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HomeMy WebLinkAboutCDC/2002-17 (See Compani<mResolutions CDC/2002-18, 2002-121) RESOLUTION NO. CDC/2002-17 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING A CERTAIN REDEVELOPMENT PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND LAMESA RV CENTER, INC., (CENTRAL CALIFORNIA) 4 5 6 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") 7 has been presented with a proposal to enter into a certain 2002 Redevelopment Participation 8 Agreement with LaMesa RV Center, Inc., ("LaMesa"), for the purpose of increasing 9 employment opportunities, encouraging redevelopment activities and economic development 10 within the South Valle Redevelopment Project Area of the Agency; and 11 WHEREAS, the implementation of said 2002 Redevelopment Participation Agreement 12 will encourage the goals and objectives of the Agency by providing employment opportunities 13 for the residents of the City of San Bernardino, California (the "City"), and the South Valle 14 Redevelopment Project Area for which the Agency shall remit certain annual employment 15 subsidy payments to LaMesa based upon the index of financial benefits accruing to the City 16 calculated upon the financial performance of the project identified in the 2002 Redevelopment 17 Participation Agreement; and 18 WHEREAS, the Agency is required pursuant to the 2002 Redevelopment Participation 19 Agreement to remit certain payments to LaMesa related to the number of employment 20 opportunities generated by the new sales location within the South Valle Redevelopment Project 21 Area based upon an index of financial performance of LaMesa which has a direct positive 22 financial benefit upon the City General Fund; and 23 WHEREAS, the Commission deems it desirable to approve and authorize for execution 24 the form of the 2002 Redevelopment Participation Agreement by and between the Agency and 25 LaMes a substantially in the form as attached hereto for the purpose of encouraging -1- CDC/2002-17 redevelopment activities and economic development and providing increased employment 2 opportunities all as further set forth in the 2002 Redevelopment Participation Agreement. 3 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION, AS 4 THE GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN 5 BERNARDINO, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 6 Section 1. The Commission hereby finds and determines that the recitals as contained 7 herein are accurate and correct in all respects. 8 Section 2. The Commission hereby approves the form of the 2002 Redevelopment 9 Participation Agreement substantially in the form as attached hereto with such additional 10 changes and modifications as deemed necessary by the City Attorney to implement the intent of 11 this Resolution and said 2002 Redevelopment Participation Agreement. 12 Section 3. The Commission hereby authorizes the execution of the final form of the 13 2002 Redevelopment Participation Agreement by the Agency Chairperson or Executive 14 Director and the Agency Secretary when such final form thereof has been presented for 15 execution by the City Attorney. 16 Section 4. The approval, execution and implementation of the 2002 Redevelopment 17 Participation Agreement does not constitute a "Project" within the provisions or meaning of the 18 California Environmental Quality Act of 1970, as amended ("CEQA"), and no environmental 19 review is required in connection with the approval, execution and implementation of the 2002 20 Redevelopment Participation Agreement in the manner and with the limitations as set forth 21 therein limiting the liability of the Agency with respect to CEQA and the approval of the 2002 22 Redevelopment Participation Agreement. 23 Section 5. This Resolution shall take effect from and after the date of adoption and shall 24 not be repealed or amended to adversely affect the rights of the parties thereto so long as the 25 -2- CDc/2002-17 2002 Redevelopment Participation Agreement remains in effect and requires performance 2 obligations of the parties. 3 IIII 4 IIII 5 IIII 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 -3- CDC/2002-17 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING A CERTAIN REDEVELOPMENT PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND LAMESA RV CENTER, INC., (CENTRAL CALIFORNIA) 3 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a j t. regular meeting thereof, held on the 15th day of April, 2002, by the following vote to wit: 6 7 Commission Members: Ayes Nays Abstain Absent ESTRADA X LIEN X MCGINNIS ~ DERRY ~ SUAREZ X ANDERSON X MC CAMMACK X 8 9 10 11 12 13 14 15 7Y The foregoing resolution is hereby approved this I f::T}1 ,2002. 16 April 17 18 19 Approved as to form and Legal Content: 20 21 By: 22 23 24 p:\development dept\lisalresolutions\1 sa-part agmt cdc.doc 25 -4- CDC/2002-17, , , REDEVELOPMENT AGENCY OF THE CITY cHE~~ ll2 HAY 20 All :41 2002 REDEVELOPMENT PARTICIPATION AGREEMENT {LaMesa RV Center, Inc. (Central California)) THIS 2002 REDEVELOPMENT PARTICIPATION AGREEMENT (LaMesa RV Center, Inc. (Central California)) (this "Agreement") is dated as of April 15, 2002, and is entered into by and between LaMesa RV Center, Inc., a California corporation (the "Participant") and the Redevelopment Agency of the City of San Bernardino, 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 Sections 33000, et seq. (the "Agency"). FOR GOOD AND VALUABLE CONSIDERATION, THE SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, AND PROMISES AND COVENANTS OF THE PARTIES SET FORTH PARTICIPANT AND THE AGENCY HEREBY AGREE, AS FOLLOWS: RECEIPT AND THE MUTUAL HEREIN, THE SECTION 1. Purpose of Agreement. The purpose of this Agreement is to provide for the redevelopment and economic reuse of certain lands (the "Site") and the creation of jobs within the City by the Participant. The Site is more particularly described in Attachment "A" to this Agreement, which is incorporated herein by this reference. The Participant shall acquire a leasehold interest in the Site, with an option to purchase the Site in the future, and shall design, construct and finance certain improvements on the Site, which upon completion, shall be suitable for operation by the Participant as a regional retail sales and service facility for new recreational vehicles (the "RV Store") . SECTION 2. Defined Terms. In addition to the certain terms that are defined in other sections Agreement, the following words and phrases are used Agreement, as follows, unless the particular context of a word or phrase requires another interpretation: usage of of this in this usage of (a) "Accounting Year" means and refers to the twelve calendar month time period commencing on the Opening Date and, thereafter, each successive twelve calendar month period, with the last Accounting Year ending on the tenth (loth) anniversary of the Opening Date. 582002: 9967.2 1 CDC/2002-17 (b) "City" means the City of San Bernardino. (c) "New Jobs" means and refers to an aggregate number of not less than forty (40) new hourly wage, salary or commissioned employment positions to be created by the Participant on the Site and, thereafter, maintained, as set forth in Section 10 of this Agreement. (d) "New Job" means and refers to each of the hourly wage, salary or commissioned employment position work descriptions of each of the employees of the Participant whose work position at the Site is eligible to be included among the New Jobs for the purpose of satisfying the New Jobs covenant of the Participant set forth in Section 10 of this Agreement. (e) "Opening opened for retail public, which date Date" means the date on which the RV Store is sales business on the Site to the general shall be on or before August 1, 2002. (f) "Permitted Transfer" means and refers to any of the following types of Transfers by the Participant, where the person or entity to which such Transfer is made, expressly assumes the obligations of the Participant under this Agreement in a written instrument satisfactory to the Agency: (1) Any Transfer of Participant that does not operational control of the Site stock change or the or equity of the management RV Store; the or (2) Any Transfer of any interest in the Participant, irrespective of the percentage of ownership, or the Participant's interest in the Site (i) to any other owner of any interest in the Participant; or (ii) to any affiliate of or other entity related to the Participant, or (iii) to any other entity in which any holder of an interest (including any beneficial interest) in the Participant is a manager, a shareholder or member (including a beneficial participant); and (3) Any Transfer by the Participant of an interest in one or more of the franchise agreements with manufacturers of recreational vehicles authorizing the sale of such recreational vehicles on the Site to a qualified operator who continues to do business under such franchise agreement at the Site, subject to the terms and conditions of this Agreement. The term "qualified operator" means and refers to any franchisee of a recreational vehicle manufacturer who has been approved by such recreational vehicle manufacturer as a transferee of the interest of the Participant at the Site. SB2002:9967.2 2 CDC/2002-17 (g) "RV Store" means the recreational vehicle retail sales and service business to be conducted on the Site by the Participant, commencing on or before August 1, 2002. (h) "Transfer" means and refers to any of the following: (1) Any total or partial sale, assignment, conveyance, trust, power, or transfer in any other mode or form, by the Participant of more than 49% interest (or a series of such sales, assignments and the like that, in the aggregate, result in a disposition of more than a 49% interest) in this Agreement, the Site or the RV Store; or (2) Any total or partial sale, assignment, conveyance, or transfer in any other mode or form, of or with respect to any interest in the Participant (or a series of such sales, assignments and the like that, in the aggregate, result in 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 Participant(or a series of such sales, assignments and the like that, in the aggregate, result in a disposition of more than a 49% interest) . SECTION 3. Parties to the Agreement. (a) The parties to this Agreement are the Participant and the Agency. The City is not a party to this Agreement. (b) The address of the Participant for purposes of this Agreement is 7430 Copley Park Place, San Diego, California. As a condition precedent to the Agency's obligations under this Agreement, the Participant shall provide the Agency with satisfactory evidence of the legal formation and existence of the Participant and the good standing of the Participant to transact business within the State of California and to occupy, possess and/or hold title to the Site and the corporate action authorizing the execution of this Agreement by the persons signing below on behalf of the Participant. (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. The Agency's address is 201 North "E" Street, Suite 301, San Bernardino, California. 8B2002: 9967.2 3 CDC/2002-17 SECTION 4. Change in Management or Control of the Participant--Assignment and Transfer. (a) The Participant hereby acknowledges that the qualifications and identity of the Participant are of particular importance to the Agency and that the Agency is relying on the specific qualifications and identity of the Participant in entering into this Agreement with the Participant. As a consequence, Transfers are permitted only as expressly provided in this Agreement. (b) Except as expressly permitted in this Agreement, the Participant shall not 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, prior to the third anniversary of the Opening Date, other than a Permitted Transfer. The Participant is not required to give the Agency advance notice of a Permitted Transfer. Any Transfer made in contravention of this Section 4 shall be voidable at the election of the Agency and, if avoided, shall be deemed to be a default under this Agreement by the Participant, whether or not the Participant knew of or participated in such Transfer. (c) For any Transfer, the proposed transferee must satisfactorily demonstrate successful experience in the ownership, operation, and management of sales and service operations comparable in size, quality and volume of sales and service business activity to the RV Store. All instruments and other legal documents proposed to effect any Transfer shall be submitted to the Agency for review, prior to the Transfer, and the written approval or disapproval of the Agency shall be provided to the Participant within thirty (30) calendar days of the Agency's receipt of the Participant's request. Agency approval of a Transfer shall not be unreasonably withheld, delayed or conditioned. 582002: 9967.2 4 CDC/2002-17 SECTION 5. Participant Solely Responsible for Other Approvals. The Participant shall be solely responsible for applying for and obtaining any and all permits and approvals that may be required by the City or any other governmental agency with jurisdiction over the Site or the business operations or the RV Store, before commencement of improvement of any building or structure on the Site or operation of the RV Store on the Site. The Participant shall also be solely responsible for obtaining all necessary consents or approvals required from third-party property owners or tenants, as may be necessary or appropriate. SECTION 6. [RESERVED - NO TEXT]. SECTION 7. Participant Representations, Warranties and Covenants Regarding Other Recreational Vehicle Outlets. (a) For the purpose of satisfying the requirements of Health and Safety Code Section 33426.7(e), to the extent applicable, the Participant hereby represents and warrants to the Agency that the opening of the RV Store on the Site is not a "relocation" of the RV Store "within the same market area", as these terms are defined in California Statutes of 1999, Chapter 462, Section 3. (b) The Participant for itself, its successors and assigns hereby covenants and agrees that, from the date of this Agreement and continuing until the tenth (lOth) anniversary of the Opening Date, neither the Participant, any successor- in- interest to the Participant, any person associated with the Participant, nor any entity related to the Participant will establish a recreational vehicle retail sales and service facility within a twenty (20) mile radius of the Site. SECTION 8. RV Store Operation Covenants of the Participant. (a) The Participant hereby makes the following representations, covenants and warranties, as of the date of its execution of this Agreement, and hereby acknowledges that the execution of this Agreement by the Agency is made in material reliance by the Agency on each such covenant, representation and warranty: (1) the Participant shall cause the RV Store to be open for business to the general public on the Site on or before August I, 2002; and (2) actions, There are no pending or threatened claims, allegations or lawsuits of any kind, whether for 5B2002: 9967.2 5 CDC/2002-17 personal injury, property damage, landlord-tenant disputes, property taxes or otherwise, that are not covered by insurance or that expose the Participant to liability of more than $100,000.00 on any given claim, action, allegation or lawsuit, or that could materially and adversely affect or prevent the performance of any provision of this Agreement by the Participant, nor to the best of Participant's knowledge, is there any governmental investigation of any type or nature pending or threatened against the Participant or any of its principals or relating to the Site, the RV Store or the transactions contemplated in this Agreement and the Participant will hold the Agency harmless from any and all liability, loss, cost and expense resulting from claims arising or becoming applicable during or as a result of the Participant's possession or ownership of the Site. For purposes of this subsection, the phrases "to the best of Participant's knowledge" or "to Participant's knowledge" shall mean the actual knowledge of Jim Walters, Executive Vice President of the Participant, or James Kimbrell, President of the Participant. (b) If after the RV Store is open for business, the RV Store ceases to operate for a continuous period of ninety (90) calendar days, the obligation of the Agency to pay any Employment Subsidy to the Participant shall cease for the entire Accounting Year or Accounting Years in which any part of such extended cessation of operations of the RV Store occurs. SECTION 9. Agency Employment Subsidy. (a) "Site Employment Index" refers to the total amount of local sales and use taxes paid to the City, under Revenue and Taxation Code Section 7200, et seq. (as may hereafter be amended, substituted or modified by any successor local sales and use tax law), on the gross receipts of the Participant from the sale or lease of all tangible personal property from the RV Store in each Accounting Year, in excess of Two Hundred Thousand Dollars ($200,000). The Site Employment Index correlates the amount of sales and use taxes generated and the number of employees required to generate such sales and use taxes. 882002:9967.2 6 CDC/2002-17 (b) "Employment Subsidy" means and refers to the amount derived by multiplying the Site Employment Index -for each Accounting Year by the following percentages for each respective Accounting Year: Accounting Year 1 - 40% Accounting Year 2 - 50% Accounting Year 3 - 55% Accounting Year 4 - 60% Accounting Year 5 - 65% Accounting Year 6 - 65% Accounting Year 7 - 70% Accounting Year 8 - 70% Accounting Year 9 - 75% Accounting Year 10 -75% [i. e., in Accounting Year 1, sales and use tax revenues receipts of the Participant - Subsidy] . Si te Employment Index (total to the Ci ty from the gross $200,000) x .40 = Employment (c) The precise amount of the Employment Subsidy shall be determined by the Agency for each Accounting Year by reference to Revenue and Taxation Code Sections 7200, et ~., sales and use tax remittance advice or information provided to the City by the State Board of Equalization related to the operation of the RV Store on the Site by the Participant and the foregoing percentages. Upon request by the Agency, the Participant shall provide the Agency with copies of sales and use tax collection and remittance accounting records prepared by the Participant during any Accounting Year and submitted to the State Board of Equalization. If Revenue and Taxation Code Sections 7200, et seq., are amended, substituted or modified in a manner that reduces the total amount of local sales and use taxes paid to the City on the gross receipts of the Participant from the sale or lease of all tangible personal property from the RV Store on the Site below the levels that would otherwise be allocated and paid to the City under Revenue and Taxation Code Sections 7200, et seq., in effect on the date of this Agreement, then the Employment Subsidy shall be computed in each such Accounting Year in accordance with such amendment, substitution or modification of Revenue and Taxation Code Sections 7200, et ~. (d) Subject to the express conditions precedent that the RV Store is open for business to the general public on the Site on or before August 1, 2002, and the satisfaction of all other terms and conditions of this Agreement by the Participant, the Agency shall begin annual disbursement of the Employment Subsidy to the Participant, on the thirtieth calendar day following each of the first through the tenth anniversaries of the Opening Date, in 582002: 9967.2 7 CDC/2002-17 exchange for the New Jobs creation and maintenance covenant set forth in Section 10. (e) The Agency shall make payments under subsection (d) from legally available funds of the Agency. Such pledge of legally available funds is expressly subject to the prior pledge of such funds to the payment of existing debts, obligations, notes, bonds and other forms of indebtedness of the Agency and any extensions or refinancings of such existing debt, etc. Although, one of the elements of the Site Employment Index is the sales and use taxes generated from the Site, the Agency is not entitled to receive local sales and use tax revenues and, thus, cannot pay and is not promising to pay sales or use tax revenues to the Participant. SECTION 10. Covenant of the Participant to Create New Jobs on the Site. (a) Subject to the terms of this Agreement, the Participant hereby covenants and agrees to exercise its best efforts to create and, thereafter, maintain New Jobs on the Site, in exchange for receipt of the Employment Subsidy related to such New Jobs, as follows: (1) within twelve (12) months following the Opening Date, at least twenty-five (25) New Job positions shall have been created and be maintained on the Site; and (2) within twenty four (24) months following the Opening Date, an aggregate of at least thirty (30) New Job positions shall have been created and be maintained on the Site; and (3) within thirty six (36) months following the Opening Date, an aggregate of at least forty (40) New Job positions shall have been created and be maintained on the Site; and (4) thereafter, on each of the next seven (7) anniversaries of the Opening Date, there shall remain a total of, at least, forty (40) New Job positions being maintained on the Site. 5B2002:9967.2 8 CDC/2002-17 (b) An employee is eligible to be classified as holding a New Job position, when each of the following conditions exist: (1) the employee is paid Ten Dollars ($10.00) salary or commission; an hourly wage of at least per hour or an equivalent (2) the employee is assigned to work (or is eligible to work) at least One Thousand Seven Hundred and Fifty (1,750) hours per year; (3) the employee is based at the Site; and (4) the employee started working for the Participant on or after March 1, 2002. (c) Within thirty (30) days of the first anniversary of the Opening Date and, thereafter, on each of the following ten (10) anniversaries of the Opening Date, the Participant shall file a written affidavit with the Agency's Executive Director, certifying, under penalty of perjury under the laws of the State of California, the Participant's compliance with the New Jobs creation and maintenance covenant set forth in this Section 10. The Participant's affidavit shall include a certification that each employee who is claimed by the Participant to have held a New Job position during the preceding year satisfies the requirements of Section 10 (b) and, shall include appropriately detailed payroll accounting information relating to the total hourly wage compensation amounts paid to such persons, the total number of hours worked by such persons and the total number of persons who were recruited, hired or released from employment for each New Job position. Such annual affidavit need not identify any employee by name, by specific job description nor by new hire date, and the payroll accounting information may aggregate the hours worked and wages paid to all persons claimed by the Participant to hold New Job positions. (d) The Participant agrees to allow the Agency or its agents access to inspect the payroll accounting records of the Participant relating to the New Jobs and the confirmation by the Agency of the information included in each annual affidavit of the Participant, at reasonable times, upon reasonable prior written notice, and without cost charged by the Participant to the Agency. 5B2002: 9967.2 9 CDCj2002-17 SECTION 11. Participant Covenant Regarding Maintenance of the Site and the RV Store. (a) The Participant for itself, its successors and assigns hereby covenants and agrees that from and after the Opening Date, all areas of the Site and the RV Store subject to public view (including all other improvements constructed or installed following the Opening Date, including paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained by the Participant in good repair and in a neat, clean and orderly condition customary in the new recreational vehicle sales and service industry, ordinary wear and tear excepted. (b) If at any time following the Opening Date, there is an occurrence of an adverse condition in contravention of the general maintenance standard described in the preceding paragraph (a "Maintenance Deficiency"), then the Agency shall notify the Participant in writing of such Maintenance Deficiency, giving Participant sixty (60) days from receipt of such notice to cure the Maintenance Deficiency. If the Participant fails to cure or commence to cure the Maintenance Deficiency, within the time allowed, any sales or use tax generated from the Site during the pendency of such Maintenance Deficiency shall not be counted in determining Site Employment Index under Section 9. Nothing in this Section 11 shall be deemed to preclude the Participant from making any alterations, additions, or other changes to any improvement (including landscaping) on the Site following the Opening Date. Any such alterations shall comply with the Redevelopment Plan and applicable development regulations of the City. SECTION 12. Covenant of Participant to Payor Cause to Be Paid Property Taxes on the Site. The Participant hereby covenants and agrees to payor cause to be paid, prior to delinquency, all real property, personal property and possessory interest taxes, if any, assessed against the Site, the RV Store or the business inventory or operations of the Participant on the Site. The Participant shall provide the Agency with written evidence of the payment of all such taxes, upon request of the Agency's Executive Director. SECTION 13. Obligation to Refrain from Discrimination. The Participant covenants and agrees for itself, its successors, assigns and every successor-in-interest to the Site or the RV Store or any portion thereof, 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 original or ancestry, in the sale, lease, sublease, transfer, use occupancy, tenure or enjoyment of the Site or operation of the RV Store. Further, the Participant, 5B2002:9967.2 10 CDC/2002-17 or any person claiming under or through it, shall not 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 on the Site or operation of the RV Store. SECTION 14. Form of Nondiscrimination and Nonsegregation Clauses. The Participant shall refrain from restricting the sale, lease, sublease, rental, transfer, use, occupancy, tenure or enjoyment of the Site (or any portion 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 to the Site or the RV Store shall contain or be subj ect 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, marital 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 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] : "The 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, 882002:9967.2 11 CDC/2002-17 lessees, sublessees, tenants or vendees in the land herein lease." (3) [in material contracts] : "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 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." SECTION 15. [RESERVED - NO TEXT.] SECTION 16. Defaults--General. Failure or delay by a party to perform any term or provision of this Agreement constitutes a default under this Agreement. The party in default must immediately commence to cure, correct, or remedy such defaul t, and shall diligently complete such cure, correction or remedy promptly upon receipt of written notice of such default. The party claiming that a default or breach exists shall give written notice of default, specifying the claimed default. 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 17. Bankruptcy and Insolvency of Participant. If the Participant files for bankruptcy protection or reorganization or becomes the subject of any proceedings under the bankruptcy laws of the United States, or the Participant becomes insolvent, or a receiver is appointed for the Participant under state or federal law, the Participant shall be in material default of this Agreement. SECTION 18. Insti tution of Legal Actions. Subj ect to the default provisions of Section 16, 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 purposes 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 582002: 9967.2 12 CDCj2002-17 County of San Bernardino, State of California, or in the United States District Court for the Central District of CalifQrnia. SECTION 19.Applicable Law. The laws California shall govern the interpretation this Agreement. of and the State enforcement of of SECTION 20. Rights 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 21. Inaction Not a Waiver of Default. Any failure or delay by a party in asserting any of its rights or remedies regarding 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 that it may deem necessary to protect, assert or enforce any such rights or remedies. Waiver of any default under this Agreement must be expressly set forth in a written document executed by the party asserting the default being waived and delivered to the party asserted to be in default. SECTION 22.Notices, Demands and Communications Between the Parties. Notices, demands and communications between the Agency and the Participant, as allowed or required by this Agreement, shall be in writing and shall be deemed to be 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 3. 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 to the other. SECTION 23. [RESERVED - NO TEXT]. SECTION 24. Warranty Against Payment of Consideration for Agreement. The Participant hereby warrants that it has not paid or given, and will not payor give, any third-party money or other consideration for obtaining this Agreement. For the purpose of this Section 24, the term "third-party" shall not include persons to whom fees were paid for professional services, if rendered by attorneys, financial consultants, accountants, 5B2002:9967.2 13 CDC/2002-17 engineers, architects and the like, when such fees are considered necessary by the Participant. SECTION 25. Non-Liability of Agency Officials or Employees. No member, official, employee, agent, consultant or attorney of the Agency shall be personally liable to the Participant, or any successor-in-interest of either of them, upon any default or breach by the Agency or for any amount becoming due to the Participant or to its successor or on any obligations arising under this Agreement. SECTION 26. Agency Right to Terminate Upon Filing of Legal Challenge. Participant hereby acknowledges that the Agency is a "public entity" and/or a "public agency" as defined under applicable California law. Therefore, the Agency must satisfy the requirements of certain California statutes relating to the actions of public entities, including, without limitation, the California Environmental Quality Act ("CEQA"). Also, as a public body, the Agency's action in approving this Agreement may be subject to proceedings to invalidate the Agreement. The Participant hereby assumes the risk of delays and damages that may result to the Participant from any such third-party legal actions related to the Agency's approval of this Agreement or the pursuit of activities contemplated by this Agreement, filed within two hundred fifteen (215) days of the Agency's formal approval of this Agreement, even in the event that an error, omission or abuse of discretion by the Agency is determined to have occurred. If a third-party files such a legal action regarding the Agency's approval of this Agreement or the pursuit of acti vi ties contemplated by this Agreement, the Agency may terminate this Agreement on 30 days written notice to the Participant of the Agency's intent to terminate this Agreement, referencing this Section 26, without any further obligation to perform the terms of this Agreement or any liability to the Participant resulting from such termination, unless the Participant unconditionally agrees to indemnify and defend the Agency against such third-party legal action, as provided herein. Within 30 days of receipt of the Agency's notice of intent to terminate this Agreement, as provided in the preceding sentence, the Participant may offer to defend the Agency in the third-party legal action and pay all of the court costs, attorney fees, monetary awards, sanctions, attorney fee awards, expert witness and consultant fees, and the expenses of any and all financial or performance obligations resulting from the disposition of the legal action. Any such offer from the Participant must be in writing and in a form reasonably acceptable to the Agency. If the Agency accepts such an offer by the Participant, as provided for herein, the Agency shall reasonably cooperate with the Participant in the defense of the legal action. SB2002,9967.2 14 CDC/2002-17 SECTION 27. Agency Approvals. Approvals required from the Agency under this Agreement shall not be unreasonably withheld, conditioned or delayed and approval or disapproval shall be given within the time set forth in the Schedule of 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 therefore, the item in question shall conclusively be deemed approved. SECTION 28. Indemnification of Agency by Participant. The Participant .hereby agrees to defend, indemnify and hold the Agency, its members, officials, employees, agents, consultants and attorneys, harmless from and against all damages, judgments, costs, expenses, and fees including attorney's fees, expert witness and consultant fees and expenses incurred by the Agency as a result of any alleged or actual act or omission of the Participant in performing its obligations under this Agreement. SECTION 29. No Partnership or Joint Venture. Nothing in this Agreement, nor any acts of the parties hereto, shall be deemed or construed by the parties hereto, or by any third person, to create 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 30. Attorney's Fees. If any party hereto files any action or brings any action or proceeding against the other arising out of this Agreement, the prevailing party in any such action or proceeding shall be entitled to recover, as an element of its costs of suit and not as damages, its reasonable attorney's fees, as determined 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 of this Agreement, the phrase "reasonable attorney's fees" includes the salary, wages, benefits and overhead of the City Attorney of the City of San Bernardino and members of his staff. SECTION 31. Severability. If any clause, sentence or any other portion of this Agreement becomes invalid, void or unenforceable for any reason, or is held by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining portions of this Agreement shall remain in full force and effect, provided the resulting agreement preserves the material effect of this Agreement. SECTION 32. Attachments. This Agreement includes 18 pages and one (1) attachment that constitute the entire understanding and agreement between the parties. 582002: 9967.2 15 CDC/2002-17 SECTION 33. Amendment of Agreement. This Agreement may only be amended, modified, revised or changed by written agreement executed by both of the parties. SECTION 34. Date of Execution of Agreement. The Agreement is dated as of April 15, 2002, for purposes of reference and convenience. The terms "date of execution of this Agreement" or "date of this Agreement," and the like, refer to the date on which this Agreement is approved by the governing board of the Agency. This Agreement shall be of no force or effect as against the Agency, until it is formally approved by the Community Development Commission of the City of San Bernardino. SECTION 35. Execution in Counterpart Originals. This 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. 8B2002:9967.2 16 CDC/2002-17 IN WITNESS WHEREOF, the Agency and the Participant, by and through their duly authorized representatives' signatures below, hereby execute this Agreement, as of the dates set forth below: PARTICIPANT LaMesa RV Center, Inc. (Central California), a California corporation Dated: f I eJ.b too ). I I 6" ! Is / :/-e(J'2 I J1i ~ Yk. II, ~, Dated: AGENCY Redevelopment Agency of the City of San Bernardino -, By: / //>/'.. Z (...{../I P ( // 'Executive Director Dated: APPROVED AS TO FORM: ,~~ Agencyv Cou sel Sp(;>I"'i" ( 582002:9967.2 17 CDC/2002-17 Attachment "A" [Description of the Site] Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: A portion of Parcel 4 and all of ParcelS of Parcel Map No. 8401, in the City of San Bernardino, County of San Bernardino, State of California, as per plat recorded in book 88 of Parcel Maps, pages (s) 32 and 33, records of said County, described as a whole as follows: Beginning at the northeast corner of said parcelS; thence south o deg. 10' 15" east, 321.32 feet, along the west line of concourse way; thence south 44 deg. 49' 45" west, 30.73 feet; thence south 89 deg. 49' 45" west, 437.23 feet along the north line of Caroline Street; thence north 0 deg. 10' 37" west, 253.05 feet to the southwest corner of parcel 1 of said parcel map no. 8401; thence north 89 deg. 49' 45" east, 459.00 feet along the south line of said parcell, to the point of begi~ning. Said description is pursuant to a "Certificate of Compliance for lot line adjustment" no. 87-7, recorded July 31, 1987, instrument no. 87-266942, official records. APN: 0164-321-81 Parcel 1 of Parcel Map No. 8401, in the City of San Bernardino, County of San Bernardino, State of California, as per plat recorded in book 88 or Parcel Maps, page(s) 32 and 33, records of said County. APN: 0164-321-37 8B2002: 9967.2 18