTION 7.4. Date of Aqreement. This Agreement has been dated as of V,,\eu-..,).- \ 2001 for purposes of reference and convenience. The cl=rms "date of execution of the Agreement" or "date of the Agreement" or "date of approval of this Agreement," and the like, refer to the date of which the Agreement is approved by the governing board of the Agency following a public hearing thereon. This Agreement shall have 'no force nor effect in the event that the parties may fail to cause the authorized officers of each of them to execute it for any reason within thirty (30) days following such approval by the governing board of the Agency. 5/15/01 ct SB2001:7825.8 II-23 SECTION 7.5. Execution in Counterpart Oriqinals. The Agreement may be executed by the parties in counterparts and when each such counterpart is delivered by the parties, this Agreement shall be deemed to be fully executed and in effect. Date: OJ ( J ZcJl5/ APPROVED AS TO FORM: J,ltk Agency Special Counsel 5/15/01 ct SB2001:7825.8 DEVELOPER SBT Partners, LLC, a California limite~ liability company By: L-- CJ------ Its: ~~ s;;, o-P H"t5J.../ C. ~p IL I ,.J ~ By: Its: AGENCY Redevelop San Ber. a t Agency of the City of dino By: the By: II-24 ATIACHMENT NO. lA LEGAL DESCRIPTION OF THE SITE AND PLAT MAP THOSE PORTIONS OF LOTS 1 THROUGH 79 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIfORNIA, TOGETHER WITH THOSE PORTIONS OF LAURELWOOD DRIVE, ROSEWOOD DRIVE AND ORCHARD DRIVE, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, TOGETHER WITH THAT PORTION OF LOT 5 OF BLOCK 72, RANCHO SAN BERNARDINO, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, AT PAGE 2, RECORDS OF SAID COUNTY, TOGETHER MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID TRACT NO. 2743; THENCE SOUTH 89048'29" EAST 1276.36 FEET ALONG THE NORTHERLY LINE OF SAID TRACT TO THE INTERSECTION OF SAID NORTHERLY LINE WITH A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 50.00 FEET, MEASURED AT RIGHT ANGLES, FROM THE CENTERLINE OF TIPPENCANOE AVENUE, 60.00 FEET WIDE, AS SHOWN ON SAID TRACT MAP; THENCE SOUTH 00008'00" EAST 128.94 FEET ALONG SAID PARALLEL LINE, ALSO BEING THE EASTERLY LINES OF THOSE CERTAIN PARCELS CONVEYED TO THE COUNTY OF SAN BERNARDINO IN DOCUMENTS RECORDED AS INSTUMENT NO. 85-199288, 85-244473 AND 85-140281, ALL OF OFFICIAL RECORDS OF SAID COUNTY, TO THE BEGINNING OF A CURVE CONCAVE NORTHWESTERLY, HAVING RADIUS OF 20.00 FEET; THENCE SOUTHERLY 8.34 FEET ALONG SAID CURVE AND CONTINUING ALONG THE WESTERLY LINE OF SAID PARCEL CONVEYED TO SAID COUNTY IN A DOCUMENT RECORDED AS INSTRUMENT NO. 85-140281, THROUGH A CENTRAL ANGLE OF 23054'02" TO THE INTERSECTION OF SAID CURVE WITH A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES FROM THE CENTERLINE OF LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SHOWN ON SAID TRACT MAP; THENCE SOUTH 00017'17" WEST 103.89 FEET FROM SAID INTERSECTION TO THE SOUTHERLY TERMINUS OF A CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 20.00 FEET, SAID CURVE BEING TANGENT AT ITS WESTERLY TERMINUS TO A LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES FROM SAID CENTERLINE OF SAID LAURELWOOD DRIVE, AND TANGENT AT SAID SOUTHERLY TERMINUS WITH A LINE THAT IS PARALLEL WITH AND DIST ANT WESTERLY 52.48 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF TIPPECANOE AVENUE; THENCE SOUTH 00008'00" EAST 288.33 FEET ALONG SAID PARALLEL LINE TO ITS INTERSECTION WITH THE CENTERLINE OF ROSEWOOD DRIVE, 50.00 FEET WIDE, AS SHOWN ON SAID TRACT MAP; THENCE NORTH 89048'23" WEST 7.33 FEET ALONG SAID CENTERLINE; THENCE SOUTH 00004'58" EAST 211.50 FEET TO THE SOUTHERLY TERMINUS OF THE WESTERLY LINE OF THAT CERTAIN PARCEL DESCRIBED IN THAT EASEMENT DEED TO THE CITY OF SAN BERNARDINO, RECORDED AS INSTRUMENT NO. 95-190364 OF OFFICIAL RECORDS OF SAID COUNTY, SAID WESTERLY LINE DESCRIBED IN SAID DEED AS "COURSE A", AND C:\WlNDOWS\Temporary Internet FitesIOLK53SZ\DDA-Legals.doc SHOWN WITH A BEARING AND DISTANCE OF SOUTH 00036'12" EAST 177.88 FEET IN SAID DEED; THENCE ALONG THE WESTERLY LINE OF SAID EASEMENT SOUTH 32015'15" WEST 49.62 FEET; THENCE ALONG THE SOUTHERLY LINE OF SAID PORTION OF LOT 5 OF BLOCK 72, DESCRIBED AS PARCEL 3 IN THAT CERTAIN DIRECTOR'S DEED RECORDED IN BOOK 6272, PAGE 820 OF OFFICIAL RECORDS OF SAID COUNTY, THE FOLLOWING COURSES; SOUTH 76020'45" WEST 963.86 FEET; THENCE SOUTH 79027'09" WEST 307.03 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL 3, ALSO BEING THE SOUTHEAST CORNER OF LOT 25 OF TRACT NO. 12034. AS SHOWN ON A MAP FILED IN BOOK 168. PAGES 75 THROUGH 87 INCLUSIVE. OF MAPS, RECORDS OF SAID COUNTY; THENCE NORTH 00005'1 T' WEST 386.40 FEET ALONG THE EASTERLY LINE OF SAID LOT 25 AND THE WESTERLY LINE OF SAID LOT 5 OF BLOCK 72 TO A POINT ON THE SOUTHERLY LINE OF SAID TRACT NO. 2743, SAID POINT BEING SOUTH 89048'15" EAST 1.00 FOOT FROM THE SOUTHWEST CORNER OF SAID TRACT NO. 2743; THENCE NORTH 89048'15" WEST 1.00 FOOT ALONG SAID SOUTHERLY LINE AND CONTINUING ALONG SAID EASTERLY LINE OF LOT 25 OF TRACT NO. 12034 TO SAID SOUTHWEST CORNER OF TRACT NO. 2743; THENCE NORTH 00007'42" WEST 684.30 FEET ALONG THE WESTERLY LINE OF SAID TRACT NO. 2743, ALSO BEING THE EASTERLY LINE OF SAID TRACT NO. 12034, TO THE POINT OF BEGINNING. C:\WINDOWS\T~omy Interne! Files\OLK53S2\DDA-Legals.doc _-'.U\'.IIG--"""~~ b -----l Z ~ o 1- o en z... Eo< ... u ;S~:::ci ::r::;J~g >< = t:: ~ ><l ;l il; ~ -<I-<r-~ ~ (5z ~ ~~ o u ,. z p.. -< ~ f-< -< ...l p.. Q Z -< ><l Eo< .... {/) ><l ::c f-< ~ o z o - f-< p.. .... ~ u {/) ~ Q ...l -< Cl ~ ...l ,. o o '000;" 000> g 8~ I Z_ , N o -"<tOA _ I()O"<t.. ~~:1~ IIUlI II oa::...J1- !.J ;-.. r..en i" "' io r .Q ~ \ 52' ~ fl~; . l I~ ara '1 :;;ll~.. ::i:h' ..:1 .~ I.>- a ,..... -:r. <..? 2- a .- \ '" u.l ,{> ,..... ~ .a: N ,..... '" If\ r- ex: \,c u.l ,..... ~ -< .... d z f-< Z ~ ~ ::c u -< f-< E-< -< :< ~ in ex, ~W~ .:k~~'~! ~~~ ~z - .or.P99 M.ZP .LO.OON -' '< t:;a Ow wI>: ww lI1X AITACHMENTNO.lB TENTATIVE LEGAL DESCRIPTION OF THE PHASE 1 SITE AND PLAT MAP PHASE lA THOSE PORTIONS OF LOTS 25, 27 THROUGH 37,46 THROUGH 59, AND 60 THROUGH 79 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, TOGETHER WITH THOSE PORTIONS OF ROSEWOOD DRIVE AND ORCHARD DRIVE, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, TOGETHER WITH THAT PORTION OF LOT 5 OF BLOCK 72, RANCHO SAN BERNARDINO, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, AT PAGE 2, RECORDS OF SAID COUNTY, TOGETHER MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743; THENCE NORTH 89048'40" WEST 268.07 FEET ALONG SAID CENTERLINE; THENCE SOUTH 00011'20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE, TO A LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAUREL WOOD DRIVE, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTH 00011'31" WEST 132.06 FEET; THENCE SOUTH 42010'55" EAST 153.05 FEET; THENCE EAST 114.07 FEET TO A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 52.48 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF TIPPECANOE AVENUE; THENCE SOUTH 00008'00" EAST 63.45 FEET ALONG SAID PARALLEL LINE TO ITS INTERSECTION WITH THE CENTERLINE OF ROSEWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREET IS SHOWN ON SAID TRACT MAP; THENCE NORTH 89048'23" WEST 7.33 FEET ALONG SAID CENTERLINE TO A POINT THAT IS NORTH 89048'23" WEST 59.81 FEET FROM THE INTERSECTION OF SAID CENTERLINES OF ROSEWOOD DRIVE AND TIPPECANOE AVENUE; THENCE SOUTH 00004'58" EAST 211.50 FEET TO THE SOUTHERLY TERMINUS OF THE WESTERLY LINE OF THAT CERTAIN PARCEL DESCRIBED IN THAT EASEMENT DEED TO THE CITY OF SAN BERNARDINO, RECORDED AS INSTRUMENT NO. 95-190364 OF OFFICIAL RECORDS OF SAID COUNTY, SAID WESTERLY LINE DESCRIBED IN SAID DEED AS "COURSE A", AND SHOWN WITH A BEARING AND DISTANCE OF SOUTH 00036'12" EAST 177.88 FEET IN SAID DEED; THENCE ALONG THE WESTERLY LINE OF SAID EASEMENT SOUTH 32015'15" WEST 49.62 FEET; THENCE ALONG THE SOUTHERLY LINE OF SAID PORTION OF LOT 5 OF BLOCK 72, DESCRIBED AS PARCEL 3 IN THAT CERTAIN DIRECTOR'S DEED RECORDED IN BOOK 6272, PAGE 820 OF OFFICIAL RECORDS OF SAID COUNTY, THE FOLLOWING COURSES; SOUTH 76020'45" WEST 963.86 FEET; THENCE SOUTH 79027'09" WEST 307.03 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL 3, ALSO BEING THE SOtITHEAST CORNER OF LOT 25 OF TRACT NO. 12034, AS SHOWN ON A MAP FILED IN BOOK 168, PAGES 75 THROUGH 87 INCLUSIVE, OF MAPS, RECORDS OF SAID COUNTY; THENCE NORTH 00005'17" C:\WINDOWS\Temporary Intenu:t Files\OLK5352\DDA-Legals.doc WEST 386.40 FEET ALONG THE EASTERLY LINE OF SAID LOT 25 AND THE WESTERLY LINE OF SAID LOT 5 OF BLOCK 72 TO A POINT ON THE SOUTHERLY LINE OF SAID TRACT NO. 2743, SAID POINT BEING SOUTH 89048'15" EAST 1.00 FOOT FROM THE SOUTHWEST CORNER OF SAID TRACT NO. 2743; THENCE NORTH 89048'15" WEST 1.00 FOOT ALONG SAID SOUTHERLY LINE AND CONTINUING ALONG SAID EASTERLY LINE OF LOT 25 OF TRACT NO. 12034 TO SAID SOUTHWEST CORNER OF TRACT NO. 2743; THENCE NORTH 00007'42" WEST 113.08 FEET ALONG THE WESTERLY LINE OF SAID TRACT NO. 2743, ALSO BEING THE EASTERLY LINE OF SAID TRACT NO. 12034, TO A POINT ON A CURVE THAT IS CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 442.00 FEET, A LINE RADIAL TO SAID POINT BEARS SOUTH 00011'15" EAST; THENCE NORTHEASTERLY 427.41 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 55024'15" TO A POINT OF REVERSE CURVE, SAID REVERSE CURVE BEING CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 358.00 FEET, A LINE RADIAL TO SAID POINT BEARS NORTH 55035'30" WEST; THENCE NORTHEASTERLY 348.53 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 55046'50" TO A POINT OF TANGENCY WITH SAID LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAURELWOOD DRIVE; THENCE SOUTH 89048'40''EAST 397.52 FEET ALONG SAID PARALLEL LINE TO THE TRUE POINT OF BEGINNING. PHASEIB TIIOSE PORTIONS OF LOTS 1 THROUGH 5 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743; THENCE NORTH 89048'40" WEST 321.27 FEET ALONG SAID CENTERLINE; THENCE NORTH 00011'20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE, TO A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAUREL WOOD DRIVE, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTH 89048'40" EAST 269.32 FEET ALONG SAID PARALLEL LINE TO A POINT ON A CURVE CONCAVE NORTHWESTERLY, HAVING RADIUS OF 20.00 FEET, SAID CURVE BEING THE NORTHWESTERLY LINE OF THAT CERTAIN PARCEL CONVEYED TO THE COUNTY OF SAN BERNARDINO IN A DOCUMENT RECORDED AS INSTUMENT NO. 85-140281, OFFICIAL RECORDS OF SAID COUNTY, SAID CURVE BEING TANGENT AT ITS WESTERLY TERMINUS TO A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 30.00 FEET, MEASURED AT RIGHT ANGLES FROM SAID CENTERLINE OF SAID LAURELWOOD DRIVE, AND TANGENT AT NORTHERLY TERMINUS WITH C:lwlNooWSITempomy Internot FilesIOLKS3S2'DDA-Legats.doc A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 50.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF TIPPECANOE AVENUE; THENCE NORTHERLY 8.34 FEET ALONG SAID CURVE AND SAID WESTERLY LINE, THROUGH A CENTRAL ANGLE OF 23054'02" TO SAID LINE PARALLEL WITH THE CENTERLINE OF TIPPECANOE AVENUE; THENCE NORTH 00008'00" WEST 128.94 FEET ALONG SAID PARALLEL LINE, ALSO BEING THE WESTERLY LINE OF SAID DOCUMENT RECORDED AS INSTUMENT NO. 85-140281, AND THE WESTERLY LINES OF THOSE CERTAIN PARCELS CONVEYED TO THE COUNTY OF SAN BERNARDINO IN DOCUMENTS RECORDED AS INSTUMENT NO. 85-199288 AND 85-244473 OF OFFICIAL RECORDS OF SAID COUNTY, TO A POINT ON THE NORTHERLY LINE OF SAID TRACT NO. 2743; THENCE NORTH 89048'29" WEST 271.04 FEET ALONG THE NORTHERLY LINE OF SAID TRACT TO THE NORTHWEST CORNER OF SAID LOT 5; THENCE SOUTH 00007'56" EAST 137.06 FEET ALONG THE WESTERLY LINE OF SAID LOT 5 TO THE TRUE POINT OF BEGINNING. C:\wlNooWS\T.....omy Internet Files\OLK53S2\DDA-Legals.doc b ----J Z; ~ 1- o <I) z<: Eo< <: (.) ;JQ~g =;:l~i5 ><=~~ ~~~~ <i-'=~ ~ 5z ~ ~;:;. o (.) ;0 z o ;0 c:i '8 ~ ro o~ v Pb N o. '" "," _~0N3^~J_ z:: ~ ;.., N "'. ,,- (nOJ in. ~~ ~~ _ ~~N';IJ3_ddll _1r--Si~ I ,-H.;i~'1.\lN I ,O.'~~l p., < ~ ~ ~ p., Q Z < ~ E-< .... rn !" in T" <( ~ \ ~i~ J:.n Ii H f; ~'i =3h :i:h~ . " ..- ..! -~ u.- o \ - >- "6 cr: ~ ~ = p., ~ = E-< ~ o z o .... E-< p., .... p::: () rn ~ Q ~ < o Iol ...1 ~ > .... E-< < E-< Z ~ E-< CZl - o .- CO> ~ :: ~ '" :! ~ :e ~ '" i~ '" ~ 0 .. 'z '" I~ ;;: 'lL a I~ N N .. d z E-< Z ~ ~ = () ~ < ,;0 '" :< .J :;;: ~5 Ow wI>: ww VlJ: ~o '~~ ~~ = l'3 ~"--~ '" ,01'99, - :;;: 12 ~"Ll.';O'OON ~ ~ ~~~ - ,90n~ M.lP,LO.OON i~ o <{ ;;g;,.~ ~o~~ NNCO'lt > II \I 1111 a:::: OO::...JI- ~ u- (.) ATTACHMENT NO. IC TENTATIVE LEGAL DESCRIPTION OF mE PHASE 2 SITE AND PLAT MAP THOSE PORTIONS OF LOTS 6 THROUGH 20, AND 37 THROUGH 46 OF TRACT NO. 2743. IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, TOGETHER WITH THOSE PORTIONS OF LAURELWOOD DRIVE AND ORCHARD DRIVE, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47. RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743; THENCE NORTH 89048'40" WEST 321.27 FEET ALONG SAID CENTERLINE; THENCE NORTH 00011 '20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE, TO A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAUREL WOOD DRIVE, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE NORTH 89048'40" EAST 344.32 FEET ALONG SAID PARALLEL LINE TO A POINT ON A CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 442.00 FEET; THENCE SOUTHWESTERLY 430.31 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 55046'50" TO A POINT OF REVERSE CURVE, SAID REVERSE CURVE BEING CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 358.00 FEET, A LINE RADIAL TO SAID POINT BEARS SOUTH 55035'30" EAST; THENCE SOUTHWESTERLY 346.11 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 55023'37" TO A POINT ON THE WESTERLY LINE OF SAID TRACT NO. 2743; THENCE NORTH 00007'33" WEST 487.22 FEET ALONG WESTERLY LINE TO THE NORTHWEST CORNER OF SAID TRACT; THENCE SOUTH 89048'29" EAST 1005.32 FEET ALONG THE NORTHERLY LINE OF SAID TRACT TO THE NORTHEAST CORNER OF SAID LOT 6; THENCE SOUTH 00007'56" EAST 137.06 FEET ALONG THE EASTERLY LINE OF SAID LOT 6 TO THE TRUE POINT OF BEGINNING. C:\WINooWS\To:mporary Wernet Files\OLKS3S2\DDA-Legals.doc u ci a.. _ _ _ _ _ ~~3^ 't _ --T9N'tJ.;3ddll_ +- __ -- - ,-,---, t:l.. -< ~ ~ ...l t:l.. Q Z -< I<l t: en N I<l en -< == t:l.. I<l == f-4 "" o z o ... f-4 t:l.. ... ~ C,) en I<l Q ...l -< " I<l ...l I<l > ... f-4 -< f-4 Z I<l f-4 C,) ... N N N ..., N 0 ;0 <0 N <0 <Xl ..., .,., <0 ..... ... .,., <0 <0 <f\ .,., <0 .,., <0 .,., '" ... ..... .,., '" ..., <Xl <f\ <0 N en <f\ '" ;;:; 0 ..... 0 ;:::: .,., en N ... ..... <Xl ..., ... ..... ... ..... .,., ..... <0 ..... ..... ..... <Xl N en N o ..., ;;; N ..., ..., ..., d z f-4 Z I<l ~ = C,) -< f-4 f-4 -< C, ----l Z ~ I \ ~ \ ~ \ \ u.. 0 \ \ l- I "0 \ ~ \ 0 \ -- \ S .L o en z<< E-< <<0 5=~O ::r:: => ~ ~ ><:C~':i I<l!il~~ <I->-~ Q fSz Q ti~ o o !t z l;~'1 ~ " G Ii H P cI1.l" J :;;;Ii. :ih. .~i ... _E \w 4. I- \(j) \~ \ I \ \ \ \ I \ \ I \ ATTACHMENT NO. ID LEGAL DESCRIPTION OF THE CORNER PARCEL AND PLAT MAP THOSE PORTIONS OF LOTS 21, 22, 26, 27, 58 AND 59 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, MORE P ARTICULARL Y DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743~ THENCE NORTH 89048'40" WEST 268.07 FEET ALONG SAID CENTERLINE~ THENCE SOUTH 00011 '20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE, TO A LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAUREL WOOD DRIVE, SAID POINT BEING THE TRUE POINT OF BEGINNING~ THENCE SOUTH 00011'31" WEST 132.06 FEET~ THENCE SOUTH 42010'55" EAST 116.55 FEET TO A POINT ON THE EASTERLY LINE OF SAID LOT 59~ THENCE NORTH 00007'58" WEST 115.10 FEET ALONG SAID EASTERLY LINE OF LOT 59, ALSO BEING THE EASTERLY LINES OF LOTS 24 AND 23 OF SAID TRACT, TO THE NORTHWEST CORNER OF SAID LOT 23, SAID CORNER ALSO BEING THE SOUTHWEST CORNER OF SAID LOT 22~ THENCE SOUTH 89048'36" EAST 138.52 FEET ALONG THE SOUTHERLY LINE OF SAID LOT 22 AND THE NORTHELRY LINE OF SAID LOT 23 TO A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 52.48 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF TIPPECANOE AVENUE~ THENCE NORTH 00008'00" WEST 83.18 FEET ALONG SAID PARALLEL LINE TO THE BEGINNING OF A CURVE CONCAVE SOUTHWESTERLY, HAVING RADIUS OF 20.00 FEET, SAID CURVE BEING TANGENT AT ITS WESTERLY TERMINUS TO SAID LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES FROM SAID CENTERLINE OF LAURELWOOD DRIVE~ THENCE NORTHWESTERLY 31.30 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 89040'40" TO SAID PARALLEL LINE~ THENCE NORTH 89048'40" WEST 195.94 FEET ALONG SAID PARALLEL LINE TO THE TRUE POINT OF BEGINNING. 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" ~;,,1,<? , , '1\ .~tt~'" ""'i....- 0:> I III I \ 3..l~.LL.OON If) 0 '" Il~~: ~ r;; ~I'~ ~ ~< lb DI~ " : I~ g; :g SllIJ I t I ~1t= 0:> I ~1 I g :g ~Is T 8' I ,r>: '" : ~I n ~ I~ ~i~ I ~ ~ i T ~ ~ I \ ~ I ~ ~ i :\!r... \~ ~ i I '4\ ~ "', 1\ .y', ... ie \:~........, · i I'~< :~ "'~ I 'w"' ~'\ ! I; 0 J 'z'" '\f '" I~ ~ :\, 1\ i~ "; ~ \ i \ :e i ; IT I ~Itj ~:5 0::0... 0:: <( I I r I I ~ ;!: ~ :e ';:: , , , ~ ~ o '" '" '" .... '" ... '" on '" '" '" " '" 0:> '" '" '" o " ;::: '" " .... " .. " on " '" " " " I I jF j~~ Ii . . I; cICl'l gh :fir ..:i .~ )- \ ~\ \ u.. \ 0 \ ~ \ 0 \ c;;. \ 0 .- \ \ \ uJ ':;{ ...... I <.f\ ~ \ uJ ...... ~ \ \ I I \ \ I I \ \ ATTACHMENT NO. IE LEGAL DESCRIPTION OF IN-N-OUT AND PLAT MAP THOSE PORTIONS OF LOTS 21 THROUGH 27, 58 AND 59 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, MORE P ARTICULARL Y DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743~ THENCE NORTH 89048'40" WEST 268.07 FEET ALONG SAID CENTERLINE~ THENCE SOUTH 00011 '20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE, TO A LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAURELWOOD DRIVE, SAID POINT BEING THE TRUE POINT OF BEGINNING~ THENCE SOUTH 00011'31" WEST 132.06 FEET~ THENCE SOUTH 42010'55" EAST 153.05 FEET ~ THENCE EAST 114.07 FEET TO A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 52.48 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF TIPPECANOE A VENUE~ THENCE NORTH 00008'00" WEST 224.87 FEET ALONG SAID PARALLEL LINE TO THE BEGINNING OF A CURVE CONCAVE SOUTHWESTERL Y, HAVING RADIUS OF 20.00 FEET, SAID CURVE BEING TANGENT AT ITS WESTERLY TERMINUS TO SAID LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES FROM SAID CENTERLINE OF LAURELWOOD DRIVE~ THENCE NORTHWESTERLY 31.30 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 89040'40" TO SAID PARALLEL LINE~ THENCE NORTH 89048'40" WEST 195.94 FEET ALONG SAID PARALLEL LINE TO THE TRUE POINT OF BEGINNING. 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'" ..., I 10 ;s p., \ .... \ ,.... ~ '" ;;; , 0 ~ 0 '" I ,... r/) ~ Cl , \ 0 '" I ;::: \ ...:a \ < '" c , '" '" ,... ~ I ...:a \ ~ , , '" \ ~ I~ I ,... \ ... 0 ~ ,0 '" 0 , ,... z I~ I f-o ~ en '" '" z i~ , ,... ~ 'J \ ~ ~ 0 on 10 \ = 'z '" '" ,... 0 I~ I \ < ~ :;: '" ,... f-o '''- '" \ ,... f-o I~ , 0 I < N N '" co '" .. ,... ATTACHMENT NO. IF LEGAL DESCRIPTION OF IN-N-OUT BURGER SITE (EXISTING LOCATION) AND PLAT MAP THOSE PORTIONS OF LOTS 23, 24, 25 AND 79 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 23; THENCE NORTH 89048'36" WEST 20.00 FEET ALONG THE NORTHERLY LINE OF SAID LOT 23 TO A POINT OF INTERSECTION WITH A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 50.00 FEET, MEASURED AT RIGHT ANGLES, FROM THE CENTERLINE OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AS SHOWN ON SAID MAP, SAID POINT OF INTERSECTION BEING THE TRUE POINT OF BEGINNING; THENCE SOUTH 00008'00" EAST 155.03 FEET ALONG SAID PARALLEL LINE, ALSO BEING THE WESTERLY LINE OF THOSE PORTIONS OF SAID LOT 23, 24, 25 AND 79, AS CONVEYED TO THE COUNTY OF SAN BERNARDINO IN A GRANT DEED RECORDED IN BOOK 7126, PAGE 422 OF OFFICIAL RECORDS OF SAID COUNTY, TO THE BEGINNING OF A CURVE CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 20.00 FEET; THENCE SOUTHWESTERLY 31.53 FEET ALONG SAID CURVE AND THE NORTHWESTERLY LINE OF SAID PORTION OF LOTS 25 AND 79 CONVEYED TO THE COUNTY OF SAN BERNARDINO, THROUGH A CENTRAL ANGLE OF 90019'37" TO A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 30.00 FEET, MEASURED AT RIGHT ANGLES, FROM THE CENTERLINE OF ROSEWOOD DRIVE, 50.00 FEET WIDE, AS SHOWN ON SAID MAP, SAID PARALLEL LINE ALSO BEING THE NORTHERLY LINE OF THAT PORTION OF LOTS 79 AND 25 CONVEYED TO THE COUNTY OF SAN BERNARDINO IN SAID GRANT DEED; THENCE NORTH 89048'23" WEST 120.88 FEET ALONG SAID PARALLEL LINE TO THE WESTERLY LINE OF SAID LOT 25; THENCE NORTH 00007'58" WEST 175.14 FEET ALONG SAID WESTERLY LINE OF LOT 25 AND THE WESTERLY LINES OF LOTS 24 AND 23 TO THE NORTHWEST CORNER OF SAID LOT 23; THENCE SOUTH 89048'36" EAST 141.00 FEET ALONG THE NORTHERLY LINE OF SAID LOT 23 TO THE TRUE POINT OF BEGINNING. 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'" - ~ Vl c::: , .., , .... u I~ \J \ ~ ~ 0 '" \ t:l '" ..... \ 'z I ,..l ~ I~ ;;: ..... < ..... 0 'n. , \ IOl 0 I~ N ,., I <Il \ ...1 N '" '" ..... 100 ... d z Eo< Z IOl )1 ::r:: u < .;,: ~ ~ ~ ~ Eo< l- '", Co ;" .;,: ;... Eo< <( 0 I- "'. ,., U) N 0 <( '(r.o;.,;'- < Cl ~b ;.... .QJ 00 OJ;" r~~""': P:! Cl w .0 ,-QJ Po 00"':0 ",. glfi mo gill O'lN""lN (/) ~~ z~ z~ z~ ~ n II It n a:: o cr ....n- => a:: 0 .., '" Vl '" => ,., (J .J .J .J .J (J U ATTACHMENT NO. IG LEGAL DESCRIPTION OF LOT 25, PORTION OF 24 AND PLAT MAP, REMNANT GOING TO DEVELOPMENT AFTER IN-N-OUT RELOCATION THOSE PORTIONS OF LOTS 24, 25 AND 79 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743; THENCE NORTH 89048'40" WEST 268.07 FEET ALONG SAID CENTERLINE; THENCE SOUTH 00011'20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE; THENCE SOUTH 00011'31" WEST 132.06 FEET; THENCE SOUTH 42010'55" EAST 116.55 FEET TO A POINT ON THE WESTERLY LINE OF SAID LOT 24, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 42010'55" EAST 36.50 FEET; THENCE EAST 114.07 FEET TO A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 52.48 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF TIPPECANOE AVENUE; THENCE SOUTH 00008'00" EAST 23.00 FEET ALONG SAID PARALLEL LINE TO ITS INTERSECTION WITH A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 20.00 FEET, A LINE RADIAL TO SAID INTERSECTION BEARS SOUTH 61018'13" EAST; THENCE SOUTHWESTERLY 21.47 FEET ALONG SAID NON-TANGENT CURVE, ALSO BEING THE NORTHWESTERLY LINE OF THAT PORTION OF SAID LOT 79 CONVEYED TO THE COUNTY OF SAN BERNARDINO IN A GRANT DEED RECORDED IN BOOK 7126, PAGE 422 OF OFFICIAL RECORDS OF SAID COUNTY, TO A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 30.00 FEET, MEASURED AT RIGHT ANGLES, FROM THE CENTERLINE OF ROSEWOOD DRIVE, 50.00 FEET WIDE, AS SHOWN ON SAID MAP, SAID PARALLEL LINE ALSO BEING THE NORTHERLY LINE OF THAT PORTION OF LOTS 79 AND 25 CONVEYED TO THE COUNTY OF SAN BERNARDINO IN SAID GRANT DEED; THENCE NORTH 89048'23" WEST 120.88 FEET ALONG SAID PARALLEL LINE TO THE WESTERLY LINE OF SAID LOT 25; THENCE NORTH 00007'58" WEST 60.03 FEET ALONG SAID WESTERLY LINE OF LOTS 25 AND 24 TO THE TRUE POINT OF BEGINNING. 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Z<o Z~ z;:: ZN Z~ " " II II OO::-It- 0 Ct:: " '" on :; ::> ... -' -' -' -' <J u . b ---.1 Z ~ \ \ )- <>: ~ \ \ \ \ \ \ \ u.- o \ r- :t- o (i o \ .- \ \ ~ \ ~ \ u.l \~ \ \ \ ~ I o fI) z..: E-< ..: U SCQ~g =;:l~o ><:c~~ ~~&:~ <~i=~ c:l i3 Z c:l ~~ o U ~ Z .,~ ~'Ii ~I r e~~ ~I~ ~;.i jt~ ...:: .~ \ \ \ \ \ \ \ \ ATIACHMENTNO.IH TENTATIVE LEGAL DESCRIPTION OF mE PHASE 1 SITE AND PLAT MAP PHASEIA THOSE PORTIONS OF LOTS 27 THROUGH 37,46 THROUGH 59, AND 60 THROUGH 78 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, TOGETHER WITH THOSE PORTIONS OF ROSEWOOD DRIVE AND ORCHARD DRIVE, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, TOGETHER WITH THAT PORTION OF LOT 5 OF BLOCK 72, RANCHO SAN BERNARDINO, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, AT PAGE 2, RECORDS OF SAID COUNTY, TOGETHER MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743; THENCE NORTH 89048'40" WEST 268.07 FEET ALONG SAID CENTERLINE; THENCE SOUTH 00011 '20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE, TO A LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAURELWOOD DRIVE, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTH 00011'31" WEST 132.06 FEET; THENCE SOUTH 42010'55" EAST 116.55 FEET TO THE EASTERLY LINE OF SAID LOT 59; THENCE SOUTH 00007'58" EAST 65.03 FEET ALONG SAID EASTERLY LINE, ALSO BEING THE WESTERLY LINE OF LOTS 24 AND 25 OF SAID TRACT NO. 2743, TO THE SOUTHEAST CORNER OF SAID LOT 59; THENCE SOUTH 00011 '37" WEST 25.00 FEET, PERPENDICULAR TO THE CENTERLINE OF ROSEWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREET IS SHOWN ON SAID TRACT MAP, TO SAID CENTERLINE; THENCE SOUTH 89048'23" EAST 131.33 FEET ALONG SAID CENTERLINE TO A POINT THAT IS NORTH 89048'23" WEST 59.81 FEET FROM THE INTERSECTION OF SAID CENTERLINES OF ROSEWOOD DRIVE AND TIPPECANOE AVENUE; THENCE SOUTH 00004'58" EAST 211.50 FEET TO THE SOUTHERLY TERMINUS OF THE WESTERLY LINE OF THAT CERTAIN PARCEL DESCRIBED IN THAT EASEMENT DEED TO THE CITY OF SAN BERNARDINO, RECORDED AS INSTRUMENT NO. 95-190364 OF OFFICIAL RECORDS OF SAID COUNTY, SAID WESTERLY LINE DESCRIBED IN SAID DEED AS "COURSE A", AND SHOWN WITH A BEARING AND DISTANCE OF SOUTH 00036'12" EAST 177.88 FEET IN SAID DEED; THENCE ALONG THE WESTERLY LINE OF SAID EASEMENT SOUTH 32015'15" WEST 49.62 FEET; THENCE ALONG THE SOUTHERLY LINE OF SAID PORTION OF LOT 5 OF BLOCK 72, DESCRIBED AS PARCEL 3 IN THAT CERTAIN DIRECTOR'S DEED RECORDED IN BOOK 6272, PAGE 820 OF OFFICIAL RECORDS OF SAID COUNTY, THE FOLLOWING COURSES; SOUTH 76020'45" WEST 963.86 FEET; THENCE SOUTH 79027'09" WEST 307.03 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL 3, ALSO BEING THE SOUTHEAST CORNER OF LOT 25 OF TRACT NO. 12034, AS SHOWN ON A MAP FILED IN BOOK 168, PAGES 75 THROUGH 87 INCLUSIVE, OF MAPS, RECORDS OF SAID COUNTY; THENCE C:\wlNooWS\T~orary Internot FiJes\OLKS3S2\DDA-Legals.doc NORTH 00005'17" WEST 386.40 FEET ALONG THE EASTERLY LINE OF SAID LOT 25 AND THE WESTERLY LINE OF SAID LOT 5 OF BLOCK 72 TO A POINT ON THE SOUTHERLY LINE OF SAID TRACT NO. 2743, SAID POINT BEING SOUTH 89048'15" EAST 1.00 FOOT FROM THE SOUTHWEST CORNER OF SAID TRACT NO. 2743; THENCE NORTH 89048'15" WEST 1.00 FOOT ALONG SAID SOUTHERLY LINE AND CONTINUING ALONG SAID EASTERLY LINE OF LOT 25 OF TRACT NO. 12034 TO SAID SOUTHWEST CORNER OF TRACT NO. 2743; THENCE NORTH 00007'42" WEST 113.08 FEET ALONG THE WESTERLY LINE OF SAID TRACT NO. 2743, ALSO BEING THE EASTERLY LINE OF SAID TRACT NO. 12034, TO A POINT ON A CURVE THAT IS CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 442.00 FEET, A LINE RADIAL TO SAID POINT BEARS SOUTH 00011'15" EAST; THENCE NORTHEASTERLY 427.41 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 55024'15" TO A POINT OF REVERSE CURVE, SAID REVERSE CURVE BEING CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 358.00 FEET, A LINE RADIAL TO SAID POINT BEARS NORTH 55035'30" WEST; THENCE NORTHEASTERLY 348.53 FEET ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 55046'50" TO A POINT OF TANGENCY WITH SAID LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAURELWOOD DRIVE; THENCE SOUTH 89048'40"EAST 397.52 FEET ALONG SAID PARALLEL LINE TO THE TRUE POINT OF BEGINNING. PHASE IB THOSE PORTIONS OF LOTS 1 THROUGH 5 OF TRACT NO. 2743, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 38 OF MAPS, AT PAGE 47, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINES OF TIPPECANOE AVENUE, 60.00 FEET WIDE, AND LAURELWOOD DRIVE, 50.00 FEET WIDE, AS SAID STREETS ARE SHOWN ON SAID MAP OF TRACT NO. 2743; THENCE NORTH 89048'40" WEST 321.27 FEET ALONG SAID CENTERLINE; THENCE NORTH 00011'20" WEST 42.00 FEET, PERPENDICULAR TO SAID CENTERLINE, TO A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 42.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF LAURELWOOD DRIVE, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTH 89048'40" EAST 269.32 FEET ALONG SAID PARALLEL LINE TO A POINT ON A CURVE CONCAVE NORTHWESTERLY, HAVING RADIUS OF 20.00 FEET, SAID CURVE BEING THE NORTHWESTERLY LINE OF THAT CERTAIN PARCEL CONVEYED TO THE COUNTY OF SAN BERNARDINO IN A DOCUMENT RECORDED AS INSTUMENT NO. 85-140281, OFFICIAL RECORDS OF SAID COUNTY, SAID CURVE BEING TANGENT AT ITS WESTERLY TERMINUS TO A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 30.00 FEET, MEASURED AT RIGHf ANGLES FROM SAID CENTERLINE OF SAID LAURELWOOD DRIVE, AND TANGENT AT NORTHERLY TERMINUS WITH C:\WINDOWS\T"""orary Intema Files\OLKS3S2\DDA-Legals.doc A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 50.00 FEET, MEASURED AT RIGHT ANGLES, FROM SAID CENTERLINE OF TIPPECANOE AVENUE; THENCE NORTHERLY 8.34 FEET ALONG SAID CURVE AND SAID WESTERLY LINE, THROUGH A CENTRAL ANGLE OF 23054'02" TO SAID LINE PARALLEL WITH THE CENTERLINE OF TIPPECANOE AVENUE; THENCE NORTH 00008'00" WEST 128.94 FEET ALONG SAID PARALLEL LINE, ALSO BEING THE WESTERLY LINE OF SAID DOCUMENT RECORDED AS INSTUMENT NO. 85-140281, AND THE WESTERLY LINES OF THOSE CERTAIN PARCELS CONVEYED TO THE COUNTY OF SAN BERNARDINO IN DOCUMENTS RECORDED AS INSTUMENT NO. 85-199288 AND 85-244473 OF OFFICIAL RECORDS OF SAID COUNTY, TO A POINT ON THE NORTHERLY LINE OF SAID TRACT NO. 2743; THENCE NORTH 89048'29" WEST 271.04 FEET ALONG THE NORTHERLY LINE OF SAID TRACT TO THE NORTHWEST CORNER OF SAID LOT 5; THENCE SOUTH 00007'56" EAST 137.06 FEET ALONG THE WESTERLY LINE OF SAID LOT 5 TO THE TRUE POINT OF BEGINNING. 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"I ill ~: 1 ~ ~ I \ \ \ \ \ \ \ I \ 1 \ ATTACHMENT No. 3 site Parcel Identification List T-2743 Lot No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Parcel No. 0281-081-01 0281-081-02 0281-081-03 0281-081-04 0281-081-05 0281-081-06 0281-081-07 0281-081-08 0281-081-09 0281-081-10 0281-081-11 0281-081-12 0281-081-13 0281-081-14 0281-081-15 0281-081-16 0281-081-17 0281-081-18 0281-081-19 0281-081-20 0281-082-57 0281-082-56 0281-082-17 0281-082-16 0281-082-15 0281-082-14 0281-082-13 0281-082-12 0281-082-11 0281-082-10 0281-082-09 0281-082-08 0281-082-07 0281-082-06 0281-082-05 0281-082-04 0281-082-03 0281-082-02 0281-082-01 Street Address 1874 Tippecanoe Tippecanoe Tippecanoe 1094 Laurelwood 1082 Laurelwood 1072 Laurelwood 1060 Laurelwood 1048 Laurelwood 1036 Laurelwood 1026-A,B,C,D Laurelwood 1014 Laurelwood 1004-A,B,C Laurelwood 994-A,B,C,D Laurelwood 982 Laurelwood 968 Laurelwood 956-A,B,C Laurelwood 942-A,B Laurelwood 930 Laurelwood 916-A,B,C Laurelwood 904 Laurelwood 1914 Tippecanoe 1944 Tippecanoe 1095 Laurelwood Laurelwood 1 073-A,B Laurelwood Laurelwood 1037,1037.5,1049 Laurelwood 1027 Laurelwood 1015,1019 Laurelwood Laurelwood 1005 Laurelwood 995 Laurelwood 983-A.B.C.D Laurelwood 969-A,B,C,D Laurelwood 953,957 Laurelwood 943,949 Laurelwood Laurelwood 917-A,B,C,D Laurelwood 905-A,B,C Laurelwood II-34 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 0281-082-41 0281-082-40 0281-082-39 0281-082-38 0281-082-37 0281-082-36 0281-082-35 0281-082-34 0281-082-33 0281-082-32 0281-082-31 0281-082-30 0281-082-29 0281-082-28 0281-082-27 0281-082-26 0281-082-55 0281-083-18 0281-083-20 0281-083-17 0281-083-16 0281-083-15 0281-083-14 0281-083-13 0281-083-12 0281-083-11 0281-083-10 0281-083-09 0281-083-08 0281-083-07 0281-083-06 0281-083-05 0281-083-04 0281-083-03 0281-083-02 0281-083-01 0281-091-39 937-A,B,C,DOrchard Dr 914,916,918,920 Rosewood 928 Rosewood 942 Rosewood 956 Rosewood 968 Rosewood 980,982 Rosewood 994,996 Rosewood Rosewood 1014, 1016-A,B,C,D Rosewood 1026 Rosewood 1 036-A,B,C,D Rosewood Rosewood 1060 Rosewood 1072 Rosewood Rosewood 1094 Rosewood Tippecanoe Tippecanoe Rosewood Rosewood Rosewood Rosewood Rosewood 1037 Rosewood 1028 Rosewood 1015 Rosewood 1005 Rosewood 995 Rosewood 983 Rosewood 969 Rosewood 957 Rosewood Rosewood Rosewood Rosewood 24707 Rosewood Highway 1-10 II-34a ATTACHMENT No. 4A Description of the Phase I Project Implementation of Phase I ofthe Project will result in development of approximately 198,600 square feet of commercial space on 17.57 acres located at the northwest comer of Tippecanoe Avenue and the San Bernardino Freeway (1-10). The project is located within the CR-3 Commercial Regional- Tri City/Club Land Use District, lies adjacent to the freeway, and is contiguous with commercial property. Phase I development will include a 130,400 square foot warehouse discount center with an unattended gas station, a 45,000 square foot general retail building, and two pad buildings measuring approximately 10,000 square feet each. Developm~nt of Phase I will require the extension of the existing eastern end of Harriman Place to align with the present intersection of Laurel wood Drive and Tippecanoe Avenue. Rosewood Drive and portions of Laurel wood Drive will be vacated. Portions of the street improvement work on the northerly side ofthe extension of Harriman Place including the northern most driving lane and some of the north side curb and sidewalk improvements may not be completed for the Phase I Project. The Phase I Project development may be accompanied by the separate and independent relocation of the existing In-N-Out Burger drive-through restaurant to be demolished and rebuilt as a 3,200 square foot building at the future southwest comer of Harriman Place and Tippecanoe Avenue. The relocation ofIn-N-Out will be subject to a separate development agreement between the Agency and In-N-Out but will involve common driveway access easements and signage agreements with the Developer. Phase I includes approximately 1,000 parking places including the parking for the relocated In-N-Out Burger site. ATTACHMENT No. 4B Description of the Phase II Project Implementation of Phase II ofthe Project will result in development of up to 70,000 square feet of commercial space on 6.93 acres on the remaining land north ofthe Harriman Place extension. Phase II development will be divided amongst two 25,000 to 30,000 square foot retail building and one pad building of 5,000 to 10,000 square feet. Potential tenants of these buildings are undefined at this time. Street improvements on the north side of the Harriman Place extension will be completed. Additional parking of approximately 300 cars will be provided in the Phase II Project improvements. II-35 Attachment No. 5 [RESERVED - NO TEXT] 5/15/01 ct SB2001:7825.8 II-36 Attachment No. 6 Schedule of Perfor.mance 5/15/01 ct SB2001:7B25.8 II-37 eo q ---- -- ---- - - ~ - - - ~ - - -- qNq - ---- ~ - - - --- ---- ---- ~ i=- i=- '" E :0 ~ '" E E ~ E ::J ,- m -;!lQ--- ::J >- a; m 00 .".. E i C>- ~ 5 e Ci w lI.. .... ----- c: ~ al It) ... ..., .... N (") ..,. .... It) m It) N 0 U. N N N It) CD U. eo >- ui .... u. .... .... .... .... .... u. .... al 'C >- .... ..,. r- al .... .... .... l!! 0 'C ui ri N .... 0 >- .... 0 + al .... .... 0 III U. + 'C III U. 8 r- CJ) It) "" CJ) .... '" Q) CD + '" '" 'C CJ) I- '" <C c ~ Q) CJ) B ~ u ... mg 0- eo "" ~ '" :E .!! 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It) CD r- eo C>> ~i ,- .... .... .... .... .... .... .... .... .... .... Q.._CU ~e~ lI..lI.. Attachment No. 7 Site Parcel Acquisition Agreement (general form) 5/15/01 ct SB2001:7825.8 II-38 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OFFER TO ACQUIRE REAL PROPERTY (HUB PROJECT) [NAME OF SELLER AND ADDRESS OF PROPERTY] 1. THE AGENCY AND ITS OFFER TO ACQUIRE REAL PROPERTY The Redevelopment Agency of the City of San Bernardino (the "Agency") hereby offers to acquire from (herein collectively referred to as "Seller") all of the right, title and interest of the Seller in the real property hereinafter described (the "Property") upon the terms and conditions set forth below (the "Offer"). Upon the execution of this Offer by the Seller by a date no later than as provided in Paragraph 27, this document and the terms and conditions set forth herein shall become a binding and enforceable contract between the Agency and Seller for the acquisition of the Property by the Agency (the "Agreement") . 2. PROPERTY The Property which is the subject of the Offer consists of ( ) separate legal parcels of land including approximately ( ) square feet in area, more or less, together with the structures and improvements located thereon, and all of the Seller's right, title, and interest therein. The Property is located at , San Bernardino, County of San Bernardino, State of California. [EDITOR'S NOTE: ALTERNATIVE TEXT IF PROPERTY OCCUPIED BY TENANTS: The Seller has leased the improvements on the Property (the "Building") pursuant to a written rental agreement (s) (the "Lease (s) ,,) by and between the Seller and (the "Tenant") . The Property is more particularly depicted on Exhibit "A" attached hereto and by this reference made a part thereof. 3. PURCHASE PRICE PAYABLE BY AGENCY The total amount of the consideration and just compensation to be paid to the Seller by the Agency for the transfer of the lien- free, merchantable fee title to the Property (including the Building), together with all of the other right, title and interest of the Seller therein, is the sum of DOLLARS ( ). This sum is referred to in this Agreement as the "Purchase Price". The Purchase Price shall be payable by the Agency in cash to the Seller as provided under Paragraph 8.1. and Paragraph 8.6. SB200J.:J.3627.J. 1 [EDITOR'S NOTE: ALTERNATE TEXT FOR INCLUSION OF RELOCATION BENEFIT PAYABLE TO SELLER IN AGENCY OFFER: The Purchase Price includes all amounts of relocation benefits and other compensation which may be payable to the Seller under the provisions of Government Code Section 7260 et. seq., or other applicabie law.] The full amount of the Purchase Price is reserved for the Seller, [EDITOR'S NOTE: ALTERNATE TEXT FOR INCLUSION WHERE TENANTS IN POSSESSION OF THE PROPERTY: In addition to and separate from the Purchase Price payable by the Agency to the Seller, the Agency shall be responsible for paying all other amounts of relocation benefits and other compensation (if any) which the Tenant in lawful possession and occupancy of the Building pursuant to the Lease may be entitled under applicable law at such time as the lawful occupancy of the Tenant under the Lease may terminate or be surrendered to the Agency by the Tenant.] 4. NON-REFUNDABLE CASH PAYABLE BY THE AGENCY TO ESCROW HOLDER FOLLOWING SELLER ACCEPTANCE OF OFFER BEFORE THE CLOSE OF ESCROW AND DEPOSIT 4.1 Within three (3) business days following receipt by the Agency of a copy of the Agreement which has been fully executed by the Seller, the Agency shall deliver to the Escrow Holder (as defined in Paragraph 5.1) a check in the sum of DOLLARS ($ ) , which sum shall be collected for the account of the Seller by the Escrow Holder and placed into an escrow account trust fund ( the "Deposit"). The Seller may at its option withdraw funds in the Deposit before the Close of Escrow as provided in Paragraph 4.8. The amount paid by the Agency into the Deposit, together with accrued interest, if any, on the balance of the Deposit held by the Escrow Holder, shall be applied to the Purchase Price, or paid to the Seller as provided in Paragraph 4.6. The Escrow shall be deemed "opened" on the date the sum of DOLLARS ($ ) is collected by the Escrow Holder from the Agency for the account of the Seller and placed in the Deposit. 4.2 Provided that the Agency has first approved the matters referenced in Paragraph 7.1(A) through (E), inclusive, within thirty (30) days after the Escrow is deemed opened, the Agency shall pay a second installment of the Deposit to the Escrow Holder in the amount of DOLLARS ($ ) which shall also be collected for the account of the Seller by the Escrow Holder and placed into the Deposit. 4.3 A third installment of the Deposit shall be paid by the Agency to the Escrow Holder within ( ) days SB2001:13627.1 2 following the Escrow Holder's receipt of the second installment of the Deposit provided that before the time of such third installment the Agency has not disapproved any of the other matters referenced in Paragraph 7.1(F) and (G). The third installment of the Deposit shall be the sum of DOLLARS ($ ) which shall be collected by the Escrow Holder for the account of the Seller and placed into the Deposit. 4.4 The amount of the Deposit as paid by the Agency under Paragraph 4. 1, 4 . 2 and 4. 3 shall be credi ted to the Purchase Price. The balance of the Purchase Price payable in cash by the Agency, including the escrow fees and other closing costs payable by the Agency at Close of Escrow, shall be delivered to the Escrow Holder by the Agency in cash or available funds by no later than 12:00 'noon on the business day prior to the Closing Date (as defined in Paragraph 8.1). 4.5 In the event the Agency fails to deliver to the Escrow Holder either of the two (2) installments of the Deposit specified in Paragraph 4.1 and Paragraph 4.2 on or before the applicable date or in the event thereafter the Agency fails to promptly perform any other covenant or obligation contained in this Agreement, subject to the satisfaction or waiver of satisfaction of the conditions set forth in Paragraph 7.1 and Paragraphs 8.1 - 8.7, inclusive, the Seller may elect to give written notice to the Agency of a default and if a breach continues, the Seller may terminate this Agreement in accordance with Paragraph 21 and the Seller shall retain as liquidated damages from the Agency the amount provided in Paragraph 4.6 of this Agreement. 4.6 IN THE EVENT THE AGENCY FAILS TO ACKNOWLEDGE SATISFACTION OR CONFIRM A WAIVER OF SATISFACTION OF ANY ONE OR MORE OF THE CONDITIONS PRECEDENT FOR FURTHER PERFORMANCE BY THE AGENCY UNDER PARAGRAPH 7.1 (F) AND/OR (G) AND THE SELLER HAS GIVEN NOTICE OF DEFAULT TO THE AGENCY OF ITS INTENTION TO EXERCISE ITS REMEDY TO TERMINATE THIS AGREEMENT AS A RESULT OF SUCH A BREACH BY THE AGENCY AS PROVIDED IN PARAGRAPH 4.5, IT IS EXPRESSLY ACKNOWLEDGED THAT SELLER SHALL INCUR A LOSS AS A RESULT OF SUCH FAILURE OF CONDITIONS, DELINQUENCY, DEFAULT OR BREACH. IT IS FURTHER ACKNOWLEDGED THAT THE AMOUNT OF SUCH A LOSS SHALL BE EXTREMELY DIFFICULT TO CALCULATE AND ASCERTAIN. THEREFORE, IT IS EXPRESSLY AGREED THAT IN SUCH AN EVENT THE AGENCY SHALL PAY TO SELLER LIQUIDATED DAMAGES IN THE SUM OF DOLLARS ($ ), WHICH THE AGENCY AND THE SELLER AGREE IS REASONABLE IN LIGHT OF ALL THE FACTS KNOWN TO THEM ON THE DATE OF THIS AGREEMENT IN THE EVENT THAT THE SELLER TERMINATES THE AGREEMENT SB2001:13627.1 3 BASED UPON THE GROUNDS REFERENCED IN PARAGRAPH 4.5. IN SUCH AN EVENT, IF THE AGENCY HAS DELIVERED THE DEPOSIT, THE SELLER SHALL BE ENTITLED TO DRAW UPON THE DEPOSIT TO SATISFY THE FOREGOING OBLIGATION OF THE AGENCY. THE RECEIPT BY THE SELLER OF THE LIQUIDATED DAMAGES AMOUNT PAYABLE BY THE AGENCY SHALL NOT, HOWEVER, PRECLUDE SELLER FROM HOLDING THE AGENCY LIABLE FOR PROPERTY DAMAGE SUSTAINED BY SELLER AS A RESULT OF FAULTY WORK OR UNREIMBURSED THIRD PARTY EXPENSES ASSOCIATED WITH ANY INVESTIGATION OF THE PROPERTY CONDUCTED BY THE AGENCY PURSUANT TO PARAGRAPH 19 HEREOF, IF APPLICABLE. INITIAL OF THE AUTHORIZED OFFICER OF THE AGENCY INITIALS OF SELLER 4.7 Provided the conditions precedent of Paragraph 7.1 have first been satisfied (or waived by the Agency), the Agency shall deliver to the Escrow Holder by no later than by 12: 00 noon at least two (2) business days preceding the Closing Date, cash or available funds in an amount sufficient when added to the amount of the Deposit as previously paid, to equal the Purchase Price and to cause the Close of Escrow to occur. In the event that the provisions of Paragraph 8.1(B) may be applicable to the Close of Escrow, the Agency shall deliver the balance of the cash or available funds in an amount sufficient to close the Escrow as of the earliest of the two (2) following dates: (i) two (2) business days preceding the Closing Date under Paragraph 8.1(B) (i) ; or (ii) on the next business day following the entry of the judgment as provided in Paragraph 8.1(B) (ii). 4.8 The Escrow Holder shall upon receipt of written request from the Seller release a sum of up to and including DOLLARS ($ ) from the Deposit at any time before the Close of Escrow upon confirmation by the Escrow Holder that the Seller has executed in recordable form the Notice of Pending Transaction Relating to Transfer of Real Property to A Public Agency (the "Notice") in the form attached hereto as Exhibit "B" and the Notice has been recorded. In the event that the Seller may elect to terminate this Agreement on the grounds provided in Paragraph 4.5, any amount of the Deposit released to the Seller pursuant to this Paragraph 4.8 shall be credited to the amount which "may be payable to the Seller as liquidated damages under Paragraph 4.6 in the event of an occurrence of a default by the Agency. 5 . ESCROW SB2001:13627.1 4 The payment by the Agency of the Deposit to the Seller and the payment of the remaining balance of the Purchase Price to the Seller and the transfer of all of the right, title and interest of the Seller in the Property to the Agency (inclusive of all amounts of just compensation, relocation assistance and the like) shall be consummated by means of an escrow ("Escrow") to be opened at (" Escrow Holder") . 6. PRELIMINARY TITLE REPORT AND DOCUMENTS The Agency hereby acknowledges its receipt of the following documents: (i) a preliminary title report (PTR) for the Property issued by , ("Title Company"), under Title Company Order No. , together with copies of all documents referred to in such PTRi and [EDITOR'S NOTE: ALTERNATE TEXT IF PROPERTY OCCUPIED BY TENANTS: (ii) a copy of the Lease which the Seller represents to be true and correct, and all amendments and modifications between the Seller and the Tenant, together with a written accounting of the balance, if any, of prepaid rent, deposits or other amounts payable by the Tenant to the Seller.] 7. CONDITIONS PRECEDENT TO THE PERFORMANCE OF THE OBLIGATIONS OF THE AGENCY TO ACQUIRE THE PROPERTY AND TO CLOSE THE ESCROW 7.1 After the Agency has delivered the sum of Dollars ($ ) as the first installment of the Deposit to the Escrow Holder under Paragraph 4.1, the following are conditions precedent to the payment of the second and third installments of the Deposit and the performance of other obligations of the Agency to acquire the Property from the Seller: A. Approval by the City Engineer of the legal description to be used in the grant deed for the conveyance of the Property to the AgencYi B. Approval by the Agency of the PTR and the information described in Paragraph 6(ii), above, by , 2001, which approval shall be given as provided in Paragraph 7.2 belowi SB2001:13627.1 5 C. Approval by the Agency of the soils condition and environmental condition of the Property and the Building within ( ) days following the opening of Escrow, which approval shall be given as provided in Paragraph 7.2, below. For the purpose of the "approval" by the Agency of the environmental condition of the Building, the environmental condition of the Building shall be deemed to be approved by the Agency provided that the completion of an environmental hazards inspection of the interior of the Building indicates the presence of de minimis amounts of asbestos containing materials and other hazardous materials lawfully incorporated into the structural components of the Building at time of initial installation such that special abatement and demolition costs associated with the lawful disposal of such hazardous materials, if any, are not reasonably estimated as of the date of the Offer to exceed the sum of DOLLARS ($ ) to the cost payable by the Agency for the demolition of the Building following the Close of the Escrow; D. Verification by the Agency that no material breach has occurred under the [HUB DDA] ; E. [EDITOR'S NOTE: ALTERNATE TEXT IF PROPERTY OCCUPIED BY TENANT] Receipt by the Escrow Holder (pending the delivery to the Agency upon the Close of Escrow) of the assignment of the Lease from the Seller to the Agency as fully executed by the Seller, substantially in the form attached hereto as Exhibit "C". 7.2 The Agency shall deliver to the Seller the written approval, disapproval or waiver of satisfaction by the Agency of each of the matters indicated in Paragraph 7.1 (A) - (E), inclusive as of the dates or times provided therein, but in no event by a date later than , 2001. In the event such written approval, disapproval or waiver of satisfaction is not received by Seller within the foregoing applicable time periods, it shall be conclusively presumed that the Agency has unconditionally approved each of said matters. If the Agency may have disapproved (or conditionally approved) any of the matters referred to in Paragraph 7.1(A) - (E) and the Seller elects not to attempt to cure a disapproved or conditionally approved matter, then the Agency shall have the right to either accept the Property and title thereto subject to said matter, thereby waiving 5B2001:13627.1 6 any and all other objection and/or claim against Seller by reason thereof, or in the alternative the Agency may terminate this Agreement. In the event the Agreement may be terminated by the Agency on such grounds, the second and third installments of the Deposit shall not be paid by the Agency to the Escrow Holder and the Escrow shall be cancelled and the Agency shall pay the customary escrow cancellation fees and expenses of the Escrow Holder. The Agency shall give written notice to the Seller of the election of the Agency to waive an objection or alternatively terminate the Agreement within ten (10) days after the earlier of (i) the receipt by the Agency of notice of the Seller's election not to cure one or more of the matters deemed "disapproved" by the Agency, or (ii) the expiration of the Seller's Response Period. 7.3 The Agency shall del i ver the sum of Dollars ($ ) to the Escrow Holder as the second installment of the Deposit promptly following the approval by the Agency of the matters referenced in Paragraph 7.2, which the parties presently believe shall occur within ( ) days following the opening of the Escrow. -- 7.4 If the Agency fails to give the Seller notice of either the Agency's satisfaction or the Agency's election to waive an objection to any matter described in Paragraph 7.1 (F) within the time specified, it shall be conclusively presumed that the Agency has elected to terminate this Agreement. In the event the Agency may elect to waive satisfaction of the matters identified in Paragraph then the Agency shall be obligated to acquire Property from the Seller pursuant to the terms of Agreement. the 7.1, the this If the Agency elects to terminate (or is presumed to have terminated) this Agreement pursuant to this Paragraph 7.4, neither the Agency nor Seller shall have any further liability hereunder, except that the Agency shall be entitled to the prompt return of all funds delivered by the Agency to the Escrow Holder for the Deposit, less the amount of the Deposit, if any, which the Seller may have withdrawn as authorized under Paragraph 4.8 and the customary escrow cancellation fees and expenses, all of which the Agency hereby agrees to pay. 7.5 In the event disapproved or Paragraph 7.2, Seller elects to attempt to cure any conditionally approved item pursuant to above, but thereafter fails to complete SB2DD1:13627.1 7 the cure or correction of such an item prior to the Close of Escrow, then the terms and conditions of the second subparagraph of Paragraph 8.2(B) below shall apply. 7.6. A. Upon the approval or waiver of satisfaction of approval by the Agency, all of the conditions precedent in Paragraph 7.1(A) - (E), inclusive, the Escrow shall close in accordance with Paragraph 8. [EDITOR'S NOTE: ALTERNATE TEXT WHERE TENANT OCCUPIES PROPERTY UNDER A LEASE WITH A FIXED TERM: B. In the event that the Tenant and the Agency may not have fully executed a written agreement in a form mutually acceptable to the Tenant and the Agency evidencing the terms and conditions of the surrender of possession and occupancy of the Building and the cancellation and termination of the remaining term of the Lease, (subject only to the Close of Escrow between the Seller and the Agency), then the Seller hereby authorizes the Agency to initiate eminent domain proceedings by the filing of a complaint in eminent domain in Superior Court to acquire all right, title and interest in the Property upon entry of a judgment in condemnation (the "Condemnation Proceedings") at any time on or after , 2001 i provided however, that the Agency shall have delivered to either the Escrow Holder or the Clerk of the Superior Court, a sum equal to the Purchase Price (less credits for the installments of the Deposit previously paid by the Agency) for the account of the Seller. If the Agency delivers the balance of the Purchase Price to the Escrow Holder under this Paragraph 7.6(B), the Escrow Holder shall receive the Purchase Price and credit the Deposit for the full amount of the Purchase Price payable to the Seller at least three (3) days preceding the date on which the Agency may file a complaint in the Condemnation Proceedings in Superior Court. If the Agency delivers the balance of the Purchase Price to the Clerk of the Superior Court under this Paragraph 7.6(B), the Clerk of the Superior Court shall receive the balance of the Purchase Price currently upon the filing of the complaint and the issuance of the summons in the Condemnation Proceedings as provided under Code of Civil Procedure Section 1255.010, et. seq. The Seller hereby further consents and agrees to accept service of summons "and complaint as a party in the Condemnation Proceedings in the event that the Agency initiates such proceedings to acquire the Property SB2001:13627.1 8 [EDITOR'S NOTE: ALTERNATE TEXT WHERE TENANT OCCUPIES PROPERTY UNDER A LEASE WITH A FIXED TERM - CONTINUED] (inclusive of all interests under the Lease) by virtue of the failure of the Tenant and the Agency to mutually approve and accept the terms of the Lease cancellation and termination arrangement referenced in the preceding subparagraph of Paragraph 7.6 (B) . The Seller also consents to the application by the Agency to the Superior Court for an appropriate order of the Court and issuance of one or more orders for prejudgment possession of the Building and the Property by the Agency and the entry of interlocutory orders and/or a final judgment in condemnation affecting the Property in which the Seller is apportioned, awarded and paid the sum of $750,000.00 (less any amount previously released by the Escrow Holder ~nd paid to the Seller from the Deposit and less an amount reserved for the discharge and payment of taxes not properly allocated to the Tenant under the Lease, mortgage liens of the Seller and the amounts otherwise payable from the proceeds of the Purchase Price as referenced Paragraph 8.6 of the Agreement) as the amount of just compensation payable to the Seller for all of its right, title and interest in the Property. Promptly following the initiation of Condemnation Proceedings, the Seller shall execute a written instruction to the Agency confirming whether the Seller: (i) wishes to complete the transfer of the Property to the Agency by way of the Close of Escrow provided in Paragraph 8.1.A; or (ii) whether the Seller wishes to complete the transfer of the Property to the Agency by way of the entry of a judgment in the Condemnation Proceedings as provided in Paragraph 8.1(B). In the event that the Seller may exercise its election under subsentence (ii) in the proceeding sentence, then in such case, the Seller shall also execute a written instruction to the Escrow Holder which authorizes a transfer of the balance of the Deposit from the Escrow Holder to the Clerk of the Superior Court for deposit in the Condemnation Proceeding under Code of Civil Procedure Section 1255.010, et. seq., as the amount of compensation payable by the Agency to the Seller for all of its right, title and interest in the Property. The Agency hereby agrees that it shall not object to any application of the Seller to withdraw the amount transferred by the Escrow Holder and deposited with the Superior Court for the account of the Seller and the close of the Escrow under Paragraph 8.1 (B) on the grounds otherwise provided to the Agency in Code of Civil Procedure Section 1255.230 (b) (1) .] 8. CLOSE OF ESCROW SB2DD1:13627.1 9 8.1. A. Provided that the conditions of Paragraph 7.1 have either been approved by the Agency or the satisfaction of such condition has been waived in writing by the Agency the Close of Escrow shall occur as of , 2001, (the "Closing Date") except as may be provided in Paragraph 8.1(B). For purposes of this Agreement, the term "Close of Escrow" shall mean the date on which the Deed (as described in Paragraph 8.2(A), below) is recorded in the Official Records of San Bernardino County, State of California. The parties may accelerate the date of the Close of Escrow, if feasible, and the Seller and the Agency acknowledge that each shall cooperate with the other to accomplish the Close of the Escrow as soon as may be practicable after , 2001. [EDITOR'S NOTE: ALTERNATE TEXT WHERE TENANT OCCUPIES PROPERTY UNDER A LEASE WITH A FIXED TERM] B. In the event that the Agency has initiated Condemnation Proceedings, and the Seller has been joined as a party to such proceedings and the Seller has delivered written instructions to the Agency, and if applicable, to the Escrow Holder as provided in Paragraph 7.6 (B) , instructing that the Seller wishes to complete the transfer of the Property by way of the Close of Escrow, then in such event, the Close of Escrow shall occur on the first of the following dates to occur: (i) the date on which the Seller delivers a fully executed disclaimer of title relating to the Property in the Condemnation Proceedings and Deed to the Escrow Holder, and the Escrow Holder has received (or has retained in the Deposit) amounts sufficient to clear all exceptions to title in the Property, except the Lease as assigned to the Agency, all of the ottler conditions for the Close of Escrow under Paragraph 8.1(A) are satisfied, and the Escrow Holder delivers and records the Deed described below in Paragraph 8.2, together with the policy of title insurance in favor of the Agency; or (ii) the Seller and the Agency have executed a stipulation for the entry of a judgment of condemnation by the Agency in the Condemnation Proceedings of all of the right, title and interest of the Seller in the Property and as arise under this Agreement and such judgment has been entered in the Condemnation Proceedings; or SB2DDJ.: 13627.1 10 (iii) in the event that the Close of Escrow has not occurred on or before the initiation of the Condemnation Proceedings, and thereafter the Agency may have joined the Seller as a party in the Condemnation Proceedings as provided in this Agreement, then in such an event, the Agency hereby agrees to reimburse the Seller upon presentation of an invoice therefore, for its reasonable attorneys fees and out-of-pocket expenses, if any, in an amount not to exceed Two Thousand Fi ve Hundred Dollars ($2,500.00), which the parties believe to be a reasonable estimate of the attorneys fees as may be incurred by the Seller, if necessary, in order to confirm that the Close of Escrow under either subparagraph (ii) or (iii), above, of this Paragraph 8.1(B) is consistent with the terms and provisions of this Agreement. The reimbursement by the Agency of attorney fees to the Seller under this Paragraph 8.1(B) (iii) shall not be deducted or offset from the Purchase Price payable by the Agency to the Seller upon the Close of Escrow. No such reimbursement shall be payable by the Agency to the Seller provided that the Close of Escrow has occurred prior to the date of the initiation of the Condemnation Proceedings. 8.2 Prior to the Close of Escrow, Seller shall deliver or cause to be delivered to the Agency through Escrow: A. f A grant deed (the "Deed") in the form attached hereto as Exhibit "D", duly executed and acknowledged by Seller conveying to the Agency fee title to the Property, subject only to the following permitted exceptions ("Permitted Exceptions"): (i) the matters approved (or deemed to have been approved) by the Agency pursuant to Paragraph 7 hereof, (ii) all matters that would be disclosed by a physical inspection of the Property or that are actually known by the Agency, (iii) all matters that would be disclosed pursuant to an accurate survey of the Property to be conducted at the sole cost and election of the Agency, (iv) real property taxes and assessments not yet due, (v) the Lease, and (vi) any additional exceptions or matters created by the Agency, its agents, employees or authorized representatives or the Agency's consultants (as defined in Paragraph 19.3 below. B. At the Close of Escrow standard coverage owner's policy of title insurance showing title to the SB2001:13627.1 11 Property vested in the Agency subject only to the Permitted Exceptions, and naming the Agency as the insured owner in the amount of the Purchase Price shall be delivered to the Agency concurrently upon the recordation of the Deed. The Agency may, at its option, direct the title Company to deliver an ALTA survey extended coverage owner's policy of title insurance (with additional endorsements and binders as appropriate) in favor of the Agency. The Agency shall pay for all costs or premiums charged by the Title Company for any such policy of title insurance. In the event that, upon the Closing Date, the Title Company is unable to issue a title policy as provided in the preceding paragraph by reason of the existence of any exception, other than the Permitted Exceptions, which renders the Property unmarketable, the Closing Date shall be extended for a period of five (5) days and if not cured, the Agency shall have the right to either: (i) to accept the Property and title thereto subject to such exception, thereby waiving any and all objections and/or claims against Seller by reason thereof; or (ii) give its written notice to terminate this Agreement. If the Agency elects to terminate this Agreement pursuant to this Paragraph 8.2{B), such action shall be the sole remedy of the Agency against Seller and neither the Agency nor Seller shall have any further liability hereunder, except that the Agency shall be entitled to the prompt return of all funds delivered by the Agency to the Escrow Holder which may then remain in the Deposit, less only Escrow cancellation fees and costs and Title Company charges, all of which the Agency hereby agrees to pay. 8.3 The Agency shall deliver or cause to be delivered for payment to the Seller at the time provided in Paragraph "4.7, cash or immediately available funds of the Agency for the balance of the Purchase Price payable by the Agency at the time provided in Paragraph 8.1 (e.g., the Close of Escrow), together with cash or immediately available funds in an amount sufficient to cover the other charges and costs assumed by the Agency pursuant to Paragraph 10 below. [EDITOR'S NOTE: ALTERNATE TEXT WHERE OFFER INCLUDES RELOCATION EXPENSES] 8.4 Not later than 12:00 p.m., on the business day prior to the Closing Date, the Seller shall deliver to the Agency SB2001:13627.1 12 through Escrow a written release, in a form approved by the Executive Director, of all claims by the Seller for relocation assistance or other assistance as may be payable by the Agency to the Seller under Government Code Section 7260, et seq., or other applicable law associated with the acquisition of the Property from the Seller by the Agency. 8.5 Prior to the Closing Date, the parties shall execute and deliver through Escrow any other documents or instruments which are reasonably necessary in order to consummate the purchase and sale of the Property pursuant to the terms and conditions of this Agreement. 8.6. Upon the satisfaction of each and every condition hereunder, the Escrow Holder shall close the Escrow, deliver and record the Deed, together with the assignment of the Lease by the Seller to the Agency and the Escrow Holder shall pay the Purchase Price to the Seller as follows: $ in cash, or in immediately available funds by wire fund transfer, (less the amount of the Deposit [EDITOR'S NOTE: ALTERNATE TEXT WHERE PROPERTY UNDER LEASE: and security deposit under the Lease, if any,] applied as a credit to the Purchase Price and the other adjustments applied by the Escrow Holder) payable according to the written instructions and to the order or the account of Seller in the presently estimated amounts as follows: (a) to discharge existing indebtedness of the Seller secured by the Property $ (b) to [others]: $ TOTAL $ As of not later than the business day preceding the Closing Date, Seller may provide additional payment instructions to the Escrow Holder, subject to the prior written approval of the Agency shall not be unreasonably withheld. 8.7.A. The term "Environmental Claim" refers to and includes any claim which may be asserted against the Agency, its SB2001: 13627.1 13 officers, employees and the successors and assigns of the Agency for liability, damages, costs and expenses, reasonable attorney fees, so-called response costs and the like associated with any remediation and Glean-up required under state or federal law as a result of undisclosed or undiscovered toxic, hazardous or contaminating condition of the Property caused by the Seller or resulting from the Seller's use of the Property or where such adverse contaminating condition occurred during the time the Seller owned the Property prior to the Close of Escrow. B. If after the date on which the Agency becomes obligated to acquire the Property pursuant to the terms of this Agreement, but prior to the Closing Date, the Agency discovers the presence on the Property of a matter which constitutes an "Environmental Claim", as defined in Paragraph 8. 7 (A), then in such event, the approval by the Agency of the soils and environmental condition of the Property under Paragraph 7.1(C) shall be deemed to be rescinded, and in the event that the Seller does not agree to correct or remedy such adverse environmental condition within ten (10) days following written notice from the Agency, the Agency may at its sole election terminate this Agreement, record a rescission of the Notice and thereupon the Agency may recover the Deposit from the Escrow Holder, less only escrow cancellation fees and costs and title insurance charges, all of which the Agency agrees to pay. 8.8 Concurrently upon the Close of Escrow, the Agency shall deliver an item of correspondence addressed to the Seller and executed by the Executive Director of the Inland Valley Development Agency which confirms the fact that the Property has been acquired by the Agency for community redevelopment purposes under "threat of condemnation". 9. CONDITION OF PROPERTY AND THE INTENDED USE OF THE AGENCY 9.1 The Agency acknowledges that it has been afforded access to the Property prior to the Closing Date and has been provided access to information relating to the Property. The Seller hereby grants to the Agency, and the agents of the Agency, the right prior to the Closing Date to make on-site inspections (subject to Paragraph 19 hereof) and the right to examine documents relating to the Property to the satisfaction of the Agency. The Agency shall perform and rely upori its own independent investigation of the physical condition of the Property. The Seller acknowledges that the Agency may undertake certain SB2001:13627.1 14 environmental investigations of the Property prior to the Closing Date which require the entry of the Agency upon the Property. 9.2 The Agency acknowledges and agrees that Seller has not and does not hereby make any representation or warranty to the Agency concerning the suitability of the Property for any use intended by the Agency or the physical or environmental condition of the Property. The Agency shall perform and rely solely upon its own independent investigation concerning the Property and the Property's compliance with any applicable law, including without limitation environmental law. The Agency acknowledges that it is acquiring the Property subject to all existing laws, ordinances, rules and regulations, and that neither Seller nor any of Seller's agents or employees have made any warranties, representations or statements regarding any laws, ordinances, rules or regulations of any governmental or quasi -governmental body, entity, district or agency having authority with respect to the use, condition or occupancy of the Property. 10. ESCROW PRORATIONS OF TAXES [AND RENT AND CHARGES PAYABLE TO OR FOR THE ACCOUNT OF THE SELLER UNDER THE LEASE] DURING ESCROW AND ESCROW EXPENSES PAYABLE BY THE AGENCY 10.1 Real property taxes and assessments for the current tax year shall be prorated between the parties as of the Close of Escrow. Real property taxes and assessments for the January 1, 2001, valuation date which may become a lien on the Property at any time following the Close of Escrow, if any, shall be assumed by the Agency. 10.2 All recording fees, documentary transfer taxes, Escrow fees, premiums for the issuance of policies of title insurance, and any other costs connected with the closing of the transaction contemplated by this Agreement shall be charged to the Agency. 10.3 This Agreement constitutes joint escrow instructions of the parties. [EDITOR'S NOTE: ALTERNATE TEXT WHERE TENANTS IN POSSESSION] 10.4 From the date on which the Escrow is deemed to be opened through the Close of Escrow, the Seller shall be responsible for the collection of all rent and other charges payable by the Tenant to the Seller under the Lease. The Seller shall not waive, adjust, credit or otherwise modify any provision of the Lease or any amount SB2001: 13627.1 15 of rent or other charge due and payable by the Tenant to the Seller under the Lease without the prior written approval and authorization of the Agency. In the event that the Tenant may default or breach a term or covenant of the Lease, the Seller shall promptly notify the Agency of the occurrence of such a default or breach. Provided that the Seller has first given appropriate notice to the Tenant of a default or breach under the Lease (and a copy of such notice to the Agency), the Agency agrees to indemnify the Seller for any amount of rent or other charge wrongfully withheld from the Seller by the Tenant between the date of such notice of breach and the Close of Escrow. The Agency also agrees to pay the reasonable attorney's fees incurred by the Seller associated with the initiation of an unlawful detainer proceeding against the Tenant under the Lease. The Agency shall pay the Seller the amount of any deficiency in the rent or other charge under the Lease which arises on or after the date of the notice to the Tenant within ten (10) days following receipt of a written invoice from the Seller which details such amounts. All rent and other amounts payable to the Seller under the Lease and other income, if any, from the Property and all expenses, charges and costs imposed on the Seller under the Lease or upon the Property, if any, shall be prorated between the Agency and Seller as of the Close of Escrow. All security deposits and advance rents received by Seller under the Lease as of the Close of Escrow shall be credited against the Purchase Price and shall be deemed to have been transferred by the Seller to the Agency, as of the Close of Escrow. The Agency agrees to indemnify and hold the Seller harmless from and against any claim made against the Seller by a tenant in lawful possession under the Lease for such security deposit, or advanced rent or other prepaid charge or expense payable by the tenant to the landlord (or for the account of the landlord) under the Lease. The foregoing obligation of the Agency shall survive the recordation of the Deed. 11. POSSESSION OF THE PROPERTY A. Possession of the Property shall be delivered by the Seller to the Agency upon the Close of Escrow, [EDITOR'S NOTE: ALTERNATE TEXT WHERE TENANT OCCUPIES PROPERTY subject only to the possessory interest of the Tenant under the Lease as assigned by the Seller to the Agency. Thereafter, the rents, issues and profits of the Property, if any, shall accrue to the Agency as of the SB2001:13627.1 16 Close of Escrow, except for any amounts subject to the provisions of Paragraph 10.4.] [EDITOR'S NOTE: POSSESSION] ALTERNATE TEXT WHERE TENANT IN B. In the event that the provisions of Paragraph 8.1. B. apply to the Close of Escrow of all of the Seller's right, title and interest in the Property shall be delivered to the Agency on the earlier of the dates described in Paragraph 8.1(B) (i) or (ii). 12. INTEGRATION The contract resulting from Seller's acceptance hereof contains the entire agreement of the parties and cannot be amended or modified except by a written agreement signed by both parties. 13. NO BROKERAGE COMMISSION The parties each acknowledge and represent that no real estate broker is entitled to a commission, finder's fee or other like compensation arising in any manner from the transaction contemplated by this Agreement. In any claim for a commission, finder's fee or other compensation may hereafter be asserted in connection with the transaction contemplated by this Agreement, the Agency hereby agrees to indemnify, defend and hold Seller harmless from and against any such claims if such claim is based upon any statement, representation or agreement by the Agency, and Seller hereby agrees to indemnify, defend and hold the Agency harmless from and against any such claim if such claim is based upon any statement, representation or agreement by Seller. The foregoing obligation of the parties shall survive the recordation of the Deed or the termination of this Agreement. 14. INTERPRETATION This Agreement shall be construed, interpreted and applied in accordance with the laws of the State of California. 15. REPRESENTATIONS AND WARRANTIES 15.1 Seller I s Representations and Warranties. Seller represents and warrants to the Agency as follows: A. Seller has taken all action necessary to authorize its execution and delivery of this Agreement and the performance.of its obligations hereunder. 5B2001:13627.1 17 B. This Agreement and all documents contemplated hereby have been or will be duly authorized and executed (and acknowledged where necessary) by the parties named as signatories in those documents, and all other necessary actions have been taken so that this Agreement and all documents contemplated herein are valid and binding upon Seller. C. The execution and performance of this Agreement and the documents contemplated hereby do not violate and are not restricted by any other agreement, contractual obligation, court order or law to which Seller is a party or by which Seller is bound. D. Notwithstanding the limitation of the warranty of the Seller in Paragraph 9.2, the Seller has no reason or information to believe or knowledge that the presence of any materially adverse environmental condition of the Property has been intentionally concealed from the Agency. [EDITOR'S NOTE: ALTERNATE TEXT WHERE TENANT IN POSSESSION] E. The Seller has provided the Agency with a complete copy of the Lease and all amendments thereto. The Seller warrants that there is no oral agreement or arrangement wi th the Tenant which has not previously been disclosed to the Agency in writing by the Seller. The Seller shall not further amend, modify or waive any provision of the Lease before the Close of Escrow, except upon the prior written consent and approval of the Agency. l5.2 Representations and Warranties of the Agency. The Agency represents and warrants as follows: A. The Agency is a community redevelopment agency, a body corporate and political, organized, validly existing and in good standing under the laws of the State of California, and the Agency has full power and authority to enter into this Agreement and to fulfill its obligations hereunder. B. The Agency has taken all action necessary to authorize the execution and delivery of this Agreement to the Seller. 16. IRESERVED] 17. TIMELY PERFORMANCE SB20D1 :13627.1 18 Time is of the essence of this Agreement. 18. SEVERABILITY In the event that any provision of this Agreement is found to be invalid or unenforceable, such determination shall not affect the validity and enforceability of any other provision of this Agreement. 19. RIGHT-OF-ENTRY 19.1 Seller hereby grants to the Agency and its agents the right to enter into the Property at all reasonable times during the Review Periods to make tests, surveys, studies and inspections in connection with the purchase of the Property by the Agency, provided that prior to any exercise of said right and continuing up to the Close of Escrow, the Agency shall (i) arrange for and keep and maintain in full force and effect a policy of comprehensive general liability insurance, with broad form liability endorsement, having a combined single limit of not less than One Million Dollars ($1,000,000.00) per occurrence, and (ii) furnish to Seller a certificate of such insurance which names Seller as an additional insured and provides that such policy shall not be canceled or amended without thirty (30) days' prior written notice to Seller. Seller or Seller's agents or employees shall be entitled to accompany the Agency and the agents of the Agency during any entry made by the Agency or the agents of the Agency onto the Property pursuant to this Paragraph 19. Any entry by the Agency or the agents of the Agency as may be authorized by Seller pursuant to this Paragraph 19.1 shall be made in a manner which results in the least interference with the use of the Property by Seller or any third party. The Agency shall indemnify and defend Seller against, and hold Seller and the Property harmless from and against, any and all costs, expenses (including, without limitation, attorneys' fees), damages, claims, liabilities, liens, encumbrances and charges arising out of or in any way related to any entry by the Agency or the agents of the Agency upon the Property, unless such matters arise from the sole and active negligence of Seller. The foregoing obligation of the Agency shall survive the Close of Escrow or the termination of this Agreement. The Agency shall repair any damage to the Property as a result of or caused by the entry by the Agency or the agents of the Agency onto the Property and restore the Property to the condition existing on the date immediately pribr to the Agency's entry onto the Property. SB2001:13627.1 19 All costs incurred in connection with tests, surveys, studies, inspections, reviews, approvals, determinations and applications made by the Agency under this Agreement or in connection with the proposed use of the Property by the Agency shall be the sole responsibility or and be paid by the Agency, or its nominee. In the event of the recordation of any claim of lien against the Property for materials supplied or labor or professional services performed by the Agency on the Property as authorized by the Seller, the Agency shall promptly satisfy and discharge such lien at the sole cost and expense of the Agency upon demand therefor by Seller. 19.2 In addition to the obligations of the Agency under Paragraph 19.3 below, the Agency shall provide to Seller a copy of each report, study, regulation or ordinance obtained by the Agency in connection with its investigation of the Property, at no cost to Seller. In addition, if the transaction contemplated by this Agreement is not consummated for any reason, the Agency shall deliver to Seller free of charge, copies of all of the engineering, architectural, financial and other studies, drawings, reports, surveys and similar materials prepared by or on behalf of the Agency with respect to the Property and the proposed project of the Agency to the extent the Agency is not otherwise prohibited by law from doing so. 19.3 In order to determine the existence or presence of any hazardous materials in or about the Property, the Agency shall have the right, during the Review Period and at the sole cost and expense of the Agency, to conduct such studies, evaluations, audits or surveys as the Agency deems appropriate, subject to the limitations of Paragraph 19.1 19.4 Termination of this Agreement by the Agency shall not relieve the Agency from any liability for any damages incurred by Seller by reason of a breach by the Agency of any of the terms of this Paragraph 19. 20. INTERNAL REVENUE CODE SECTION 1445 Seller is not a "foreign person" as that term is used in Internal Revenue Code Section 1445 ("IRC Section 1445") and Seller agrees to furnish the Agency, prior to Close of Escrow, a Non-Foreign Certification or any other documentation required under IRC Section 1445 to evidence that Seller is not a "foreign person". 21. DEFAULT, BREACH AND TERMINATION SB200~:13627.1 20 Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement. The party who claims that a default has occurred shall transmit written notice of default to the party in default, specifying the alleged default, provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within ten (10) calendar days after the receipt of written notice and thereafter such party diligently completes to cure, correct or remedy the alleged default, then such party shall not be deemed to be in default hereunder. Delay in transmitting or giving such notice shall not constitute a waiver of any default nor shall a delay in the transmittal of notice change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder (including the liquidated damages remedy of the Seller under Paragraph 4.6) without first transmitting to the other party the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than ten (10) calendar days following the transmittal of written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in breach shall be entitled to exercise or seek an appropriate remedy. In the event that a breach has occurred, the party who is not then in default may terminate this Agreement by transmitting to the other party a notice of termination and thereafter the Agreement shall terminate ten (10) calendar days following the date of service of the notice of termination. In the event that the Seller has withdrawn any portion of the Deposit as authorized under Paragraph 4.8 and thereafter either party terminates the Agreement, the Agency shall cause to be recorded an appropriate rescission of the Notice as provided in Paragraph 4.8. 22. PRELIMINARY CHANGE OF OWNERSHIP The Agency shall execute and deliver to the Escrow Holder prior to the Close of Escrow an appropriate preliminary change of ownership form for submission by the Escrow Holder to the Los Angeles County Tax Assessor. SB2DD1:13627.1 21 23. SUBDIVISION MAP ACT This Agreement is conditioned upon the Property, and each parcel thereof, being legal parcels under California law. Seller shall provide evidence to the Agency at the Close of Escrow that the Property constitutes a legal parcel, which evidence may be in the form of a subdivision map act endorsement to the Agency's title insurance policy. In the event that Seller is unable to obtain evidence confirming that the Property is a legal parcel(s), then Seller or the Agency may elect to terminate this Agreement by giving the other party and Escrow Holder written notice of such election at two (2) days prior to the Closing Date. 24. [RESERVED] 25. NOTICES Any notice to the other party which may be necessary or convenient under this Agreement shall be transmitted to a party at the applicable addresses indicated in this Paragraph 25. Each notice shall bear a date and shall be in writing; and such a notice shall be deemed to have been received by the other party as of the date on which: (i) the notice is personally served on the other party; or (ii) the date on which the notice is sent by FAX, and confirmed; (iii) by deposit within forty-eight (48) hours thereafter into United States First Class Mail or next day business mail of a hard copy of such notice; or (iv) five (5) calendar days after the notice is deposited into United States Mail as certified mail, return-receipt requested and postage prepaid. For the purpose of the Agreement, the following persons are hereby designated to receive notice on behalf of the party indicated: IF TO THE SELLER: FAX: IF TO THE AGENCY: John Hoeger Redevelopment Project Manager 201 North "E" Street Suite 301 San Bernardino, California 92401 (909) 663-1044 FAX: (909) 888-9413 SB2001:13627.1 22 Any of the foregoing persons and/or addresses to which notice shall be transmitted may be changed by either party upon transmittal of written notice of change (or addition) of address to the other party. 26. THE AGENCY IS THE OFFEROR AND INTEGRATION OF PRIOR CONDITIONAL OFFERS OF THE AGENCY; SELLER'S APPROVAL The Agency and the Seller each acknowledge and confirm that this document constitutes an integration of the Agency Conditional Offer dated , 2001. The Seller further acknowledges receipt of a written appraisal report dated , 2001, which contains an appropriate description of the Property and other information relevant to the preparation of an opinion of value of the Property based upon the highest and best of the Property. 27. EFFECTIVENESS OF AGREEMENT IS SUBJECT TO REVOCATION BY THE AGENCY This offer of the Agency to acquire the Property pursuant to this Agreement is subject to timely acceptance by the Seller. The Seller shall submit a fully executed signature page (e.g.: page ) and a duly endorsed acknowledgment of the liquidated damages remedy of the Seller against the Agency (e.g.: page ) to the Agency within ( ) days following the date of the transmittal of this Offer by the Agency to the Seller. In the event that the Agency may not receive such pages of the Agreement in fully executed form from the Seller, the offer of the Agency to acquire the Property pursuant to the terms and provisions of this Agreement shall be deemed to be revoked by the Agency, without any further liability or obligation on the part of either party. 28. MISCELLANEOUS PROVISIONS 28.2 Exhibits. All exhibits and attachments attached hereto and referred to in this Agreement are hereby incorporated by this reference as though they were fully set forth herein. In the event of any inconsistency between the terms of an exhibit or attachment and the terms of this Agreement, the terms of this Agreement shall prevail. 28.3 Further Acts. Each party agrees to perform such further acts and execute, acknowledge and deliver such documents as may be reasonably necessary to effect the purpose of this Agreement. 28.4 Payment of Purchase Price Is Full Satisfaction of All Claims of Seller Against the Agency. Upon receipt of the Purchase Price for t.he Property, the Seller expressly acknowledges and agrees that the Purchase Price fully SB2001:13627.1 23 satisfies, discharges, and releases all claims, rights, title and interests of the Seller in any other amount of compensation which may be payable by the Agency or the City of San Bernardino or the Inland Valley Development Agency to the Seller under the provisions of Government Code Section 7260, et seq. (relocation benefits, loss of goodwill and the like). The payment of the Purchase Price by the Agency to the Seller (either upon the Close of Escrow under Paragraph 8.1 (A) or Paragraph 8.1 (B) fully satisfies all claims of the Seller relating to the acquisition of the Property by the Agency. 28.5 Agency May Seek to Acquire the Property By Eminent Domain. The Seller hereby acknowledges and agrees that the Agency has accorded the Seller with a full and complete opportunity to discuss and negotiate the terms of the good faith offer of the Agency for the acquisition of the Property, as that term is described in Government Code Section 7267.2 and in Code of Civil Procedure Section 1245.230. The Seller hereby waives any other requirement that the Agency provide further notice to the Seller under Code of Civil Procedure Section 1245.235 as a condition precedent to the adoption of a Resolution of Necessity to acquire any interest in the Property. Notwithstanding any other provision of this Agreement to the contrary and cumulative with any other remedy which the Agency may have under this Agreement, including without limitation, an equitable remedy of specific performance, the Seller hereby acknowledges that if the transaction contemplated by this Agreement is not accomplished in accordance with this Agreement, the Agency shall have the power in its sole and absolute discretion to concurrently initiate or cause the Inland Valley Development Agency to initiate and pursue to completion, if necessary, the Condemnation Proceedings. In the event that the Escrow fails to close on or before , 2001, or on any authorized extension of time at any time after the Agency has delivered to the Escrow Holder for the account of the Seller the full amount of the Purchase Price, as provided herein, the Seller agrees that no term or provision of this Agreement (in addition to any other remedy as may then be available to the Agency) shall be deemed to prevent or otherwise delay the Agency from proceeding with the initiation and completion of the Condemnation Proceedings, or any other legal proceeding, to complete the acquisition by the Agency of all of the right, title and interest of the Seller in the Property. 5B2001:13627.1 24 THI S AGREEMENT IS AGENCY AS OF DEVELOPMENT COMMISSION 2001. Dated: APPROVED BY THE GOVERNING BOARD OF THE , 2001, AS AUTHORIZED BY COMMUNITY RESOLUTION NO. DATED AGENCY: Redevelopment Agency of the City of San Bernardino By: Chairwoman Approved As To Form: By: Agency Counsel SELLER: Accepted this Dated: Dated: SB2DD1:13627.1 Secretary By: Executive Director day of , 2001. SELLER By: By: 2S EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY SB2001:13627.1 26 Attachment No. 8 [RESERVED - NO TEXT] 5/15/01 ct 5B2001:7825.8 II-39 Attaclunent No. 9 For.m of Agency Grant Deed 5/15/01 ct SB2DD1:7825.8 II-40 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Attention: THIS SPACE ABOVE FOR RECORDER'S USE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO GRANT DEED (HUB PROJECT: PHASE I) For valuable consideration, the receipt of which is hereby acknowledged, the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic of the State of California (the "Grantor"), hereby grants to (the "Grantee") the real property legally described in Exhibit A and by this reference incorporated herein (the "Property"), subject to the following community redevelopment terms, conditions and covenants: 1. The Property is conveyed subj ect to that certain Disposition and Development Agreement dated as of , 2001, by and between the Grantor and the Grantee (the "Agreement"). The provisions of the Agreement are hereby incorporated into this Grant Deed by this reference and are deemed to be a part of this Grant Deed, as iffully set forth herein. 2. The Grantee acknowledges and agrees that the Property is transferred and granted by the Grantor to the Grantee in an "AS IS," "WHERE IS" and "SUBJECT TO ALL F AUL TS CONDITION," in its condition as of the date of recordation of this Grant Deed, with no warranties, expressed or implied, as to the environmental condition thereof, the presence or absence of any patent or latent environmental condition thereon or therein, and any other matters affecting the Property. 3. The Grantee covenants and agrees for itself, its successors and assigns that the following uses on the Property are prohibited: bars or businesses with "on-sale" alcoholic beverage sale licenses (other than in restaurants", coin laundries or laundromats, used clothing stores, used appliance stores, used furniture stores or rummage stores, massage parlors, or so-called adult book or adult entertainment establishments. SB200\ :20832.\ 1 4. Grantee covenants and agrees for itself, its successors and assigns that any of the following special commercial retail uses shall be prohibited on the Property, if such special commercial retail use is a "relocation" (a "Relocation Use") as that term is defined under Section 33426.7 of the California Health and Safety Code (the "Code Section"), unless such Relocation Use is not prohibited under subparagraph (A) or (B) below: (1) automobile dealership, or (2) big box retailer, in a store greater than 75,000 square feet of gross buildable area that will generate sales or use tax pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or (3) a business entity that sells or leases land to an automobile dealership or big box retailer. Notwithstanding the above, a Relocation Use shall not be prohibited on the Property if: (A) the Grantor, in the exercise of its reasonable discretion, finds that the Property is "outside the same market area" (as defined in the Code Section) of the site from which such Relocation Use is being relocated (the "Former Site"); or (B) a person or entity (other than the Grantor) is providing funds for the statutory payment referenced in the Code Section sufficient for the Grantor and the City of San Bernardino, California (the "City") to offer to the city in which the Former Site is located a contract apportioning the sales tax generated from the Relocation Use on the Property in accordance with the Code Section (a "Sales Tax Contract"). Ifthe Code Section is repealed or amended by the California State Legislature either (i) to end the use restriction now provided in the Code Section, or (ii) to eliminate prospectively the requirement of a Sales Tax Contract the covenant ofthis Section 4 shall terminate automatically and be of no further force and effect. At the request of an owner ofthe Property or of a person or entity desiring to use the Property for a Relocation Use, the Grantor shall take all necessary action, as promptly as reasonably possible, for the Agency to find, in the exercise of its reasonable discretion, that the Property is or is not "outside the same market area" ofthe Former Site, as referenced above. The provisions of this Section 4 of this Grant Deed may be terminated or amended by a written document signed by the Grantor (or its successor) and the then-current owners of the Property and recorded in the official records of the Recorder ofthe County of San Bernardino, California, without the necessity or requirement of the joinder or consent of any other person, entity or governmental authority. 5. The Grantee covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there will be no discrimination SB200 \:20832.1 2 against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment ofthe Property, nor will the Grantee 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, subtenants, sub lessees or vendees in or on the Property. All deeds, leases or contracts made relative to the Property must contain the following nondiscrimination clauses: (a) In deeds: "The grantee herein covenants by and for itself, its heirs, executors, administrators 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 ofrace, color, creed, religion, sex, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee, or any person claiming under or through the grantee, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, locations, number, use or occupancy of tenants, lessees, subtenants, sub lessees or vendees in or on the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The lessee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons on account ofrace, color, creed, religion, sex, age, marital status, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall the lessee 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, subtenants, sublessees or vendees in the land herein leased." (c) In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee 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, subtenants, sublessees or vendees of the land. 6. The covenants, terms and conditions of this Grant Deed shall have the duration as set forth below: Section 1: until such time as a Certificate of Completion is recorded by the SB200!:20832.\ 3 Grantor or twenty one (21) years from the date of recordation of this Grant Deed, whichever date shall first occur; Section 2: in perpetuity; Section 3: until the termination date of the Redevelopment Plan for the Inland Valley Redevelopment Project; Section 4: until the termination date of the Redevelopment Plan for the Inland Valley Redevelopment Project; Section 5: in perpetuity. The covenants, terms and conditions contained in this Grant Deed are binding for the benefit ofthe Grantor and its successors and assigns, and such covenants run in favor of the Grantor for the entire period that such covenants are in full force and effect, regardless of whether the Grantor is or remains an owner of any land or interest in land to which such covenants relate. The Grantor, in the event of any breach of any such covenants, has the right to exercise all of 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, as provided in the Agreement or by law. The covenants contained in this Grant Deed are for the benefit of and are enforceable only by the Grantor and its successors. SB2001 :20832.1 4 IN WITNESS WHEREOF, the Grantor and the Grantee have caused this instrument to be executed on their behalf by their respective duly authorized officers on this day of ,2001. "GRANTOR" Redevelopment Agency of the City of San Bernardino, By Title: By Title: APPROVED AS TO FORM: The provisions of this Grant Deed are hereby approved and accepted. "GRANTEE" By Title: By Title: [ALL SIGNATURES TO BE ACKNOWLEDGED] SB2001 :20832.1 5 ATTACHMENT No. 10 List of Background Land Use Planning and Development Documents for the City . City of San Bernardino General Plan Amendment (GP A-O 1-0 1) to amend the General Plan allowing development of drive-thru restaurants within the CR-3 land use district, subject to Conditional Use Permit. . City of San Bernardino Development Code Amendment (DCA 01-03) to amend the General Plan allowing development of drive-thru restaurants within the CR-3 land use district, subject to Conditional Use Permit. . Santa Ana Water Quality Control Board, National Pollutant Discharge Elimination System (NPDES) (Section 402) permit. . California Department of Transportation (Caltrans) Encroachment Permit . City of San Bernardino Encroachment Permit . City of San Bernardino Tentative Parcel Map . City of San Bernardino Hazardous Materials PermitlBusiness Plan . City of San Bernardino Development Permit II (inclusive of construction permits) . City of San Bernardino Demolition Permits . City of San Bernardino Tree Removal Permits II-41 Attachment No. 11 [RESERVED -- NO TEXT] 5/15/01 ct SB2001:7B25.B II -42 Altachment No. 12 OFF-5ITE IMPROVEMENTS SCOPE OF WORK Preliminary EetlfNIt. S...d on 84' Rlght~f.w.y Interim Street width to be 84' Right-of-Way HARRIMAN PLACE EXTENSION UTit St_~ Heovy cIuIy aspho~ inclJdIng be.. (5'/11; 0.IlJ ond ~ on-oy Appn>och - L~on TrolIicliP M_O.IlJ HoncIap R...,s -~ __., deor1ng, ~ng, soiI_ GnIc1ng S.F. L.F. S.F. S.F, S.F, EA L.F. EA EA ACRES C.Y. auanaty (tnterim street) 70,000 1,140 3,690 5,860 4,750 2 690 6 4 3 3,620 Quantity (Ultimate _I 8&,600 2,400 5,540 12,100 9,500 2 690 10 6 3 4,690 Conlltrvctlon Related It... TeqKnI'f AC PavemonllDelcu Tlllllk: C<lr*oI S.F. Day 12,950 20 Utllltl.. Olf-Site storm OI1lI..go 18' RCPICPPICMP 42" RCPICPPICMP M_J..-.ction St1JcVes Co1dl 8asIns L.F. L.F. EA EA 12,950 20 450 400 1 3 450 400 1 4 Olf-SiteW.lef~ 12"O.l.PMaln 8- Are ServIce LIItenIIs 6" DIP Hy<tant La_ Z' Domestic SeMce L.8tereI 2" lITIgation 5eMce La_ Fire Hylnnls L.F. L.F. L.F. EA EA EA 1,450 190 350 4 2 6 1,450 190 70 8 4 10 Olf-SlteSOwer~ 8" VCP Main 6" La_ & Wye wlPlJg - L.F. L.F. EA 1,380 430 3 1,380 430 3 Dry umes Edson ServIce & OYerhe8d GTE SeMce & Overtlood EA EA 2 2 2 2 TIPPECANOE AVENUE (S..... Wldonlng) Uril Quonaty Street mpro.,.".nta Heevy cIuIy osphall.lncI.dng be.. (6"/121 0.IlJ and ~ Si_ Hardcap R~ -~ GrecIng S.F. L.F. S.F. EA EA C.Y. 6,840 570 3,600 2 2 4,790 6,840 570 3,600 2 2 4,790 Conetruction Related It.. TmficCc:lf*ol Day 20 Utllltl.. Dry Uti_ GTE SeMce EA Notes: 20 1lis otlactmant No. 12'" -. ~ beoed l4>OIlo preInirelry analysis ofl1olile, .... propoaed Plese 1 project and.... ~ _In 110 nllic '"""ct anaIyIIs 01110 BR, by 110 ()eyaIopa(s cMI0111iMW In _Ion with 110 ~slalIand Cltyslall 2 InIerim Righi of Way of 62' begins _ 280' West of TIppecanoe Ave. WI1h fUI ~ on.... South side of Hamman Place tnt. 3 The 1leveIopar, .... ~ and.... CIty _ COIlIlft cLI1ng.......... 01 preparetion by 110 CIty of...._ _~planslor_PIIce~Prajacl.Io.......IletIUCh__~ plans are c:onsistlenl with 110 ()eyaIopa(s ~pIonlorl1o Plese 1 SIlo Projad. 4 Theftnal_in'\lrOVOmOnI plans lor 110 _ Pllce ~........<< Prajacl. as __ by 110 CIty,In COIlIlftdonwlth....lleveIoparmay_ ad<I1i__oI-..ond.... ~ 0I1UCh-. pnl'/tded, _, IletI10 deveIopar_ nolbe__ to paylor any 0_ costin...,... of.... Han1mon She! 01arg0.