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HomeMy WebLinkAboutCDC/2001-42 ", 1 2 3 4 5 6 7 RESOLUTION NO. CDC/2001-42 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AMENDMENT NO. 2 TO DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND HI-WAY AUTO RECYCLERS, LLC WHEREAS, the Community Development Commission of the City of San 8 Bernardino (the "Commission") is the governing body ofthe Redevelopment Agency of the City of 9 San Bernardino (the "Agency"), a public body corporate and politic, organized and existing pursuant 10 to the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.); 11 and 12 13 WHEREAS, the Agency and Hi-Way Auto Recyclers, LLC, a California limited 14 liability company (the "Developer") entered into that certain 2000 Disposition and Development 15 Agreement dated as of August 14, 2000 (the "2000 Disposition and Development Agreement") for 16 the purpose of implementing the Redevelopment Plan for the Northwest Redevelopment Project by 17 providing for the purchase and redevelopment of certain unimproved lands by the Developer (the 18 "Property"); and 19 20 WHEREAS, the Developer encountered unexpected delays in completing its due 21 diligence investigation regarding the Property and requested that certain provisions of the 2000 22 Disposition and Development Agreement be amended to extend the period of time in which the 23 Developer's due diligence investigation of the Property was to be completed; and 24 25 WHEREAS, the Agency approved an amendment ("Amendment No.1") to the 2000 26 Disposition and Development Agreement (the 2000 Disposition and Development Agreement as 27 amended by Amendment No. I being hereinafter referred to as the "DDA"), extending the period 28 of time in which the Developer's due diligence investigation of the Property was to be completed; SB2001:29309.1 I CDC/2001-42 1 and 2 3 WHEREAS, on July 26, 2001, the Developer delivered to the Agency its Due 4 Diligence Certificate (as that term is defined in the DDA) with respect to the Property; and 5 6 WHEREAS, the DDA provides that the Closing Date (as that term is defined in the 7 DDA) of the escrow established in connection with the sale of the Property by the Agency to the 8 Developer (the "Escrow") shall be sixty (60) days after delivery of the Due Diligence Certificate; 9 and 10 11 WHEREAS, the DDA provides that on or before 12:00 noon on the business day 12 preceding the Closing Date, the Developer must deliver to the Escrow Holder (as that term is defined 13 in the DDA), among other things, evidence of construction financing in favor of the Developer 14 already funded for the project (as that term is defined in the DDA); and 15 16 WHEREAS, the Developer has requested an extension ofthe period of time between 17 delivery of the Due Diligence Certificate and the Closing Date so that it can meet its obligation to 18 deliver evidence of construction financing already funded for the Project; and 19 20 21 22 23 WHEREAS, Amendment No. 2 to the DDA ("Amendment No.2") has been 24 presented to this Commission for approval. 25 26 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION 27 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN 28 BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SB2001:29309.1 2 WHEREAS, the Agency is willing to extend the period of time between delivery of the Due Diligence Certificate and the Closing Date; and CDC/2001-42 1 2 3 4 5 6 7 8 Section 1. as Exhibit "A". The Commission hereby approves Amendment No.2 attached hereto Section 2. The Executive Director ofthe Agency is hereby authorized to execute Amendment No.2 on behalf ofthe Agency in substantially the form attached hereto, together with such changes therein as may be approved by the Executive Director and Agency Special Counsel. The Executive Director or such other designated representative ofthe Agency is further authorized to do any and all things and take any and all actions as may be deemed necessary or advisable to 9 effectuate the purposes of Amendment No.2. 10 III 11 III 12 III 13 III 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB2001:29309.1 3 " I CDCj2001-42 1 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE 2 DIRECTOR TO EXECUTE AMENDMENT NO. 2 TO DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN REDEVELOPMENT AGENCY OF 3 THE CITY OF SAN BERNARDINO AND HI-WAY AUTO RECYCLERS, LLC 4 5 6 7 Section 3. This Resolution shall become effective immediately upon its 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, 10 held on the 15th 11 12 Commission ESTRADA 13 LIEN MCGINNIS 14 SCHNETZ SUAREZ 15 ANDERSON McCAMMACK 16 day of October ,2001, by the following vote, to wit: AYES X X X X X X X NAYS ABSTAIN ABSENT /. / 17 18 19 20 21 22 23 24 By: 25 26 27 28 SB2001:29309.! . /, &cretary Theforegoing Resolution is hereby approved this /d"7/1" day of October ,2001. ~ 7. {/ /( // r.,~/' JUdi~~V;;e~'c<i;airperson Community Development Commission of tlte City of San Bernardino 4 CDC/2001-42 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss 2 CITY OF SAN BERNARDINO ) 3 I, Secretary of the Community Development Commission ofthe City of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached 4 copy of Community Development Commission of the City of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. 5 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal 6 of the Community Development Commission of the City of San Bernardino this day of ,2001. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Secretary of the Community Development Commission of the City of San Bernardino S82001:29309.1 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB2001 :29309.1 CDC/2001-42 EXHIBIT "A" AMENDMENT NO.2 TO 2000 DISPOSITION AND DEVELOPMENT AGREEMENT (Hi-way Auto Recyclers) 6 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 201 North "E" Street, Suite 301 San Bernardino, California 92401 (Space Above Line for Use By Recorder) AMENDMENT NO.2 TO DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND HI-WAY AUTO RECYCLERS, LLC 582001:28769.1 AMENDMENT NO.2 TO 2000 DISPOSITION AND DEVELOPMENT AGREEMENT (Hi-Way Auto Recyclers) THIS AMENDMENT NO. 2 TO 2000 DISPOSITION AND DEVELOPMENT AGREEMENT (Hi-Way Auto Recyclers) dated as of October 15,2001 ("Amendment No.2") is entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic (the "Agency"), and HI-WAY AUTO RECYCLERS, LLC, a California limited liability company (the "Developer"). The Agency and the Developer enter into this Amendment No.2 with reference to the following facts: Recitals WHEREAS, the Agency and the Developer entered into that certain 2000 Disposition and Development Agreement (Hi-Way Auto Recyclers), dated as of August 14, 2000 (the "2000 Disposition and Development Agreement"), with respect to that certain unimproved property generally situated at Industrial Parkway (the "Property"); and WHEREAS, the Agency and the Developer subsequently entered into that certain Amendment No.1 to 2000 Disposition and Development Agreement dated as of February 1,2001 ("Amendment No.1 ") pursuant to which the period of time in which the Developer's due diligence investigation of the Property was to be completed was extended (the 2000 Disposition and Development Agreement as amended by Amendment No.1 being hereinafter referred to as the "Agreement"); and WHEREAS, on July 26, 2001, the Developer delivered the Due Diligence Certificate (as that term is defined in the Agreement) with respect to the Property; and WHEREAS, the Agreement provides that the Closing Date (as that term is defined in the Agreement) of the escrow established in connection with the sale of the Property by the Agency to the Developer (the "Escrow") shall be sixty (60) days after delivery of the Due Diligence Certificate; and WHEREAS, the Agreement provides that on or before 12:00 noon on the business day preceding the Closing Date, the Developer must deliver to the Escrow Holder (as that term is defined in the Agreement), among other things, evidence of construction financing in favor of the Developer already funded for the Project (as that term is defined in the Agreement); and WHEREAS, the Developer has requested an extension of the period of time between delivery of the Due Diligence Certificate and the Closing Date so that it can meet its obligation to deliver evidence of construction financing already funded for the Project; and 5B2oo1:28769.1 1 WHEREAS, the Agency is willing to extend the period of time between delivery of the Due Diligence Certificate and the Closing Date. NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND SUCH OTHER GOOD AND VALUABLE CONSIDERATION RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED BY THE PARTIES, THE AGENCY AND THE DEVELOPER AGREE AS FOLLOWS: Terms 1. The Recitals set forth above are hereby incorporated into this Amendment No.2 by this reference, as though fully set forth herein. 2. Except as hereby amended, the Agreement is in all respects ratified and confirmed and all the terms and provisions and conditions thereof shall be and remain in full force and effect. 3. Section 2.03 of the Agreement is amended to read in its entirety as follows: "Section 2.03. Opening and Closing of Escrow. (a) The transfer and sale of the Property shall take place through an Escrow (the "Escrow") to be administered by Chicago Title Company Escrow Department or such other escrow or title insurance company mutually agreed upon by the Seller and the Agency (the "Escrow Holder"). The Escrow shall be deemed open ("Opening of Escrow") upon the receipt by the Escrow Holder of a copy of this Agreement fully executed by both parties hereto and the Deposit. The Escrow Holder shall promptly confirm to the parties the escrow number and the title insurance order number assigned to the Escrow. (b) In the event that the Developer has not delivered its Due Diligence Approval Certificate (as defined in Section 2.10 hereof) to the Agency and the Escrow Holder within three hundred thirty seven (337) days from the Opening of Escrow for any reason, then in such event this Agreement shall terminate upon written notice to the Escrow Holder from either the Agency or the Developer, whereupon the Deposit shall be returned by the Escrow Holder to the Developer (less an amount equal to the customary and reasonable escrow cancellation charges payable to the Escrow Holder) without further or separate instruction to the Escrow Holder, and the parties shall ~ach be relieved and discharged from all further responsibility or liability under this Agreement. 5B2001:28769.1 2 (c) Provided that the Developer has delivered its Due Diligence Approval Certificate within the period of time authorized in Section 2.03 (b), then the Closing Date of the Escrow shall occur within two hundred forty five (245) days thereafter, subject to the provisions of Section 2.16 and Section 2.17. The words "Close of Escrow," "Closing Date" and "Closing" shall mean and refer to the date when the Escrow Holder is in receipt of the Purchase Price and the related Escrow documents of the parties and the Escrow Holder is in a position to comply with the final written escrow closing instructions of the parties and cause the Agency Grant Deed for the Property to be recorded and the policy of title insurance for the Property to be delivered to the Developer. " 4. Section 2.17 of the Agreement is amended to read in its entirety as follows: "Section 2.17. The Agency's Conditions Precedent to Close of Escrow. The Agency's obligation to convey the Property to the Developer shall be conditioned upon the fulfillment of the following conditions precedent, all of which shall be satisfied (or waived in writing pursuant to Section 2.19) prior to the Close of Escrow: (1) the Developer has accepted the condition of the Property and submitted its Due Diligence Approval Certificate to the Escrow Holder on or before the date set forth in Section 2.10 of this Agreement; (2) the Developer has accepted the condition of title of the Property on or before the date set forth in Section 2.13; (3) the Developer shall not be in default of any material term of this Agreement to be performed by the Developer hereunder and each representation and warranty of the Developer made in this Agreement shall remain true and correct; and (4) the Developer shall be satisfied (or waive satisfaction) of each of the conditions precedent set forth in Section 2.16 and the Escrow shall be in a condition to close within five hundred eighty two (582) days following the Opening of Escrow (subject to Section 2.15, if applicable)." 582001:28769.1 3 5. Exhibit "D" (SCHEDULE OF PERFORMANCE) to the Agreement is amended to read in its entirety as set forth in Exhibit "A" to this Amendment No.2. 6. If any term or provision of this Amendment No.2 or the application thereof to certain circumstances is declared invalid or unenforceable, the remainder of this Amendment No.2, or the application of the term or provision to circumstances other than those to which it is declared invalid or unenforceable, will not be affected thereby, and each term and provision of this Amendment No. 2 will be valid and enforceable to the fullest extent permitted by law. 7. The persons executing this Amendment No.2 warrant that they are duly authorized to execute this Amendment No.2 on behalf of and bind the parties each purports to represent. 8. This Amendment No.2 may be executed by the parties hereto in duplicate originals, each of which shall be considered an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No.2 as of the dates set forth below. AGENCY Date/C' h f ft / / / APPROVED AS TO FORM: -~ \..~ Agency Specl ounsel DEVELOPER Date: /o-/? - cJ I Member By: <- Date: By: Member [All Signatures Must Be Notarized] 8B2oo 1 :28769.1 4 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) On October 23. 2001 before me, Lisa A. Gomez. Notary Public. personally appeared Gary Van Osdel . personally known to me (or proved to me on the b3sis of s3tisf3ctory evidence) to be the personts) whose namets) iSfafe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacityfiesj, and that by his/her/their signaturets) on the instrument the personts). or the entity upon behalf of which the personts) acted, executed the instrument. WITNESS my hand ~nd offigial seal. Signature USA A. GOMEZ Commission # 1198927 z ~ .... Notary Pub~Tc - Colifomia ~ J.. . San Bernardino Counly ~ M(Comm. ~resOclI8,2002 ~~~j.-.:::;y-~............... -- - -- ~ , I (Seal) CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT f State of California County of S:Jr'l &(Ylo.rdlt1 0 On lern-ol Dale , before me, lZu05efUf personally appeared Place Notary Seal Above }" G personally kr::lQ\Aln to me ~ proved to me on the basis of satisfactory evidence to be the person()(b whose nam~ @fare subscribed to the within instrument and acknowledged to me that@Joho/IR8Y executed the same in @S1her/their authorized capacity(lM>), and that by ~hor:JtAQir signature~on the instrument the person(~, or the entity up behalf of w. hich t / personw acted, exe tel:l the instr nt. ., OPT/6 AL Though the information below is not required by law!'t, ay prove valuable to perso s relying on the document and could prevent fraudulent removal an eattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual D Corporate Officer - Title(s): D Partner - D Limited D General D Attorney in Fact D Trustee C Guardian or Conservator C Other: Signer Is Representing: Number of Pages: RIGHT THUMBPRINT OF SIGNER Top of thumb here @1999 National Notary Association. 9350 De Solo Ave., P.O. Box 2402 . Chatsworth, CA 91313-2402. www.nalionalnotary.org Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827 ~ ~ I 110 EXHIBIT "N AMENDED SCHEDULE OF PERFORMANCE SB2001:28769.1 5 EXHIBIT "D" 2000 HI-WAY AUTO RECYCLERS, LLC, DISPOSITION AND DEVELOPMENT AGREEMENT SCHEDULE OF PERFORMANCE Unless otherwise indicated herein, the meaning of words and phrases used in this Schedule of Performance shall be as set forth in the Agreement. Within five (5) days following execution of the Agreement by the Agency and the Developer Within fifteen (15) days of the Opening of Escrow During Due Diligence Period Within three hundred thirty seven (337) days from the Opening of Escrow Within five (5) days of receipt of Developer's Title Objection Notice and Developer's Survey Objection Notice, if any Within five (5) days of receipt of Agency's Title Notice SB2001 :28769.1 Developer shall deliver to Escrow Holder the sum ofTen Thousand Dollars ($10,000.00) Escrow opened upon receipt by the Escrow Holder of a fully executed copy of the Agreement and the Deposit from the Developer. Agency shall deliver originals of Due Diligence Items (Section 2.08) Agency shall deliver to the Developer a preliminary title report or title commitment for a CL T A extended coverage policy of title insurance Developer must submit development project site plan approval application for the Project to the City for City review and approval Developer shall deliver its Due Diligence Approval Certificate to the Agency and the Escrow Holder Developer shall submit Developer's Title Objection Notice and Developer's Survey Objection Notice, if any, to the Agency Agency to deliver Agency's Title Notice and Agency's Survey Notice, if any, to Developer Developer to deliver an acceptance or rejection of the items in the Agency's Title Notice 6 Within ten (10) days of receipt of Agency's Survey Notice Within two hundred forty five (245) days after the delivery of a Due Diligence Approval Certificate from the Developer No later than three (3) business days prior to the Closing Date On or before 12:00 noon on the business day preceding the Closing Date At Close of Escrow Within three (3) business days following the Closing Date. Promptly following City approval of site plan of improvement for the Project Within ninety (90) days following Close of Escrow SB2001:28769.1 Developer to deliver an acceptance or rejection of the items in the Agency's Survey Notice The Close of Escrow shall occur Escrow Holder shall prepare for approval by the Developer and the Agency a Closing Statement (Section 2.21) The Agency shall deliver to the Escrow Holder a grant deed for the Property to the Developer The Agency shall deliver to the Escrow Holder copies of the documents set forth in Section 2.06 of the Agreement The Developer shall deliver to the Escrow Holder copies of the documents set forth in Section 2.07 of the Agreement Developer deposits the balance of the Purchase Price, less the Deposit amount, with the Escrow Holder Escrow Holder shall deliver to Developer a conformed copy of the Agency's Grant Deed, as recorded, and the policy of title insurance issued in favor of the Developer Escrow holder shall deliver to the Agency the Purchase price, less sums paid to discharge any liens, escrow costs and any prorations chargeable to the Agency Developer completes and submits construction design plans and specifications to City Building Department for issuance of necessary building permits Developer commences work of improvement of Project on the Property 7 Within two hundred seventy (270) days following commencement of work of improvement of the Project Promptly following completion of improvements to the Property Developer submits written request to the Agency for issuance of Certificate of Completion; but by a date not later than one (1) year following Close of Escrow 5B200 1 :28769.1 Developer substantially completes improvement of the Project Agency issues a Certificate of Completion to Developer a