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HomeMy WebLinkAboutR10-RDA Item ~ ~ AGENDA ITEM INFORMATION SUMMARY GENERAL INFORMATION: Subjec:l~"'P 0 0 ~ Ju')n-r 1]21\- AuIhor--.Nn u.. j 1)0 v....:.:';>C"fV...., Ext. 3432 Ward~project Area Sr:: I P Budget Authority tJl-f:I , Committee. Commission/Council 'J/f.:#?lJ rtf. ~"X '11& ~:::N5 ~ VI {, Funding Requirements N ~ Filing Oates Meeting Oates RDA MANAGEMENT REVIEW: CLEARANCES: Date Execuliva Director Admilishtiv8 Deputy 'I j'J- ~ Man8gerlSupervioor CITY DEPARTMENTAL REVIEW: Dale Depl By Depl By Dale Yel NlA o o ro o ~ Accounting ~ ~~~ S-,fo-fI?> O/t:;A~- ~ City Administrator RDA CommIttee f'fICommendatlon INFORMATIONAL DATA FORWARDED TO CITY DEPARTMENTs/COUNCIL OFFICES: Sent to May()(s Office Council Ward Council Ward Council Ward Council Ward Department Department By Date COMMENTS/CONCERNS: Include pert,lnent comments Ind concerns of offices Ind persons clelrlng the summary,such IS controversial Issues, time constraints Ind funding complications. Indicate dlles when ICllon must be taken. 10- Redevelopment Agency · City of San Bernardino 300 North "D" Stree~ Fourth Floor . Sin Bomardino, Colifomia 92A18 (714) 3M-SOB 1 FAX (714) 888-9413 Pride ./ ~e~ MARCH 30, 1990 DEGROOT DDA Synopsis of Previous Commission/Council/Committee Action: 05/07/79 Resolution No. 3906 authorized execution of the DDA. 05/05/80 Resolution No. 4073 authorized 1st Amendment to DDA extending construction dates. 10104/82 Resolution No. 4385 authorized 2nd Amendment to DDA extending construction dates. (continued on page 2) Recommended Motion: (COMMUNITY DEVELOPMENT COMMISSION) That the Commission authorize execution of the Amended and Restated Disposition and Development Agreement between the Redevelopment Agency of the City of San Bernardino, Thedford & Jacqueline DeGroot, and Riverview Development Partners, L.P., a California Partnership. Respectfully Submitted, Executive Director Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: None Project: SEIP Commission Notes: RT: ND: sm: 2761 H Agenda of: Apri 1 9, 1990 Item No. .I'~ - - Redevelopment Agency SynoPsis of Previous Commission/Council/Committee Action: (continued from page 1) 03/18/85 Resolution No. 4745 authorized 3rd Amendment to DDA extending construction dates. 03/03/86 Resolution No. 4857 authorized 4th Amendment to DDA extending construction dates. 09/08/87 Resolution No. 5040 authorized 5th Amendment to DDA extending construction dates. 07/05/B9 ,Commission authorized staff to declare the Agreement in default and pursue all remedies under the Agreement. RJT:ND:sm:2761H 2 - - - S T A F F R E P 0 R T BACKGROUND In May, 1979, the Agency entered into a DDA with the DeGroots for development of a one acre site located on Riverview Drive in the Southeast Industrial Park Project Area. The Agreement provided that the DeGroots would build a 20,000 SF industrial/warehouse building with a value not less than $400,000. In the event the site was not built out on schedule, the agreement provided that the DeGroots would pay $4,000 a year in-lieu fees. The site has not been developed, and there have been five amendments extending the Agreement. On July 28, 1989 the Commission declared the Agreement to be in default and directed that staff pursue all redmedies. Mr. Pat Hopkins, President of the Sunset Group, notified staff that the Sunset Group had entered into a partnership with the DeGroot's and that the property could be sold to Guth Development (dba Riverview Development Partners, L.P.) who would develop the site. Staff met with the principals of Guth Development, who presented plans to develop the site and eventually agreed to enter into a Restated and Amended Disposition and Development Agreement. PROPOSED AGREEMENT The Restated Agreement has basically the same terms of the original DDA: Riverview Partners will develop a 20,000 SF building with a value of not less than $300,000.00. Construction will be completed not later than 450 days from the effective date of the Agreement, and in-lieu fees will be waived if the site is built out according to the terms of the agreement. If Riverview defaults on the terms, in-lieu fees will be assessed back to the date the agreement was executed. The Restated Agreement also retires the agreement between the DeGroots and the Agency. Mr. Hopkins has presented evidence that the DeGroot's will not be making a profit from the sale of the property, which complies with the terms of the original DDA. RECOMMENDATION Staff therefore requests approval to execute the Restated and Amended Disposition and Development Agreement between Thedford & Jacqueline DeGroot, Riverview Development Partners, L.P., and the Redevelopment Agency. RJT: ND: sm: 2761 H 3 - _::::.. ! , , I ~I ~ \ . -- \ \ \ I I \.n "'-' I~ ATTACHMENT Nu. 1 ) ... ... - fa en ~ ; . - -- AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THEDFORD O. AND JACQUELINE M. DEGROOT RIVERVIEW DEVELOPMENT PARTNERS, L.P. a California limited partnership AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO Dated this day of , 1990 - ..- AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT THIS AGREEMENT IS ENTERED INTO THIS day of 1990, by and among the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency"), THEDFORD O. DEGROOT and JACQUELINE M. DEGROOT ("DeGroot") and RIVERVIEW DEVELOPMENT PARTNERS, L.P., a California limited partnership (the "Participant"). Agency, DeGroot, and Participant hereby agree as follows: I. [100] SUBJECT OF AGREEMENT A. [101] Background and Purpose of Agreement 1. Background. (a) The Agency and DeGroot entered into an Agreement dated as of May 7, 1979, entitled "Disposition and Joint Development Agreement" (The "Original Agreement"). (b) Pursuant to the Original Agreement, DeGroot was required to develop on Parcel 3 of Parcel Map 5106 as per map recorded in Book 46, page 68-69 of Parcel Maps in the office of the County Recorder of the County of San Bernardino, State of California, a 20,000 square foot building with a total value of $300,000.00 within ten (10) months of the date of the conveyance of the property to DeGroot. (c) Agency and DeGroot subsequently entered into an Amendment to Disposition and Joint Development Agreement of Agency Owned Property dated as of May 5, 1980, ("First Amendment") which First Amendment delayed the dates related to the construction of the project to commence by March 1, 1981, and DAB/ses/dys/degroot.agr March 30, 1990 1 to be completed on or before December 1, 1981, and provided for in-lieu payments in the total amount of $6,000.00 payable in four equal payments on December 10, 1980, April 10, 1981, December 10, 1981 and April 10, 1982. (d) Agency and DeGroot subsequently entered into a Second Amendment To Disposition And Joint Development Agreement Of Agency Owned Property dated as of October 4, 1982, ("Second Amendment") which Second Amendment delayed tl').e dates related to the construction of the project to commence by May 28, 1984, and to be completed on or before February 28, 1985, and provided for additional in-lieu payments in the total amount of $12,000.00 payable in six equal payments on December 10, 1982, April 10, 1983, December 10, 1983, April 10, 1984, December 10, 1984, and April 10, 1985. (e) Agency and DeGroot subsequently entered into a Third Amendment To Disposition And Joint Development Agreement dated as of March 18, 1985, ("Third Amendment") which Third Amendment delayed the dates related to the construction of the project to commence by May 31, 1985, and to be completed on or before February 28, 1986, and provided for additional in-lieu payments in the total amount of $4,000.00 payable in two equal payments on December 10, 1985, and April 10, 1986. (f) Agency and DeGroot subsequently entered into a Fourth Amendment To Disposition And Joint Development Agreement dated as of March 4, 1986, ("Fourth Amendment") which Fourth Amendment delayed the dates related to the construction of the DAB/Ses/dys/degroot.agr March 30, 1990 2 project to commence by July 1, 1986, and to be completed on or before April 1, 1987, and provided for additional in-lieu payments in the total amount of $4,000.00 payable in two equal payments on December 10, 1986, and April 10, 1987. (g) Agency and DeGroot subsequently entered into a Fifth Amendment To Disposition And Joint Development Agreement dated as of July 31, 1987, ("Fifth Amendment") which Fifth Amendment delayed the dates related to the construction of the project to commence by December 1, 1987, and to be completed on or before June 30, 1988, and provided for additional in-lieu payments in the total amount of $4,000.00 payable in two equal payments on December 10, 1987, and April 10, 1988. (h) DeGroot proposes to convey his interest in the property and the project to Participant which conveyance is acceptable to and is hereby approved by Agency in that Agency has satisfied itself that such conveyance is not for speculation and DeGroot has paid all in-lieu payments agreed to in the First, Second, Third, Fourth and Fifth Amendments and will pay additional in-lieu payments in the total amount of $6,000. (i) The Original Agreement, as amended, is hereby amended and restated and the development and operation of the project shall be governed by this Agreement, and the provisions of the Original Agreement, the First, Second, Third, Fourth and Fifth Amendments shall be inapplicable to the property. Participant shall have no responsibility or liability for DAB/ses/dys/degroot.agr March 30, 1990 3 DeGroot's performance or lack of performance of the Original Agreement or any of the Amendments thereto. 2. Purpose of Agreement The purpose of this Agreement is to effectuate the Redevelopment Plan for the Southeast Industrial Park Redevelopment Project (the "Project") by providing for the development of the Property, which is situated within the Southeast Industrial Park Redevelopment ,Project Area (the "Project Area") of the Project. This Agreement is entered into for the purpose of developing the Property and not for speculation in land hOlding. The completion of the development of the Property pursuant to this Agreement is in the vital and best interest of the City of San Bernardino, California (the "City") and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements under which the Project has been undertaken. B. [102] The Redevelopment Plan The Redevelopment Plan was approved and adopted on June 21, 1976 by Ordinance No. 3583 of the Common Council of the City of San Bernardino; said ordinance and the Redevelopment Plan as so approved (the "Redevelopment Plan") are incorporated herein by reference. C. [103] The Property The Property is that certain real property designated on the Site Map (Attachment No.1) and described in the "Legal DAB/ses/dys/degroot.agr March 30, 1990 4 Descr~pt~on of the Property", wh~ch ~s attached hereto as Attachment No. 2 and ~s ~ncorporated here~n by th~s reference. The Property ~s that certa~n real property, t~tle to wh~ch ~s held by the Part~c~pant. D. [104] Part~es to the Agreement 1. [105] The Agency The Agency ~s a pub1~c body, corporate and po1~tic, exercising governmental functions and powers and organ~zed and exist~ng under Chapter 2 of the Community Redevelopment Law of the State of Ca1~forn~a (Health and Safety Code Sect~on 33020 et seq.). The pr~nc~pa1 off~ce of the Agency ~s located at 300 North "D" Street, San Bernard~no, Ca1~forn~a 92418. "Agency", as used ~n th~s Agreement, ~ncludes the Redevelopment Agency of the C~ty of San Bernard~no, and any ass~gnee of or successor to ~ts r~ghts, powers and respons~b~l~t~es. 2. [106] DeGroot DeGroot refers to Thedford O. DeGroot and Jacquel~ne M. DeGroot. The pr~nc~pa1 place of bus~ness of DeGroot for purposes of th~s Agreement is 810 N. Waterman Ave., San Bernard~no, CA 92410. 3. [107] The Part~c~pant The Part~c~pant ~s R~verv~ew Development Partners, L.P., a Ca1~forn~a Corporat~on. The pr~nc~pal off~ce and ma~l~ng address of the Part~c~pant for purposes of th~s DAB/ses/dys/degroot.agr March 30, 1990 5 Agreement is 6200 Box Springs Blvd., Suite B, Riverside, CA 92507, Attention: Robert W. Guth. The Participant qualifies as an owner participant pursuant to the Redevelopment Plan and rules promulgated pursuant thereto pertaining to owner participation. 4. [108] Prohibition Against Change in Ownership, Management and Control of the Participant The qualifications and identify of the Participant are of particular concern to the City and the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its discretion. In the event of such transfer or assignment: (1) the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency; (2) the original Participant shall remain fully responsible for the performance and liable for the obligations of the Participant pursuant to this Agreement; and (3) any guarantees provided to assure the performance of the Participant's obligations under this Agreement shall remain in full force and effect. DAB/ses/dys/degroot.agr March 30, 1990 6 In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency, shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure to the benefit of the Participant and the permitted successors and assigns of the Participant. Whenever the tefm "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. II. [200] DISPOSITION OF THE SITE A. [201] Vesting and Transfer of Title to the Site 1. The Property was conveyed by the Agency to DeGroot, subject to a right of reentry of the Agency. As of the date of this Agreement title to the property is vested in the DeGroot subject to that right of reentry. 2. DeGroot proposes that, upon satisfying the "Condi tions Precedent" (as set forth in Section 202 of this Agreement), it shall convey title to the Property to the Agency for immediate conveyance to the Participant. Such conveyance shall be effected by grant deed in the form of the "Grant Deed", which is attached hereto as Attachment No. 7 and is incorporated herein by reference. The terms and conditions of such sale are as follows: (a) The total purchase price payable by the Participant shall be the amount of $90.000.00 ) (The DAB/ses/dys/degroot.agr March 30, 1990 7 "Participant Purchase Price"). The Participant Purchase Price shall be credited to the benefit of DeGroot, subject to the limitations hereinafter set forth in this Section 201; (b) escrow and title costs shall be borne between DeGroot and Participant without contribution by Agency; (c) The participant purchase price shall first be applied by DeGroot (or by the escrow hOlder on behalf of DeGroot) toward the satisfaction of the fol~owing obligations: exceptions , and as set forth in the "Preliminary Report", which is attached hereto as Attachment No. 8 and is incorporated herein by reference (The "Obligations"); (d) in the event any moneys remain available to DeGroot from the Participant Purchase Price after payment of the Obligations, such excess moneys shall be paid to DeGroot to compensate for his investment ("Investment Costs"). Total compensation under paragraph (c) and (d) of this paragraph II.A.2. shall not exceed One Hundred Seven Thousand One Hundred Twenty Eight Dollars and Seven Cents ($107,128.07); (e) in the event any moneys remain available to DeGroot from the Participation Purchase Price after payment of the Obligations and the Investment Costs, such excess moneys shall be paid to Agency and may be applied to any lawful purpose of Agency. DeGroot shall instruct the escrow holder consistent with these provisions, and Participant herewith gives its consent to such disposition of the Participation Purchase Price; DAB/ses/dys/degroot.agr March 30, 1990 8 (f) at such time as the conditions precedent have been satisfied and escrow is prepared to close, the escrow holder shall record first the Grant Deed (Attachment No.6), conveying the property from DeGroot to Agency, then the Grant Deed (Attachment No.7) conveying the property from Agency to Participant. DeGroot represents and warrants that the matters set forth in this part 2 of Section 201 are true and correct; the foregoing representations and warranties shal~ service the close of escrow. B. [202] Conditions Precedent The following are conditions precedent to the conveyance of the property by DeGroot to Agency, and thereupon by Agency to Participant: 1. Participant shall have paid or shall have caused to be paid to escrow all closing costs and charges which they are respectively obligated to pay pursuant to this Agreement and any other applicable Agreement; 2. The Participant shall have provided proof of insurance (which may be insurance certificates) conforming to Section 307 of this Agreement; 3. The Participant shall have obtained all building and other permits needed to commence construction of the Participant Improvements; 4. The Participant shall have confirmed in writing to the Executive Director of the Agency that the surface and subsurface conditions of the Site are satisfactory for the DAB/ses/dys/degroot.agr March 30, 1990 9 development of the Participant Improvements pursuant to this Agreement; and 5. The Participant shall have provided to the Agency a commitment letter or other proof reasonably satisfactory to the Agency that the Participant has obtained an irrevocable commitment of an institutional lender or other financial institution for interim financing sufficient, in the reasonable judgment of the Executive Director of the Age~cy, to complete the Participant Improvements. 6. DeGroot shall have provided proof satisfactory to the Agency and the Participant that all real property taxes levied with respect to the property have been paid and that no such taxes are delinquent prior to the Disposition Conveyance, or proof that all such taxes shall be paid as part of closing. 7. DeGroot shall execute and deposit into escrow the Grant Deed (Attachment No.6), and, along with Participant, any documents the delivery of which is required for the conveyance of the Property to Participant in accordance with the provisions of this Agreement; The foregoing conditions numbered 1 to 7 inclusive, as set forth in this Section 202, shall collectively constitute the "Conditions Precedent." All of the Conditions Precedent shall be satisfied prior to the disposition of the Property by the Agency to the Participant. C. [203] Escrow This Agreement constitutes the joint basic escrow DAB/ses/dys/degroot.agr March 30, 1990 10 instructions of Agency, DeGroot and Participant for the conveyance of the Property by Agency to Participant (the "Disposition Conveyance") immediately upon the acquisition of the Property by the Agency from DeGroot (the "Acquisition Conveyance" ) . Agency and Participant shall provide such additional escrow instructions as may be necessary, provided that such instructions shall be consistent with this Agreement. Any escrow holder mutually acceptable to the parties , (the "Escrow Agent") is hereby empowered to act under this Agreement, and the Escrow Agent shall carry out its duties as Escrow Agent hereunder. Upon delivery of the Agency Deed (Attachment No.7), and the Grant Deed (Attachment No.6), the Escrow Agent shall cause to be recorded first the Grant Deed (Attachment No.6), then the Agency Deed (Attachment No.7) when title can be vested initially in Agency and immediately thereafter in Participant in accordance with the terms and provisions of this Agreement. The Participant shall accept conveyance of title and possession of the Property by the time set forth in the Schedule of Performance (Attachment No.3) subject to the satisfaction of the Conditions Precedent. The Escrow Agent shall cause to be paid any applicable transfer tax with funds provided by DeGroot; provided that Agency (in its capacity as the Escrow Agent or otherwise) assumes no responsibility for the determination of the applicable amount of transfer tax. Participant and DeGroot, respectively, shall pay in DAB/ses/dys/degroot.agr March 30, 1990 11 escrow to the Escrow Agent the following fees, charges and costs with respect to the Acquisition Conveyance and the Disposition Conveyance promptly after the Escrow Agent has notified Participant and DeGroot of the amount of such fees, charges and costs, but not earlier than ten (10) days prior to the scheduled date for closing the Escrow: a. The premium for the title insurance pOlicy to be paid by DeGroot as set forth in Section 207 o~ this Agreement; b. Recording fees (evenly divided between DeGroot and Participant); c. Notary fees (evenly divided between DeGroot and Participant); d. Any State, County or City documentary stamps (DeGroot); e. Any transfer tax (DeGroot); and f. Ad valorem taxes, if any, upon the Site for any time prior to transfer of title (DeGroot). The Escrow Agent is authorized to: a. Pay, and charge Agency, DeGroot and Participant, respectively, for any fees, charges and costs payable under this Section 203 of this Agreement. Before such payments or charges are made, the Escrow Agent shall notify Agency, DeGroot and Participant of the fees, charges and costs necessary to clear title and close the Escrow. b. Disburse funds and deliver the deed and other documents to the parties entitled thereto when the conditions of DAB/ses/dys/degroot.agr March 30, 1990 12 this Escrow have been fulfilled by Agency, DeGroot and Participant. c. Record any instruments delivered through this Escrow, if necessary or proper, to vest title in Participant in accordance with the terms and provisions of this Agreement. All funds received in this Escrow shall be deposited by the Escrow Agent, with other escrow funds of the Escrow Agent in a general escrow account or accounts with an~ state or national bank doing business in the State of California. Such funds may be transferred to any other general escrow account or accounts. All disbursements shall be made by check of the Escrow Agent. All adjustments are to be made on the basis of a thirty (30) day month. All interest earned shall be credited to the benefit of the party depositing the corresponding funds. If the Escrow is not in condition to close on or before the time for conveyance established in Section 204 of this Agreement, any party who then shall have fully performed the acts to be performed before the conveyance of title may, in writing, demand from the Escrow Agent the return of its money, papers or documents deposited with the Escrow Agent. No demand for return shall be recognized until twenty (20) days after the Escrow Agent shall have mailed copies of such demand to the other party or parties at the address of its or their principal place or places of business. Objections, if any, shall be raised by written notice to the Escrow Agent and to the other party within the twenty (20) day period, in which event the Escrow Agent is DAB/ses/dys/degroot.agr March 30, 1990 13 -- -- ~ - - --- - authorized to hold all money, papers and documents with respect to the property until instructed by a mutual agreement of the parties or by a court of competent jurisdiction. If no written reply to an objection is delivered to the Escrow Agent within said twenty (20) day period, to any demand, then the Escrow Agent shall comply with such original demand and cancel escrow forthwith. I f such demand and reply are complied with wi thin such twenty (20) day period, escrow shall close in accordance with the terms hereinabove set forth. In the event of an objection to any demand to release money, papers or documents, the Escrow Agent shall not be obligated to return any such money, papers or documents except upon the written instructions of Agency, DeGroot, and Participant or until the party entitled thereto has been determined by a final decision of a court of competent jurisdiction. Any amendment to these escrow instructions shall be in writing and signed by Agency, DeGroot, and Participant. At the time of any amendment, the Escrow Agent shall agree to carry out its duties as Escrow Agent under such amendment. All communications from the Escrow Agent to Agency, DeGroot or Participant shall be directed to the addresses and in the manner established in Section 501 of this Agreement for notices, demands and communications among Agency, DeGroot, and Participant. The liability of the Escrow Agent under this Agreement, insofar as it acts in the capacity of escrow holder DAB/ses/dys/degroot.agr March 30, 1990 14 ...-- ..... and without limitation to its responsibility or liability insofar as it may act in another capacity, is limited to performance of the obligations imposed upon it under Sections 203 to 209, both inclusive, of this Agreement. D. [204] Conveyance of Title and Delivery of Possession Subject to any extensions of time mutually agreed upon among Agency, DeGroot, and Participant, the Acquisition Conveyance and the Disposition Conveyance shall be completed on or prior to the date specified therefore in the Schedule of Performance (Attachment NO.3). Said Schedule of Performance is subject to revision from time to time as mutually agreed upon in writing among Participant and Agency. DeGroot's agreement shall not be required for revision of the Schedule of Performance following recordation of the Disposition Conveyance. Participant shall accept title and possession on or before the date established in the Schedule of Performance (Attachment No.3) for the Disposition Conveyance provided all conditions to performance by Participant found in the Sale Escrow have been satisfied. E. [205] Form of Deed for the Disposition Conveyance Subject to the requirements of Section 201, and all applicable terms and conditions of this Agreement, and subject to acquisition of the Property by Agency, Agency shall convey to Participant title to the Property in the condition provided in Section 206 of this Agreement by grant deed in the form of the DAB/ses/dys/degroot.agr March 30, 1990 15 Agency Deed (Attachment No.7). F. [206 ] Condition of Title Subject to the requirements of Section 201, and all applicable terms and conditions of this Agreement. Agency shall convey to Participant title to the Property in the same condition as received by the Agency, but also subject to any restrictions or limitations imposed by this Agreement, the Redevelopment Plan, the provisions contained in the Agency Deed .(Attachment No.7), and such other exceptions to which Participant may consent. As of the conveyance to the Agency, the Property shall be conveyed free of possession by any third party. The parties shall act reasonably in evaluation of any exceptions and encumbrances and shall act diligently and promptly to conform the condition of title to that required for the Participant to proceed with development of the Participant Improvements. Notwithstanding the foregoing portion of this Section 206, in no event shall Agency be required to remove any liens, encumbrances, or limitations upon title present as of the Acquisition Conveyance. Participant assumes full responsibility for causing the preparation and recordation of any parcel maps or subdivision maps as may from time to time be necessary to cause the Property to conform to applicable enactments regulating the division of land. G. [207] Title Insurance Concurrently with recordation of the Agency Deed DAB/ses/dys/degroot.agr March 30, 1990 16 (Attachment NO.7), any mutually acceptable title insurer (the "Title Company") shall provide and deliver to Participant a title insurance pOlicy issued by the Title Company insuring that the title to the Property is vested in Participant in the condition required by Section 206 of this Agreement. The Title Company shall provide the Agency with a copy of such title pOlicy. All costs incurred for or related to such title insurance shall be borne by DeGroot. H. [208] Taxes and Assessments Ad valorem taxes and assessments, if any, on the property, levied, assessed or imposed for any period commencing prior to the Acquisition Conveyance shall be the responsibility of DeGroot, and shall be paid through escrow. Any of such taxes imposed after the Disposition Conveyance shall be borne by Participant. Participant stipulates (for the benefit of Agency) that the valuation of the Property, improvements, and personal property thereon for purposes of assessment for property taxes as of the scheduled completion of improvements and thereafter shall not be less than Three Hundred Thousand Dollars ($300,000.00) (the "Minimum Assessment Amount"). Participant covenants and warrants that it shall not challenge any valuation (for property tax purposes) by the County Assessor of the Property, improvements, and personal property thereon on the basis that such valuation should be less than such Minimum Assessment Amount. DAB/ses/dys/degroot.agr March 30, 1990 17 In the event the assessed valuation achieved for the Property and improvements thereon (including the assessed valuation on the unsecured roll and the secured roll) is below the Minimum Assessment Amount, Participant shall, in addition to its payment of property taxes to the Tax Collector, pay to the Agency as "In Lieu Property Taxes" an amount equal to one percent (1%) of the difference between the Minimum Assessment Amount and the valuation actually achieved; such amount ~hall be payable in semi-annual installments at each time payment of property taxes is due, and shall be paid retroactive to the date of this Agreement. I. [209] Condition of the Site Participant assumes all risk and responsibility for any demolition and clearance of the Property as necessary for the provision of Participant Improvements. Participant assumes all risk and responsibility as to the suitability of the Property for the proposed development. Agency makes no representations or warranties concerning the Property, its suitability for the use intended by the Participant, or the surface or subsurface conditions of the Property. If the soil or other surface or subsurface conditions of the Property are not in all respects entirely suitable for the use or uses to which the Property will be put as of the disposition of the Property, Participant shall not be excused from further performance under this Agreement and it shall be the responsibility and obligation of Participant and not Agency to take such action as may be necessary to place the DAB/ses/dys/degroot.agr March 30, 1990 18 Property in a condition entirely suitable for the commencement, development, and completion of the Participant Improvements. III. [300] DEVELOPMENT A. [301] Development by Participant Participant and Agency agree that the central purpose of this Agreement is to provide for the development of the Property in a manner consistent with the Redevelopment Plan. Participant shall develop on the Property a Twenty Thousand (20,000) square foot building as part of the Participant Improvements. 1. [302] Scope of Development The Property shall be developed by Participant as provided in the "Scope of Development", which is attached hereto as Attachment No. 4 and is incorporated herein. The development shall include any plans and specifications submitted to Agency for approval, and shall incorporate or show compliance with all applicable mitigation measures and entitlements. 2. [303] Design Concept Drawings By the respective times set forth therefor in the Schedule of Performance (Attachment NO.3), Participant shall prepare and submit to the City of San Bernardino ("The City") for its approval Design Concept Drawings and related documents containing the overall plan for development of the Property. The Property shall be developed as established in this Agreement and such documents, except as changes may be mutually agreed upon DAB/ses/dys/degroot.agr March 30, 1990 19 between Participant and Agency. Any such changes shall be within the limitations of the Scope of Development (Attachment No.4). 3. [304] Construction Drawings and Related Documents By the time set forth therefor in the Schedule of Performance (Attachment No.3), Participant shall prepare and submit to the City, construction drawings, landscape plan, and related documents for development of the Property for architectural review and written approval. The landscaping and finish grading plans shall be prepared by a professional landscape architect who may be the same firm as Participant's landscape architect. During the preparation of all drawings and plans, staff of Agency and Participant shall hold regular progress meetings to coordinate the preparation of, submission to, and review of drawings, plans and related documents. The staff of Agency and Participant shall communicate and consult informally as frequently as is necessary to insure that the formal submittal of any documents to Agency can receive prompt and complete consideration. 4. [305] Cost of Construction The cost of developing the Property and constructing all Participant Improvements thereon shall be borne by Participant. 5. [306] Construction Schedule Participant shall promptly begin and thereafter diligently prosecute to completion the construction of the DAB/Ses/dys/degroot.agr March 30, 1990 20 Participant Improvements and the development of the Property. Participant shall begin and complete all construction and development of the Participant Improvements within the times specified in the Schedule of Performance (Attachment NO.3). Participant shall strictly conform to all time requirements and limitations set forth in this Agreement. 6. [307] Bodily Injury and Property Damage Insurance Participant shall defend, assume all responsibility for and hold the Agency, the City, and their respective officers, agents and employees, harmless from, all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency from claims for such damages until two (2) years after the issuance of a Certificate of Completion for all of the Participant Improvements. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance DAB/ses/dys/degroot.agr March 30, 1990 21 carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the pOlicy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance pOlicy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall also furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 7. [308] City and Other Governmental Agency Permits Before commencement of the Participant Improvements or other construction or development of any buildings, structures or other works of improvement upon the Property, Participant shall, at its own expense, secure or cause to be secured any and all permits which may be required by the DAB/ses/dys/degroot.agr March 30, 1990 22 City or any other governmental agency affected by such construction, development or work. 8. [309] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City shall have the right of access to the Property, without charges or fees, at normal construction hours during the period of construction for the purposes of this Agreement, including, b~t not limited to, the inspection of the work being performed in constructing the improvements, so long as they comply with all safety rules. Such representatives of Agency or of the City shall be those who are so identified in writing by the Executive Director of Agency. Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 309 and resulting from the gross negligence or willful misconduct of the City or Agency. This Section 309 shall not be deemed to diminish or limit any rights which the City or Agency may have by operation of law irrespective of this Agreement. 9. [310] Local, State and Federal Laws Participant shall carry out the construction of the Participant Improvements and all related activities on the Property in conformity with all applicable laws, including all applicable federal and state labor standards; provided, however, participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest DAB/ses/dys/degroot.agr March 30, 1990 23 -~ any such laws, rules or standards. 10. [311] Antidiscrimination During Construction Participant, for itself and successors and assigns, agrees that in the construction of the improvements provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [312] Taxes, Assessments, Encumbrances and Liens Prior to issuance of a Certificate of Completion with respect to all of the Participant Improvements pursuant to this Agreement, Participant shall not place or allow to be placed on the Property or any part thereof any mortgage, trust deed, encumbrance or lien other than as expressly allowed by this Agreement. Participant shall remove or have removed any levy or attachment made on any of the Property or any part thereof, or assure the satisfaction thereof within a reasonable time but in any event prior to a sale thereunder. c. [313] Prohibition Against Transfer of the Property, the BUildings or Structures Thereon and Assignment of Agreement Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of the Property or of the buildings or structures on the Property. This prohibition shall not be deemed to prevent a transfer expressly permitted pursuant to Section 107 DAB/ses/dys/degroot.agr March 30, 1990 24 of this Agreement, or the granting of temporary or permanent easements or permits to facilitate the development of the Property. D. [314 ] Mortgage, Deed of Trust, Sale and Lease-Back Financing; Rights of Holders 1. [315] No Encumbrances Except Mortgages, Deeds of Trust, or Sale and Lease-Back for Development Mortgages, deeds of trust and sales and leases- back are to be permitted before completion of 'the construction of the Participant Improvements, but only for the purpose of securing loans of funds to be used for financing the construction of the Participant Improvements or other improvements on the Property, and any other purposes necessary and appropriate in connection with development under this Agreement, and only if the instruments effecting such mortgages, deeds of trust and sales and leases-back contain the provisions of Sections 319 and 320 of this Agreement. Participant shall notify Agency in advance of any mortgage, deed of trust or sale and lease-back financing. The words "mortgage" and "trust deed" as used hereinafter shall include sale and lease-back. PartiCipant shall not enter into any such conveyance for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance for financing is given to a bank, savings and loan association, or other similar lending institution and such lender shall be deemed approved unless rejected in writing by the Agency within fifteen (15) days after written notice thereof is received by the Agency. The form of approval by Agency shall be DAB/ses/dys/degroot.agr 25 March 30, 1990 in writing which references this Section 315, executed by the Executive Director of the Agency. 2. [316] Holder Not Obligated to Construct Improvements The hOlder of any mortgage or deed of trust authorized by this Agreement shall not be obligated by the provisions of this Agreement to construct or complete the Participant Improvements or to guarantee such construction or completion; nor shall any covenant or any other provision in the deed for the Property be construed so to obligate such holder. Nothing in this Agreement shall be deemed to construe, permit or authorize any such holder to devote the Property to any uses or to construct any improvements thereon, other than those uses or Participant Improvements provided for or authorized by this Agreement. 3. [317] Notice of Default to Mortgagee or Deed or Trust Holders; Right to Cure With respect to any mortgage or deed of trust granted by Participant as provided herein, whenever Agency shall deliver any notice or demand to Participant with respect to any breach or default by Participant in completion of construction of the Participant Improvements, Agency shall at the same time deliver to each hOlder of record of any mortgage or deed of trust authorized by this Agreement a copy of such notice or demand. Each such hOlder shall (insofar as the rights of Agency are concerned) have the right, at its option, within thirty (30) days after the receipt of the notice, to cure or remedy or commence to DAB/ses/dys/degroot.agr March 30, 1990 26 cure or remedy any such default and to add the cost thereof to the mortgage debt and the lien of its mortgage. Nothing contained in this Agreement shall be deemed to permit or authorize such hOlder to undertake or continue the construction or completion of the Participant Improvements (beyond the extent necessary to conserve or protect the Participant Improvements or construction already made) without first having expressly assumed the Participant's obligations to Agency by:written agreement satisfactory to Agency. The hOlder, in that event, must agree to complete, in the manner provided in this Agreement, the Participant Improvements to which the lien or title of such hOlder relates, and submit evidence satisfactory to Agency that it has the qualifications and financial responsibility necessary to perform such obligations. Any such hOlder properly completing such Participant Improvements shall be entitled, upon compliance with the requirements of Section 321 of this Agreement, to a Certificate of Completion (as therein defined). 4. [318] Failure of Holder to Complete Improvements In any case where, thirty (30) days after default by the ,Participant in completion of construction of Participant Improvements under this Agreement, the hOlder of any mortgage or deed of trust creating a lien or encumbrance upon the Property or any part thereof has not exercised the option to construct, or if it has exercised the option and has not proceeded diligently with construction, Agency may purchase the mortgage or deed of trust by payment to the hOlder of the amount of the unpaid mortgage or DAB/ses/dys/degroot.agr March 30, 1990 27 - ~ - deed of trust debt, including principal and interest and all other sums secured by the mortgage or deed of trust. If the ownership of the Property or any part thereof has vested in the holder, Agency, if it so desires, shall be entitled to a conveyance from the holder to Agency upon payment to the hOlder of an amount equal to the sum of the following: a. The unpaid mortgage or deed trust debt at the time title became vested in the holder (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings); b. All expenses with respect to foreclosure; c. The net expense, if any (exclusive of general overhead), incurred by the hOlder as a direct result of the subsequent management of the Property or part thereof; d. The costs of any Participant Improvements made by such hOlder; and e. An amount equivalent to the interest that would have accrued on the aggregate of such amounts had all such amounts become part of the mortgage or deed of trust debt and such debt had continued in existence to the date of payment by Agency; less f. Any income derived by the lender from DAB/ses/dys/degroot.agr March 30, 1990 28 - ..... ~ - ~ ~~ operations conducted on the Property (the receipt of principal and interest payments in the ordinary course of business shall not constitute income for the purposes of this subsection (f)). The foregoing portion of this Section 318 shall be in addition to and shall not limit rights or remedies available to Agency by virtue of its ownership of the P~operty. 5. [319] Right of the Agency to Cure Mortgage or Deed of Trust Default In the event of a mortgage or deed of trust default or breach by Participant prior to the completion of any part thereof and the hOlder of any mortgage or deed of trust has not exercised its option to construct, Agency may cure the default. In such event, Agency shall be entitled to reimbursement from Participant of all proper costs and expenses incurred by Agency in curing such default. E. [320] Right of Agency to Satisfy Other Liens on the Site After Title Passes Prior to the completion of construction of the Participant Improvements, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than fifteen (15) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on the Property which are not otherwise permitted under this Agreement, Agency shall have the right but no obligation to satisfy any such liens or encumbrances. DAB/ses/dys/degroot.agr March 30, 1990 29 .. - ~ - - F. [321] Certificate of Completion Promptly after completion of all Participant Improvements in conformity with this Agreement, Agency shall furnish Participant with a Certificate of Completion (Attachment NO.5) upon written request therefor by Participant. Agency shall not unreasonably withhold any such Certificate of Completion. The Executive Director may execute such Certificate of Completion on behalf of Agency. Such Certificate of Completion shall be a conclusive determination of satisfactory completion of the construction required by this Agreement upon the Property and the Certificate of Completion shall so state. Agency may also furnish Participant with a Certificate of Completion for portions of the improvements upon the Property as they are properly completed and ready to use if Participant is not in default under this Agreement. After recordation of such Certificate of Completion, any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Property or the Participant Improvements shall not (because of such ownership, purchase, lease or acquisition), incur any obligation or liability under this Agreement except that such party shall be bound by any covenants contained in the documents establishing covenants on the Property in accordance with the provisions of Section 401 of this Agreement which shall be applicable according to its terms. If the Agency refuses or fails to furnish a Certificate of Completion for the Property, or part thereof, after written DAB/ses/dys/degroot.agr March 30, 1990 30 - -- request from Participant, the Agency shall, within thirty (30) days of written request therefor, provide Participant with a written statement of the reasons Agency refused or failed to furnish a Certificate of Completion. The statement shall also contain Agency's opinion of the actions that Participant must take to obtain a Certificate of Completion. If the reason for such refusal is confined to the immediate availability of specific items of materials for landscaping,:Agency will issue its Certificate of Completion upon the posting of a bond by the Participant with Agency in an amount representing the value of the work not yet completed. If Agency shall have failed to provide such written statement within said thirty (30) day period, Participant shall be deemed entitled to the Certificate of Completion. Such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Participant to any hOlder of any mortgage, or any insurer of a mortgage securing money loaned to finance the Participant Improvements, or any part thereof. Such Certificate of Completion is not a notice of completion as referred to in the California Civil Code, Section 3093. III. [400] USE OF THE SITE A. [401 ] Uses Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Property or any part thereof, that during construction and DAB/ses/dys/degroot.agr March 30, 1990 31 thereafter, Participant and such successors and such assignees, shall devote the Property to the uses specified in the Redevelopment Plan as may be amended from time to time for the periods of time specified therein. The Participant further covenants and warrants that Participant shall develop a building on the Property in accordance with the Scope of Development (Attachment No.4). Participant covenants to develop and operate the Property (or cause it to be operated) in :conformity with all applicable laws. The foregoing covenants shall run with the land. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land. Participant shall refrain from restricting the rental, sale or lease of the Property on the basis of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry of any person. All such deeds, leases or contracts DAB/ses/dys/degroot.agr March 30, 1990 32 - shall contain or be subject to substantially the following nondiscrimination or non-segregation clauses: 1. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons ,on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." 2. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: DAB/ses/dys/degroot.agr March 30, 1990 33 -- - "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, handicap, age, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." 3. In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number use or occupancy DAB/ses/dys/degroot.agr 34 March 30, 1990 ~ -- of tenants, lessees, subtenants, sub lessees or vendees of the premises." B. [402] Maintenance of the Property Participant shall maintain the Participant Improvements and all other improvements on the Property and shall keep the Property free from any accumulation of debris or waste materials. Participant further agrees to maintain the Property in a neat and attractive manner until con'struction of the improvements described in this Agreement is complete so as not to, in the reasonable determination of an officer of the City, be a public nuisance, or be detrimental to the health, safety and welfare, or impair value of property within one thousand (1,000) feet of the Property, and agrees that in the event Participant fails to do so, Agency may enter upon the Property for the purposes of performing necessary and desirable maintenance, that Participant will be responsible for the cost of any such maintenance undertaken by Agency, which shall be paid within thirty (30) days after receipt by Participant of written demand therefor. In the event Participant acquires fee title to the Property, Participant agrees to prepare and record Covenants, Conditions and Restrictions approved by Agency, consistent with this Section 402 including the maintenance responsibilities outlined in this Agreement which may not be amended nor revoked without the approval of Agency. Participant shall also maintain the landscaping required to be planted under the Scope of Development (Attachment DAB/Ses/dys/degroot.agr March 30, 1990 35 NO.4) in a healthy condition. If, at any time, Participant fails to maintain said landscaping, and said condition is not corrected after expiration of thirty (30) days from date of written notice from Agency, either Agency may perform the necessary landscape maintenance and Participant shall pay such costs as are reasonably incurred for such maintenance. Issuance of a Certificate of Completion by Agency shall not affect Participant's obligations under th~s Section. C. [403] Rights of Access Agency, for itself and for the City and other public agencies, at their sole risk and expense, reserves the right to enter the Property or any part thereof at all reasonable times for the purpose of construction, reconstruction, maintenance, repair or service of any public improvements or public facilities located on the Property. Any such entry shall be made only after reasonable notice to Participant, and Agency shall indemnify and hold Participant harmless from any costs, claims, damages or liabilities pertaining to any entry. This Section 403 shall not be deemed to diminish or limit any rights which the City or Agency may have by operation of law irrespective of this Agreement. D. [404] Effect of Violation of Provisions of this Agreement of Construction the Terms and After Completion The covenants established in this Agreement and the deeds shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, DAB/ses/dys/degroot.agr March 30, 1990 36 its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement shall remain in effect until the termination date of the Redevelopment Plan. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and ~or the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. The Agreement and the covenants shall run in favor of Agency, without regard to whether Agency has been, remains or is an owner of any land or interest therein in the Property or in the Project Area. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS A. [501] Notices, Demands and Communications Between the Parties Written notices, demands and communications between Agency and Participant shall be sufficiently given if delivered by hand (and a receipt therefor is obtained or is refused to be given) or dispatched by registered or certified mail, postage DAB/ses/dys/degroot.agr March 30, 1990 37 prepaid, return receipt requested, to the principal offices of Agency and Participant. Such written notices, demands and communications may be sent in the same manner to such other addresses as such party may from time to time designate by mail as provided in this Section 501. Any written notice, demand or communication shall be deemed received immediately if delivered by hand and shall be deemed received on the tenth day from the date it is postmarked if delivered by registered or certified mail. B. [502] Conflicts of Interest; Nonliability No member, official or employee of Agency shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency shall be personally liable to Participant, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. C. [503] Enforced Delay; Extension of Times of Performance In addition to specific provisions of this Agreement, DAB/ses/dys/degroot.agr March 30, 1990 38 -- ~ ~ performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where delays or defaults are due to: war; insurrection; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; freight embargoes; governmental restrictions or priority; litigation; unusually severe weather; acts or omissions of another party; acts or failures to act of the City of San Bernardino ,or any other public or governmental agency or entity (other than the acts or failures to act of Agency which shall not excuse performance by Agency); or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the Commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of Agency and Participant. Participant is not entitled pursuant to this Section 503 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable temporary or permanent financing for the development of the Property. D. [504] Inspection of Books and Records Agency has the right at all reasonable times to inspect DAB/ses/dys/degroot.agr March 30, 1990 39 the books and records of Participant pertaining to the Property as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to the Property as pertinent to the purposes of the Agreement. VI. [600] DEFAULTS AND REMEDIES A. [601] Defaults - - General Subject to the extensions of time set forth in Section 503, failure or delay by any party to perform any term or provision of this Agreement constitutes a default under this Agreement. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligency. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, and except for Sections 317 and 319 of this Agreement, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. B. [602] Legal Actions 1. [603] Institution of Legal Actions In addition to any other rights or remedies hereunder, Agency or Participant may institute legal action to cure, correct or remedy any default, to recover damages for any DAB/ses/dys/degroot.agr March 30, 1990 40 default, or to obtain any other remedy consistent with the purpose of this Agreement. Any legal actions initiated pursuant to this Agreement or otherwise with respect to its subject matter must be instituted in the Superior Court of the County of San Bernardino, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California as appropriate. 2. [604] Applicable Law The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 3. [605] Acceptance of Service of Process In the event that any legal action is commenced by Participant against Agency, service of process on Agency shall be made by personal service upon the Executive Director or in such other manner as may be provided by law. In the event that any legal action is commenced by any party against Participant, service of process on such party shall be made by personal service upon Participant or in such other manner as may be provided by law, and shall be valid whether made within or without the State of California. C. [606] Rights and Remedies Are Cumulative Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same DAB/Ses/dys/degroot.agr March 30, 1990 41 default or any other default by any other party. D. [607] Inaction Not a Waiver of Default Any failures or delays by any party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive any party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. E. [608] Remedies and Rights of Termination Prior to Disposition 1. [609] Damages Prior to Disposition If any party defaults with regard to any of the provisions of this Agreement, the non-defaulting party shall serve written notice of such default upon the other parties. If the default is not cured or commenced to be cured by the defaulting party within thirty (30) days after service of the notice of default (or within such other period as is set forth herein), the defaulting party shall be liable to the other party or parties for any damages caused by such default. 2. [610] Specific Performance If any party defaults under any of the provisions of this Agreement, a non-defaulting party shall serve written notice of such default upon the defaulting party (with a copy to the other party). If the default is not cured by the defaulting party within thirty (30) days of service of the notice of default, or such other time limit as may be set forth herein with respect to such default, any non-defaulting party at its option DAB/ses/dys/degroot.agr March 30, 1990 42 may thereafter (but not before) commence an action for specific performance of the terms of this Agreement. 3. [611] Termination by the Participant In the event that prior to the time established therefor by this Agreement (and if no time is established therefor, then by the time established by this Agreement for the satisfaction of the Conditions Precedent): (a) the Conditions Precedent are not satisfied by the time established therefor in the Schedule of Performance (Attachment No.3), and such failure is not caused or contributed to by Participant; or (b) DeGroot or Agency does not tender conveyance of the Property or possession thereof, in the manner and condition, and by the date provided in this Agreement, and any such failure shall not be cured within thirty (30) days after the date of written demand therefor by Participant; then this Agreement may, at the option of Participant, be terminated by written notice thereof to Agency and DeGroot. Upon such termination, neither Agency, Participant nor DeGroot shall have any further rights against or liability to the other, nor shall any party have rights against or liability to the other parties under the Agreement with respect to the Property or the subject matter of this Agreement provided that in such event the Original Agreement and the First, Second, Third, Fourth and Fifth Amendments shall remain in full force and effect. DAB/ses/dys/degroot.agr March 30, 1990 43 - - ~ 4. [612] Termination by DeGroot In the event that: (a) the Conditions Precedent are not satisfied by the time established therefor in the Schedule of Performance (Attachment No.4), and such failure is not caused or contributed to by DeGroot; or (b) Participant fails to deposit the Participation Purchase Price into escrow by the time established in this Agreement for the Acquisition Conveyance, and any such failure shall not be cured within thirty (30) days after the date of written demand therefor by DeGroot or Agency; then this Agreement may, at the option of DeGroot, be terminated by written notice thereof to Agency and Participant. Upon such termination, neither Agency nor Participant shall have any further rights against or liability to the other, nor shall Participant or DeGroot have rights against or liability to the other under the Agreement with respect to the Property; provided that in such event the Original Agreement, the First, Second, Third, Fourth and Fifth Amendments shall remain in full force and effect. In the event of the failure or default by Agency with respect to any event set forth in Section 611(a) or 611(b) above, said right of termination provided in section 612 shall be DeGroot's sole remedy. Upon termination of this Agreement, all monies or documents deposited by any party into escrow shall be returned to the party making such deposit. DAB/Ses/dys/degroot.agr March 30, 1990 44 ~ ~ - 5. [613] Termination by the Agency In the event that prior to the time established therefor by this Agreement (and if no time is established therefor, then by the time established by this Agreement for the satisfaction of the Conditions Precedent): (a) Participant (or any successor in interest) assigns or attempts to assign the Agreement or any rights therein or in the Property in violation of this Agreement; or (b) There is a change in the, ownership of Participant contrary to the provisions of Section 107 hereof; or (c) Participant does not submit certificates of insurance, construction plans, drawings and related documents as required by this Agreement, in the manner and by the dates respectively provided in this Agreement therefor, and such default or failure shall not be cured within thirty (30) days after the date of written demand therefor by Agency; or (d) Any Conditions Precedent are not satisfied by the time established therefor in the Schedule of Performance (Attachment NO.3); then this Agreement may at the option of Agency, be terminated by Agency by written notice thereof to Participant and DeGroot. Upon such termination, neither Agency, Participant nor DeGroot shall have any further rights against or liability to the other parties, nor shall any party have rights against or liability to any other party under the Agreement with respect to the Property or the subject matter of this Agreement provided that in such DAB/ses/dys/degroot.agr March 30, 1990 45 event that the Original Agreement, the First, Second, Third, Fourth and Fifth Amendments shall remain in full force and effect. F. [614] Remedies of the Agency and the Participant for Default After Disposition and Prior to Completion of Construction 1. [615] Damages After the Disposition conveyance and prior to the recordation of a Certificate of Completion with respect to all of the Participant Improvements, if either Participant or Agency defaults with regard to any of the provisions of this Agreement, the non-defaulting party shall serve written notice of such default upon the defaulting party with a copy to the remaining party. If the default is not cured by the defaulting party within thirty (30) days after service of the notice of default, the defaulting party shall be liable to the other for any damages caused by such default. DeGroot shall not be entitled to bring an action for damages pursuant to this Section 615, and no notice shall be required to be given to the DeGroot pursuant to this Section 615. 2. [616] Action for Specific Performance If either Participant or Agency defaults under any of the provisions of this Agreement after the conveyance of Title and prior to the recordation of a Certificate of Completion for the Participant Improvements to be made thereon, the non- defaulting party shall serve written notice of such default upon the defaulting party with a copy to the remaining party. If the DAB/Ses/dys/degroot.agr March 30, 1990 46 default is not commenced to be cured by the defaulting party within thirty (30) days after service of the notice of default, the non-defaulting party at its option may institute an action for specific performance of the terms of this Agreement. DeGroot shall not be entitled to bring an action for specific performance pursuant to this Section 616, and no notice shall be required to be given to DeGroot pursuant to this Section 616. 3. [617] Reentry and Revesting of Title in Agency Agency has the additional right, at its option, to reenter and take possession of the Property, with all improvements thereon, and terminate and revest in Agency the estate conveyed to Participant if after conveyance of title and prior to the issuance of the Certificate of Completion pursuant to Section 321, Participant (or its successors in interest) shall: (a) Fail, within sixty (60) days after the date of recordation of the Agency Deed (Attachment No.9), to commence construction on the Site of the Participant Improvements in conformity with plans and specifications which are approved in the manner required by this Agreement; or (b) Abandon or substantially suspend construction of the Participant Improvements for a period of forty-five (45) days after written notice thereof from Agency; or (c) Fail to complete construction of the Participant Improvements to the condition required for the issuance DAB/ses/dys/degroot.agr March 30, 1990 47 of a Certificate of Completion pursuant to Section 321 within nine (9) months after the date of Commencement of construction; or (d) Transfer or suffer any invOluntary transfer of the Property in violation of this Agreement. All time periods stated in this Article 3, Paragraphs 1 and 2 above and elsewhere in this Agreement are subject to extension by force majeure as more particularly provided in Section 503 above. Such right to reenter, terminate and revest shall be subject to and be limited by and shall not defeat, render invalid or limit: (a) Any mortgage or deed of trust permitted by this Agreement; or (b) Any rights or interests provided in this Agreement for the protection of the holders of such mortgages or deed of trust. Upon the revesting in Agency of title to the Property as provided in this Section 617, Agency shall, pursuant to its responsibilities under state law, use its best efforts to resell the Property as soon and in such manner as Agency shall find feasible and consistent with the objectives of such law and of the Redevelopment Plan, as it may be amended, to a qualified and responsible party or parties (as determined by Agency) who will assume the obligation of making or completing the improvements, or such other improvements in their stead as shall be DAB/ses/dys/degroot.agr March 30, 1990 48 satisfactory to Agency and in accordance with the uses specified for such Property or part thereof in the Redevelopment Plan. Upon such resale of the Property, the proceeds thereof shall be applied: (a) First, to satisfy the loan of the construction lender, then to reimburse Agency, on its own behalf or on behalf of the City, for all costs and expenses incurred by Agency, including, but not 'limited to, any expenditures by Agency or the City in connection with the recapture, management and resale of the Property or part thereof (but less any income derived by Agency from the Property or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the Property or part thereof which Participant has not paid (or, in the event the Property is exempt from taxation or assessment or such charges during the period of ownership thereof by Agency, an amount, if paid, equal to such taxes, assessments, or charges as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in Agency, or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of Participant, its DAB/ses/dys/degroot.agr March 30, 1990 49 successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Site, or part thereof; and any amounts otherwise owing Agency, Participant and their successors or transferees; and (b) Second, to reimburse Participant or its SUCCessor or transferee (if applicable), up to the amount equal to the sum of (i) the cost incurred for the acquisition and development of the Property and for the improvements existing on the Property at the time of the entry and repossession, less (ii) any gains or income withdrawn or made by the Participant from the Property or the improvements thereon. Any balance remaining after such reimbursements shall be retained by Agency as its property. The rights established in this Section 617 are to be interpreted in light of the fact that the Property was conveyed to Participant for development, and not for speculation in undeveloped land. VII. [700] SPECIAL PROVISIONS A. [701] Submission of Documents to Agency for Approval. Whenever this Agreement requires Participant to submit plans, drawings or other documents to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said plans, drawings or other documents shall be DAB/ses/dys/degroot.agr March 30, 1990 50 accompanied by a letter stating that they are being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. B. [702] Successors In Interest The terms, covenants, conditions a~d restrictions of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. Upon the termination of the restrictions imposed by Section 107 of this Agreement, which terminate upon the issuance by Agency of a Certificate of Completion with respect to all of the Participant Improvements pursuant to this Agreement, all of the terms, covenants, conditions and restrictions of this Agreement which do not terminate upon the issuance of such Certificate of Completion shall be deemed to be, and shall, constitute terms, covenants, conditions and restrictions running with the land. VIII. [800] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in five (5) duplicate originals, each of which is deemed to be an original. This Agreement includes pages 1 through 53 and Attachments 1 through 8, which constitutes the entire understanding and agreement of the parties. DAB/ses/dys/degroot.agr March 30, 1990 51 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing by the appropriate authorities of Agency and Participant, and all amendments hereto must be in writing by the appropriate authorities of Agency and Participant. Each individual signing below represents and warrants that he has the authority to execute this Agreement on behalf of and bind the party he purports to represent. IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY This Agreement, when executed by Participant and delivered to Agency, must be authorized, executed and delivered by Agency on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Agency. DAB/ses/dys/degroot.agr March 30, 1990 52 IN WITNESS WHEREOF, Agency, Participant and DeGroot have signed this Agreement on the respective dates set forth below. "Agency" REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO Date: By: Executive Director APPROVED AS TO PROGRAM: By: Redevelopment Manager APPROVED AS TO FORM AND LEGAL CONTENT: Agency Counsel "Participant" Riverview Partners, Ltd. Date: By: Its: By: Its: Date: 3L30/~() / , ,?/~/~o I Date: 9ic,-'"c~ dh 9c; ~ ,~cq~el1ne M. DeGroot DAB/ses March 14, 1990 53 -- -- IN WITNESS WHEREOF, Agency, Participant and DeGroot have signed this Agreement on the respective dates set forth below. "Agency" REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO Date: By: Executive Director APPROVED AS TO PROGRAM: By: Redevelopment Manager APPROVED AS TO FORM AND LEGAL CONTENT: fJ:~ ./gency Coun 1 "Participant" Riverview Development Partners, L.P. Date: By: Its: By: Its: "DeGroot" Date: Thedford O. DeGroot Date: DAB/ses/dys/degroot.agr March 30, 1990 53 - -- - -= ---..... ~ IN WITNESS WHEREOF, Ageney, Partieipant and DeGroot have signed this Agreement on the respeetive dates ..t ~orth below. -Ageney. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO Date: By: Executive Direetor . APPROVED AS TO PROGRAM: \ Jly: Redevelopment ~anager APPROVED AS TO FORM AND LEGAL CONTENT: Agency Counsel I I i I i ! , , I , I I Date: r4:~ -Participant" Riverview Development Pilrtners ,LP -DeGroot" Date: ,: II Thedford O. DeGroot Date: 3acqu.line M. DeGroot DAB/ses March 14, 1990 53 -- - - --------.....-.. STATE OF CALIFORNIA ) )SS. COUNTY OF SAN BERNARDINO ) On this 30 tJr..- day of m.-d -<A'.A./ ,in the year /' 9 'i/l, before me, the undersigned,' a Notary pUbllc in and for _ the State of California, personally appeared ~;~~~ ~'Ai~41,~ personally known to me (or proved to me on he a o:~~~ satisfactory evidence) to be the person who executed this instrument as the Executive Director of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and acknowledged to me said Agency executed it. AA' ~ ~) signature~No ary Public I (SEAL) OFFICIAL SEAL MARY JO SEERY NorARY PU.BL:C'C,ql~i\:,"IA PRII\iCI?;,L Dl'FICf IN SAN BERNARDINO COUNTY My Commission Exp:res July 11, 1990 DAB/ses March 14, 1990 54 ~ - - ----------... STATE OF CALIFORNIA ) )ss. COUNTY OF SAN BERNARDINO ) On before me, the undersigned, a Notary Public in and for said State, personally appeared , personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument as the President and the of the corporation that executed the within instrument, and acknowledged to me that such corporation executed the same. WITNESS my hand and official seal. (SEAL) DAB/ses/dys/degroot.agr March 30, 1990 55 STATE OF CALIFORNIA ) )SS. COUNTY OF SAN BERNARDINO ) On ,19 ,before me, the undersigned, a Notary Public in and for said State, perSonally appeared Theoford O. DeGroot and Jacqueline M. DeGroot, known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) are subscribed to this instrument and acknowledged that they executed the same. WITNESS my hand and official seal. Notary Public in and for said State. DAB/ses/dys/degroot.agr March 30, 1990 56 ! , I --- \ I I , , \-'n I~ ATTACHMENT N,L 1 I I i I I -- , \ en ~ ) la ATTACHMENT NO. 2 LEGAL DESCRIPTION That certain parcel of land in the City of San Bernardino, County of San Bernardino, State of California, described as follows: Parcel 3 of Parcel Map 5106 as per map recorded in Book 46, page 68-69 of Parcel Maps in the Office of the County Recorder of the County of San Bernardino, State of California. DAB/ses/dys/degroot.agr March 30, 1990 4. 5. ATTACHMENT NO. 3 1. SCHEDULE OF PERFORMANCE Execution of Agreement by Agency. Agency shall approve and execute this Agreement, and shall deliver one (1) copy thereof to Participant. 2. Obtain Design Review Approval. Agency and City approve Design Concept Drawings (sufficient time should be allowed for possible initial denial by either Agency or City). 3. Submit Completed bUilding and grading pl ans. Participant will submit completed building and grading plans and all other plans and documents required by Section 304. Obtain plan check approval, obtain bUilding permits and commence construction, Participant shall obtain necessary plan check approval, obtain all building permits and begin construction. Complete Construction Participant shall complete construction and obtain a Certificate of Occupancy. DAB/ses/dys/degroot.agr March 30, 1990 Not later than thirty (30) days after the date of execution and submission of five (5) copies of this Agreement to Agency by Participant. Not later than ninety (90) days after the effective date of this Agreement. Not later than one hundred eighty (180) days after the effective date of this Agreement. Not later than two hundred seventy (270) days after the effective date of this Agreement. Not later than four hundred fifty (450) days from the effective date of this Agreement. ATTACHMENT NO. 4 SCOPE OF DEVELOPMENT I. GENERAL DESCRIPTION The Property is specifically delineated on the Site Map (Attachment NO.1) and the Legal Description (Attachment No.2) pursuant to Section 103 of this Agreement. II . DEVELOPMENT Participant shall develop the Site with a building of approximately 20,000 square feet and having a total value, including land, plant and equipment of approximately three hundred thousand dollars ($300,000.00). Participant shall complete all of the improvements set forth in this Scope of Development (Attachment No.4) to be constructed in one phase. All of the improvements to be provided by the Participant on the Property constitute the "Basic Participant Improvements." The Basic Participant Improvements and all those off-site improvements, which are required in connection with this development (if any), and which are required to be provided by the Participant (the "Off-Site Improvements") together constitute the "Participant Improvements". The Participant shall commence and complete the Participant Improvements by the respective times established therefor in the Schedule of Performance (Attachment No.3). The Participant shall provide parking on the Site in conformity with all applicable City requirements. III. DEVELOPMENT STANDARDS The following development standards shall apply to the Participant Improvements: A. Setbacks. Minimum setbacks shall conform to the San Bernardino Municipal Code (the "City Code"); and the Redevelopment Plan. B. Vehicular Access. The placement of vehicular driveways shall be coordinated with the needs of proper street traffic flow. In the interest of minimizing traffic congestion, Agency will control the number and location of curb breaks for access to the Property for off-street parking and truck loading. Page 1 of 4 DAB/ses/dys/degroot.agr March 30, 1990 ~ C. Loading. Adequate loading and unloading space shall be provided. Loading spaces visible from streets shall be landscaped or screened to prevent an unsightly or barren appearance. Said requirements shall also conform to the City Code. D. Signs. Signs shall be limited in size, subdued and otherwise designed to contribute positively to the environment. Signs identifying the use will be permitted, but their height, size, location, color, lighting and design will be subject to Agency and City approval, and signs must conform to the City Code. E. Screening. All outdoor storage of materials or equipment shall be enclosed or screened to th~ extent and in the manner required by Agency and the City. ' F. Landscaping. The Participant shall provide and maintain landscaping within the public rights-of-way and within setback area along all street frontages and conforming with the Design Concept Drawings as approved by Agency. Landscaping shall consist of trees, shrubs and installation of an automatic irrigation system adequate to maintain such plant material. The type and size of trees to be planted, together with a landscaping plan, shall be subject to approval by the City's Planning Department prior to planting. G. Utilities. Sewer drainage and utility lines, conduits or systems shall not be constructed or maintained above the ground level of the Property unless such installations are within approved enclosed structures, and shall conform to requirements of the City of San Bernardino or other applicable governmental or private agency having jurisdiction of the work. Storm drainage for all hard surfaced areas shall be drained or may be sheet flowed to storm sewers. No drainage shall flow across public sidewalks. All non polluted waste water, such as waste air conditioning water, shall be drained to the storm or sanitary drainage systems as permitted by local codes. IV. PUBLIC IMPROVEMENTS AND UTILITIES Participant, at its own cost and expense, shall provide or cause to be provided the following public improvements within the time set forth for the completion of the Participant Improvements in the Schedule of Performance (Attachment No.3): 1. Improvement as required by the City by resurfacing, rebuilding or new construction of the existing streets, Page 2 of 4 DAB/ses/dys/degroot.agr March 30, 1990 -- -- alleys or other public rights-of-way (including catch basins, curbs and gutters, drive and curb cuts, and drives between the property line of the Property and the public rights-of-way) abutting on the Property. No street widening is anticipated in connection with the Property. 2. Installation of street lighting, signs and fire hydrants in connection with the Property as may be required. 3. Installation of public sidewalks along the frontage of the public streets abutting on the Property or within the rights-of-way lines of such public streets, and appropriate street landscaping which Agency or City might require. 4. Installation or relocation by the public utility companies of such sewers, drains, water and gas distribution lines, electric, telephone and telegraph lines, and all other public utility lines, installations and facilities as are necessary to be installed or relocated on or in connection with the Property by reason of the redevelopment contemplated by the Redevelopment Plan and the development of the Property. Agency shall not be responsible for, nor bear any portion of the cost of, installing the necessary utility connections within the boundaries of the Property between the improvements to be constructed by Participant and the water, sanitary sewer, and storm drains, mains or other public utilities owned by the City or by any public utility company within or without such boundaries, or electric, gas, telephone or other public lines owned by a public utility company within or without such boundaries, and Participant shall secure any permits required for any such installation without expense to Agency. Those of the improvements required to be provided pursuant to this Part IV of the Scope of Development (Attachment No.4) constitute the "Off-Site Improvements." V. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Property, and the suitability of the Property for the Participant Improvements. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all Page 3 of 4 DAB/ses/dys/degroot.agr March 30, 1990 - - actions necessary to render the Property entirely suitable for such development. Participant has undertaken all investigation of the Property it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the development of Participant Improvements. Page 4 of 4 DAB/ses/dys/degroot.agr March 30, 1990 ATTACHMENT NO. 5 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: ) ) ) ) ) ) ) ) ) [Space above for Recorder.] CERTIFICATE OF COMPLETION FOR CONSTRUCTION AND DEVELOPMENT WHEREAS, by Grant Deed dated and recorded on as No. of the official records of the County Recorder of the County of San Bernardino, California (the "Agency Deed"), the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic, hereinafter referred to as "Agency", was granted a right to enter upon that certain real property situated in the City of San Bernardino, California described on Exhibit "1" attached hereto and made a part hereof (the "Property") upon the occurrence of certain events; and WHEREAS, pursuant to that certain Amended and Restated Disposition and Development Agreement entered into between the Agency, Thedford O. and Jacqueline M. DeGroot ("DeGroot") and Riverview Development Partners, L.P., a California limited partnership ("Participant") dated as of ("DDA"), the Participant is entitled to the issuance of a Certificate of Completion upon the completion of those improvements required by the DDA to be developed by the Participant (the "Participant Improvements"); and WHEREAS, such certificate shall be conclusive determination of satisfactory completion of the construction required by the DDA; and WHEREAS, the Agency has conclusively determined that the construction on the above described real property required by the DDA has been satisfactorily completed; and WHEREAS, the aforementioned Agency Deed contains a condition subsequent providing for revesting in event of violation of the provisions set out in said Deed; Page 1 of 3 DAB/ses/dys/degroot.agr March 30, 1990 NOW THEREFORE, 1. The Agency does hereby certify that the construction of the Participant Improvements has been fully and satisfactorily performed and completed. 2. The condition subsequent described hereinabove has been fully and satisfactorily performed and is of no further force or effect by reason thereof. Those covenants, conditions and restrictions, if any, in the Agency Deed which by their terms expire upon issuance of a Certificate of Completion are hereby deemed to be expired and of no further force and effect. 3. Nothing contained in this instrument shall modify in any other way other provisions of the Agency Deed or the DDA. All executory obligations of the Participant pursuant to the DDA shall remain in full force and effect. IN WITNESS WHEREOF, the Agency has executed this certificate this day of , 19 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Executive Director ATTEST: Page 2 of 3 DAB/ses/dys/degroot.agr March 30, 1990 STATE OF CALIFORNIA ) )SS. COUNTY OF SAN BERNARDINO ) On this day of ,19 before me, the undersigned, a Notary Public in and for said State, perSOnally appeared , known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument as the Executive Director of the Redevelopment Agency of the City of San Bernardino and acknowledged to me that the Redevelopment Agency of the City of San Bernardino executed it. Signature of Notary Public SEAL Page 3 of 3 DAB/Ses/dys/degroot.agr March 30, 1990 EXHIBIT 1 That certain parcel of land in the City of San Bernardino, County of San Bernardino, State of California, described as follows: Parcel 3 of Parcel Map 5106 as per map recorded in Book 46, page 68-69 of Parcel Maps in the Office of the County Recorder of the County of San Bernardino, State of California. DAB/ses/dys/degroot.agr March 30, 1990 ~ - - ATTACHMENT NO. 6 DEGROOT DEED RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) ) ) ) ) ) ) (Space above for Recorder's Use) Grant Deed For a valuable consideration receipt of which is hereby acknowledged, THEDFORD O. DEGROOT AND JACQUELINE M. DEGROOT, individuals, herein called "Grantor" acting to carry out the Redevelopment Plan, herein called "Redevelopment Plan" for the Southeast Industrial Park Redevelopment Project, herein called "proj ect" , under the Community Redevelopment Law of California, hereby grant to the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic, of the State of California, herein called Grantee, the real property hereinafter referred to as "Property", described in Exhibit A attached hereto and incorporated herein, subject to the existing easements, restrictions and covenants of record described there. 1. S ai d Property is conveyed in accordance with and subject to the Redevelopment Plan which was approved and adopted by Ordinance No. 3583 of the Common Council of the City of San Bernardino, and an Amended and Restated Disposition and Development Agreement entered into by and among the Grantor, the Grantee, and Thedford o. and Jacqueline M. DeGroot ("DeGroot"), dated (the "DDA"), a copy of which is on file with the Grantee at its offices as a public record. 2. The Grantee agrees for itself and any successor in interest not to discriminate upon the basis of race, color, creed or national origin in the sale, lease, or rental or in the use or occupancy of the Property hereby conveyed or any part thereof. Grantee covenants by and for itself, its successors, and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of, any person or Page 1 of 3 DAB/ses/dys/degroot.agr March 30, 1990 ~ - group of persons on account of race, color, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. The foregoing covenants shall run with the land. 3. All covenants contained in this Grant Deed shall be covenants running with the land. IN WITNESS instrument, this WHEREOF, the Grantor has day of executed , 19 this THEDFORD O. DEGROOT JACQUELINE M. DEGROOT Page 2 of 3 DAB/SeS/dys/degroot.agr March 30, 1990 STATE OF CALIFORNIA ) )ss. COUNTY OF SAN BERNARDINO ) On August , 1990, before me, the undersigned, a Notary Public in and for said State, personally appeared , known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) are subscribed to this instrument and acknowledged that (s)he executed the same. WITNESS my hand and official seal. Notary Public in and for said State. Page 3 of 3 DAB/ses/dys/degroot.agr March 30, 1990 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY That certain parcel of land in the City of San Bernardino, County of San Bernardino, State of California, described as follows: Parcel 3 of Parcel Maps 5106 as per map recorded in Book 46, page 68-69 of Parcel Maps in the Office of the County Recorder of the County of San Bernardino, State of California. DAB/ses/dys/degroot.agr March 30, 1990 ATTACHMENT NO. 7 AGENCY DEED RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: ) ) ) ) ) ) ) ) (Space above for Recorder's Use) Grant Deed For a valuable consideration receipt of which is hereby acknowledged, The REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic, of the State of California, herein called "Grantor" acting to carry out the Redevelopment Plan, herein called "Redevelopment Plan" for the Southeast Industrial Park Redevelopment Project, herein called "Project", under the Community Redevelopment Law of California, hereby grants to Riverview Development Partners, L.P., a California limited partnership, herein collectively called "Grantee", the real property hereinafter referred to as "Property", described in Exhibit A attached hereto and incorporated herein, subject to the existing easements, restrictions and covenants of record described there. 1. Said Property is conveyed in accordance with and subject to the Redevelopment Plan which was approved and adopted by Ordinance No. 3583 of the Common Council of the City of San Bernardino, and an Amended and Restated Disposition and Development Agreement entered into by and among the Grantor, the Grantee, and Thedford O. and Jacqueline M. DeGroot ("DeGroot"), dated (the "DDA"), a copy of which is on file with the Grantor at its offices as a public record. Any provisions contained in the DDA not set forth in paragraphs 2 to 10 of this Grant Deed shall expire and be of no further force or effect upon recordation of a Certificate of Completion for all of the Participant Improvements issued by the Grantor noting satisfaction of obligations under and release of the DDA. 2. The Grantee hereby covenants and agrees, for itself and its successors and assigns, that during construction and Page 1 of 7 DAB/ses/dys/degroot.agr March 30, 1990 - thereafter, the Grantee shall not use the Property for other than the uses allowed pursuant to the Redevelopment Plan. 3. The Property is conveyed to grantee at a purchase price, herein called "Purchase Price", determined in accordance with the uses permitted. Therefore, Grantee hereby covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Property that the Grantee, such successors and such assigns, shall develop, maintain, and use the Property only as follows: (a) Grantee shall develop the Property as required by the DDA, and with parking conforming to the requirements of the San Bernardino City Code. (b) Grantee shall maintain the improvements on the Property and shall keep the Property free from any accumulation of debris or waste materials. Grantee shall also maintain the required landscaping in a healthy condition. If, at any time, the Grantee fails to so maintain said landscaping, and said condition is not corrected after the expiration of thirty (30) days from the date of transmittal of written notice from the Agency, either the Grantor or the City of San Bernardino (the "City") may perform the necessary landscape maintenance and the Grantee shall pay such costs as are reasonably incurred for such maintenance. (c) Grantee shall make payment to the Grantor of In Lieu Property Taxes as follows: The Grantee stipulates (for the benefit of the Grantor) that the valuation of the Property, improvements, and personal property thereon for purposes of assessment for property taxes as of the scheduled completion of improvements and thereafter shall not be less than Three Hundred Thousand Dollars ($300,000.00) (the "Minimum Assessment Amount"). The Grantee covenants and warrants that it shall not challenge any valuation (for property tax purposes) by the assessor of the Property, improvements, and personal property thereon on the basis that such valuation should be less than such Minimum Assessment Amount. In the event the assessed valuation achieved for the Property and improvements thereon (including the assessed valuation on the unsecured roll and the secured roll) is below the Minimum Assessment Amount, the Grantee shall, in addition to its payment of property taxes to the Tax Collector, pay to the Grantor as "In Lieu Property Taxes" an amount equal to one percent (1%) of the difference between the Minimum Assessment Page 2 of 7 DAB/ses/dys/degroot.agr March 30, 1990 - Amount and the valuation actually achieved; such amount shall be payable in semi-annual installments at each time payment of property taxes is due. The Grantor shall have a lien upon the remain in effect until the earlier of (i) the termination of the Redevelopment Plan or (ii) the achievement (exclusive of In Lieu Property Taxes) of the Minimum Assessment Amount for the Property. 4. Prior to recordation of a Certificate of Completion issued ,by the Grantor for the improvements to be constructed on the Property: (a) The Grantee shall not make any sale, transfer, conveyance, or assignment of the Property or any part thereof or any interest therein, without the prior written consent of the Grantor except as permitted by paragraph 4(b) of this Grant Deed. This prohibition shall not be deemed to prevent the granting of easements or permits to facilitate the development of the Property. (b) The Grantee shall not place or suffer to be placed on the Property any lien or encumbrance other than mortgages, deeds of trust, or any other form of conveyance required for financing of the acquisition of the Property, the construction of improvements on the Property, and any other expenditures necessary and appropriate to develop the Property. The Grantee shall not enter into any such conveyance for financing without prior written approval of Grantor. No approval will be given for a conveyance of the property to finance the construction of improvements on real property other than the real property described in Exhibit A hereto. 5. Prior to recordation of any Certificate of Completion issued by Grantor for the improvements to be constructed on the Property: (a) The Grantor shall have the right at its option to reenter and take possession of the Property hereby conveyed with all improvements thereon and to terminate and revest in the Grantor the Property hereby conveyed to the Grantee if the Grantee (or its successors in interest) shall: (i) Fail to commence improvements as required by paragraph within Two Hundred Seventy (270) recordation of this Grant Deed; or the construction of the 3(a) of this Grant Deed days after the date of (ii) Abandon or substantially suspend construction of the improvements required pursuant to paragraph 3(a) of this Page 3 of 7 DAB/ses/dys/degroot.agr March 30, 1990 Grant Deed for a period of forty-five (45) days after written notice thereof from the Grantor; or (iii) Fail to complete construction of the Participant Improvements (as required pursuant to paragraph 3 [a] of this Grant Deed) within six (6) months after the date of commencement of construction; or (iv) Transfer, or suffer an involuntary transfer of, the Property, or any part thereof in violation of this Grant Deed. (b) The right to reenter, repossess, terminate and revest shall be subject to and be limited by and shall not defeat, render invalid, or limit: (i) Any mortgage or deed of trust or other security interest permitted by paragraph 4(b) of this Grant Deed; or (ii) Any rights or interests provided in accordance with this Grant Deed for the protection of the holders of such mortgages or deeds of trust or other security interests. (c) The right to reenter, repossess, terminate and revest with respect to the Property shall terminate when the Certificate of Completion regarding the improvements to be constructed under paragraph 3 on the Property has been recorded by the Grantor. (d) In the event title to the Property or any part thereof is revested in the Grantor as provided in this paragraph 5, the Grantor shall, pursuant to its responsibilities under State law, use its best efforts to resell the Property or any part thereof as soon and in such manner as the Grantor shall find feasible and consistent with the objectives of such law and of the Redevelopment Plan to a qualified party or parties (as determined by the Grantor) who will assume the obligation of making or completing the improvements or such other improvements in their stead as shall be satisfactory to the Grantor and in accordance with the uses specified for such Property or part thereof in the Redevelopment Plan. Upon such resale of the Property the proceeds thereof shall be applied: (i) First, to satisfy the lien of the construction lender, then to reimburse the Grantor, on its own behalf or on behalf of the City of San Bernardino, for all costs and expenses incurred by the Grantor, including but not limited to, salaries of personnel engaged in such action (but excluding Page 4 of 7 DAB/ses/dys/degroot.agr March 30, 1990 Grantor's general overhead expense), and any expenditures by the Agency or the City in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Grantor from the Property or part thereof in connection with such management); all taxes, assessments, ,and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charges during the period of ownership thereof by the Grantor, an amount, if paid, equal to such taxes, assessments, or charges, as determined by the County assessing official, as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Grantor or to discharge or prevent from attaching, or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Grantee, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Property or part thereof; and any amounts otherwise owed to the Grantor by the Grantee and its successor or transferee; and (ii) Second, to reimburse the Grantee, its successor or transferee, up to the amount equal to the sum of (1) the cost incurred for the acquisition and development of the Property and for the improvements existing on the Property at the time of reentry and repossession, less (2) any gains or income withdrawn or made by the Grantee from the Property or the improvements thereon. (iii) Any balance remaining after such reimbursements shall be retained by the Grantor. (e) This right is to be interpreted in light of the fact that the Grantor hereby conveys the Property to the Grantee for development and not for speculation in undeveloped land. 6. The Grantee agrees for itself and any successor in interest not to discriminate upon the basis of race, color, creed or national origin in the sale, lease, or rental or in the use or occupancy of the Property hereby conveyed or any part thereof. Grantee covenants by and for itself, its successors, and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Grantee itself or any person claiming under or through it, establish or permit any such practice or practices of Page 5 of 7 DAB/ses/dys/degroot.agr March 30, 1990 - discrimination or segregation with reference to location, number, use or occupancy of tenants, tenants, sublessees, or vendees in the Property. covenants shall run with the land. the selection, lessees, sub- The foregoing 7. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest permitted by paragraph 4(b) of this Grant Deed; provided, however, that any subsequent owner of the Property shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 8. All covenants contained in this Grant Deed shall be covenants running with the land. The covenants contained in paragraphs 4 and 5 and Grantee's obligation to develop the improvements on the Property provided in paragraph 3(a) of this Grant Deed shall terminate and shall become null and void upon recordation of a Certificate of Completion issued by Grantor for the Property. Grantee's obligation to maintain the improvements constructed as provided in paragraph 3(b) shall continue for the period therein set forth. Every covenant contained in this Grant Deed against discrimination contained in paragraph 6 of this Grant Deed shall remain in perpetuity. 9. All covenants without regard to technical classification or designation shall be binding for the benefit of the Grantor, and such covenants shall run in favor of the Grantor for the entire period during which such covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land or interest therein to which such covenants relate. The Grantor, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. 10. Both before and after recordation of a Certificate of Completion, both Grantor, its successors and assigns, and Grantee and the successors and assigns of Grantee in and to all or any part of the fee title to the Property shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements or restrictions contained in this Grant Deed without the consent of any tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust or any other person or entity having any interest Page 6 of 7 DAB/ses/dys/degroot.agr March 30, 1990 - less than a fee in the Property. The covenants contained in this Grant Deed, without regard to technical classification, shall not benefit or be enforceable by any owner of any other real property within or outside the Project Area, or any person or entity having any interest in any other such realty. Any amendments to the Redevelopment Plan which change the uses or development permitted on the Property, or otherwise change any of the restrictions or controls that apply to the Property, shall require the written consent of Grantee or the successors and assigns of Grantee in and to all or any part of the fee title to the Property, but any such amendment shall not require the consent of any tenant, lessee, easement hOlder, licensee, mortgage, trustee, beneficiary under a deed of trust or any other person or entity having any interest less than a fee in the Property. ' 11. Except for paragraph 5, the covenants contained in this Grant Deed shall be construed as covenants running with the land and not as conditions which might result in forfeiture of title. IN WITNESS WHEREOF, the Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized, this day of 19 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: ATTEST: Secretary The Grantee agrees to be bound by the covenants set forth above. Page 7 of 7 DAB/ses/dys/degroot.agr March 30, 1990 - EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY That certain parcel of County of San Bernardino, follows: land in the City of San Bernardino, State of California, described as Parcel 3 of Parcel Maps 5106 as per map recorded in Book 46, page 68-69 of Parcel Maps in the Office of the County Recorder of the County of San Bernardino, State of California. DAB/ses/dys/degroot.agr March 30, 1990 ", ". PreUainary Report f J I I A ! . ! Order No. 4940129-401 QftWAY 'lI'lL! COMPANY 'ritle officerl Greg Sloan PoUcy(1el) contemplated. A California Land Title Allociation Standard Coverage Policy. I . GATEWAY 'l'I'l'L! BSCRew 930 S. NT. YBRNON AV. COLTON, CA. 92324 714-825-3661 AT'l'N 1 MARGIE -------------------- OUr No.1 4940129-401 Your bf 1 162248-* , . , . j I . , r I . I I i , I ~ I i I I I I I I Date I November 21, 1989 at 7130 A.M. 8alBD0LB A 'l'he estate or interelt in the land d..cribe4 or referred to in thil .cbedule covered by this report i81 af.. 'ritle to the laid 'Itate or interelt at the date hereof i8 ve.ted inl livervi.. Venture, a California lia1ted partnerlhip 'l'he land referred to in thil report 1. .ituated in the Stat. of California, County of San Bernardino, and i. dalcribed .1 folloWlI DESCRIPTION CON'l'AINBD IN "BXHIBIT A" attached bereto anlS ..d. . part hereof. -------------------.-..------------------------------------------------------- ATTACHMENT NO. B 'Da(]''9 1 of 7 I I I I I I I I i I I i '. " htevay Order No.1 4940129-401 bference No, I 162248-114 IIHIBIT A Parcel 3 of Parcel Map 5106, in the City of San Bernardino, County of San Bernardino, State of CaUforn a, .. per MP recorded in Book 46 of aapa, pagel 68 and 69 of Parcel Map., in the office of the County Recorder of .aid County. ; , j I i i I I J I I I , ! I -------------------------------------------.--.------------------------------- ATTACHMENT NO. 8 Pace 2 0 f 7 I . . . .I I I I ! I ~ , , , j I i f , J I I I I + I i I I I , ! i I i , . , I ; ! i I I ItL NO. Mar 29,90 23:05 P,05 " 8amDULB B Preliminary Report Order No. 4940129-401 At the date hereof Bxception. to covlraO' in addition to the printed llXCeptioNl and uc1uaioNl contained in .aid policy fora would be u follows. GATBWAY TITLB COMPANY 1. Property tUI', including any penonal property taxes, and any a..e"lMlhts collected wlth taxe., for thl fl.cal year 1989-1990. Pirlt lnatalLlent Amount. '649.24 Penalty. CUrrent .tatu.. Open Second inatallll8nt Mount. '649.21 Penalty. CUrrent .tatu.. Open Ba..owner. eKeIptlon. Code arM' lal...on Parcel No.. --II)tIB-- 007-045 0280-281-13 2. Delinquent tax.. for delinquenci.s. Mount to r.deem. '568.37 Prior to. DeC8lllber 31, As....or'. Parcel fto.. 0280-281-13 the fi.eal year 1988-1989, and .ubaequent i989 Amount to rede.. '575.22 Prior tOI January 31, 1990 3. SUpplemental taxe., created in th. rar 1989, a.....ed according to provi.lona of the .tatut.. of 1983 0 the State of California. Pint inataUment AIIount All due and payable Penalty Current ItatuI I '100.16 I Deoaber 10, I '10.01 . D.linquent 1989 Second inatall1llent Amount I '100.lS All clue and payable I April 10, 1990 Penalty . CUrrent It.tUI I Open --------------------------------------------.--...---.------------------------ ATTACHMENT NO. 8 Page 3 of 7 IH No. Mar 29,90 23:05 P,06 " llaIBDDLB B j 1 Preliminary Report Order No. 4940129-401 4. Supplftental tax.., creat.d in the year 1989, .......d .ccording to provisions of the atatute. of 1983 of the Stat. of California. GlftWAY 'l'I'l'LB COMPANY I j I First Inlt.ll..nt Mount I 8396.23 AU due and payable I December 10, 1989 Penalty I '39.63 Current .tatua . Delinquent Second IIl8ta11llent Mount I '396.21 All due and payable I April 10, 1990 Penalty I Current Itatu. I Open !'hi. Coq:leny will require copie., front anc! back, of CANCBLLBD CHBCKS and PAIl) 'I'd RECEIPfs frCIIII the County 'I'ax Collectors office, if tax.. ar. paid, but do not .ppe.r to be .o.t the '!'ax CoUectore office, and .. .0 renected in thb report. PLEAS! fO.RWARI) SAIl) CANCBLI.!Il CHICKS TO !HIS OFFICE AS SOON AS POSSIBLE. 6. 'l'he H.n of luppl..ntal tllD', if any, un..ed .ccording to provi.ions of the .t.tutes of 1983 of the State of California. 7. Bonds and/or ......unt., 1f any, to follow. PWSB VERIFY BEFORE CLOSING I I s. . t " , . i . ; ;' , : 8. Provllions In the dftd frCIIII Matthew Gage to the Riverside Trult Company, Limit.d, a corporation, dated March 11, 1890 and recorded May 13, 1890 In Book 110 page 365 of heda, which r8Cite., "EXCEPT frOll the oper.tion .nd effect of thb conveyance 178 inches of water flowing or to be obtained from the wat.r and water .ource. In, upon or under the Victoria 'I'ract, hereinbefore de.crib.d, and a right of way anc! nowage therefor, through the .aid Gage Canal to any point or point. convenient for the irrigatIon of or u.e upon 640 .cres of l.nd beinL8ection 30, 'l'ownahip 2 South, range 4 Welt, San Bernardino Ba.e and ridian, which .aid 640 acr.. the 88i4 party of the first part clai.. and IIIIY obtain title to anc! which 178 inches of water may be u.ed without payment to the laid party of the ..cond part, for irrigation or other purpo... on the .ald .ection by the said party of the fir.t part or by any other per.on or per.ona to whom he IIIIY .ell or lease the laid 178 inche. or any part thereof". " , I . . i ! -------------------------------------------------~---------------------------- ATTACHMENT NO. B Page -4 of ""1 I I \ , IL..L.. "u. jlgl ...~,.;.oV """01.0'1.0' I.VI .. ICHBDULB B I . Preliminary Report Order No. 4940129-401 M'l'BWAY 'fULl COMPANY 9. Rights of vay development, tog.th.r wlth re.trlctlons relatlng to the export.tion of water, a. contained in .gr....nt betw.en Riverslde Orange COmpany and Gage Canal CoalPany, dated Decelllber 6, 1923 and recorded December 21, 1923 in Book 819 par 247 of Deeds and ln the Documents recorded July 1, 1910 in Book 16 page 315 of Deeda, July 7, 1912 in Book 511 page 7 of deed., Novemb.r 4, 1915 ln Book 578 page 363 of deeds; January 29, 1917 in Book 605 page 133 of Deeds, Deellllber 6, 1923 in Book 819 page 247 of deed. and January 30, 1926 In Book 58, page 158 of Officl.1 Records. ~ 10. . The provi.lons contained ln the deed ffOlll HellMn CoIIImerci.l Trust and Savings Bank, a corporation to Redlands Security Company, . corporation, dated sept8laber 5, 1925 and recorded September 2!l, 1925 ln Book 14, page 337 of Official Record., conveying the property herein delcribed and other property which recite.. "BllCBP'l' and re..rve for the benefit of a IIUtual vater COIlIpany to be known al Victoria Farma Mutual Water ~any, rights of way acro.. the said land for l.ying, constructing, Inspecting and repairlng pipe lines, ditch.s and aqueducts, al well e, ell weter and water rights under, upon and appurtenant to .aid land and the right to take the water therefrom but as to that rrtion of .aid land not affected bI restrictions or reservations 0 record in favor of the Gage Cane Company, this relervation ,hall not preclude the grant.. frOlll developing .uch water .s may b. neoellary for u.e on ,aid land, provided the water.o deVeloped by the grant.. shall not b. taken therefroa or used upon other than tho.e above descrlbed." 11. Coven.nt., conditions .nd r.strictions (deleting therefrom any restrictions based on race, color Or creed) as .et forth in the DecI.r.tion of Re.trictions. RecorcSed. June 8, 1946 in Book 1910 page 98 of Official Recorda 12. Covenants, conditions' .nd restriction. (deleting therefrom any reltrictions ba.ed on race, color or creed) a. .et forth ln the Declaration of Re.triction., which include a provision that a violation thereof ,hall not defeat the lien of any mortgage or deed of trult made in good faith and for valu.. Recorded. March 24, 1952 in Book 3131 P.ge 503 of . Off1cial Record. ------------------------------------------------------------------------------ ATTACHMENT NO. B Page 5 of 7 It.L No. Mar L~,90 23:07 P.08 .. lICBBDt1LB 8 PreH.inary Report Order No. 4940129-401 13. The tenu, covenant a and provie1ons contained 1n that certain Itatement of Proceedinga dated May 07, 1979 for the Southeaat Industrial Park Redevelopment Project Area. Recorded July 31, 1979 in Book 9739 page 1230 of OfUcial Recorde. And re-recordec! October 02, 1979 as InatrWlllnt No. 1086 and uended by lit, 2nd, 3rd, 4th and 5th amendment.. GA'1'BWAY '1'I'1'LB COMPANY , , 14, The requirement that a Certificate of Limited Partner.hip and any a.endmentl thereto be filed for RIYBRVISW VBNTURA with thel LimJted partner.hip Divilion Office of the Secretar, of State POlt Office 80x 704 Sacramento, California 95803 (916) 324-6769 aa provided in the Reviled LimitCorporationa Code Section. 15611 through 15723. Thia company will require a Certified Copy of the Certificate of Limited Partnenhip (and any Ulan_ntl thereto) be recorded in the office of the county recorder. 15. There are !to conveyancea affecting ni4 land, recorded within Iii: (6) IlOnths of the date of tMI report, NOTE I The charge for a policy of tit I' 1nluranoe, if islUed through this title order, will be baled on the basic (not abort-term) title insurance rate. " , 1 OSlda Plata enclosed r < I t I ~ ------------------------------------------------------------------------------ ATTACHMENT NO. 8 Page 6 of 7 I j . .L, i I j , . j , , j 1 , ~nUii iH""l,& " ~f.H;;j; ~ hq"h m ~il k"i ~ ~HV.fJg : '< l~,I!~P'.' ' ~ "" ~ ' ..- "'l i3 'th! ~l!!I' "' '" ;J~9'~ff () :;~n"":!'.II" o ~&'.'" .. i: ""-~iit~' -0 ~ui~I!:''' ~ ~ll:~~f. -< i.!i~~'_':< is'n''5;e ~;;s~~l iJ~Ht. I " , .. "....' _.....Jv.......... ......' '........... ilf I @ ! Ii r!~ if ; @ ! I ft jt: i; @ , A ~ . ., ~, (ID r. ~ I ~; ,. , . ,. ,s ~I."""" ~ ~ I ~I .- Zl.'T''T'Zl.f'''U'-.n;'''TlTI "'t,-,, 0 .. ' @ ,. l : @ ~ ~ , l