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HomeMy WebLinkAbout09-RDA Item - .. cx#P;?'t4 ~- c . ~.&~. _ /J/~"7 L' ~;:;r' d.~/?Z~ /C&"~t-' /?/// / <:tI / c 4/V0!tZ&;'7 7f .3/ / ;J .,M &21 C I T Y 0 F SAN B E-R N A R DIN 0 INTEROFFICE MEMORANDUM pft/ ::.0/72/ TO: Mayor and Common Council FROM: James F. Penman, City Attorney DATE: March 16, 1990 RE: Shadow Hills Joint Development Agreement and proposed settlement of CFB lawsuit There comes a point in time in most lawsuits when the client, represented in this case by the Mayor and Council, have to make a decision whether to try the case or settle it. It is the responsibility of the attorney to advise the client of the pros and cons of settlement or trial. I presented those positives and negatives at the February 19, 1990 council meeting along with a written recommendation of the City Attorney's office". . that the settlement be rejected and the case proceed to trial." One of the factor's that a client must consider carefully, as you have done, is the cost of settling a case vs. the cost of going to trial. The probability of success at trial is an essential factor in deciding whether to settle or not. Often the legal recommendation is not followed for sound economic and related risks to the client, risks which only the client may decide to take or not. It remains the opinion of this office that the CFB vs. City of San Bernardino lawsuit is a legally defensible case and the written recommendation in my memoranda to you dated February 19, 1990 (copy attached) remains unchanged. Although this advise is confidential at this point, as you know it will, by law, become open to the public after the case is settled. I mention this because Mr. Henderson has alleged that this is not clear to the Mayor and Council. In my discussions with you, it is my impression that each of you has always been able to comprehend the law and understand that after a case is closed the public records act exception for pending litigation terminates. JFP:br[Shawdowhi.Mem] 3/16/90 ;<J- q . ~ , ~ Memo to Mayor and Common Council Re: Shadow Hills Joint Development Agreement March 16, 1990 Page 2 This office has been presented with a document entitled JOINT DEVELOPMENT AGREEMENT, and we have been asked to review it for form and legal content. We have done so and we find that the form and legal content are correct. However, I wish to emphasis that the fact that the document is correctly worded from a legal standpoint and we have signed same as to form and legal content does not mean that the settlement itself has been approved by this office. That is a policy decision, not a legal one. ^ (Copy of Feb. 19, 1990 Memo) cc: City Clerk City Administrator Kenneth Henderson JFP:br[Shawdowhi.Mem] 3/16/90 ~. -- C I T Y 0 F SAN B ERN A R DIN 0 INTEROFFICE MEMORANDUM TO: Mayor and Common Council FROM: James F. Penman, City Attorney DATE: February 19, 1990 RE: Proposed Settlement of CFB Investments Limited vs. City of San Bernardino The Mayor has negotiated a potential settlement with Sara C. Regan, Project Manager for CFB Investments, Ltd. The City Attorney's office was not a party to the negotiations but I have reviewed the February 15, 1990 letter from Ms. Regan to Mr. Kenneth Henderson, Director of Community Development for the City. I have also discussed the settlement proposal with the Mayor and Mr. Henderson. It is the opinion of the City Attorney's office that there was no "taking", not even a "temporary taking" of the property of CFB Investments and therefore there is little if any liability to the City. Attorney Dan Curtin, the nation's leading expert on land use law, concur's in this opinion. Ball, Hunt, etc. the firm retained to represent the city in the matter of CFB Investments, Ltd. vs City of San Bernardino, has just finished their analysis of the case. They also conclude that there was no "taking" . Assuming that we are all in error and there was the next issue is, what is the amount of the damages? damages of eight to twelve million dollars. a "taking", CFB claims We believe that, should liability be assigned to the city, the amount is unlikely to exceed the value of the property. An amount between $400,000 and $1.2 million appears to us to be the maximum in damages should a "taking" be found. The cost of attorney fees for the city are expected to exceed $200,000 through trial. The greatest danger to the city is the unpredictability of a trial. It is impossible to definitively predict what the rulings on each of our pre-trial motions will be, yet alone the outcome of the trial itself and appeals. JFP/ses/cfb.mem February 19, 1990 P-C1 ... ~ .. ~ Memo to: Re: Mayor and Common Council Proposed Settlement of CFB Investments Limited vs. City of San Bernardino Page 2 If we are entirely wrong in our analysis, the cost to the city would be between $400,000 and $12 million. We recommend that the settlement be rejected and that the case proceed to trial., We acknowledge that the likelihood of error on the part of Curtin; Ball, Hunt, etc. and our office is approximately 33 1/3% to 40%. Under these circumstances the best that we can do is to present our conclusions and recommendations, and clearly present the "down" side to you. The final decision must be made by the client, the Mayor and Common Council. Respectively Submitted, JFP/ses/cfb.mem February 19, 1990 ... - . CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION 10m: Kenneth J. HeOOersal, Director Subject: IIIWXJIr HILIB JaINI' 1EVEIDPMBN'l' ~ Dept: Ccmrunity Develcpnent Date: March 13, 1990 Synopsis of Previous Council action: None. Recommended motion: (CXHmNITY DEVEIDPMENl' cx:tmSSION) Move to adopt Resolution of the Cammmity Develc:poent Camdssioo of the City of San Bernardino authorizin;J am ciirect:.inJ the exeo.xti.on of a Joint Developnent Agreement bebJeen the Redevelcpnent kJerq of the City of San Bernardino am CFB Investments, Ltd. (M1.YOR AND <:x:HIJN (X)t)lC[L) Move to adopt Resolution of the City of San Bernardino authorizin;J am directin;J the execution of a Joint Develc:poent Agreement between the City of San Bernardino am CFB Investments, ltd. (j, Ken Herrlersory'Rd:: ""'"""le Contact person: .~.'t' . h d staff Report; Resolution; Agreement Ward' Supporting data attac e : . Amount: $1,650,000 Phone: 5065 5 FUNDING REQUIREMENTS: Source: (Acct. No.) 7302; 7303 (Site am Public Inprovements) (Acct. DescriPtion) I.ow-+bderate Incane Hoosing F'L1n:i Finance: Council Notes: q - CITY OF SAN BEfL .ARDINO - REQUEST .,OR COUNCIL ACTION ... - STAFF REPORT In August, 1985, the Hoosin;J Authority of the CCAmty of San Bernar- dino issued awroximately 12.4 millioo dollars in nultifamily oortgage revenue borns for the consttuctioo of a three-hurrlred, eighteen (318) unit aparbnent project, oc:mronly known as ShadCM Hills Village Apartments. Because of a rn.nnber of events beycni the control of the develcper, not the least of which was the state Office of Plannin;J am Research-inposed l::uildin;1 moratorium, the subsequent ~ (2) year General Plan Revisioo Work Program am litigatioo bebJeen the develcper am the City, the project did not go forward in the timeframe originally eJWisioned. '!he pIqlOSed agreement, prepared at the directioo of the Mayor am Ccrnloon Camcil am the Camunity Developnent Chml;!':$ioo, provides for the installatioo of nuch needed p.tblic inprovements am the constructioo of two-huIXired, twenty-eight (228) aparbnent units in accord with upgraded deve10pnent am amenity starrlards. lobre speci- fically, the agreement acxx:mpli.shes the followin;J: a) Provides for the dismissal with prej\Xlice of oot.starrli.rg liti- gatioo initiated by the develcper, CFB Investments, ltd., against the City. . b) Assures the constroctioo of "New" pine AverA.1e iran Kerrlall Drive to Irvin;Jton AVerJJe. c) Provides for the const:roction of a one-huIXired, fifty (150) slot day care/preschool center. d) Contains an intensive, upgraded larrlscaping plan, am requires the installation of concrete tile roofs with eighty (80) miles per hoor (ll{.tl) hurricane clips. e) Requires the dedicatioo of lam (44,000 square feet to 60,000 square feet) for the day care/presdlool center. f) Fstablishes covenants runnirg with the lam (0C&Rs) for the construction of ''New'' Pine, the upgraded, intensive larrlscaping plan, concrete tile roofs, onsite management, am twenty per- cent (20%) set-aside affordability requirements. As additiooal security to the City, am to ensure the expeditioos const:roctioo of "New" Pine AVerJJe, Hthe kJerq will deposit its furrls ($1,650,000) into escrow, with said fun:3s not to be released to CFB until the Bc:Mer note am deed of trust have been assigned to the City as security for CFB's obligation to construct ''New'' pine fran Kendall Drive to I:rvington AVerJJe. 03/13/90 75.0264 .... ... ... SIWXlW HILIB CIIt7tFJ' ~' CclIlt.inllled... Mard1 13, 19. Page -2- with this in mini am t:.akin;J into aocoont the key provisioos of the ag1eeuent as sunrnarized above, staff believes the directioo of the Mayor am O::mral Camcil am Camlmity Develcpnent O::mnissioo have been fully am OCIlpletely OCIlplied with. As such, staff I'eCu..,ems the adoption of the attadled Resolutioo. k~f~:t_ KnVlab/3750 March 13, 1990 -~~ ... - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 RESOLUTION NUMBER RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A JOINT DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CFB INVESTMENTS, LTD. BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWSI Section 1. (a) The Chairman and Secretary of the Community Development Commission of the City of San Bernardino are hereby authorized and directed to execute for, on behalf of the Redevelopment Agency of the City of San Bernardino, a Joint Development Agreement between the Redevelopment Agency of the City of San Bernardino and CFB Investments, Ltd., with such non-substantive changes to said Agreement as may be approved by the Chairman and Agency Counsel, which agreement is attached hereto as Exhibit "1", and is incorporated herein by this reference as though fully set forth at length. (b) The authorizations to execute the above referenced 18 agreement is rescinded if the parties to the agreement fail to 19 execute it within sixty (60) sixty days of the passage of this 20 Resolution. 21 I I I I 22 IIII 23 IIII 24 IIII 25 IIII 26 IIII 27 I I I I 28 3-13-90 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 ~-.... - I HEREBY CERTIFY that the foregoing resolution Was duly adopted by the Community Development Commission of the Redevelopment Agency of the City of San Bernardino at a meeting thereof, held on the ____ day of , 1990 by the following vote, to wit: Commission Members: AXU Imn ABSTAIN ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER Secretary The foregoing resolution is hereby approved this ____ day of , 1990. W.R. HOLCOMB, CHAIRMAN Community Development Commission of the City of San Bernardino 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 RESOLUTION NUMBER RESOLUTION OP THE CITY OP SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OP JOINT DEVELOPMENT BETWEEN THE CITY OP SAN BERNARDINO AND CPB INVESTMENTS, LTD. BE IT RESOLVED BY THE KAYOR AND COMHON COUNCIL OP THE CITY OP SAN BERNARDINO AS POLLOWS: Section 1. (a) The Mayor of the City of San Bernardino is hereby authorized and directed to execute, on behalf of the City, a Joint Development Agreement between the City of San Bernardino and CFB Investments, Ltd., with such non-substantive changes to said Agreement as may be approved by the Mayor and City Attorney, which agreement is attached hereto as Exhibit "1", and is incorporated herein by reference as though fully set forth at length. (b) The authorizations to execute the above referenced agreement is rescinded if the parties to the agreement fail to execute it within sixty (60) sixty days of the passage of this resolution. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a day of meeting thereof, held on the , 1990 by the following vote, to wit: IIII 24 IIII IIII 25 IIII IIII 26 I I I I IIII 27 I I I I 28 3-13-90 1 - - 1 2 3 4 5 6 7 8 AYES: Councilpersons NAYES: ABSENT: City Clerk The foregoing resolution is hereby approved this ____ day of , 1990. 9 10 11 12 Approved as to form and legal content: 13 JAMES F. PENMAN, 14 City Attorney 15 BY: 16 17 KJH/lab/3753 18 19 20 21 22 23 24 25 26 27 28 3-13-90 2 W.R. HOLCOMB, MAYOR City of San Bernardino - - ~- .. - ., Recordinq Requested By: REDEVELOPMENT AGENCY When Recorded Mail to: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North "0" street, Fourth Floor San Bernardino, California 92418-0001 JOINT DEVELOPMENT AGREEMENT By and Between THB REDEVELOPMENT AGENCY OP THB CITY of SAN BERNARDINO, the CITY OP SAN BERNARDINO, CALIFORNIA, and CFB INVESTMENTS, LTD. A California Limited Partnership EXHIBIT "1" ... ----.-. - 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 JOIlf'l' DEVELOPKElf'l' AGREEKElf'l' (SETTLEKElf'l' AGREEKElf'l' AND MUTUAL GENERAL RELEASE) THIS AGREEMENT, made this day ot - , 1990, by and between the Redevelopment Agency of the CITY OF SAN BERNARDINO, (the "Agency"), the City of San Bernardino, a charter City duly organized and existing pursuant to the Consti- tution of the state of California (hereinafter referred to as "City"), and CFB INVESTMENTS, LTD., a California limited part- nership (hereinafter referred to as "CFB"). The additional party, which in this Agreement is referenced as CFB's "Prede- cessor in Interest" is Clemens SL, a California Limited Partnership ("Clemens"). SECTION 1. Recitals. 1.1 The Agency, through the City's Community Development Department (hereinafter "CDD"), administers various housing pro- grams, including programs, projects and activities funded by the Agency's Low to Moderate Income Housing Fund (hereinafter the "Fund"). Using money obtained from the Fund, the CDD provides attractive financing, with varying terms and conditions, to persons seeking to develop or rehabilitate rental housing within the City. 1.2 CFB is the owner of the real property located en- tirely within the City, the legal description of which is attached to this Agreement as Exhibit "A" (the "Property"). The 03/13/1990 1 ..... - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Property currently consists ot approximately seventeen (17) acres ot raw land (the "Acreage") through which a portion ot the proposed "New" Pine Avenue will pass, from Kendall Avenue to the boundary of the Acreage, and of three (3) apartment buildings containing a total of thirty-six (36) units (the "Thirty-Six (36) Units"), located on what is described as Tentative Tract 1215-1, a division of Parcel "4" of Parcel Map 6985 is in preparation for execution and recordation, so said Thirty-Six (36) Units can be separately conveyed in accordance with the California SUbdivision Map Act. CFB is currently in escrow to sell the Thirty-Six (36) Units to an independent third party, the closure of which is scheduled for March 16, 1990, contingent only on recordation of the Tract Map. Copies of the escrow in- structions and Buyer's letter of intent are attached as supple- mental documents to this Agreement. 1.3 On December 4, 1984, the Planning Commission of the City of San Bernardino approved Tentative Tract Maps NUmbered 12150 and l215l and Conditional Use Permit Number 84-63, permit- ting a three-hundred, eighteen (318) unit planned apartment pro- ject on the Property. 1.4 On August 1, 1985, the Housing Authority of the County of San Bernardino issued Series "F" MUlti-Family Mortgage Revenue Bonds (the "Bonds") to provide $l2,400,000.00 for acquisition, construction and equipping of three of the three-hundred, eighteen (318) units autho- 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 rized by Conditional Use Permit Number 84-63. 1.5 Prior to 1987 CFB's Predecessor in Interest had var- ious tract maps approved and were issued building permits to construct apartments on the Property. In June of 1986, con- struction of the Thirty-Six (36) Units commenced. In March of 1987, Jay Christopher Saldecke and Barbara L. Sky filed suit against the City (San Bernardino Superior Court Case Number 236836), contending that the City's General Plan did not comply with applicable provisions of the State Planning and Zoning Law. The City, on April 6, 1987, adopted Ordinance Number MC-588 as an urgency ordinance to take effect the same day, and remain in effect for forty-five (45) days. Ordinance MC-588 effected a moratorium on the entire Property, including the Thirty-six (36) Units which were then under construction. While Ordinance MC- 588 was in effect, the City applied to the State Office of Plan- ning and Research ("OPR") and OPR eventually granted an exten- sion of the time period in which the City had to develop and approve its General Plan. In July of 1987, the City filed a Complaint for Declaratory Relief (San Bernardino County Superior Court Case Number 238755) requesting, among other things, a de- claration concerning whether CFB's Predecessor in Interest had established the right to continue building apartments on the Property. CFB's portion of the Declaratory Relief action resul- 24 ted, on April 4, in the trial court's decision in CFB's 1988, 25 favor. The City appealed this decision and the Court of 26 Appeals, Fourth Appellate District (Case Number E005396) 27 28 03/13/1990 3 ---... ....... - 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 affirmed the trial court's decision. On November 15, 1989, the Supreme Court of the state of California denied the City's Petition for Review (Case Number S012172). 1.6 On December 6, 1989, CFB filed a complaint against the City in the United States District Court, Central District of California (Case Number SACV89-842JSL). In addition, certain disputes and controversies have arisen concerning the Property, CFB's entitlement to develop the Property, and CFB's right to obtain reissuance of, and/or use of, the Bonds. SECTION 2. Actions. Covenants. and Performance bv CFB. 2.1 In consideration for the payment called for by Paragraph "3" below, CFB will, on the Effective Date, dismiss with prejudice as to all Parties, each Party bearing its own costs, Case Number SACV89-842JSL). In this regard, the City and CFB hereby irrevocably authorize and direct their attorneys of record to execute, deliver, and cause to be filed the dismissal with prejudice. 2.2 As soon as is practicable after the Effective Date, but not later than sixty (60) days after such date, CFB will commence construction, at its own expense, on that portion of "New" pine which starts at the proposed intersection with Kendall Avenue and extends to the boundary of CFB's Property. CFB and the City agree that such construction shall be in 03/13/1990 4 -.--- WI' .,. - 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 accordance with the detailed plans of the location and street elevations previously drawn and approved by the City and submit- ted to the Southern California Municipal Water District. Fur- thermore, CFB will cooperate with the City, and grant the City easements and rights of access onto its Property to continue the construction of "New" Pine from its boundary through the adjoin- ing property to Irvington Avenue. CFB will also use its best efforts to ensure that the owners of the adjoining property through which "New" Pine will pass will dedicate the right of way to the City so that construction of "New" Pine Avenue can continue, uninterrupted, from Kendall Drive to Irvington Avenue and in accord with Paragraph "3" below. (Attached as a supple- ment to this Agreement is a consent from the adjoining owner to such dedication.) 2.3 CFB will delete one (1) building, originally calling for twelve (12) apartment units, from its development plans and will reserve, from that part of the Property located to the west of "New" Pine a parcel, no smaller than 44,000 square feet and no larger than 60,000 square feet for the development of a day care center/preschool facility. CFB further agrees that, not later than the date of the issuance of a Certificate of Occupancy for the first apartment units to be completed on the west side of "New" Pine, it will file an application for a Conditional Use Permit (CUP) for construction of the day care/preschool facility. Concurrently, CFB will submit to the City for its approval, which approval the City agrees to 03/13/1990 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 reasonably grant to any properly licensed, reputable entity in sound financial condition, designated by crB to be the operator of the day care/preschool facility. As further assurance to the City, CFB agrees that if construction of the proposed day care/preschool facility has not commenced within twelve (l2) months from the issuance of the initial Certificate of Occupancy referred to above, the city shall then have the right of first refusal to purchase, in ac- cordance with the document attached as EXhibit "B" to this Agreement, the parcel previously designated as the day care/pre- school site. 2.4 On the Effective Date, CFB will sign, execute and deliver to the City for recordation, covenants running with the land pursuant to California civil Code Section 1468 covering the following items: 2.4.1. CFB's obligation to construct "New" pine as required by Paragraph 2.2 above; 2.4.2. CFB's obligation to provide upgraded, inten- sive landscaping as part of the development of its apartment project. In this regard a preliminary landscape development statement is attached as a supplemental document to this Agreement; 2.4.3. The inclusion of concrete tile roofs with eighty (80) mile per hour (mph) hurricane clips as part of revised plans for its apartment project; 2.4.4. A covenant to provide continuing on-site man- 03/13/1990 6 ..... 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 agement for its apartment project, 2.4.5. A covenant to adhere to Redevelopment Agency Twenty Percent (20t) Set-Aside affordability convenants and re- strictions for a period of not less than fifteen (15) years from the later of (i) the first day of which at least fifty percent (50t) of the Designated Units in the project are first occupied; or (ii) the Delivery Date, and the ending on the date which is fifteen (15) years thereafter. A copy of such covenant is attached hereto as Exhibit "c" and incorporated by reference as though fully set forth at length. CFB hereby acknowledges that it has read and approved the form of the convenants running with the land, as they are contained in Exhibit "D" to this Agreement. 2.4.6. As additional security to the City and Agency, and to ensure the expeditious construction of "New" Pine as required by Pargraph 2.2 above, the Agency will deposit into escrow a total of $1,650,000., Said funds will not be released to CFB until such time as and until the existing Bower-Rustic Homes note and deed of trust have been assigned (thereby pre- serving first priority on Parcel 3) to City as security for CFB's obligation to construct "New" pine from Kendall Drive to Irvington Avenue. At such time as "New" pine in its entirety is completed, the note and deed of trust will be assigned or recon- veyed to CFB, at CFB's direction. SECTION 3. Actions by the city. 03/13/1990 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 3.1 On the Effective Date, City will cause its Redevelop- ment Agency to pay to CFB the sum of $1,650,000.00, which funds are to be used in substantial compliance with the Use of Funds document attached as Exhibit "E" to this Agreement and will sign and deliver its consent to the dismissal with prejudice required by Paragraph "2.1" above. 3.2 City agrees it will not, at any time within twenty four (24) months of the opening of the day care/preschool facility contemplated by Paragraph "2.3" above, issue grading or building permits for the construction of a competing facility within a radius of one and one-half (1-1/2) miles from the site. 3.3 City agrees to advance the funding necessary for CFB to complete that portion of "New" pine Avenue from the boundary of the Acreage to Irvington Avenue, with such funding to come from the Verdemont-Area Infrastructure Financing Plan or such other funding sources the City deems appropriate. City will be reimbursed by all new developments, excepting CFB, benefiting from the implementation of the Verdemont-Area Infrastructure Plan. 3.4 The City acknowledges that, except as modified by this Agreement, CFB has the right to develop the balance of the Property pursuant to Conditional Use Permit 84-63 and Tentative Tract Maps 12150 and l215l as of the date of adoption of those approvals according to the regulations, and ordinances then in 03/13/1990 8 1 2 3 4 5 6 7 8 9 10 4.1 Upon the consummation of this transaction, the City 11 on one hand, and CFB and its Predecessor in Interest on the 12 other, will take action required by, and will execute and 13 deliver this Agreement, thereby settling claims which are denied 14 and contested. Nothing contained in this Agreement shall be 15 construed as an admission by any Party of the liability of any 16 kind to any other Party. Each Party denies any liability of any 17 kind to any other Party. Each Party denies any liability in 18 connection with any claim and intends merely to avoid further 19 costly litigation and fully and finally resolve the disputed 20 matters. effect. 3.5 The City will take such actions and grant such appro- vals for the development of the balance of the Property in a manner best designed to carry out, in the most expeditious fashion, the spirit and terms of this Agreement. SECTION 4. The Parties Intent. 21 22 4.2 The Parties further intend that this Agreement and 23 all releases and discharges shall run to the benefit of each .of 24 the Parties, their respective agents, partners, shareholders, 25 elected officials, employees, representatives, officers, direc- 26 tors, divisions, subsidiaries, affilitates, assignees, heirs, 27 and successors in interest (the "Benefited Parties"). 28 03/13/1990 9 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 SECTION 5. Mutual General Release and Covenant Not to Sue. 5.1 Except for performance required under this Agreement, and pursuant to any statute, Ordinance, Permit, Map, or Regu- lation applicable to the Parties or the Property, each of the Parties hereby releases and forever discharges the other and all Benefited Parties from any claim, demand, damage, debt, liabi- lity, obligation, cost, expense, and cause of action of every kind, whether known or unknown, which any Party now has or holds, or at any time has had or claimed, against any other Party, arising out of or connected with any contract, express or implied, liability, matter, cause, fact, thing, act or omission occuring or existing at any previous time up to and including the Effective Date of this Agreement. 5.2 Each Party agrees that it will not make, assert, or maintain against anyone released in this Agreement any claim, demand, action, suit or proceeding arising out of, or in connec- tion with, the matters released. This Agreement supersedes all prior agreements and correspondence between the parties and is in lieu of any rights which any Party may otherwise have against any other, except for performance required under this Agreement or pursuant to any statute, Ordinance, Permit, Map or Regulation applicable to the Parties or the Property. 5.3 The Parties acknowledge that they have been informed 03/13/1990 lO 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 of the provisions of California civil Code Section 1542 and each hereby expressly waives and relinquishes all rights and benefits which they have or may have had under that Section, which reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have mater- ially affected his settlement with the debtor." 5.4 The Parties acknowledge that they are aware that they may subsequently discover facts different from or in addition to what is now known or believed to be true with respect to the matters released, and agree that these releases shall be and still remain in effect in all respects as complete and general releases, notwithstanding any such different or additional facts. SECTION 6. Condominium Conversion. CFB, its successors in interest, or any subsequent pur- chaser, agrees not to convert any of the apartment units still to be constructed using monies from the Fund to condominium ownership or any form of cooperative ownership for at least a fifteen (15) year period beginning on the later of (i) the first day of which at least fifty percent (50%) of the designated units in the project are first occupied, or; (ii) the Delivery on the date which is fifteen (15) years Thirty-Six (36) Units are specifically excluded 11 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 from this SECTION 6. SECTION 7. Anti-Discrimination. CFB, its successors in interest, or any subsequent pur- chaser, agrees not to discriminate against prospective tenants on the basis of age, race, sex, creed, national origin, marital status, religion, physical handicap, or on the basis of receipt by such tenant of, or eligibility for, h~using assistance under any Federal, State or local housing assistance program. SECTION 8. Anti-Kickback Provisions: Eaua1 EmD10vment ODDortunitv. All contracts for construction or repair using Funds provi- ded under this Agreement shall include a provision for compli- ance to the Copeland "Anti-Kickback Act" (18 U.S.C. 874) as supplemented in Department of Labor Regulations (29 CFR, Part 3). This Act provides that each contractor or subcontractor shall be prohibited from inducing, by any means, any person em- ployed in the construction, completion or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. CFB shall report all suspected violations to the city. All contracts in excess of $10,000.00 entered into by CFB using Funds provided under this Agreement shall contain a provision complying with Equal Employment Opportunity provisions established by Executive Order Number 11246, as amended. 03/13/1990 12 - '. ~. t 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ~ ~ 24 ~ 26 27 ~ SECTION t. Hold Harmless. CFB agrees to indemnify, save and hold harmless the City, Agency and their employees and agents from all liabilities and charges, expenses (including counsel fees), suits or losses, however occurring, or damages, arising or growing out of the use of, or receipt of, funds paid under this Agreement and all ope- rations under this Agreement. Payments under this Agreement are made with the understanding that the City and Agency are not in- volved in the performance of services or other activities of CFB. CFB and its employees and agents are independent contrac- tors and not employees or agents of the City or Agency. SECTION 10. Amendment. This Agreement may be amended or modified only by written agreement by both Parties, and failure on the part of either Party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of any provision or provisions. SECTION 11. Assiqnment. This Agreement shall not be assigned by CFB without the prior written consent of the City and Agency, which consent will not be unreasonably withheld. 03/13/1990 13 20 .. --~...,.... 1 2 3 4 5 SECTION 12. Notic... All notices herein required shall be in writing and deli- vered in person or sent certified mail, postage prepaid, addres- sed as follows: 6 7 As to City/Agency 8 Director Community Development Department 9 City Hall, Fifth Floor 300 North "D" Street 10 San Bernardino, CA 92418-0001 As to CFB CFB and Clemens c/o D~nald J. Regan 245 Fischer Avenue Suite D-1 Costa Xesa, Calif. 92626 11 12 13 14 15 Notice is effective seventy-two (72) hours after delivery by United States mail. SECTION 13. CooDeration. 16 Each of the Parties agrees to cooperate with each and every 17 other Party in doing all acts contemplated or required under 18 this Agreement inClUding, without limitations, the processing of 19 all applications. 21 SECTION 14. Entire Aareement. 22 23 This Agreement and any document or instrument attached here- 24 to or referred to herein integrates all terms and conditions 25 mentioned herein or incidental hereto, and supercedes all nego- 26 tiations and prior writing with respect to the subject matter 27 hereof. In the event of conflict between the terms, conditions 28 03/13/1990 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 By this reference, each of the Exhibits described below are 15 incorporated into and made a part of this Agreement as though 16 fully set forth at length, and each of the Parties agrees to 17 perform under and take the action required by any Exhibit. 18 The Exhibits are: 19 (i) Legal Description of the Property, (Section 1.2). 20 (ii) Form of Right of First Refusal, (Section 2.3). 21 (iii) Form of Conditions, Covenants, and Restrictions 22 (CC&Rs), (Section 2.4). 23 24 25 26 The following documents are attached as Supplemental Infor- 27 mation and are not a part of this Agreement. .. or provisions of this Agreement, and any such document or in- strument, the terms and conditions of this Agreement shall pre- vail. Should suit be brought to enforce or interpret any part of this Agreement, the prevailing party shall be entitled to recover as element of costs of suit and not as damages, reason- able attorneys' fees to be filed by the court. The prevailing party shall be the party entitled to recover his/her costs of suit, regardless of whether such suit p~oceeds to final judg- ment. A party not entitled to recover his/her costs shall not be entitled to recover attorneys' fees. SECTION 15. EXhibits. SECTION 16. SUPPlemental Documents. 28 03/13/1990 15 -- .... .. 1 2 3 4 5 6 7 8 9 10 11 12 13 No third party shall be deemed to have any rights hereunder 14 against any of the parties hereto as a result of this Agreement. 15 The filing of third party lawsuits against any Party relating to 16 the Property or this Agreement or to other development issues, 17 will not be a reason to delay or stop the development, proces- 18 sing of any applications, construction, the issuance of building 19 permits, issuance of certificates of occupancy unless the third 20 party obtains a court order preventing the activity. No Party 21 hereto will stipulate to the issuance of any such court order. 22 23 24 25 The Effective Date of this Agreement is March ___, 1990. 26 IIII 27 IIII 28 (i) Escrow Instructions, sale of the Thirty-Six (36) Units, together with Buyer's letter of intent to re-establish the condominium regime and establish a homeowners' association, (Section 1.2) (ii) A commitment from California Properties Fund, owner of the Property through which "New" Pine will be extended to Irv- ington Avenue to dedicate the right of way necessary for construction, (Section 2.2). (iii) Landscape Development Statement, (Section 2.4.2). SECTION 17. Third Partv Beneficiaries. SECTION 18. Effective Date. 03/13/1990 16 25 26 27 28 .. ... IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first hereinabove written. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ATTEST I City Clerk 21 Approved as to form and legal content: 22 JAMES F. PENMAN, 23 City AttorneY/Agency Counsel 24 BY: KJH/lab/3736 03/13/1990 CITY OF SAlI BERNARDINO I BY: W.R. "BOB" HOLCOMB, MAYOR REDEVELOPHENT AGENCY/COMMUNITY DEVELOPMENT COMMISSION BY: W.R. ",BOB" HOLCOMB, CHAIRMAN BY: Robert J. Temple, Secretary CFB INVESTMENTS, LTD.I BY: Sara C. Regan Sole General Partner CLEMENS, S.L., a California Limit Partnership, of which all of the Ganeral Partners are the following three (3) Individuals and one (1) Corporation I BY: Donald J. Regan General Partner BY: Stanley C. Swartz General Partner BY: James R. White General Partner SUNFLOWER PROPERTIES, INC.I BY: James R. White, President 17 - -- .. ....- LEGAL DESCRIPTIOB PARCEL AI LOT 1, TRACT 12146, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 65 AND 66, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL B: LOT 1, TRACT 12148, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 170, PAGES 67 AND 68 OF MAPS, IN THE OFF!CE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL C: PARCEL 3 OF PARCEL MAP 6985, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 72 OF PARCEL MAPS, PAGES 53 AND 55, INCLU- SIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL D: PARCEL 4 OF PARCEL MAP 6985, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 72 OF PARCEL MAPS, PAGES 53 TO 55, INCLU- SIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL THAT PORTION LYING WITHIN TRACT 12146, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 65 AND 66, IN THE OFFICE OF THE COUNTY RECORDER. ALSO EXCEPTING THAT PORTION LYING WITHIN TRACT 12l48, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 67 AND 68, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL E: PARCEL 2, PARCEL 6505, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 64 OF PARCEL MAPS, PAGES 49 AND 50, RECORDS OF SAID COUNTY. lab/3745 3/l3/90 EXHIBIT "A" ... "'" - - - - RIGHT OF FIRST REFOSAL 1. PARTIES. The Parties to this Agreement are the City of San Bernardino (the "City"), the Redevelopment Agency of the City of San Bernardino (the "Agency"), and CFB Investments, Ltd., a California Limited Partnership ("CFB"). 2 . FACTS. 2.1 The City, Agency and CFB are, concurrently with this Right of First Refusal Agreement, entering into a comprehensive settlement agreement (the "Basic Agreement"). Pursuant to the Basic Agreement, CFB will des~gnate a speci- fic site (the "School Site") within the boundaries of its Property on which it is proposed that a day care/preschool facility will be constructed within a set time limit set forth in the Basic Agreement. 2.2 To protect the City's interest, CFB has agreed to give the City the right of first refusal to purchase the School Site, and pending the specific location of the site, to permit this Right of First Refusal Agreement to be recorded as an encumbrance against Parcel 3 of Parcel Map Number 6985 in the City of San Bernardino, County of San Bernardino, as per Map recorded in Book Number 72 of Parcel Maps, Pages Number 53, 54 and 55, in the Office of the San Bernardino County Recorder ("Parcel 3"). 3. DESIGNATION OF SCHOOL SITE. Prior to the commencement of the construction of any apartment on Parcel 3, CFB intends to specifically locate and provide a separate legal description for the School Site. On request from CFB, therefore, the City and Agency will execute such documents as are necessary to release the balance of Parcel 3 from the lien of this Right of First Refusal Agreement. 4. GRANT RIGHT OF FIRST REFOSAL. As consideration for the City and Agency's execution of and performance under the Basic Agreement, CFB hereby grants and the City and Agency hereby accept, an irrevocable right of first refusal to purchase the School site. Until the School site has been specifically described, CFB agrees that it will not sell, lease, convey, transfer, or option any portion of Parcel 3 without the City and Agency's prior written consent. 03/l3/90 EXHIBIT "B" ......-----..- ....".. ..., RIGHT OF FIRST Karch 13, lUO paq. -2- rUSAL AGREEMENT 5. TIMING AND METHOD OF EXERCISING RIGHT OF FIRST REFUSAL. At least fifteen (15) days prior to a proposed sale of the School Site, CFB shall give the City a written notice setting forth the fact that there is a bona fide offer and containing the name of the offeree, the price, and all pertinent terms. The City shall have thirty (30) days from receipt of this notice to exercise its right to purchase the School site on the terms and conditions set out in the notice. If the City does not elect to purchase the School Site, CFB may sell it at any time within two (2) months thereafter to the person, at the price, and at the terms set out in this notice. If no such sale occurs, the School Site shall again be subject to all the provisions of this Right of First Refusal Agreement. ,. BINDING EFFECT. EXPIRATION. The provisions of this Right of First Refusal Agreement shall inure to the benefit of and shall be binding upon the Parties, their assigns, successors in interest, and any party which might claim an interest in the School site prior to the expiration of this Agreement or completion of the school. This Right of First Refusal Agreement shall terminate on the earlier of issuance of a certificate of occupancy for the school, or March 31, 1999. 7. EFFECTIVE DATE. The Effective Date of this Right of First Refusal Agreement is March ___, 1990. ATTEST: CITY OF SAN BERNARDINO City Clerk BY: W.R. "BOB" HOLCOMB, MAYOR REDEVELOPMENT AGENCY/COMMUNITY DEVELOPMENT COMMISSION BY: W.R. "BOB" HOLCOMB, CHAIRMAN Approved as to Form and Legal Content: CFa INVESTMENTS, LTD. JAMES F. PENMAN, City Attorney BY: Sara C. Regan, General Partner BY: -...... ~ STATE OF CALIFORNIA COUNTY OF ) )as. ) On this day of March, 1990 before me, the under- signed, a Notary Public in and for said County and State, personally appeared SARA C. REGAN known to me to be the person who executed this instrument as GENERAL PARTNER of CFB INVESTMENTS, LTD., and acknowledged to me that CFB INVEST- MENTS, LTD., executed the same. WITNESS my hand and official seal. , Notary for said County and state lab/3744 03/13/90 - - RECORDING REQUESTED BY. Redevelopment Agency of the City of San Bernardino WHEN RECORDED, RETURN TO. Redevelopment Agency of the City of San Bernardino 300 North "D" Street San Bernardino, California 92418-0001 (Recordation Fee Not Applicable Pursuant to Government Code Section 6103) ------------------------------------------------------------- AFFORDABILITY COVENANTS AND RESTRICTIONS Relating to ' REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SHADOW HILLS VILLAGE REDEVELOPMENT PROJECT MULTIFAMILY HOUSING DEVELOPMENT PROGRAM THESE AFFORDABILITY COVENANTS AND RESTRICTIONS made this day of , 1990, between the Redevelop- ment Agency of the City of San Bernardino, a body, corporate and politic, being a redevelopment agency duly organized and existing under the Constitution and laws of the State of California (the "Agency"), and CFB Investments, Ltd., a California Limited Partnership (the "Developer"), whose address is 245 Fischer Avenue, Suite D-l, Costa Mesa, Cali- fornia, 92626. PREAMBLE WHEREAS, the Developer proposes to construct a two- hundred, twenty-eight (228) unit multifamily residential housing development in San Bernardino, California, as descri- bed in Exhibit "A" attached hereto and incorporated herein by this reference (the "Project") located within the City of San Bernardino (the "City") to be occupied by individuals of Low or Moderate Income within the meaning of Health and Safety Code Section 33000, et sea ., of the State of California (the "Act"); and WHEREAS, pursuant to the Act, the Agency proposes to make a Multifamily Housing Development Grant to the Developer (the "Multifamily Housing Development Grant") as follows: PRINCIPAL AMOUNT: One-Million, SiX-Hundred, Fifty- Thousand and OO/lOO ($1,650,000.00). WHEREAS, the Developer recognizes that, pursuant to Section 33334.3(e) of the Act, certain restrictions shall apply to the rental requirements of the Project for a period of years as hereinafter provided; and 03/13/90 EXHIBIT "C" - APFORDABILITY Cv~ENANTS AND RESTRICTIONS Shadow Hills Redevelopment Project Multifamily Housing Development Page -2- WHEREAS, in connection with the Project, one-hundred percent (lOOt) of the units shall be held available for occupancy by Low or Moderate Income residents, NLA percent of the units shall be held available for occupancy by Lower Income Residents (as defined herein) and HLA percent of the units shall be held available for occupancy by Very Low In- come Tenants (as defined herein); and WHEREAS, the Act prescribes that the financing, use and operation of the Project be restricted in certain respects and in order to ensure that the Project will be financed, used and operated in accordance with the Act, regulations and rulings, the Agency and Developer have determined to enter into these Affordability Covenants and Restrictions. NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth herein, and other good and valu- able consideration, the receipt and sufficiency of which is hereby acknowledged, the Agency and the Developer do hereby contract and agree as follows: AGREEMENT SECTION 1. Definitions and InterDretation. Unless otherwise expressly provided herein or unless the context clearly requires otherwise, the following terms shall have the respective meanings set forth below for all purposes of these Affordability Covenants and Restrictions: "Act" shall mean Health and Safety Act Section 33000, et seg ., of the State of California. "Adjusted Family Income" shall mean the anticipated to- tal annual income of individuals or families residing or treated as residing in one residential unit, as calculated in accordance with Treasury Regulation 1.167(k)-3(b) (3) under the Code as shall be adjusted for family size. "Affordability Covenants and Restrictions" shall mean these Affordability Covenants and Restrictions by and between the Agency and the Developer pertaining to the Project. "Affordable Rents" shall mean, for any Designated Unit, a monthly rental for a unit of applicable size which does not exceed one-twelfth (1/12) of twenty-five percent (25%) of the Adjusted Family Income permitted for the applicable Qualified Resident. "Code" shall mean the Internal Revenue Code of 1986, as amended, and any regulations, rulings or procedures with re- spect thereto. - - - AFFORDABILITY COVENANTS AND RESTRICTIONS Shadow Hill. aedevelopment Projeot Multifamily Rousing Development paq. -3- "Completion Certificate" shall mean the certificate of completion of the Project required to be delivered by the Developer to the Program Administrator pursuant to Section 2 hereof, which shall be substantially in the form attached hereto as Exhibit "B". "Completion Date" shall mean the date of substantial completion of the Project as set forth in the Completion Cer- tificate. "Delivery Date" shall mean the date of delivery of the Note. "Designated Units" shall mean the residential units in the Project designated for occupancy by Low or Moderate Income Residents, Lower Income Residents and Very Low Income Residents. "Lower Income Resident" shall mean the individual or family occupying or treated as occupying the Project whose aggregate Adjusted Family Income does not exceed eighty per- cent (80%) of the Median Gross Income for the area. If all the occupants are students (as defined in Section l5l(e) (4) of the Code), no one of whom is entitled to file a joint re- turn under Section 6013 of the Code, such occupants shall not qualify as Lower Income Resident. The determination of an occupant's status as a Lower Income Resident shall be made at the commencement of such occupant's occupancy of a unit in the Project. "Low or Moderate Income Resident" shall mean the indivi- dual or family occupying or treated as occupying the Project whose aggregate Adjusted Family Income does not exceed one- hundred, twenty percent (120%) of the Median Gross Income for the area. If all the occupants are students (as defined in Section 15l(e)(4) of the Code), no one of whom is entitled to file a joint return under Section 6013 of the COde, such occupants shall not qualify as a Low or Moderate Income Re- sident. The determination of an occupant's status as a Low or Moderate Income Resident shall be made at the commencement of such occupant's occupancy of a unit in the Project. "Median Gross Income for the Area" shall mean the median household income as determined by the Program Administrator. "Multifamily Housing Development Grant Documents" means the documents pertaining to a particular Multifamily Housing Development Grant. .. - APFORDABILITY Cu.ENANTS AND RESTRICTIONS Shadow Hills Redevelopment Projeot Multifamily Housing Development Page -4- "Program Administrator" means the COJl\lllunity Development Department of the City of San Bernardino or any other quali- fied entity that may assume all or any portion of the duties and responsibilities of the Program Administrator. "Qualified Project Period" means a period beginning on the later of (i) the first day on which at least fifty per- cent (50%) of the Designated Units in the Project are first occupied, or; (ii) the Delivery Date, and ending on date which is fifteen (15) years thereafter. "Qualified Residents" means all (i) Low Or Moderate in- come Residents; (ii) Lower Income Residents, ~nd; (iii) Very Low Income Residents. "Very Low Income Resident" shall mean the individual or family occupying or treated as occupying the Project whose aggregate Adjusted Family Income does not exceed fifty per- cent (50%) of the Median Gross Income for the area. If all the occupants are students (as defined in Section l51(e) (4) of the Code), no one of whom is entitled to file a joint re- turn under Section 6013 of the Code, such occupants shall not qualify as Very Low Income Resident. The determination of an occupant's status as a Very Low Income Resident shall be made at the commencement of such occupant's occupancy of a unit in the Project. SECTION 2. Construction of the Proiect. The Developer hereby represents, covenants and agrees as follows: (a) The Developer will incur a substantial binding ob- ligation to commence the construction of the Project; (b) The Developer reasonably expects to complete the construction of the Project and to expend the full amount of the proceeds of the Multifamily Housing Development Grant for Project costs before , 19 (Completion Date); --- (c) Within thirty (30) days following the Completion Date, the Developer shall submit to the Agency a Completion Certificate substantially in the form attached hereto as Ex- hibit "B", containing the Developer's statement that the Pro- ject has been substantially completed and is ready and avail- able for occupancy as of a specified date (which shall be the Completion Date). SECTION 3. Residential Rental Proiect. The Agency and the Developer hereby declare their under- standing and intent that the Project is to be owned, managed .,.- - AFFORDABILITY C<.....NANTS AND RESTRICTIONS Shadow Hilla Redevelopment Project Multifamily Housing Development Page -5- and operated, at least for the Qualified Project Period, as residential rental property. To that end, the Developer hereby represents, covenants, warrants and agrees as follows: (a) That the Project is being constructed for the pur- pose of providing residential rental property, and the Pro- ject is to be owned, managed and operated as a residential rental project comprised of several interrelated buildings and structures, each consisting of more than one (1) residen- tial dwelling unit, together with facilities functionally related and subordinate thereto; (b) That once each residential unit in the Project is available for occupancy, such unit will be rented or avail- able for rental on a continuous basis; (c) That all of the residential units in the Project will be similarly constructed and shall contain separate and complete facilities for living, sleeping, eating, cooking and sanitation for a single person or a family, including a sleeping area, bathing and sanitation facilities, and cooking facilities equipped with a cooking range, refrigerator and sink; (d) That none of the residential units in the Project shall at any time be utilized on a transient basis, and that neither the Project nor any portion thereof shall ever be used as a hotel, motel, dormitory, fraternity house, sorority house, rooming house, hospital, nursing home, sanitarium, rest home or trailer park or court; (e) That all of the residential units in the Project will be available for rental on a continuous basis to members of the general public and in accordance with Section 4 hereof, specified percentages of the residential units in the Project will be leased or rented, or available for lease or rental, to Qualified Residents on a continuous basis for the Qualified Project Period, and the Developer will not give preference to any particular class or group in renting the dwelling units in the Project, except to the extent that dwelling units are required to be leased or rented to Quali- fied Residents. Qualified Residents will have equal access and enjoyment to all common facilities of the Project; (f) All residential units in the project which are ren- ted to Qualified Residents during the Qualified Project Period shall be rented at Affordable Rents. The Developer shall provide annual certifications to the Agency certifying as to compliance with the provision, and shall additionally notify the Agency within thirty (30) days after the announce .. AFFORDABILITY C~.ENANTS AND RESTRICTIONS Shadow Rills Redevelopment Projeot Multifamily Rousing Development Page -1- ment of any and all increases in the rents to be charged for any of the residential units comprising the Project. (g) That the Developer will accept as tenants, on the same basis as all other prospective tenants, low income per- sons who are holders of certificates for Federal housing assistance payments for existing housing pursuant to Section 8 of the United States Housing Act of 1937 or a successor Federal program, and, in connection therewith, the Developer will not apply tenant selection criteria to such Section 8 certificate holders which are more burdensome than the crite- ria applied to any other prospective tenants; (h) That the Project consists of a parcel or parcels of land that are contiguous except for the interposition of a road, street or stream, and all of the buildings and struc- tures in the Project comprise a single geographically and functionally integrated project for residential rental pro- perty, as evidenced by the ownership, management, accounting and operation of the Project and containing more than five residential units may be occupied by a resident manager or maintenance personnel who also may be the Developer of the Project; (i) That within thirty (30) days after the date on which fifty percent (50%) of the Designated Units in the Pro- ject are first occupied, the Developer shall prepare and mail to the Program Administrator, return receipt requested, a certificate identifying such date. The Developer may record a copy of said certificate in the Office of the County Recorder of San Bernardino County; (j) That no part of the Project will at any time be owned or used by a cooperative housing corporation, and; (k) That the Developer will not convert the Project to condominium ownership during the term of these Affordability Covenants and Restrictions. Unless the provisions of this Section 3 are amended as permitted under Section 12 hereof, the provisions of this section 3 shall remain in effect for the Qualified Project Period; provided, however, that the Developer may be dis- charged from its obligations under this Section 3 to the ex- tent that the same are assumed by any successor in interest to the Developer. SECTION 4. Oua1ified Residents. To the end of satisfying the requirements of the Act for the full Qualified Project Period, the Developer hereby re- presents, warrants, covenants and agrees as follows: ~ AFFORDABILITY CCh ..NANTS AND RESTRICTIONS Shadow Hills Redevelopment Project Multifamily Housing Development Page -7- (a) Throughout the Qualified Project Period, (i) at least one-hundred percent (100%) of the completed dwelling units in the Project shall be occupied by Low or Moderate Income residents; (ii) HLA percent shall be occupied by Lower Income Residents, and; (iii) HLA percent shall be occupied by Very Low Income Residents, all at Affordable Rents prior to the satisfaction of which no additional units shall be rented or leased to any other tenants, and after initial occupancy of dwelling units by the required percentage of the completed dwelling units in the Project at all times shall be rented to and occupied (or held available for rent if previously rented to and occupied by the appropriate Qualified Residents as required by the Act or if vacant, shall have last been occu- pied for a term of not less than thirty-two (32) consecutive days by the appropriate Qualified Residents and be available for occupancy by the appropriate Qualified Residents. For purposes of satisfying the requirement that the required percentages of the residential units be occupied by the appropriate Qualified Residents, no Qualified Resident shall be denied continued occupancy because, after admission, the Qualified Resident's Adjusted Family Income exceeds the ap- plicable qualifying income level set forth in the definition of "Qualified Residents" herein. Any increase in the rent for a unit which is occupied by a tenant who previously qual- ified as Qualified Residents, but no longer qualifies shall not be considered a denial of continued occupancy of such a unit. The provisions of this paragraph shall terminate upon the expiration of the Qualified Project Period; (b) To obtain and maintain on file from each Qualified Resident residing in the Project a copy of such Qualified Resident's executed income computation and Certification in substantially the form attached hereto as Exhibit "C". (c) To permit any duly authorized representative of the Program Administrator to inspect the books and records of the Developer during normal business hours pertaining to the in- comes of Qualified Residents residing in the Project; (d) To obtain and maintain on file from each Qualified Resident residing in the Project a copy of such Qualified Resident's federal income tax return for the taxable year immediately preceding such Qualified Resident's initial occu- pancy in the Project and annually thereafter or, if a Quali- fied Resident certifies that he or she did not file or did not retain a copy of such tax return, other satisfactory evi- dence of income for such year such as wage statements or em- ployer records; (e) To prepare and submit to the Program Administrator each quarter during the Qualified Project Period a Certifica- tion of Continuing Program Compliance, in SUbstantially the - AFFORDABILITY CC NANTS AND RESTRICTIONS Shadow Hilla Redevelopment Projeot Multifamily Housinq Development paqe -8- form attached hereto as Exhibit "D", executed by the Deve- loper, and including the percentage of the residential units of the Project which were occupied by Qualified Residents at all times during the period since the filing of the last cer- tification of Continuing Program Compliance. The Developer will attach to the Program Administrator's copies of the Certification of Continuing Program Compliance the Income Computation and Certification and any tax returns received from Qualified Residents occupying units in the Project which have not previously been furnished to the Program Administra- tor; (f) To prepare and submit to the Program, Administrator within thirty (30) days after each anniversary of the Comple- tion Date, a certificate executed by the Developer stating (i) the lowest percentage of the dwelling units in the Pro- ject which were occupied, or held vacant for occupancy, by Qualified Residents during such period, and; (il) that no default has occurred under these Affordability Covenants and Restrictions; (g) The form of lease to be used by the Developer in renting any units in the Project to Qualified Residents shall provide for termination of the lease and consent by such per- son to immediate eviction for failure to qualify as a Quali- fied Resident as a result of any material misrepresentation made by such person with respect to his or her income and income verification; (h) The Developer acknowledges that the Program Administrator shall exercise due diligence to establish such procedures as are necessary to reasonably assure the compli- ance of this Multifamily Housing Development Grant, the Project and the Developer with the requirements of these Affordability Covenants and Restrictions, and the Act. Such procedures shall include, without limitation, reviewing and examining the Multifamily Housing Development Grant applica- tion of each potential Developer, and performing the other verification procedures set forth herein, to determine whe- ther such person, the Project being constructed by such person and financed, and the Multifamily Housing Development Grant meet the requirements of these Affordability Covenants and Restrictions, and the Act. In addition, Developer ac- knowledges that the Program Administrator shall establish such other procedures and conduct such other investigations as are necessary to reasonably assure said Program Admini- strator of the accuracy and veracity of the information contained in the Multifamily Housing Development Grant application of such potential Developer, and to otherwise assure the Program Administrator that said requirements are met, and; - - AFFORDABILITY Cb.~NANTS AND RESTRICTIONS Shadow Hill. Redevelopment Project Multifamily Housing Development Page -t- (i) The Developer acknowledges that the Agency has ap- pointed the Program Administrator, and the Program Admini- strator has agreed to act, as the Agency's agent in accord- ance with the provisions of the Act for the purposes of re- viewing and examining all affidavits, certificates, tax re- turns and other information submitted pursuant to and in ac- cordance with these Affordability Covenants and Restrictions in order to determine compliance of the Multifamily Housing Development Grant, the Developer and the Project with all requirements of the Act as agent of the Agency, the Program Administrator shall take all steps necessary or appropriate to assure that the Multifamily Housing Development Grant, the Project financed thereby, and the Developers meet all the re- quirements of the Act before the Mortgage is executed or as- sumed, and to correct as provided herein any failure to meet such requirements as soon as possible after discovery of such failure. SECTION S. Sale or Transfer of proiect. The Developer hereby covenants and agrees not to sell, transfer or otherwise dispose of the Project or any interest therein (other than the making of leases for the units to members of the general public) without obtaining the prior written consent of the Agency, which shall be conditioned solely upon receipt of evidence satisfactory to the Agency that the Developer's purchaser or transferee (i) has assumed in writing and in full the Developer's duties and obligations under those Affordability Covenants and Restrictions and the Multifamily Housing Development Grant Documents, and; (ii) has delivered an opinion of counsel to such party that such party has assumed the obligations of Developer hereunder and that the obligations assumed are binding on such party. Any sale, transfer or other disposition of the Project in viola- tion of this Section shall be ineffective to relieve the Developer of its obligations under the Affordability Cove- nants and Restrictions. The prior approval of the Agency shall be required before any sale or transfer of the Project under the terms of its agreements with the Developer. Not less than twenty (20) days prior to consummating any sale, transfer or disposition of any interest in the Project, the Developer shall deliver to the Program Administrator a notice in writing, delivered pursuant to the provisions of Section 13 below. SECTION 6. Covenants to Run with the Land. For the Qualified Project PeriOd, the Developer hereby subjects the Project to the covenants, reservations and re- strictions set forth in these Affordability Covenants and Restrictions. The Agency and the Developer hereby declare their specific intent that the covenants, reservations and - - AFFORDABILITY C ~NANTS AND RESTRICTIONS Shadow Hills Redevelopment Projeot Multifamily Housinq Development paqe -10- restrictions set forth herein shall be deemed covenants run- ning with the land and shall pass to and be binding upon the Developer's successors in title to the Project; provided, however, that on the termination of these Affordability Cove- nants and Restrictions, said covenants, reservations and re- strictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Project or any portion thereof shall exclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whe- ther such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. SECTION 7. Burden and Benefit. For the Qualified Project Period, the Agency and the Developer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and con- cern the land in that the Developer's legal interest in the Project is rendered less valuable thereby. The Agency and the Developer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Project by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purpose for which the Multifamily Housing Development Grant was made by the Agency. SECTION 8. Term. These Affordability Covenants and Restrictions shall become effective upon their execution and delivery. Except as provided in the immediately following paragraph and as otherwise provided in Section 8 hereof, these Affordability Covenants and Restrictions shall remain in full force and effect for the Qualified Project Period. Notwithstanding any other provisions of these Affordabi- lity Covenants and Restrictions, this entire agreement, or any of the provisions or Sections hereof, may be terminated upon agreement by the Agency and the Developer if there shall have been received an opinion of special counsel to the Agency that such termination will not adversely affect the Agency. SECTION 9. Events of Default: Enforcement. If the Developer defaults in the performance or obser- vance of any covenant, agreement or obligation of the Deve- loper set forth in these Affordability Covenants and Restric- tions, and if such default remains uncured for a period of forty-five (45) days after notice thereof shall have been - AFFORDABILITY ~NANTS AND RESTRICTIONS Shadow Hills Redevelopment Projeot Multifamily Housing Development Page -11- given by the Agency to the Developer (or for a period of sixty (60) days after such notice if such default is curable but requires acts to be done or conditions to be remedied which, by their nature, cannot be done or remedied within such forty-five day (45) period, and if the Developer commences to remedy the default within such forty-five (45) days period and thereafter diligently and continuously prosecutes the same to completion within such sixty (60) day period), or such longer period as may be approved by special counsel to the Agency, then the Agency may declare that an Event of Default has occurred hereunder and may take anyone or more of the following steps, at its option: (a) By mandamus or other suit, action or proceeding at law or in equity, require the Developer to perform its obli- gations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency or the Trustee hereunder; (b) Take whatever other action at law or in equity may appear necessary or desirable to enforce the obligations, covenants and agreements of the Developer hereunder; and (c) Declare a default under the Grant, convert such Grant to a loan, and proceed with foreclosure and the exer- cise of all other rights and remedies under the Grant, now converted to a loan, if such indebtedness is not paid. Notwithstanding any provision to the contrary contained herein, the Agency shall have the right to enforce these Af- fordability Covenants and Restrictions and require curing of defaults in such shorter periods than specified above as it may reasonably deem necessary to insure compliance with the Act. No delay in enforcing the provisions hereof as to any breach or violation shall impair, damage or waive the right of any party entitled to enforce the same or to obtain relief against or recover for the continuation of repetition of such breach or violation of any similar breach or violation there- of at any later time or times. SECTION 10. Governinq Law. These Affordability Covenants and Restrictions shall be governed by the laws of the state of California. SECTION 11. PaYment of Agencv's Fees. In the event that a party to these Affordability Covenants and Restrictions brings an action against any other party to these Affordability Covenants and Restrictions by AFFORDABILITY C ~NANTS AND RESTRICTIONS Shadow Hilla R.~dvelopment Projeot Multifamily Housing Development Page -12- reason of the breach of any condition or covenant, represen tation or warranty in these Affordability Covenants and Restrictions, or otherwise arising out of these Affordability Covenants and Restrictions, the prevailing party in such action shall be entitled to recover from the other reasonable attorneys' fees to be fixed by the court which shall render a judgment, as well as the costs of suit. SECTION 12. Amendments. These Affordability Covenants and Restrictions shall be amended only by a written instrument executed by the parties hereto. SECTION 13. Notice. The Developer shall provide a copy of any notice provi- ded under these Affordability Covenants and Restrictions to the Program Administrator. Any notice required to be given hereunder shall be given by personal delivery or by regis- tered or certified mail at the addresses specified below or at such other addresses as may be specified in writing by the parties hereto: If to the Agency: Redevelopment Agency 300 North "D" street, Fourth Floor San Bernardino, Calif.. 92418-0001 Attn: Robert Temple, Exeo. Director Telephone: (714) 384-5081 If to the Program At1ministrator: Community Development Department 300 North liD" street, Fifth Floor San Bernardino, Calif. 92418-0001 Attn: Kenneth J. Henderson, Direotor Telephone: (714) 384-5065 IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII -~ -- AFFORDABILITY C~.~NANTS AND RESTRICTIONS Shadow Hill. Redevelopment projeot Multifamily Housing Development Paqa-13- IN WITNESS WHEREOF, the Agency and the Developer have caused these Affordability Covenants and Restrictions to be signed, acknowledged and attested on their behalf by duly authorized representatives, all as of the date first written hereinabove. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO BY: Robert Temple, Executive Director DEVELOPER BY: BY: lab/3737/3742 March 9, 1990 - - ... ~-- -- ~ .. -- "' . STATE OP CALIPORNIA ) ) 88. ) COUNTY OP SAN BERNARDINO BEFORE ME, the undersigned notary public in and for said state, on this day personally appeared , Executive Director of the Redeve- lopment Agency of the City of San Bernardino, a body corpo- rate and pOlitic, being a redevelopment agency, duly organ- ized and existing under the Constitution and laws of the State of California, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes and consideration therein expressed, in the ca- pacities therein stated, and as the act and deed of said Agency. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this day of , 19_ Notary lab/3742 - - - - --- ........ ~ ~ .--- .. - 'c EXHIBIT "A" LEGAL DESCRIPTION PARCEL A: LOT 1, TRACT 12146, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 65 AND 66, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL B: LOT l, TRACT 12148, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 170, PAGES 67 AND 68 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL C: PARCEL 3 OF PARCEL MAP 6985, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 72 OF PARCEL MAPS, PAGES 53 AND 55, INCLU- SIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL D: PARCEL 4 OF PARCEL MAP 6985, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 72 OF PARCEL MAPS, PAGES 53 TO 55, INCLU- SIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL THAT PORTION LYING WITHIN TRACT 12146, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 65 AND 66, IN THE OFFICE OF THE COUNTY RECORDER. ALSO EXCEPTING THAT PORTION LYING WITHIN TRACT l2148, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 67 AND 68, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL E: PARCEL 2, PARCEL 6505, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 64 OF PARCEL MAPS, PAGES 49 AND 50, RECORDS OF SAID COUNTY. lab/3745 3/l3/90 . - , EXHIBIT "B" COMPLETION CERTIFICATE To: CITY OF SAN BERNARDINO COMMUNITY DEVELOPMENT DEPARTMENT 300 North liD" street, Fifth Floor San Bernardino, California 92418-0001 Attention: Kenneth J. Henderson, Director The undersigned hereby certifies that all portions of the Project were substantially completed and available either for occupancy or use by residents in the Project as of (the "Completion Date"). DEVELOPER BY: NAME: TITLE: labj3738 EXHIBIT "C" INCOME COMPUTATION AND CERTIFICATION NOTE TO APARTMENT DEVELOPER: This form is designed to assist you in computing Annual Income in accordance with the method set forth in the U.S. Department of Housing and Urban Development ("HUD") Regulations (24 CFR, Part 813). You should make certain that this form is at all times up to date with the HUD Regulations. Re: (Address of Apartment Building) I/we, the undersigned state that I/we have read and answered fully, frankly and personally each of the following questions for all persons who are to occupy the unit being applied for in the above apartment project. ~isted below are the names of all persons who intend to reside in the unit: 1. 2. 3. 4. Relationship to Head of Social security Household g Number Head Spo..1se 5. Names of Members of the Household Place of Dlu)lovment 6. Inoane CanDutation '!he total anticipated income, calculated in accordance with this paragraIil, of all persons over the age of eighteen (la) years listed above for the twelve (12) nonth pericxi beginning (i) the date that I/we plan to JlDVe into a unit, or; (ii) is $ Included in the total anticipated income listed above are: (a) All wages and salaries, overtime pay, commis- sions, fees, tips and bonuses and other compensation for personal services, before payroll deductions; (b) Net income from the operation of a business or profession or from the rental of real or personal property (without deducting expenditures for business expansion or amortization of capital indebtedness or any allowance for depreciation of capital assets); (c) Interest and dividends (including income from assets included below); - INCOME COMPUTA~ N AND CERTIFICATION Exhibit "C" Page -2- (d) The full amount of periodic payments received from social security, annuities, insurance policies, retire- ment funds, pensions, disability or death benefits and other similar types of periodic receipts, including any lump sum payment for the delayed start of a periodic payment; (e) Payments in lieu of earnings, such as unemploy- ment and disability compensation, worker's compensation and severance pay; (f) The maximum amount of public assistance avail- able to the above persons other than the amount of any assis- tance specifically designated for shelter and utilities; (g) Periodic and determinable allowances, such as alimony and child support payments and regular contributions and gifts received from persons not residing in the dwelling; (h) All regular pay, special pay and allowances of a member of the armed forces (whether or not living in the dwelling) who is the head of the household or spouse, and; (i) Any earned income tax credit to the extent that it exceeds income tax liability. Excluded from such anticipated income are: (a) Casual, sporadic or irregular gifts; (b) Amounts which are specifically for or in reim- bursement of medical expenses; (c) Lump sum additions to family assets, such as in- heritances, insurance payments (including payments under health and accident insurance and workers' compensation), capital gains and settlement for personal or property losses; (d) Amounts of educational scholarships paid directly to the student or the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment (any amounts of such scholarships or payments to veterans not used for the above purposes are to be included in income); (e) Hazardous duty pay to a household member who is away from home and exposed to hostile fire; (f) Relocation payments under Title II of the Uni- form Relocation Assistance and Real Property Acquisition Policies Act of 1970; (g) Foster child care payments; ... - ~- INCOME COMPUTAT~'N AND CERTIFICATION Exhibit ..c" paq. -3- (h) The value of coupon allotments for the purchase of food pursuant to the Food stamp Act of 1977; (i) Payments to volunteers under the Domestic Volun- teer Service Act of 1973; (j) Payments received under the Alaska Native Claims Settlement Act; (k) Income derived from certain submarginal land of the United states that is held in trust certain Indian tribes: (l) Payments or allowances made under the Department of Health and Human Services' Low Income Home Energy Assis- tance Program; (m) Payments received from the Job Training Partner- ship Act; (n) Income derived from the disposition of funds of the Grant River Band of ottawa Indians, and; (0) The first $2,000.00 of per capita shares recei- ved from judgment funds awarded by the Indian Claims Commis- sion or the Court of Claims. 7. Do the persons whose income or contributions are included in item number "6" above: (a) Have savings, stocks, bonds, equity in real pro- perty or other form of capital investment (excluding the values of necessary items of personal property such as furni- ture and automobiles and interest in Indian trust land)? Yes No (b) Have they disposed of any assets (other than at a foreclosure or bankruptcy sale) during the last two (2) years at less than fair market value? Yes No (c) If the answer to (a) or (b) above is yes, does the combined total value of all such assets owned or disposed of by all such persons total more than $5,000? ___Yes No (d) If the answer to (c) above is yes, state: i) The amount of income expected to be derived from such assets in the twelve (12) month period beginning on the date of initial occupancy in the unit that you propose to rent: $ , and; ii) The amount of such income, if any, that was included in item number "6" above: $ --- - ---- INCOME COMPUTA~ N AND CERTIFICATION Exhibit "C" Page -4- 8. Are all of the individuals who propose to reside in the unit full-time students?* ___Yes ___No (a) If the answer to item number "8" is yes, are at least two (2) of the proposed occupants of the unit a husband and wife entitled to file a joint federal tax return? ___Yes ___No 9. Neither myself nor any other occupant of the unit I/we propose to rent is the owner of the rental housing pro- ject in which the unit is located (hereinafter the "Deve- loper"), has any family relationship to the Developer; or owns directly or indirectly any interest in the Developer. For purposes of this paragraph, indirect ownership by an individual shall mean ownership by a family m~mber, ownership by a corporation, partnership, estate or trust in proportion to the ownership or beneficial interest in such corporation, partnership, estate or trustee held by the individual or a family member, and ownership, direct or indirect, by a partner of the individual. 10. This certificate is made with the knowledge that it will be relied upon by the Developer to determine maximum income for eligibility to occupy the unit, and; I/we declare that all information set forth herein is true, correct and complete and based upon information I/we deem reliable and that the statement of total anticipated income contained in Paragraph "6" is reasonable and based upon such investigation as the undersigned deemed necessary. 11. I/we will assist the Developer in obtaining any information or documents required to verify the statements made herein, including either an income verification from my/our present employer(s) or copies of federal tax returns for the immediately preceding calendar year. 12. I/we acknowledge that I/we have been advised that the making of any misrepresentation or misstatement in this declaration will constitute a material breach of my/our agreement with the Developer to lease the unit and will en- title the Developer to prevent or terminate my/our occupancy of the unit by institution of an action for ejection or other appropriate proceedings. *A full-time student is an individual enrolled as a full-time student during each of the five (5) calendar months during the calendar year in which occupancy of the unit begins at an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance and is not an individual pursuing a full-time course of institutional or farm training under the supervision of an accredited agent of such an educational organization or of a state or political subdi- vision thereof. INCOME COMPUTATJ~N AND CERTIFICATION Exhibit "C" Page -5- I/we declare under penalty of perjury that the foregoing is true and correct. Executed this day of City of , California. , 19_, in the Applicant Date Applicant Date Appl icant Date (Signature of all persons over the age of eighteen (18) years listed in item number "2" above required.) lab/3739 FOR COMPLETION BY APARTMENT OWNER ONLY 1. Calculation of eligible income: a) Enter amount entered for entire $ household in item "6" above. b) If the amount entered in 7(c) above is greater than $5,000, enter the total amount entered in 7(d) (i), subtract from that figure the amount entered in 7(d) (ii) and enter the remaining balance ($ ) ; c) Multiply the amount entered in 7(c) times the current passbook savings rate as determined by HUD to deter- mine what the total annual earnings on the amount in 7(c) would be if invested in passbook,savings ($ ), subtract from that figure the amount entered in 7(d) (ii), and enter the remaining balance ($ ) ; d) Enter at right the greater of the under (b) and (c) above: TOTAL ELIGIBLE INCOME (line lea) plus line l(d)) amount calculated $ $ e) 2. The amount entered in (e) above: Qualifies the applicant(s) as a Lower Income Tenant(s). Does not qualify the applicant(s) as a Lower Income - Tenant(s). 3. Number of apartment unit assigned: Bedroom Size: Rent: $ 4. This apartment unit (was/was not) last occupied for a period of thirty-one (3l) consecutive days by persons whose aggregate anticipated annual income as certified in the above manner upon their initial occupancy of the apartment unit qualified them as Lower Income tenants. S. Method used to verify applicant(s) income: Employer Income Verification. Copies of Tax Returns. other ( ) Manager Date ... ..... INCOME VERIFICATION (For Employed Persons) The undersigned employee has applied for a rental unit located in a project financed under the Multifamily Housing Program for persons of low or moderate income. Every income statement of a prospective tenant must be stringently veri- fied. Please indicate below the employee's current annual income from wages, overtime, bonuses, commissions or any other form of compensation received on a regular basis: l. Annual Wages: 2. Overtime: 3. Bonuses: 4. Commissions: 5. Total Current Income: $ $ $ $ $ are true and I hereby certify tht the statements above complete to the best of my knowledge: Signature Date Title (Please Type or Print) I hereby grant you permission to disclose my income to in order that they may determine my income eligibility for rental of an apartment located in their project which has been financed under the City of , Multifamily Housing Program. Signature Date Please send to: ... ~._--- - 'W' INCOME VERIPICATION (por Self-Employed Persons) I hereby attach copies of my individual federal and state income tax returns for the immediately preceding calendar year and certify that the information shown in such income tax returns is true and complete to the best of my knowledge. Signature Date -. .... .........--.--- -- - .... EXHIBIT "D" CERTIFICATION OF CONTINUING PROGRAM COMPLIANCE The undersigned being (title) of Developer, (the "Developer") has read and is thoroughly familiar with the provisions of the various Multifamily Housing Development Grant Documents associated with the Developer's participation in the City of San Bernardino: (1) as of and the Agency. The Affordability Covenants and Restrictions dated , 19 , by and between the Developer (2) During the preceding month, the following number of applications were received from Low or Moderate Income Residents ( ), Lower Income Residents ( ), and Very Low Income Residents (_): - , a) Total number of applicants who qualify as Low or Moderate Income Residents: b) Total number of applicants who qualify as Lower Income Residents: c) Total number of applicants who qualify as Very Low Income Residents: (3) As of the date of this certificate, the following percentages of completed residential units in the Project (i) are occupied by either Low or Moderate Income Residents, Lower Income Residents or Very Low Income Residents (as such terms are defined in the Affordability Covenants and Restric- tions), or; (ii) are currently vacant and being held avail- able for such Residents' occupancy and have been so held continuously since the date such Resident vacated such unit, as indicated: One Two studio Bdrm. Bdrm. Total Occupied by Lower Income Residents: _' Unit Numbers: Held vacant for occupancy con- tinuously since last occupied by Lower Income Resident: , Unit Numbers: Occupied by Low to Moderate Income Residents: % Unit Numbers: Held vacant for occupancy con- tinuously since last occupied by Low to Moderate Income Residents: , Unit Numbers: ... CERTIFICATION O~ CONTINUING PROGRAM COMPLIANCE Bxhibit "D" Paq. -2- On. Studio Bdrm. Bdrm. Two 'l'otal Occupied by Very Low Income Residents: ___% Unit Numbers: Held vacant for occupancy con- tinuously since last occupied by Very Low Income Residents: % Unit Numbers: Total Number of Completed Units: ___% Unit Numbers: The undersigned hereby certifies that the Developer is not in default under any of the terms and provisions of the above documents, and no event has occurred which, with the passage of time, would constitute a default thereunder, with the exception of the following: Name of Project Developer Address By: Its: Contact Person: Name/Title: Telephone: (___) lab/3740 Recordinq Requested By: REDEVELOPMENT AGENCY When Recorded, Mail To: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North "0" Street, Fourth Floor San Bernardino, Calif. 92418-0001 ------------------------------------------------------------- DECLARATION OF SPECIAL LAND USE RESTRICTIONS (the "DeClaration") THIS DECLARATION is made as of March , 1990, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNAR- DINO ("Aqency"), the CITY OF SAN BERNARDINO, a Charter City duly orqanized and existinq pursuant to the Constitution of the State of California ("City"), and CFB INVESTMENTS, LTD., a California Limited Partnership ("Covenantor"), with refer- ence to the followinq facts: A. Covenantor owns the real property, described in Exhibit "A" (the "Burdened Property"). The Burdened Property is located entirely within the City of San Bernardino. B. The City owns streets, rights of way, and other properties bordering and in the vicinity of the Burdened Property. It is the intention of the Parties that all of the real property owned by the City in the immediate vicinity of the Burdened Property is to be benefited, (the "Benefited Property"). C. Certain litigation and disputes between Covenantor and the City are being settled concurrently with the execu- tion of this Declaration. Pursuant to the settlement, Covenantor has agreed that the Burdened Property, and each successive owner of the Burdened Property, shall be subject to the covenants and agreements set forth below: DECLARATION OF COVENANTS RUNNING WITH THE LAND The Parties intend that the following covenants will be for the benefit of all of the City of San Bernardino's real property, will run with the Burdened Property and will be bindinq upon each successive owner, durinq hiS/her ownership, of any portion of the Burdened Property. Pursuant to California civil Code Section 1468, the following recitals are made: A. Covenantor's land which is to be affected by this Declaration of Covenants is the Burdened Property described on Exhibit "A" hereto. The City's land which is to be benefited by such covenants is all land owned by the city. 03/13/90 EXHIBIT "D" DECLARATION OF ~VENANTS Karoh, 13, 1"" Page -2- B. Successive owners of the Burdened Property are hereby expressly bound by the covenants contained in this Declaration for the benefit of the City and the land it owns. C. Each act related to the use of the Burdened Pro- perty will be governed by the covenants contained in this Declaration, for the period set out in Paragraph "4" below, ~hich the Parties hereby declare is reasonable in relation to the purposes of the covenants. D. This instrument is being signed and acknowledged by the Parties for recordation in the office of the Recorder of the County of San Bernardino. SECTION 1. Covenants. 1.1 Covenantor will, as soon as is practicable, but in no event later than sixty (60) days after the date of this Declaration, commence and prosecute diligently to completion construction, at its own expense, of that portion of "New" Pine Avenue which starts at the proposed intersection with Kendall Avenue and extends to the boundary of the Burdened Property. Such construction shall be in accordance with City approved plans and location and street elevations. 1.2 Covenantor shall cooperate with the City in obtain- ing rights of way and dedication required to continue con- struction of "New" Pine from the boundary of the Burdened Property through adjoining property to the intersection of "New" pine and Irvington Avenue. Covenantor shall cause to be continued, uninterrupted, construction of "New" Pine from the boundary of the Burdened Property to Irvington Avenue. All costs and expenses connected with obtaining such dedica- tion and right of way and with grading for and construction of "New" pine outside of the boundaries of the Burdened Property shall be at the City's expense. 1.3 In connection with any construction of apartments on the Burdened Property, landscaping shall be installed pursuant to a landscape plan prepared by a professional landscape planner and all landscaping shall be in excess of minimum City standards. In following this general require- ment to exceed minimum City standards, the following criteria ~ill be used as guidelines: (i) In open areas, at least five percent (5%) of trees will be thirty inch (30") box and the balance fifteen (l5) gallon, but no smaller than twenty-four inch (24") box size; shrubs will be sixty percent (60%) five (5) gallon; ground cover will be one-hundred percent (100%) when mature, ~ith at least fifty percent (50%) planted at 10"o.c. - DECLARATION OP ~OVENANTS Karch 13, lUO Page 3- (ii) In slope areas fifty percent (50\) of the trees will be fifteen (15) gallon, and fifty percent (50\) five (5) gallon, twenty-four inch (24") minimum box size; shrubs will be fifty percent (50\) five (5) gallon and fifty percent (50%) one (1) gallon. 1.4 All roofs of any apartment building constructed on the Burdened Property shall be concrete tile type materials with eighty (80) miles per hour (mph) hurricane clips. 1.5 So long as any apartment is operated on any part of the Burdened Property on-site management must be continuously provided. SECTION 2. Enforcement an~ Bin~inq Effect. 2.1 Every person or entity who now or hereafter owns or acquires any right, title or interest in or to any portion of the Burdened Property is and shall be conclusively deemed to have consented and agreed to every restriction, provision, covenant, condition, right and limitation contained in this DeClaration, whether or not any reference to this Declaration is contained in the instrument by which such person acquired an interest in the Conveyed Land. 2.2 In addition to any other remedies which the City may have, on any failure of performance of any covenant imposed by this Declaration the City may, after written notice to the defaulting party, which notice shall give the defaulting party a minimum of thirty (30) days in which to cure the default, obtain, from a court of competent juriSdic- tion a mandatory injunction ordering that a covenant provided in this Declaration be performed, or enjoining violation or threatening violation or threatened violation of any such covenant. SECTION 3. No Dedication. Nothing in this Declaration will be deemed to be a gift or dedication of any portion of the Burdened Property to the general public or for any public purpose. SECTION 4. Duration an~ Amendment. The covenants contained in this Declaration shall have the following duration: 4.1 Covenant 1.1 ("New" Pine) shall continue in force until such time as "New" pine has been completed from Kendall Avenue to Irvington Avenue and accepted by the City, at which time it will automatically expire. -- - .... DECLARATION O~ _JVENANT8 Karch 13, lUO Page -4- 4.2 Covenants 1.2 (landscaping), 1.3 (concrete tile roofs) and 1.4 (on-site management), shall each continue so long as any part of the Burdened Property contains any apartment dwelling unit. 4.3 This Declaration may be modified, amended or terminated only with the City's written consent, properly executed, acknowledged and recorded in the Office of the Recorder of the County of San Bernardino, California. 4.4 Each of the covenants contained in this Declaration is made for the direct benefit of the City, constitutes a covenant running with the Burdened Property, and binds every person having any fee, leasehold or other interest at any time or from time to time, in any portion of the Burdened Property. SECTION 5. Execution. This DeClaration is executed this day of March, 1990, by the Declarant, CFB INVESTMENTS~TD. CFB INVESTMENTS, LTD., a California Limited Partnership BY: Sara C. Regan, General Partner lab/3754 03/13/90 ,... ACKNOWLEDGEMENT STATE OF CALIFORNIA ) ) 88. ) COUNTY OF On this day of March, 1990, before me, the under- signed, a Notary Public, personally appeared Sara C. Regan known to me to be the person whose name is subscribed to this instrument, and acknowledged to me that she executed it as the Sole General Partner of CFB Investments, Ltd., a Califor- nia Limited Partnership. WITNESS my hand and official seal. , Public for the State of California Notary The City of San Bernardino, a Charter City duly organized and existing under the Constitution of the State of California, lab/3754 LEGAL DESCRIPTION PARCEL As LOT 1, TRACT 12146, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 65 AND 66, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL B: LOT 1, TRACT 12148, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 170, PAGES 67 AND 68 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL C: PARCEL 3 OF PARCEL MAP 6985, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 72 OF PARCEL MAPS, PAGES 53 AND 55, INCLU- SIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL D: PARCEL 4 OF PARCEL MAP 6985, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 72 OF PARCEL MAPS, PAGES 53 TO 55, INCLU- SIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL THAT PORTION LYING WITHIN TRACT 12l46, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 65 AND 66, IN THE OFFICE OF THE COUNTY RECORDER. ALSO EXCEPTING THAT PORTION LYING WITHIN TRACT 12148, AS PER MAP RECORDED IN BOOK 170 OF MAPS, PAGES 67 AND 68, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL E: PARCEL 2, PARCEL 6505, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 64 OF PARCEL MAPS, PAGES 49 AND 50, RECORDS OF SAID COUNTY. lab/3745 3/l3/90 EXHIBIT "A" ....... ~ .......- USB OF FUNDS SHADOW HILLS SETTLEMENT AGREEMENT and MUTUAL GENERAL RELEASB UEM Immediate payment to Westport Savings Bank. Immediate payment and reimbursement due to cure defaults and purchase the Bower encumbrance (claimed balance due now in excess of $900,000), at a discount. Principal: Bower Costs and Attorneys' Fees: $475,000 $ 35.000 Immediate commencement of the construction of the Shadow Hills portion of "New" Pine (grading, paving, gutters, sidewalks, street lights, engineering fees, and contingencies.) CFB's attorney fee obligations (including litigation counsel, with whom a fee arrange- ment drastically decreasing contingent obliga- tions has been negotiated in order to make settlement work). Taxes, (Parcels 2 and 3). Retainers and cost advances, project upgrades, landscape conceptual plan, architectural and structural engineering services, consultant, day care/preschool, marketing and demographic surveys, financial consultants. Shadow Hills, Ltd., potential unsecured creditors claim. TOTAL: *Negotiab1e Amounts lab/3746 03/l3/90 EXHIBIT "E" AMOUNT $ 750,000 $ 510,000 $ 200,000* $ 150,000* $ 70,000 $ 65,000* $ 110.000* $1,855,000 -- ~ --- ~-- .. - - - SUPPLEMENTAL DOCUMENTS SHADOW HILLS SETTLEMENT AGREEMENT and MUTUAL GENERAL RELEASE ~ "W' - -- - . \ .~ . .:.: ~~.Pf'~-.. ....~, .', ~,' " - '/' ,. ., :\~.~ ~: ;~.:'~r.~;l~-: >}-:..,.~ ~ < ", <o:.r'~ '..-..,<.,.'. :. .':"Y'B'-' ,': ' n'~ " _ _'. ~.. ....;.. . .":-:: -~_:~;"~":-";~~~l .:-.::....~'!, ...,..;/~-..:~-;- ;'~;;,~:'... . '.~;:,c~...~ ::,-, :. ~'.,: \~~t; ,.:,'F', "'~;:!-~.:;".'" . - , . ~ ~lf!. -\. -0; \1. -'.f~. '. ;.._'...~~.. 0(". ~.,.~;. ~~' .~;t,;o~ . ?,-!:_~ ~ ~~.~:J~::.:'~'ri: . .-.:.:t:> ~. ','--: . :.... .,,-'.. , ,l,..""':..__':..,.,....;: ".j. ~ , . - ~ \, '. . . SHADOW lULLS VILLAGE (Tract 12150 & 12151) LANDSCAPE DEVEWPMENT STATEMENT ., PREPARED BY RHA, INC. (Randolph IDubik Associates, Ine.) Llcense #15U The landscape development for this multi-family project will meet or exceed the minimum standards set forth by the City of San Bernardino. The landscape design for this project will consider several landscape zones including streetscene, common open space, l>uffers, slopes, and transitional zones to other uses. Plant material choices for these zones will be sensitive to maintenance requirements, drought tolerance, heat, wind, and cold resistance. Streetscene design for the project will create simple masses of shrubbery that serves to buffer walls and become a vertical backdrop, as well as a textural change to the turfgrass areas. Street trees will be spaced at the required distances and help further enhance the vertical plane.. . . , Rolling turf open areas balanced by canopy shade tre~s will enhance the common open space between buildings. A mixture of deciduous and evergreen trees will enhance seasonal chan~es and create psychological relief for the occupants of the apartments. Ad- ditional amemties will be 'provided in two recreation areas wliere the focal element will be a pool with concrete decking and specimen size trees. _ \ . Slope areas adjacent to the project will be landscaped with a variety of native sJ?ecies com- posed of trees, shrubs, and ground covers that will create a variable root matnx and help reduce soil erosion. Irrigation will be provided to these areas, however, the plant species will be drought tolerant once established, and watering will be reduced. Transitional areas include interfaces with adjacent areas not conforming to the proposed use. Landscaping between the proposed child care facility will have to buffer the apart- ments. Where the project is adjacent to Cable Creek, landscape species will reflect the riparian habitat characterized by this existing natural element. . Entries to the project will be defined with several specimen size trees (approximately 36" box), shrub hedges, and a flowerin~ groundcover. The intent of the design IS to accentuate the entrance so that a driver perceives a change to the streetscene. The plant material choices described below are for reference only, and may change upon further refinement of the project design. . -1- .., . I ~ ~~-~. 11m Old City Hall · Third Floor 3612 Seventh Street, Riverside, California 92501 Ucense #15U ....(714) 781-1930 t ,<. . " t..' .~: ~- .,' '. .'- STREETSCENE/ENTRIES Trees: Cinnamomum camf.hora /.iquidambar styradflua Pinus e1derica Shrubs: PittOSfO.TWrI tobira 'Variegata' Raphiolepis indica Camphor Tree Sweetgum Mondale Pine Variegated Mock Orange Indian Hawthorne Groundcover: kapanJhus africanus Gazania 'Mitsui' l.ily of the Nile ' OPEN SPACE/REC AREAS Trees: Magnolia grandijlora PyOO calleryana Magnolia Gallery Pear Shrubs PiltospoTWrl tobira 'Wheelers Dwarf Trachelospermum jasminoides Xylosma congestum Dwarf Mock Orange Star Jasmine Shiny Xylosma , Groundcover Vuzea minor Periwinkle -2- II.~ Old City Hall · Third Floor ~..Lal 3612 Seventh Street, Riverside, California 92501 - t;':~~,~ ':,~;;~~~ ~_ .~_ >~~'dJ"..'" . ~.;y So ......~l't"''lfJ- ':'\"'/"";'" ,l1.J1"~' ~'. .-:\...'If! r-.~f." ; ': .~.~.:~~~.:~~:\. . ~ ;.; :,~., " O,!",;.....: .--..... ' Ucense #1512'" (714) 781-19302, . ., ~ ... _ i ,~", . . ~.I: ,. " <:.~' - ~~(ifK~ . ~"':'Y'f"' TIlE MINIMUM CITY STANDARDS FOR LANDSCAPING OPEN SPACE AREAs'. ARE AS ILLUSTRATED BELOW: -~~fl'. A. Trees B. Shrubs 20% 24wbox - ....;' 50% 15 gallon 30% 5 gallon 20% 5 gallon 80% 1 gallon C. Groundcover 100% coverage when mature or 12W o.c. In an effort to upgrade the landscaping of this project the following illustrates the ap- proximate mix of sizes of plant matenal: A. Trees 5% 36w box 35% 24w box 60% 15 gallon 80% 5 gallon 20% 1 gallon '~~~f' B. Shrubs Groundcover 100% coverage when mature 50% planted at 8w O.c. 50% planted at lOw o.c. AJI street trees will be 24w box size in addition to the above standards. C. " .~:.. , The minimum City standards for landscaping of slope areas are illustrated below: A. Trees ",;,,- ;-~~ 10% 15 gallon 40% 5 gallon 50% 1 gallon 20% 5 gallon 80% 1 gallon The following illustrates the approximate mix of proposed for slope areas of this project: .r=D B. Shrubs 50% 15 gallon 50% 5 gallon 50% 5 gallon 50% 1 gallon -3- .,,~:.;.;., ~;~'f'~.(~. .:':;"';~:~ . .. ,'..,'4. ..l.~: .'-"'" . ~".;. :~':J.:-: "'J-;" . License #lSU .'Ii.' . .it . (714) 781-1.~~J\t;, ... ." A. Trees Old City Hall · Third Floor 3612 Seventh Street, Riverside, California 92501-.~.~F: B. Shrubs . ' j I . \ " .;..~:~:,' . :. ,.:', ". '. J=,.. -. ~'..' . 'Ji.i;" - . . ~~., "" ..'- - ~ - - - . \ First American Title Insura.nce Company 323 COURT ITREET 'P. O. lOx 83271 SAN BeRNARDINO. eALlF.1I241Z . '7141 ~311 ' . , TELECOPIER COYER SHEET , j...~- rt; ./~ '. bd 9....-- -e1..tr.w~ (714) 889-0311 Extension (714) 885-3623 FAX TO P1QE' \?~13~-'/-51.l,.y FOR DELIVERY TO: >f....t',,_..~:~.Ad..6-.J Reference: Date: T f 1IMt: Sender's nillll: . Sender's phone: Sender's fu: ',. NO. OF PAGES III TRAHSMISSIC>>t (INClUDING ,COVER SHEET) ~ DOClJ4EICTS TRANSMITTED: ' MESSAGE: , . . IF THERE-1$. A PROBLEM WITH MATERIAl RECEIVEO. PLEASE COftTACT sENDE'R AS SHOIIW -ABOVE. " ' Return original of tax IIlIterfal to: \ /__.u (5/89) -- --- .... ... -- - I - --J SU~ -\EMENTAL ESCROW INSTR ,TIONS fKrOw No 82563-JI Saft'Bernardino, CA M~rch 1 (CUll (SlItt) OVt PREVIOUS INSTRUctIONS ARE HEREBY MODIFItD 1M TKI rOLLOWlNC PARTICULARS ONLYa , 19 90 The total conaider.tion Ib.ll rema1n at $1,750,000.00 .nd thall ~e paya~l. as followl' Buyer hal dapoelt the .um of $18,000.00 in e.crov and buyer ,h.ll depolit an additional $244,500.00 prior to the elole of eecrow, Buyer thall obt.in a new convention.l loan 1n tbe amount of $987,500.00 In favor of rirlt Nationwide 8ank and the balance of '500,000.00 .hall be evidenced by . 2nd Purcbas. Honey Deed of Trult to fila deecrlbed .s fOllowl' 2ND PURCHASE MONEY DEED OF TRUST TO PILI executed by veetee to First American Titl. In8urance Company, Trustee, to secure one note in tbe amount of $500,000.00 witb interest payable monthly, in f,vor of CFB INVESTMENTS, LTD., a California limited partnership. ' Inter'lt-only eb.ll be payable montbly beginnlna 30 da1s frOm tbe clos~ of escrow and continuin. until tbree (3) years from tbe elole of escrow, .t which time tbe then unpaid principal balance. plul accrued lntere.t, ahall be .11 due .nd payable. The lntereet rate for the lit year will be 5.2% and the interett rate for the.2nd and 3r4 year will be 6.2'. Interest on ~ai4 note ia to commence .t the clos. of escrow. Sa14 Deed of Trult i. to recite the followlnaa (1) Thia i. . Purcha.e Money need of Trult and ie liven to .ecure & portion of the purchase price of the propert1 herein described. (2) Thi. Deed of Trust ia 2nd and lubJect to I 1st Deed of TrUlt recor41nl concurrently herewith in favor of Firat Nationwide Bank. The closin. da.t. 11 hereby ntended to cIon on or before MARCH 16. 1990. All other term. and conditione remain the lame. END OF AMENDMENT. CFB INVESTMENTS. LT~. ANITA W. GLICK By ALBERT CLICl j ~ES R. AllAMS GALl H. ADAMS T~R~Y L. FLOWERS CAL! L. fLOWERS JAMBS Il. HIM2S r,r,ORTA HIMES - -- ... - - - " CA IJIJc'ORNIA . PRC1Pt.;RTIES FUND March 5, 1990 Kenneth J. Henderson, Director of Community Development city of San Bernardino 300 N. D street San Bernardino, CA 92418 1 I j , t J Re: Dedication of hnd tor construotion of "New" Pine Dear Mr. Henderson: California Properties Fund, a Califo~nia corporation (the Fund) is the OWner of property in the City of San Bernardino Whioh, tor purposes of this letter, is described as Tentative Tract 14071- When constructed, part of "New" Pine will go through Tract 14071. From Kendall Avenue to the boundary of Tract 14071, propOsed "New" Pine will pass through an apartment project owned by CFB Investments, Ltd. ("CrB"). It b our understanding that CFB has agreed with the city that CFB will, at its own cost, construct New Pine from Kendall AVE!nue to the boundary or 'l'ract 14071, with construction to commence ~n the immediate future. We have been advised that detailed plans of the location and stroot elevations for "New" pine (the Street Plan) have previously been drawn, approved by the city and submitted to the Southern California Municipal Water District ("HHD"). The MWD has approved and is ready to execute the Street Plan. Based on the above facts, and in consideration of the City's agreement to construct "New" Pine through to Irvington AvenUe in accordance with the street Plan the Fund hereby agrees, for Itself, its successors and assigns, that it will, on request, dedicate to the City that portion of Tract 14071 through which "New" Pine will pass and further that it will grant to the City its agents and representatives, such access and easements over and on Tract 14071 as are reasonably necessary to enable construction of "New" Pine. 21f) Fiscbet' Avenue, Suite D.3 CoslJl Ml'.AA. CaHfomla 92626 .-, ,_ ,.. 11 ""~'''''' "Of"" IU,,, ".. t .. .."'- . '3~'5~9I I'.a - a 714 75' \743 CA FINANCIAL UI' Xenneth J. lJenderson Director of Community Development City of san Bernardino March 5, 1990 Page 2 We unde.rstand and authorize that an original of this letter will be presented to the City, and its Common Council as an exhibit to a proposed settlement agreement between the city and our neighbor, CFB Investment., Ltd. Very truly your., Properties Fund ., I . By: I . Je;, ! By: t,1'I ./ ..~,.v<./2~<"" · Gene A. Sullivan, Real Estate; and --..... Secretary IS