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HomeMy WebLinkAboutCDC/2002-36 1 2 3 4 5 6 7 8 9 RESOLUTION NO. CDC/2002-36 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AS THE GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING AND AUTHORIZING EXECUTION OF THAT CERTAIN 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT (JOB OPTIONS, INC.) AND THE GRANT OF CERTAIN SEWER CAP ACITY RIGHTS TO JOBS OPTIONS, INC. IN CONNECTION THEREWITH WHEREAS, Job Options, Inc., a California corporation (the "Grantee") has entered into a ten- 10 year lease (the "Lease") with Twin Creek Properties, LLC, a California limited liability company (the 11 "Developer") of an 8,400 square foot building (the "Leased Premises") to be constructed by Developer 12 on certain real property located on Washington Street just north of Orange Show Road in the City of 13 San Bernardino more specifically described in Exhibit "A" hereto and incorporated herein by this 14 15 16 reference (the "Property"); and WHEREAS, the Property is subject to the Redevelopment Plan for the Inland Valley 17 Redevelopment Project adopted by the Inland Valley Development Agency ("IVDA") on July 18, 1990 18 (the "IVDA Redevelopment Plan"); and 19 WHEREAS, the Grantee intends to use the Leased Premises to operate a commercial laundry 20 facility (the "Economic Development Project"); and 21 22 WHEREAS, Grantee's corporate purpose is to provide jobs for individuals with mental, physical or psychological disabilities; and 23 24 WHEREAS, the Grantee has represented to the Redevelopment Agency of the City of San 25 Bernardino (the "Agency") that upon completion ofthe Economic Development Project at least eleven 26 (11) new commercial laundry service jobs or positions (the "New Jobs") will be created; and 27 28 SB2002:38173.1 CDC/2002-36 1 WHEREAS, the Grantee has further represented to the Agency that the New Jobs will continue 2 in existence on the Property until the fifth (5th) anniversary following the date of completion of the 3 Economic Development Project; and 4 WHEREAS, the Lease provides that Grantee will pay rent to the Developer at the rate of$.65 5 6 per square foot per month; and 7 WHEREAS, Grantee has represented to the Agency that this rental rate, which is approximately 8 forty percent (40%) higher than current market rental rates for comparable facilities in the City, is 9 required by the Developer in order to make construction ofthe Leased Premises economically feasible; 10 and 11 12 WHEREAS, the sewer capacity fee charged by the City of San Bernardino (the "City") in connection with the development of property in the City is based on the estimated gallons of water to 13 14 be discharged into the sewer each day; and 15 WHEREAS, the sewer capacity fee with respect to the Economic Development Project is 16 approximately Forty Five Thousand One Hundred Eighty Five Dollars ($45,185.00); and 17 WHEREAS, the Grantee has represented to the Agency that a sewer capacity fee in the 18 approximate amount of Forty Five Thousand One Hundred Eighty Five Dollars ($45,185.00) makes 19 20 21 22 the Economic Development Project economically unfeasible and has requested assistance from the Agency; and WHEREAS, pursuant to a program initiated in 1984, the Agency originally purchased eight 23 hundred (800) Sewer Capacity Rights ("SCRs") from the Water Department of the City to utilize as 24 incentives for commercial development; and 25 26 27 28 WHEREAS, in 1989, having used only 95 SCRs, the Agency sold 605 SCRs back to the Water Department; and S82002:38173.1 -2- CDC/2002-36 1 2 3 4 5 6 WHEREAS, the Agency currently holds 100.2 SCRs; and WHEREAS, pursuant to Resolution No. 4697 adopted by the Agency on December 17, 1984 ("Resolution No. 4697"), guidelines were established for the transfer ofSCRs from the Agency to third parties as incentives for commercial development; and WHEREAS, pursuant to Resolution No. 4726 adopted by the Agency on February 18, 1985 7 ("Resolution No. 4726"), Resolution No. 4697 was repealed and revised guidelines were established 8 for the transfer of SCRs from the Agency to third parties as incentives for commercial development; 9 and 10 11 12 WHEREAS, Resolution No. 4726 provides that, except for housing being developed through Community Development Block Grant programs, all transfers of SCRs shall be for properties within redevelopment project areas; and 13 14 WHEREAS, the Economic Development Project constitutes redevelopment activity within the 15 survey area for the Tri-Cities Redevelopment Project Area of the Agency; and 16 WHEREAS, the Economic Development Project benefits the Tri -Cities Redevelopment Proj ect 17 Area of the Agency; and 18 WHEREAS, in order to provide assistance with respect to the financial viability of the 19 20 Economic Development Project, the Agency proposes to grant to the Grantee 19.94 SCRs; and WHEREAS, the Grantee and the Agency propose to enter into a 2002 New Jobs Redevelopment 21 22 Grant Agreement substantially in the form attached hereto as Exhibit "B" (the "New Jobs Grant 23 Agreement"). 24 25 26 27 28 S82002:38173.1 -3- CDC/2002-36 1 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION, AS THE 2 GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 3 4 Section 1. The above recitals are true and correct. 5 Section 2. On December 2,2002, the Commission considered the New Jobs Grant Agreement 6 at a regular, open, public meeting of the Commission. The minutes of the Agency Secretary for the 7 8 December 2, 2002 regular meeting of the Commission shall include a record of all documents and communication submitted to the Commission by interested persons relating to the consideration ofthe 9 10 New Jobs Grant Agreement. 11 Section 3. The Commission hereby finds and determines that, notwithstanding the guideline 12 contained in Resolution No. 4726 that all transfers of SCRs be for properties within redevelopment 13 project areas of the Agency, the transfer ofSCRs to Grantee is appropriate and shall constitute a waiver 14 of the provisions of Resolution No. 4726 relating to the use of SCRs solely within a redevelopment 15 16 project area and the further requirements as to the number ofSCRs to be used for each of the land use categories set forth in said Resolution No. 4726. Such waiver as contained here shall be only with 17 18 respect to the Grantee and the New Jobs Grant Agreement and shall not apply to any other applicant 19 or proj ect unless subsequently approved by official action of the Commission. 20 Section 4. The Commission hereby finds and determines that the Economic Development 21 Project is categorically exempt from the provisions of the California Environmental Quality Act, as 22 amended ("CEQA") pursuant to Section 15332 ofCEQA Guidelines. 23 24 Section 5. The Commission hereby approves the New Jobs Grant Agreement as submitted at , 25 the December 2, 2002, meeting. The Executive Director is hereby authorized and directed to execute 26 the New Jobs Grant Agreement substantially in the form attached hereto as Exhibit "B" and by this 27 reference incorporated herein on behalf of the Agency together with such technical and conforming 28 changes as may be approved by the Executive Director and Agency Special Counsel. Ifthe New Jobs SB2002:38173.1 -4- CDC/2002-36 1 Grant Agreement is not fully executed by the parties for any reason within ninety (90) days following 2 the date of adoption of this Resolution, the New Jobs Grant Agreement shall become null and void. 3 Section 6. Provided that the New Jobs Grant Agreement is fully executed by the parties 4 5 within the period of time set forth in Section 5 ofthis Resolution, the Executive Director ofthe Agency 6 is hereby authorized and directed to take all actions set forth in the New Jobs Grant Agreement on 7 behalf of the Agency. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 882002:38\73.\ -5- CDC/2002-36 1 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AS THE GOVERNING BODY OF THE REDEVELOPMENT 2 AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING AND AUTHORIZING EXECUTION OF THAT CERTAIN 2002 NEW JOBS REDEVELOPMENT GRANT 3 AGREEMENT (JOB OPTIONS, INC.) AND THE GRANT OF CERTAIN SEWER CAPACITY RIGHTS TO JOBS OPTIONS, INC. IN CONNECTION THEREWITH 4 5 6 Section 7. This Resolution shall become effective immediately upon its adoption. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a it. regular meeting 7 thereof, held on the 2nd day of December , 2002, by the following vote to wit: 8 9 COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT 10 ESTRADA -X- 11 LONGVILLE x 12 McGINNIS X 13 DERRY X 14 SUAREZ X -- - 15 ANDERSON X 16 MCCAMMACK X /Jc C;, . - 17 hI; !. t:~ / 18 Sec~y I 19 20 21 22 23 24 The foregoing Resolution is hereby approved this ,2002. Cu-u-- H )!\LLES, Chairperson unity Development Commission City of San Bernardino Approved as to form and 25 legal conten : 26 27 By: 28 6 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss 2 CITY OF SAN BERNARDINO ) 3 I, Secretary ofthe Community Development Commission of the City of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of 4 Community Development Commission of the City of San Bernardino Resolution No. is a full, true and correct copy ofthat now on file in this office. 5 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of 6 the Community Development Commission of the City of San Bernardino this day of 2002. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB2002:38173.1 Secretary of the Community Development Commission of the City of San Bernardino -7- 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 SB2002:38173.1 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY -8- LEGAL PESClUPTION Real property in the CIty of San Bernardino, CountYcf San Bernardioo, State of california, described as follows: Lot 22 and the North 1/2 of Lot 23, Tract NO. 1995, Valley Truck Farms, in the Oty of san l3emardino, County of San Bernardino, State of California, as per plat recorded in book 29 of maps, page (!l) 13, records of said county. APN: 0136-441-01 and 0136-451-15 FIn::I" JjfT'a,.j~~rt Tif-l.... 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 8B2002:38173.1 EXHIBIT "B" 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT -9- CDC/2002-36 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT (JOB OPTIONS, INC.) THIS 2002 NEW JOBS REDEVELOPMENT GRANT AGREEMENT dated as of December~_ 2002 (the "Grant Agreement") is entered into by and between the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the "Agency") and Job Options, Inc., a California corporation (the "Grantee"). RECITALS The Grantee intends to enter into a ten-year lease (the "Lease") with Twin Creek Properties, LLC a California limited liability company (the "Developer") of an 8,400 square foot building (the "Leased Premises") to be constructed by Developer on certain real property located on Washington Street just north of Orange Show Road in the City of San Bernardino, California (the "City") more specifically described in Exhibit "A" attached hereto and by this reference incorporated herein (the "Property"). The Property is located in an area of the City that is in transition from residential uses to industrial and commercial uses. The existing housing stock in the area is in deteriorating condition, and the General Plan of the City anticipates development of the area for industrial and commercial uses. The Property is subject to the Redevelopment Plan for the Inland Valley Redevelopment Project adopted by the Inland Valley Development Agency ("IVDA") on July 18, 1990 (the "IVDA Redevelopment Plan"). Upon completion of construction of the Leased Premises, the Grantee intends to commence to use the Leased Premises to operate a commercial laundry facility (the "Economic Development Project"). The IVDA has confirmed to the Agency that the operation of a commercial laundry facility on the Property is consistent with the IVDA Redevelopment Plan. Grantee's corporate purpose is to provide jobs for individuals with mental, physical or psychological disabilities. The Grantee has represented to the Agency that upon commencement of the Economic Development Project, at least eleven (11) new commercial laundry service jobs or positions (the "New Jobs") will be created. The Lessee projects that its payroll costs for the first six (6) months following completion of the Economic Development Project will be One Hundred Nine Thousand One Hundred Eighty Eight Dollars ($109,188.00) and for the second six will be One Hundred Forty Eight Thousand Four Hundred Eighty Eight Dollars ($148,488.00). The Grantee further represents that these New Jobs will continue in existence on the Property until the fifth (5th) anniversary following the date of commencement of the Economic Development Project. 63 The Lease provides that Grantee will pay rent to the Developer at the rate of ~ per square foot per month. Grantee has represented to the Agency that this rental rate is required SB2002:37885.1 1 CDC/2002-36 by the Developer in order to make construction of the Leased Premises economically feasible for the Developer. Because Grantee will be operating a commercial laundry facility on the Leased Premises, Grantee has calculated that the City's sewer capacity fee, which is based on the estimated gallons of water to be discharged into the sewer each day, will be Forty Five Thousand One Hundred Eighty Seven Dollars and Fifty Cents ($45,187.50) for the Economic Development Project. The sewer capacity fee, for which Grantee is responsible, imposes a financial burden that is too onerous to be sustained by the Economic Development Project. Grantee has therefore requested assistance from the Agency. Pursuant to a program initiated in 1984, the Agency purchased eight hundred (800) Sewer Capacity Rights ("SCRs") from the Water Department of the City to utilize as incentives for commercial development. In 1989, having used only 95 SCRs, the Agency sold 605 SCRs back to the Water Department. The Agency currently holds 100.2 SCRs. In order to provide assistance with respect to the financial viability of the Economic Development Project, the Agency proposes to grant to the Grantee 19.94 SCRs. The Grantee for itself and its successors and assigns, and the Agency for itself and its successors and assigns, have entered into this Grant Agreement in order to implement redevelopment of the Property for commercial and industrial uses for the economic revitalization of the area of the City in which the Property is located. NOW THEREFORE IN CONSIDERATION OF THE PREMISES AND THE MUTUAL COVENANTS OF THE PARTIES SET FORTH HEREIN, THE GRANTEE FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, AND THE AGENCY FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, AGREE: Section 1. Defined Terms. The matters set forth in the Recitals of this Grant Agreement are true and correct and are material elements to the formation of this Grant Agreement. In addition to the definitions of certain terms set forth in the Recitals of the Grant Agreement other words and phrases represented below are used in this Grant Agreement as defined terms: . the words "Economic Development Project" as used in this Grant Agreement, mean and refer to the operation on the Leased Premises of a commercial laundry facility. . the words "Agency Grant" mean and refer to the grant by the Agency to the Grantee of 19.94 SCRs. . the words "New Jobs" refer to an aggregate number of not less than eleven (11) new employment positions to be created on the Property upon the commencement of the Economic Development Project and thereafter maintained for a period of time set forth in Section 5 of this Grant Agreement. . the words "New Job" refer to the hourly wage employment position work description of each of the employees whose work position at the Property is SB2002:37885.1 2 CDC/2002-36 eligible to be included among the New Jobs for the purpose of satisfying the New Jobs covenant of the Grantee set forth in Section 5 of this Grant Agreement. An employee is eligible to be included as holding a New Job provided that each of the following conditions are satisfied: (i) the employee is paid an hourly wage consistent with federal wage standards; (ii) the employee is assigned to work (or is eligible to work) at least One Thousand Seven Hundred (1,700) hours per year; and (iii) the employee is based at the Property. Section 2. Effective Date of Grant Agreement. This Grant Agreement shall take effect following its approval by the Agency and execution by the parties. Section 3. Covenant of the Agencv to Make the Agency Grant to the Grantee. Subject to the terms and conditions of this Grant Agreement, the Agency hereby agrees to grant to the Grantee 19.94 SCRs upon the covenant of the Grantee to create and thereafter maintain the New Jobs on the Property as set forth in Section 5 of this Grant Agreement. Section 4. Making of Agency Grant. The Agency shall make the Agency Grant within thirty (30) days of the issuance by the City of a certificate of occupancy with respect to the Leased Premises. The Agency shall make the Agency Grant upon satisfaction of the following conditions: (i) the Executive Director has received and is reasonably satisfied with the financial accounting information and evidence of Grantee funds availability to undertake the Economic Development Project as provided by the Grantee to the Executive Director; (ii) the Executive Director has received from Grantee a copy of the contracts for commercial laundry services that it has been awarded by [name or names of federal agency] to Grantee; (iii) Grantee has delivered an original executed copy of a Notice of Agreement Relating to Real Property, substantially in the form attached hereto as Exhibit "B"; and (iv) the Grantee is not otherwise in default under this Grant Agreement. S82002:37885. ] 3 CDC/2002-36 Section 5. Covenant of the Grantee to Maintain New Jobs on the Property. (a) Subject to the terms of this Grant Agreement, the Grantee hereby covenants and agrees to create, within six (6) months of commencement of the Economic Development Project, at least an aggregate of eleven (11) New Jobs on the Property and, within eighteen (18) months of commencement of the Economic Development Project, at least an aggregate of fifteen (15) New Jobs on the Property, and thereafter to maintain fifteen (15) New Jobs on the Property until that date which is five (5) years following commencement of the Economic Development Project. (b) On the first anniversary date of commencement of the Economic Development Project, and thereafter on each of the next four (4) following anniversary dates, the Grantee shall file a written verification with the Executive Director in which the Grantee reports its compliance with the New Jobs creation and/or maintenance covenant set forth in Section 5(a). Such report shall certify the number of persons in New Jobs positions and 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 a New Job position. Such annual report need not identify any employee by name or 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 Grantee to hold New Jobs on the Property. (c) In the event that on the fifth (5th) anniversary date of commencement of the Economic Development Project, the verification of the Grantee indicates that there are fewer than fifteen (15) New Jobs on the Property, then in such event the Grantee shall reimburse the Agency the following sum: $3,000.00 for each New Job position less than a total of fifteen (15) new Jobs on the Property as of such anniversary date. The Grantee shall reimburse the Agency any such sum as may be payable pursuant to this Section 5( c) within thirty (30) days of demand by the Agency. (d) The Grantee agrees to allow the Agency or its agents upon prior notice at reasonable times to inspect the payroll accounting records on which the Grantee relies for the verification of the New Jobs provided to the Agency in each annual report. The Agency shall reimburse the Grantee the reasonable hourly cost of making a payroll clerk or accountant under the direction or control of the Grantee available to assist the Agency in inspecting such payroll accounting records. Section 6. Covenant Against Unlawful Discrimination. The terms and provisions of Health and Safety Code Section 33436 which prohibit various types of unlawful discrimination are hereby incorporated into this Grant Agreement by this reference. SB2002:37885.1 4 CDC/2002-36 Section 7. Maintenance Condition of the Propertv. Subject to the satisfaction of the conditions of Section 2, the Grantee for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of the Property which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time within ten (10) years following the date of approval of this Grant Agreement by motion or resolution of the Agency, as applicable, there is an occurrence of an adverse condition on any area ofthe Property which is subject to public view in contravention of the general maintenance standard described above (a "Maintenance Deficiency"), then the Agency shall notify the Grantee in writing of the Maintenance Deficiency and give the Grantee thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as identified in the notice. In the event the Grantee fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Grantee ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Grantee has failed to comply with the provision of this Section 7(a). If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the Property and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the Property authorized by this Section 7(a) shall become a lien on the Property. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Grantee, the Agency shall have the right to enforce the lien in the manner as provided in Section 7(c). (b) Graffiti as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on the Property which is visible from any public right-of-way adjacent or contiguous to the Property, shall be removed by the Grantee by either painting over the evidence of such vandalism with a paint which has been color~matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the Property and remove the graffiti without notice to the Grantee. Any sum expended by the Agency for the removal of such graffiti from the Property authorized by this Section 7(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the Property. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Grantee, the Agency shall have the right to enforce its lien in the manner as provided in Section 7(c). (c) The parties hereto further mutually understand and agree that failure to maintain the Property as set forth in this Section 7 gives rise to certain rights of the Agency to SB2002:37885.1 5 CDC/2002-36 establish and enforce a lien or other encumbrance against the Property, or any portion thereof, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in an amount reasonably necessary to restore the Property to the maintenance standard required under Section 7(a) or Section 7(b), including attorneys' fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section 7, shall be a covenant running with the land for the term as provided in Section 9 and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section 7 shall be deemed to preclude the Grantee from making any alteration, addition, demolition or other change to any structure or improvement or landscaping on the Property, provided that such changes comply with applicable zoning and building regulations of the City. The Notice of Agreement Relating to Real Property shall contain a reference to the provisions of Section 7 of this Grant Agreement. Section 8. Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of Section 4, Section 5, Section 6, Section 7, Section 11, Section 12 or Section 13 of this Grant Agreement shall constitute a default under this Grant Agreement; provided however, that if the party who is otherwise claimed to be in default by the . other party under Section 4, Section 5, Section 6, Section 7, Section 12 or Section 13 of this Grant Agreement commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party claiming that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering 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 Grant 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 thirty (30) calendar days following 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 default shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings. Section 9. Covenants Running With the Land. The provisions of this Grant Agreement shall to be covenants which run with the land and the Property for a term often (10) years from the date of approval of this Grant Agreement by motion or resolution of the Agency, as applicable; provided however, that upon satisfaction of the conditions of Section 5 of this SB2002:37885.\ 6 CDC/2002-36 Grant Agreement, only the provisions of Section 3, Section 6 and Section 7 shall bind the successors and assigns of the Agency and the successors and assigns of the interests of the Grantee in the Property. This Grant Agreement is expressly declared by the parties to be for the benefit of the Property and the area of the City surrounding the Property. Section 10. Termination of Grant Agreement. (a) The Grantee may terminate this Grant Agreement at its discretion for any reason before the making of the Agency Grant pursuant to Section 4 by serving written notice of termination of the Grant Agreement to the Agency which specifically refers to this Section 10(a). of the Agreement. Upon receipt by the Agency of such written notice of termination, the parties shall be mutually released from any further obligation which arises under this Grant Agreement. (b) The Agency may terminate this Grant Agreement at its discretion upon serving written notice of termination of the Agreement to the Grantee which specifically refers to this Section 1O(b) of the Agreement, in the event that the Economic Development Project has not been commenced for any reason within two (2) years following the approval of this Grant Agreement by the Agency. Upon receipt by the Grantee of such written notice of termination, the Grantee shall return to the Agency any sum as disbursed to the Grantee under Section 4(b), and upon receipt by the Agency of such sum, the parties shall be mutually released from any further obligation which arises under this Grant Agreement. Section 11. Representations and Warranties of the Grantee. The Grantee hereby makes the following representations and warranties to the Agency and the Grantee ,acknowledges that the execution of this Grant Agreement by the Agency has been made in material reliance by the Agency on such representations and warranties: (1) to the actual and current knowledge of the Grantee, the Grantee is a duly organized and existing California nonprofit corporation. The Grantee has the legal right, power and authority to enter into this Grant Agreement, and the Grantee has taken all requisite action and obtained all requisite consents in connection with entering into this Grant Agreement; (2) to the actual current knowledge of the Grantee, the Lease has been duly executed by the Grantee; (3) to the actual current knowledge of the Grantee, neither the execution of this Grant 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 Grantee is a party, or under law, statute, ordinance, rule, governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to the Grantee or to the Property; (4) to the actual and current knowledge of the Grantee, the Grantee has the funds available to it, when combined with the Agency Grant, to undertake the Economic S82002:37885.1 7 CDC/2002-36 Development Project and to create the New Jobs on the Property; (5) the Grantee shall use good faith efforts to hire residents of the City for the creation of New Jobs on the Property. Such good faith efforts shall continue in effect during the term of the New Jobs covenant under Section 5 of this Grant Agreement. The Grantee shall consult with the Agency from time-to-time upon the reasonable request of the Agency to formulate a reasonably acceptable program for implementing the forgoing representation of the Grantee to use good faith efforts to hire residents of the City; provided however, that nothing in this paragraph (5) is intended to require the Grantee to implement any New Job recruitment program or engage in any pattern or practice of New Job recruitment or hiring which would violate applicable law; (6) the Grantee shall at its own expense secure or shall cause to be secured, any and all permits that may be required by the City or any other governmental entity having jurisdiction over the operation of the Economic Development Project. Section 12. Grantee Indemnity. The Grantee agrees to indemnify and hold the Agency, the City and the officials, officers, attorneys, employees and agents of each of them, harmless from and against all damages, judgments, costs, expenses and attorney's fees arising from or related to any act or omission of the Grantee in performing its obligations hereunder. The Agency shall give the Grantee written notice of the occurrence of a claim, litigation or other matters for which the Agency or the City may seek indemnity under this Section as promptly as practicable following the Agency's knowledge of the occurrence of such matter, and the City and the Agency shall reasonably cooperate with the Grantee in the defense of any such claim or matter and shall not take any action that would adversely affect the Grantee's defense of such matter. Section 13. Grantee Insurance. The Grantee shall furnish, or shall cause to be furnished, to the Agency duplicate originals or appropriate certificates of comprehensive general liability insurance in the amount of One Million Dollars ($1,000,000.00) combined single limit, naming the Agency and the City of San Bernardino as an additional insured. Such insurance shall cover comprehensive general liability including, but not limited to, contractual liability; acts of subcontractors; premises-operations; explosion, collapse and underground hazards, if applicable; broad form property damage, and personal injury including libel, slander and false arrest. In addition, the Grantee shall provide to the Agency adequate proof of worker's compensation insurance coverage for its employees. Any and all insurance policies required hereunder shall be obtained from insurance companies admitted in the State of California and rated at least B+: (viii) in Best's Insurance Guide, current edition. All such insurance policies shall provide that they may not be canceled unless the Agency receives written notice of cancellation at least thirty (30) calendar days prior to the effective date of cancellation. Any and all insurance obtained by the Grantee hereunder shall be primary to any and all insurance which the Agency may otherwise carry, including self insurance, which for all purposes of this Grant Agreement shall be separate and apart from the requirements of this Grant Agreement. Any and all insurance required hereunder shall be maintained and kept in force until end of the term of the New Jobs covenant as set forth in Section 5 of this Grant Agreement. 882002:37885.1 8 CDC/2002-36 Section 14. Notice of Agreement Relating to Real Propertv. The parties hereby agree and declare that the successors and assigns of each shall be bound by the terms of this Grant Agreement. The parties shall execute and the Agency shall cause to be recorded a Notice of Agreement Relating to Real Property substantially in the form as attached hereto as Exhibit "B" and incorporated herein by this reference. Section 15. Attornevs' Fees. If either party hereto files any action or brings any action or proceeding against the other arising out of this Grant Agreement, then the prevailing party shall be entitled to recover as an element of its costs of suit and not as damages, its reasonable attorneys' 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. As used herein, the words "attorneys' fee" in the case of the Agency, means and includes the salary and/or hourly rates, fees, costs and expenses, allocated on an hourly basis, of the attorneys employed by the Office of City Attorney of the City in connection with any matter arising under this Grant Agreement. Section 16. Headings and Attachments. The headings of each section of this Grant Agreement are provided for purposes of reference and convenience only and do not have any meaning which is independent of the text of the section of the Agreement to which they may generally correspond. The following list of attached. documents are part of this Grant Agreement: Exhibit "A" Legal Description ofthe Property Exhibit "B" Notice of Agreement Relating to Real Property SB2002:37885.1 9 CDC/2002-36 THIS 2002 PROPERTY OWNER NEW JOBS REDEVELOPMENT GRANT AGREEMENT is dated as of December _, 2002, and this Grant Agreement shall have no force nor effect unless it has been approved by the governing body of the Agency and fully executed by the parties. This Grant Agreement may be executed in counterparts on behalf of the parties by their authorized offices whose signatures appear below. GRANTEE JOB OPTIONS, INC., a California corporation Date: 12.- J3-ol- BY~ . (Xtvt......1 Jt14-'~ / t... 0 By: Secretary AGENCY Date: / / ~/t!" .> I - By: Approved As To Form By: v.~ Agency, 0 nsel SpC!'C"001 SB2002:37885.1 10 CDC/2002-36 EXHIBIT "A" Legal Description of the Property SB2002:37885.1 11 CDC/2002-36 LEGAl.. DESCR.!PTION Real property in the CIty of San Bernardino, County of san Bernardino, State of California, described as follows: Lot n and the North 1/2 of Lot 23, Tract NO. 1995, Valley Truck Fatms, in the Qty of san l3ernardillO, County of San Bernardino, State of California, as per plat recorded in book 29 or maps, page (s) 13, records of saId county. APN: 0135-441-01 and 0136-451-15 F/~I" JJfT'ICJ~;i'"~" TiH.... CDC/2002-36 EXHIBIT "B" Notice of Agreement Relating to Real Property S82002:37885.1 12 CDC/2002-36 RECORDING REQUESTED BY 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) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO NOTICE OF AGREEMENT RELATING TO REAL PROPERTY TO ALL INTERESTED PERSONS: PLEASE TAKE NOTICE that as of the date of recordation of this Notice of Agreement Relating to Real Property, Job Options, Inc., a California corporation (the "Lessee") and the Redevelopment Agency ofthe City of San Bernardino, a body coiporate and politic (the "Agency") have entered into an agreement entitled: "2002 New Jobs Redevelopment Grant Agreement". This Notice of Agreement Relating to Real Property affects the property located, generally, on Washington Street just north of Orange Show Road in the City of San Bernardino, California, which property is more particularly described in the legal description attached hereto as Exhibit "A". The 2002 New Jobs Redevelopment Grant Agreement contains provisions relating to maintenance of the property, the right of the Agency to correct maintenance deficiencies upon the failure of Lessee to comply with its maintenance obligations under the 2002 New Jobs Redevelopment Grant Agreement and the right ofthe Agency to establish and enforce a lien or other encumbrance against the Property, or any portion thereof, in the manner provided under California Civil Code Sections 2924, 2924b and 2924c in an amount reasonably necessary to restore the Property to the maintenance standards required. Interested persons may contact the Agency (Attention Executive Director) by telephone at (909) 663-1044, during regular business hours for additional information relating to the 2002 New Jobs Redevelopment Grant Agreement. SB2002:38 157 .1 1 CDC/2002-36 This Notice of Agreement Relating to Real Property has been executed by the parties as set forth below. LESSEE Job Options, Inc., a California corporation By: - AGENCY [NOTARY JURATS ATTACHED] APPROVED AS TO FORM: (;~ff- Agency Spec I Counsel SUBSCRIBED AND SWORN TO BEFORE ME THIS b.~. DAY OF .Ja.,o...... 20 03. ..~~...cl............... NOTARY PUBLIC r. --O;'CIALSEAL -1 _. PORSHA SUNDSTROM:o - NOTARY PUBLlC.CALlFORNIA$ ~ . . COMM. NO. 1266937 - a: . SAN DIEGO COUNTY '. MY COMM. EXP. JUNE 10, 2004 SB2002:38157.1 2 CDC/2002-36 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) On Januarv 9, 2003 before me, Wasana Chantha, Notary Public, personally appeared Garv Van Osdel , personally known to me (or proved to me on tAe b3sis of 53ti5f3ctory evidence) to be the personfs1 whose namefs1 istafe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacitytfes1, and that by his/her/their signaturefs1 on the instrument the personfs1, or the entity upon behalf of which the personfs1 acted, executed the instrument. WITNESS my hand and official seal. Signature WASANA CHANTHA Commission # 1380487 Notary Public - California ~ San Bernardino County ~ My Comm. Expires Oct18. 2006 (Seal) . ' .. CDC/2002-36 EXHIBIT "A" LEGAl.. DESCRIPTION Real property in the CIty of San Bernardino, CountY of San Bernardino, State of California, described as follows: Lot 22 and the North 1/2 of Lot 23, Tract NO. 1995, Valley Truck Farms, in the City of san Bernardino, County of San Bernardino, State of California, as per plat recorded in book 29 of maps, page (!l) 13, records of said county, APN: 0135-441-01 and 0136-451-15 F/~" ArnQrj,..~rt TiH"...