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Home My WebLink About20-Community Development 'CITY 0 SAN .I!RNARDIN~'.~~.EST FOR COUNCIL QTION ~. n 'J '.;. ... From: ""I. r.. Kenneth J. HencIe:r:sat, D~" "": ^: siI&ieilt:" \...'-J ..."" Calmmity DiMal......-it &r....,.aL ~ a IIIaLt. .,....u- - IOI1I 'L__ ~ ~ Dept: Date: JUne 28, 1990 Synopsis of Previous Council action: None. Racommended motion: AOOPl' RESOII1rICH ~gnature Phone: 5065 Supporting data attached: Ward: 3 FUNDING REQUIREMENTS: Amount: $50,000 Source: (Acct, No,) To Be created (Acct. Descriotionl EDPIDlIl'l!Und { Finance: -r;~~. / Council Notes: Agenda Item No d .1J 75-02ti2 ~ CITY C1 SAN BERNARDINO. RE~EST FOR COUNCIL OTION STAFF REPORT -- .lDt:l,.. ~ n .Lb.___ T&A Meats and Provisials is a """"lp'I'\Y that is prbarily involved in the ~, rtIpIIC1ci!Ig1., ...." 7 Tin; (meat grin:1inq), sellin; and dist.rubtiat of lIIIlllts, _t products and sana C)alleral ~~ itAmll. RIIstaurants, cafe- teria, .....'1cat9S''S'ens, hcspital.$ and rethdoealt ~ fana the prbmy gllaIp to mic:h the """"lp'I'\Y provides ita lI8J:Vioes. FR. Lially, the ""'I"'ny ~ and prepans meats in quantity, _.q.ality, aw.-_ute far food prepara- ticx1. 'lbe """"lp'I'\Y'. lDlIrll'stirg ..... is mai.ntained by pravidin;J its meat products in a oook-ready fashial. An irlventory of ~~ itAmll used in pnprinq or asaclCXllpll'limm to the "t1i__" is IIIIde ayaila)\l.e to CIl8'- t.aII8rB. 'lhia, alcnjJ with an <vil- uivesal_ forca, very ~ _t cutters, ~hgP'tSand pr.:.; i., helps maintain good ~ J:8laticIIB and bni1d IBi clientele. eu....._.Uy, the ""'I"'11Y tmploys a total of sixteen (16) pec:ple. '!he """"lp'ny is prlr ntly ~ as a pertnerah1p with Mr. 'Dlcmaa FernarII!8z and Mr. ArtmIr sm.::IliI* . ecpll. phLt-... ~ in 1982, T&A IBl1:a has ~ in am.... ClCIIti.nuolJaly for --.n ana CIna-Mlf (7-1/2) years. '!he locaticn of the hwilju'" is 243 8al.tb "1" S~ in san Ilemar- dino with office, ~ and ~ hcuIe situate in cna (1) facility" OO"'Iwin; a total of 5,600 ~ feet. '!he htn"hll!l ho\in- ttn-. (3) l.arge OCIOlera;~ 11... and ...eral l.arge ~ for grinc!inq and plIlCkacJinq puzp~H. '!he +,~:IY has a total of five (5) b:uI:::1lB far pm:i1ase and distrib.1tial of ~. '!he ",.,....., flClll of c:peratials .'lQQ14 entail the pza... of l.arge quant1tt. of mats and ~""'-'1 pr:cllb::tsl ~. '0'+ It and ooc:minat:1cI1 of pA..1I1M oxders (fxaII eatirYJ 88tablill1_~): prllpIrat:icIt of IBlta (triJDiD;J, sizinq and sortjn;) for Jdtc:ilCl ~, ana: ~Qgin; and sh1pImt of meats in aocordance with orders fxaII _drq. eatablLll_.t.I. 'l'rJm1n; fxaII all meats and certain spec:d,,'ty, cuts are ejI:a.md and P"'""~ far sale. .JlIIIaUIlt: aNI ~ .... of T ~ 'lhia appl1catien is far a 10lln in the lIIID.V1t of $50,000 for the P'''l'04Mt of payinq dcIwn an 8ICistinq line of andit with lcnjJ ter:lD f~. QJtstan:!- inq blll.ance en exiJItinq line of cr:eclit is $75,000. Ilat. _ - of T_ '!he lOlIll in the lIIID.V1t of $50,000 will ))e mmrtized CNer a period of six (6) years at an ~ rate of eight p40eut (8) perOllllt. 001'--' '!he I'Y'OIp'ny is offerin; the UlI8 of "'Cl,i~, furnit::ure and fixtures, i.nwntclry and eoooomta reca1wble valum at a total of $616,276 with a na:1:gaqe blll.ance of $141,795.00. In aasiticx1, bath pkt..... own nsi- . d8nt1al ....-4*'ty valued at a total of $239,000 with a calbined l\IOl~ balance of $158,000. 06/28/90 7,..026.. . . Q. ~ All) ".,.,-1(_ st:arf' IMpQz't r.- .. ......-A... PIIIjIIe -2- . o o Jab ,....H... GiWll tba ~ rate of gxawt:h ard put: h1riDJ. ......11:'.II., tba ~ apects to c::mata two (2) n.w pcl8itiaw 8lIIdl Y8H' far the 118Xt: fiw (5) Y8H' period for a total of ten (10) nsw pcl8iticnl. Hf~ all.-' -A-..'1 'lbe 10lln will allow the ''''',-'I'f to ~ ita fintlnc1nJ ~ D8IWq !::letter use of ita line of c:n4it f~. T....lly, t2Ia line at cndit finanl::iJ'q will allow short tem cub for ~.1 plOjecta or accelerated grtlWth. .... -~fGll 'lbe EcalClllic ~. "..-<t p~............. 0aIIIIitt.ee (J!DilC) ... ZWI7i..s and 8Yal.ua- tad this ~ tar finlncial --i.atance. 'lbe a:-ittea bM. t!Ikm _ lie- ticI'l re-. -.--'dirq epprc:Nal of this 10lln ~ to t2Ia II!lyor an:! (1 ..... '1 0c:Amcil. I re-:' -.......Id ac1qlticn of the attacb8d ~ut.icn. ~~-'1.-. . KnVlab at:t:adlments June 28, 1990 o - o o o 1 2 3 4 5 6 7 8 9 USOLftJ:O. 1IUlIII.. .....U'I'J:O. O:r 'lD eJ:," o:r UII ~""ftJ:m AU'I'!IJOUI:tM. &lID DJ:~DI...ucnJ:OJI o:r & S"U..IJ.I~-.' LOU. ( "'~-wr BIiTW_ I'D oJ:n o:r so B.~_eJ:JIO AD ftA "''IS &lID llIlOVISJ:OIIS B. J:'I USOLVIID BY TBII DYO. DO COIlllO. CODOn o:r 'IJIII CJ:TY o:r so B.llDJmJ:.O AS :rOLLOW81 .aa1:ioll 1. The Mayor of the City of San Bernardino i. hereby authorized to execute, on behalf of the City of San Bernardino, a loan agreement with T&A Meats and Provisions, which loan agreement is attached hereto as Exhibit "1" and i. incorporated herein by re- 10 11 vides for the loaning of funds from the small business loan pro- 12 13 ferenee a. though fully set forth at length. The agreement pro- gram in the amount of $50,000.00. 14 15 16 17 18 19 20 21 s.c1:ioll 2. The authorizations to execute the above referenced agreement are rescinded if the parties to the agreement fail to execute same within sixty (60) days of the passage of this resolution. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San _ day of wit: meeting thereof, held on the , 1990, by the following vote to Bernardino at a 6-28-90 1 . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 USOLUTZOII Al'l'ROVZIIG BALL au......ss LOU UUIUlBIlT 0 aBTWBBII CZTY AND TIA KIlTs AND~V:ISZOIIS co_ail JII--rs UH au U8'l'&%. ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER CITY CLERK The toregoing resolution is hereby approved this ____ day of , 1990. W.R. 1110.. BOJoOOU, DYOa C1 ty of Ib Anu41Do o - - .. c:, o o CITY 01' .U "QUD~ COIIIIV.Uy D....~.JUl '" .........., "BOODOalo Dev.l~I..t .&'09&'-" C IDB-l'luaoe4) BORROWER: 1. I A. ....ts and Provisions PROJECT TITLE: Redacti_ oIlbiatiaII ~ 01 Credit PROJECT ADDRESS: 243 South -I- Street SIIn Bernardino. CA 92410 . LOAN IS NUMBER DEPARTMENT CONTRACTS. KJH/lab/0256 06/7.8/90 OF COMMUNITY DEVELOPMENT EXtwKT -t" o SICl'l'IO. III .....SIIftATIO.. AlII) COnDllTS 01' BOItIlOWBR, AlII) DII'AULT Representations of the Borrower Covenants of the Borrower o SeotloD "--r SICl'l'IO. I S101. S102. S103. S104. S105. SICTIO. II S201. S202. S203. S204. S301. S302. S303. SICTIO. IV S401. S402. S403. S404. - - ... (. ~.. . o . 0 TABU 01' gg.z..za (IDa-JObuod) TIUe bU .UTIIS, ..., COBJTIOn I'UCIDlft AlII) IIIDIdJlD1IIIT STARS Partie. to the Agreement Representatives of the Partie. and . Service of Notice. 2 2 Term of this Agreement Conditions Precedent 3 3 Independent Contractor Statu. of the Borrower 3 PVRI'OSI 01' AG......., AlII) LOU, LOU HUS, AlII) PROMISSORY IIO'fI Purpose of the Agreement 4 Purpose of the Loan Terms of the Loan 4 4 Promissory Note 5 6 7 9 Default "I'ORTS, DCORDS AlII) AUDITS Reporting Requirements 10 Maintenance of Records 11 Audits and Inspections 11 Validity of Financial Documentation 12 Submissions i o ..otiOD w.u.h.r S405. S406. .BeTIO. V S501. S502. 5503. S504. S505. 5506. 5507. S508. 5509. S510. S511. S512. 5513. 5514. S515. 5516. S517. - - t. , L 0 TABLII O. con . ,8 (coat...) (IDB-.iaaa... Aire...at) (0 o '1iU. R.lea.e of Funds from Escrow bU 12 Reconveyance Fe. 12 CJB"UL '1BItIIS UD ooBD1'1IO.. Indemnification and Insurance Requirements Prohibition Against Assignment Limitation of Corporate Acts Amendment. and Waivers Compliance with statutes and Regulations Conflict of Intere.t Political Activity Prohibited Lobbying Prohibited Installation of Financial Assistance Sign Press Releases Discrimination Prohibited Nondiscrimination, Equal Employment Practice., and Affirmative Action Employment Opportunities for Business 17 and Lower Income Persons Participation of Minorities, Women and 19 Small Busine.ses Caption. 19 Effect of Legal Judgment 19 Choice of Law Governing this Agreement 19 ii o .eot:10D VI.'1.'har 8518. 8519. .BCTIO. VI 8601. 8602. KJH/lab/0257 - - \.. !' TABU 01' CO~. (C^iDue4...) (ID8-l'iD.DO.~re..~) .i~l. Prohibition of Legal Proceedings Rights and Re.edies Dl'1'IU AGU......, Complete Agr....nt Number of pag.s and Attachments Execution (Signatur.) Page AT'rACJlMBIITS Attach.ent I -- Employment Action Plan Attachment II -- Insuranc. ~equire.ents iii o Bu 19 19 19 20 21 - - o ,. . o ~~ -.... to' .' o &(1......., ...... (IDB-.1.a.oe4) BETWEEN THE CITY OP SAN BERNARDINO AND THB Proyisions eo.any ProDosed Reduction of Existina line of Credit T. I A. MIHIts and (RELATING TO) THE PROJECT ------------------------------------------------------------------ THIS AGREEMENT is mad. and entered into by and betw.en the City of San Bernardino, a municipal corporation, h.r.inaft.r call "City", and T 'dilltats.... Provisions , h.reinaft.r called .~BorroW.iA. !lXl.a..al& WHBRBAS, the city has entered into a Grant .....nt with the United stat.. Department of Hou.iJ\CJ and Urben Develop.ent, h.r.inaft.r called the Grantor, pur.uant to Titl. I of the Houaing and Ccmaunity Dev.lopaent Act of 1974, .. ...nded, ber.inaf1:er r.f.rred to a. HenA, to addr.ss the comaunity dev.lopaent n.eds of the City; and WHBRBAS, the Co_unity Dev.lopm.nt Department, h.r.inaft.r called the "COO", has b..n d..ignated by the City to provide for proper planni"9, coordination and administration of the City'. pro- grams a. d.scribed in the City'. Grant .....nt with the Grantor, and of certain proj.ct. funded by the CitY1 and WHDBAS, the COD coop.rate. with private individuals and organization., oth.r agencie. of the City and a,.ncie. of oth.r. governmental jurisdiction. in carrying out certain function. and programs which are it. r..ponsibility; and WHBRBAS, the S_ll Busin..s R.volving Loan Fund progr&1ll has been established by the City as part of a City of San Bernardino Economic Dev.lopll.nt Program ("EDP"), and has be.n approved by the San Bernardino Mayor and Common Council; and WHDEAS, the proj.ct which is the subj.ct of this agreement meets the requir.ments of the above described progr&1ll; and WHBRBAS, Borrow.r has applied to the city for a loan to help finance the project; and WHBRBAS, the city is willing to lend monies to the Borrower on the t.rms and conditions set forth herein; NOW, THEREFORE, in consideration of and in r.liance upon the foregoing and upon the covenants, agreements, repres.ntations and warrant i.. h.r.in contained, the City and the Borrower agree as follows: - . sMft. DUSXIIIISS LOU ~..1tBZKBIIT O. XD"'ia&aoe4 1I&ge -2- .RClIOK I. o · J o lIUTIR. . nD. COIIDI'I'IOK. lIUQ1lDIDI'l'. AIm IIIDR1'BIID1DI'l' .'I'&'l'U8 8101. .a~~i.. ~o ~h. aar....B~. The partie. to this Agreement are: 1) The City of San Bernardino, a aunicipal cOrPOration, having it. principal offic. at 300 North -D- str.et, San Bernardino, California 92418. 2) Th. Borrower, T. I ~~ts ..... Provisions having it. princi~l a9",*8. at 24) 50Utft -I- Stnet San &em.Nino. tA 92410 Th. Borrower i. ( a) (fictitiou. nam. ent.erpr .e, v , Ca. om a Corporation/general partnership/limited partn.rship.) . , 8102. ..Dr...D~.~iv.. of ~h. pa~ti.. ... ..rvia. of .o~ie... The representatives of the re.pectiv. partie. who are authoriz.d to admini.ter this Agr...ent and to whoa formal notice., demand. and communication. .hall be given are a. follows: 1) The r.pre..ntative of the city shall b., unles. other- wi.e stated in the Agr....nt: K1'. 1t8_8th J. ..later.oD, Dl11:.cto1l: CODaUDl t7 oevelopaea' ~uta.Dt 300 Korth non .t1l:.et, 1'1ftll I'l_r .aa .elrDar41DO, c& '2418-0001 2) Th. representative of the Borrower shall be: Mr. ~s Fe~ZI General Partner Mr. Arthur Sane. _ral Partner 3) Forael notic.., demands and communications to be given h.r.under by either party shall be made in writing and may be eff.cted by per.onal deliv.ry or by regi.tered or certified mail, postage prepaid, return receipt reque.- ted and shall be deemed communicated as of the date of mailing. If the name of the person designated to receive the notice., demands or communications or the addr.ss of such person is changed, written notice shall be given, in accord with this section, within five (5) working days of said chang.. 4) 8Hft. B08ID88 ID~lDana.4 11&9. -3- r LOU )NUBJlBIlT 0 to o o 8103. ~.ra o~ ~hl. aar....B~. 810C . This Agr....nt shall r.main in full fore. and .ffect from the eS&t. of .x.cution by Borrow.r of the PrOIlia.o~ Hou, until such time as .aieS Proaiaso~ Hot. i. paieS accoreSin9 to its t.ras, subj.ct to the provisions of 8303 h.r.in. eOIl4:l.~:l.OIl. 'raoe4.1li:. A. Prior to the .x.cution of this Agr....nt, the Borrower shall submit to the City for approval in writing an Affiraativ. Action Program Plan in accoreSanc. with S.ction 512 h.rein. In the ev.nt that Borrow.r is a corporation, th.n prior to the ex.cution of thia AlJre..ant, the Borrower shall provieSe the City with copies of the following eSocuaentsl 1) Borrower's Articles of Incorporation, and all ..encSments thereto, as fileeS with the Secr.tary of stat.. 2) Borrower'. By-taws, aneS all ..encSment. th.r.to, as aeSop- t.eS by the Borrower aneS properly attestacS. 3) R.solutions or other corporate actions of the Borrower's BoareS of Directors, properly att..tacS or c.rtitiacS, which specify the nameC.) of the penon C.) authorizec1 to obliqate the Borrower &neS .xecute contractual eSocuments. 4) C.rtificate of GoocS staneSinq from California Secretary of state. B. C. In the event that Borrower is a partnership, then prior to the execution of this Aqr....nt, the Borrower shall provide the city with copies of the Borrow.r's Partn.rship Agr..- ment, and evidence of filinq thereof with appropriate filing official. D. In the ev.nt the Borrower is an indivieSual eSoing business und.r fictitious name, a oopy of the Fiotitious Name State- ment and evieSence of the proper filinq thereof. 8101. %1l4.D..d.ll~ Co.tractor statu. of the Borro.er. Th. parties agree that the Borrower i. an indepeneSent con- tractor and that no employ.es of the Borrow.r have been, are, or .hall be employ.es of the City by virtue of this Aqreement, and the Borrower shall so inform each employee orqanization and each employee who is hired or retained by it. . 8JC.R. B08%HB88 %D"inaDc.4 lIa9. -4- LeAH A..UIlK1!:!I'1' 0 r o o 8BCTXOM XX. P1JIlPO.. OJl Ua.---d ..1m LOU. LOAJI ....... ~M\~.t:Ii80.Y MQIJI. 8201. JlUrDo.e of t:lle A9re_ent:. The purpose of this Agree.ent is to provide (~f~~~ )-~f"-EDP--i~-t~-;;-i~;;-;;-~ity :J.~:S Borrower, hereinafter called the "Loan", tor the purpo.. and under the term. and condition. .et forth herein. 8202. JlUrDo.e of t:lle LoaD. The purpo.e of the Loan i. to provide financial a..iatance to enable the BorroWer to: (1) Pa)'CIcMl an exfstfng Une of credit balance with another lender througlllOftg tel'll ffnancfng to be provfded by tile Cfty of San IIemardfno. 8203. ~.ra8 o~ ~1l. Loall. A. The city agrees to lend the Borrower, and the Borrower agr..s to J:;IoJi:.row from the City, an _ount not. to exceed Ff_ -----------00 100 DOLLARS, ($SO.OIIO.00 ), .u. on bere na ter referred to as the "Loan". The Loan is to be evieSenced by, and aade aqainst delivery of a Proaissory Note executed by the Borrower, hereinafter called the "Note" and by this reference incorporated herein. B. The Note shall (i) be dated as of the closing, (ii) bear interest on the unpaid principal at the rate of efght percent (as ) per annUlI, (Hi) be for a tera of six ( 6 ) years, and (d) provide for payment of the principal amount thereof and the interest therlilOn in seventy-two SMJilL B08%NJ:SS IDV'iD&Jlo.4 paq. -5- LOU )l\.UBMBIl'1' 0 o ( ~ o ( 72 ~,,:~~~_~~~~::,,_~~~,:~~~~~~:~_~~_.huNlNd S8_"'-~S ($ 876.1fi ), each inclucUng prine pal and interest, and continuing until said principal and int.r.st ar. paid in full. C. Each .onthly installm.nt shall b. applied first to the payment of inter.st then accrued to the data the payaent 18 r.c.ived, and the balanc., if any, to the r.duction of the principal. 8204. Pro.i..orY BOt.. A. Th. Obligation of the City to uke the Loan 18 subj.ct to rec.ipt by the City of the Hot. and, at the City'. sole discretion, to the following additional conditions pr.ce- dent: 1) Th. r.pr...ntations and warranti.s ud. herein by the Borrower shall be truaand correct at the. tbe of consideration by the Mayor and eo...on COuncil of the city of San Bernardino with the .... .tfect as though .ad. atth. closing. 2) R.c.ipt by the City frOlll the Borrow.r of all executed docuaents in connection with this Agr.ement, satisfac- tory in form and substance to the City. 3) If matching funds constitut. a part of this Agr....nt, th.n Borrow.r sh~l obtain ..tching funds in an Dount equal to the amount of th18 loan and, a. r.quired by the city, deposit said matching funds into an account with KIA Escrow Agency. 4) The City and the Borrower have mutually agreed to the terms and conditions as set forth in the Employment Action Plan, which is attach.d her.to as Attachment I and by this reference is incorporated herein. B. Th. Hot. is to be secured as follows: 1. Equi....t. fumiture. and fixtures valued at - $616.276.00 2. Residential property valued at - $239.000.00 C. Borrower shall have the right, without penalty, to prepay the Hote toqether with the accrued interest thereon as of the date of such prepayment. S~L BUSIInISS LOAR )o..oJUlBMBlf'l'O % inanoe4 pag -s- o (' o Do Th. Borrow.r acknowledge. and agr... that the allOUJlt being provided under this loan .hall b. for a total of Fifty ThDusIftd and -------------------------QO/lOO DO~, ($50.000.00 ), and that no additional funib to cov.r addi- tional proj.ct. co.t., anticipated or unanticipated, incur- red as a r.sult of cost ov.rruns or .xpen... in financing this project, are available under thi* ~....nto S8C'1'IO. III. UPU.mI'l'A'rIO.. lUID COVIlBAB'r. O. 1Ift.1Ift.... lUID D..AUL'r 8301. ..Dr....~.~iaB. of ~h. Borrower. To indue. city to enter into this Agr....nt, Borrow.r cov.- nant. and r.pres.nts to city that: 1) Th. execution, 4.liv.ry an4 perforwmc. of the Hot. anti thi. Agr....nt by Borrower have been d~y authorized by Borrow.r. This Agr.elMnt constitut.. a 189&1, vali4 and bin4ing obligation of Borrower, entorc.abl. in accori- anc. with its t.rms. Th. .x.cution and d.livery of this Agreement and the not., and con.uuation of the tranaac- tions h.r.in conteaplated, will not conflict with, or result in a br.ach of, any of the terms, provi.ions or conditions of any indentur., contract, iNl~t or agre_.nt, including anypartn.rship acp:eelMlnt, to which Borrower or any of it. offic.rs i. a party. Ho appro- val, con..nt or autboriaation of any gov.rn.ental authority is nec...ary for the .xecution, d.liv.ry or p.rformance by th. Borrower of this Agr....nt or of any of the terms and contlition.o (1) 2) Borrow.r has good and mark.tabl. title to the real pro- perty identified in S2048 of this ~...nt, located at 112 Carrfe s CA 92373 2 M&6 Laurel Ave. FOIltaM. CA , San 92335 Berna no, Cal forn a, an t . r.. a c .ar fro. all liens .xc.pt a. ..t forth h.r.in: One Hundred Ffft)'-E1a11t Thousand (SI58.ooooW) 1ft c_,nea _rtaa.. .ffectrno property 0 3) Borrow.r is in complianc. with all applicable statutes, laws, regulations, and executive oriers of the United States of America an4 all states, foreiqn countries, other governmental bodies and agencies having juris4ic- tion over its business or properties, including (without limitation) all tax laws and Borrower has not received notice of any violation of such statutes, laws, regula- tions or orders which have not been remedied prior to the date of this Agreement. Borrower possesses all licenses, tradenames, trademarks, and permits as are required for conduct of its business without conflict with the rights of others. .~ " o o ..or. .08X.... LOU A~UZIIB"'o XD.-J'iDance4 .age -7- D. There i. not peneling or thr.at.ned. against Borrower, or any of it. officen, any action., .uita, proceed.ing. or inve.ti- gations at law or in .quity or before or by any f__ral, .tate, municipal or gov.rnaantal departBant, c~i..ion, board., bureau, agency or in.trumentality which, if deter- mined. adversely, would be lik.ly to have . ..terially .d- v.rs. .ff.ct on the bus in... or properties of Borrow.r. E. Each and .v.ry financial .tat...nt, dOCUll.nt .nd record. d.liv.red. by Borrow.r to the City in conntction with this Agr....nt and the proposed.. t~..ction bereunder i. . true and cOllpl.t. copy of ..id'i~ncial .tateaent, docnaent. or r.cord, and fairly and .ccur.t.ly r.flects tbe infol'llation it purport. to portray. ~n h.. be.n no cba..e in the condition,financi.l or otberwi.., of. Borrower.a. .hown in the financial .tatement. dated ---'HIIIIIIr 31 1_. , .xc.pt change. in the. ord.inary CO'iifti of~l"., none of which, inelivielually or in the aggr&fjat.' has been aaterially aelv.rse. 8301. a44i~loB.l ea9.B.B~. o~ ~he Borra..r. Borrow.r covenant. and .gree. th.t, frOB the date her.of, until p.yaent in full on the Kote and the intere.t thereon, that it will: 1) Pay the principal and inter..t on the Kot. according to it. t.rm.. 2) Pay any oth.r amount. that aay De due or beco.. due and owing to the City und.r or pursuant to the t.rm. of this Agr.ement or the Not.. Execut. .nd d.liv.r all in.trum.nt., and perfora .uch act., a. the City aay r..80naDly el... n.c....ry or d.- sireaDl. to confira and ..cur. to the City all rights anel reaecli.. conf.rred. upon the City by the t.ra. of this Agr....nt anel Not.. In the .v.nt that Borrower shall grant the City a .e- curity int.rest in R.al Property a. collat.ral unel.r S204(B) h.r.in, then Borrower agrees to maintain at Borrow.r'. sole .xpen.e a policy of title insurance coverage equal to the amount of the loan. Give notice to the City of any event that constitutes an Event of Default as set forth in section 303 of this Agree.ant or that woulel, with notice, or lapse of time or both, constitut. an Event of Default uneler this Agreement. Notice shall specify the nature of such Event of Default. 3) 4) 5) sJqIC. BUSIIII:SS LOU )o..UBMBIIT 0 ID"'1D&DOe4 p&g. -S- o o 6) 7) 8) 9) Not .nter into any aqr....nt or oth.r ccmaitunt the pertorunce of which would cOMtituu a breach of any of the covenant. contained in thi. Agr....nt. U.e the Loan proceed. only for the purpo... .tated in this Agr....nt and for no oth.r purpo.. or purpO.... Ob.erve all applicabl. fed.ral, .tat. and local .tatut.. and r.gulation. a. w.ll as City of San Be~r<<J.no Ordi- nances a. furth.r defin.d and ..t forth in Seotion 505 of this Agre..ent. In the ev.nt that Borrow.r is a corporation, then Bor- rower .hall do or cau.e to b. don. all thino. nece..ary to pr...rv. and keep in full force and .ffect its corpo- rat. .xistence, right. and franchi..s. Not violate any law., ordinanc.., gov.rnmental rul.. or regulation. to which it is subject and not taU to ob- tain any lic.nse., permit., franchi..s or other govern- .ental authorization necessary to conduct its basin.ss, which violation or failure to Obtain aightbave a aat.- rial adver.e effect on the business, pr08~, profits or condition (financial or oth.rwi..) of Borrower. Submit an Annual EIlploym.nt R.port on or before the fif- t.enth (15th) day of Jun. for the y.ar(s) 1" . The Annual bployaent Report shall de- taU Borrower's coapliance with the BllplOYaent Action Plan, Attachm.nt I attached hereto and by this r.fer.nce incorporated h.rein, for the preceding tw.lv. (12) month period. Maintain ad.quat. in.uranc. with r.spect to the col- lateral and the (proprietorship, partnerShip or cor- porat.) business which is the subject of this Agr....nt, with r.putable insurance companie.. The Borrow.r .hall maintain insurance in such amount. and again.t .uch ri.JtII as is customary with coapani.. in the .ame or siailar busine.., in addition, .aid in.uranc. cov.r- ag.s(.) .hall be in accordanc. with the gen.ral insur- anc. provision. of this ACJr....nt a. .pecified in S501(8)(5), including fir., hazard and general compr.- hensiv. liability insuranc., worker's compen.ation, con- struction/rehabilitation liability, to prot.ct such bu. ines. and all property securing the City'. loan. Said insurance shall be ..intained throughout the term of this loan. Th. city shall b. named a. an additional insured, and the policy or polici.. .hall not be subject to cancellation, reduction or nonren.wal without thirty (30) day. prior writt.n notification to the city Attor- ney by certified mail. 10) 11) 12) o t o S.L BUSXIIIlSS LOAH )...UZMIlIlTO X~iDaDCa4 paqa -t- 13) Pay all indebtene.. and obllqation. proaptly in aceord- anee with noraal t.rIUI and prOllptly pay alld dillCbaq. or cau.. to paid and di.chaqed all tax.., .....aaant. and gov.rnmental charg.. or levi.. iapoaad upon it or upon its incOlle and profi" or upon any of iteproperty, real, personal or mixed, or upon any parttheraof, r.- spectively, before the same shall beco.. in default. 8303. Default. A. The entire unpaid principal of the Note, and intU'e.t then a,ccrued thereon, .ball ~co.. and ~ fortbwith due and pay- able upon written deaand by the City or the Cl1ty's a..i9ft., without any oth.r notic. or demand of any kind or any pre- ..ntment or prote.t, if anyone of the following event. (h.reincalled an "Event of Default") ahal10ccur and ~ continuing at the time of .uch d4taand, whathU' voluntarily or involuntarily, or, without li.itation, occurrin9 or brought about by operation of law or pursuant to'or in compliance with any ju~t, decree or order of any court of any ord.r, rule or regulation or any C)Ov...-.otal body, provided howev.r that .uch .a .hall not ~ .payable if , Borrower'a payments have been expres.ly ~by the City or the City'. assigna. "EV.nts of Default" .hall include: 1) Payment of any inatallment of principal or intel:8.t on the Not. is not paid wh.n due and .uch pay.-nt remains unpaid for thirty (30) days. Borrower fail. to pay wh.n du., or d.clared due, the obligations secured und.r this Agr....nt. Borrower fails to p.rform or comply with any t.rIUI, condition., or covenant. a. provided in this Agr.ement or in any instrum.nt. s.curing or r.lated to this Agr.e- ment. 2) 3) 4) If any r.pr.s.ntation or warranty made by the Borrow.r in this Agr.em.nt shall prove to b. untrue in any mate- rial r.spect, or if any r.port, financial statement or financial .chedul. or oth.r instrument deliv.red under or pursuant to this Agreement or the tran.actions con- te.plated herein, to the city or to any oth.r holder of the Note shall prove to b. untrue in any material re- spect as of the date as of which made. A court enters a decree or order for relief in respect of the Borrow.r in an involuntary case under any appli- cable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or for any substantial part of 5) - Sg BOSIlfBSS :I inaneed Pa -10- LOU t ;AJ:EHJ:1I'1' 0 9 o its property, or orlSen the winding up or liquidation of its affairs and such decree or order r...ine unetayed and in effect for a period of ei~ty (60) consecutive days. 6) The occurrence (i) of Borrower's becOlling insolvent or bankrupt, or ceasing, being unable, or adllitti", in writing its inability to pay its debt. a. th.y mature, or making a gen.ral as.ignment for the ben.fit of, or entering into any cOllpositionor arranq..-nt with cr.di- torsI (H) of proceedi",. for the appointaent of a re- ceiv.r, tru.t.e or liquidator of Debtor, or of a sub- stantial part of it. a...ts, beinCJ authori,."o~ in.ti- tuted by or against itl or (Hi) of proce_iM,und.r any bankruptcy, reorganization, readjuatMftt of 4ebt, insolvency, dissolution, liqui4ation or otber .tailar law of any juriscliction b.ing authorized or instituted by or against the Borrower. 7) A cessation or substantial reduction of operations in the business which i. the subject of this ACJr....nt und.r circumstances indicativ. to th. City of a lack of intention or ability to provide continui",-.pl~nt . an4 econollic ben.fits for th. area in which th.busine.s is located. . 8) Failure to subllit the Annual Z.plo~nt Report referred to in 8302(12) within ninty (90) day. of the scheduled due 4ate for sai4 Report. 9. The loss, theft, substantial 4amage, 4estruction, aban- donm.nt, sale or .ncumbranc. to or of any of the colla- teral securing payment of the Not., in any -.nn.r not fully covered by insurance, or the lIaking of any levy, seizure or attachment thereof or thereon. B. If Borrower shall at any time default in ukinCJ any payment of principal or intere.t on the Note, Borrow.r .hall to the full enent peraitted by law, pay to the City or other holder of the Note, in addition to any other amounts that may be due froll Borrower to such holder, an amount equal to the reasonable cost. and expenses incurred by such holder, in it. efforts to protect its collateral, secure payment, or otherwise defend its interests hereunder in any judicial or administrative proceeding. 8ECTION IV. ._PORTS. BCORD. AIm ADDI". 8401. .eDortinG .eauirements. A. At such tilles and in such foZ'118 a. the City may require, there shall be furnished to the City such statement., 8WL aU8XIIB88 XVl'illallce4 .age -11- ( LOU A~RJlBMB-o 9 ( o r.corda, r.ports, data and. infonation as th. City _y requ..t p.rtaining to matters coV.red. by thi. Aqr....nt. B. Borrow.r will provid. its financial and accounting stat.- m.nts to the City for th. period .nd.ing JIIr 't,..3l......1JID and annually ther.after during t.n of tIl-is ......., but not lat.r than three (3) ~th8 following the expiration of any such p.riod, and. at .ach oth.r tiM and. in such fOB ae the City aay prescribe. 8C02. K.iB~.D.fta. of ..aor4.. A. Records, in th.ir original fOB, shall be aaintained in accordanc. with the requir...nt. preeor1bed. by tU Grantor and th. City with resp.ct to all _ttlin covered. by this Aqreement. Such r.cords shall be retained. for a ~loct of six (6) y.ars after termination of thi. Agre.a.nt and aft.r all other p.ndinq matt.rs are closed., .P.ncUD9~n. in- clude, but are not limited. to, an audit, litigation, or oth.r actions involving r.cords. Tbe City ..y., at its dis- cretion, take possession of and r.tain said records. B. Records in th.ir oriqinal form pertaining to ..t~ 9QV.red by this Agr.em.nt shall at all U... be r.tained ,wlthin the City of San Bernardino, or some other location~lfically authorizing in writinq by the Dir.otor of COIlIIWf.ity Develop- ment, unless authorization to remove them is granted. in writinq by the City. 8COS. Audits and :Insaeottons. A. At any tim. during normal busin..s hours and a. of tan as the Grantor, th. U.S. Comptroll.r General, Auditor G4llft.ral of the Stat. of California or the City -I de.. ~.sary, the Borrow.r shall mak. available to the C ty for exaaination, all of its r.cords with respect to all ..tt.rs covered. by this Agre...nt. The City, Auditor G4lmeral of th. 8tat. of california, Grantor, and the U.s. C~troller General shall have the authority to audit, examine and. ..u exc.rpt. or transcripts from records, includingrall contract., invoices, material., payrolls, records of personn.l, conditions of employm.nt and other data relating to all matt.rs cov.red by this Agreement. B. The city shall have the authority to make physical inspec- tions and to require such physicalsafequarding d.vic.s as locks, alarms, safes, fire extinguisher., sprinkler system, etc., to safeguard property and/or equipment fund.d or secu- red by this Aqreement. Notwithstanding such inspection authority, Borrower is soley responsibl.' for the provision of security and for the safe guarding of the business and its property. 8JfM.L S08J:n88 J:~iDaDO.4 paq. -12- ( , LOU .....UBIIBIlTO o j c: o 8404. V.lidl~9 of .1...01&1 Doeua.B~.~ioB .u~i..loD.. Financial r.ports r.quir.d to b. pr.par.d and submitted by the Borrow.r to the city shall b. accurat. and corr.ct in all resp.ct.. .e05. ..1.... of PaDds fro. B.crow. A. All loan proc..ds shall. be d.posited into .n .scrow .ccount with an e.crow company d..i9ft.ted by the Ci1:y. Di.bur....nt of funds shall be jointly authorb.d by the Borrower .nd the city. Each disbur....nt .ball be in .cco~c. with 8202 "Purpos. of the Loan" and .h.ll be properly .1lpport_ by invoices, vouchers, .x~ted payroll., tiM record. or other documentation evid.ncing an expenditure and/or .ncuabranc. of funds. B. The costs a.sociated with the loan such .s .scrow f..s, credit r.ports (TRW), title r.port., or other .imil.r co.t. shall be d.lin.at.d in the .scrow in.truction. and di.bursed from the loan proce.ds upon opening of the ..crow account. 8401. RaCODvavance ~.. In the event that real property i. used to .ecur. this Loan, then Borrower agre.. to pay .ny coste incident to title re- conveyanc., including, if .ppli~le, trust.... f..., attor- ney fee., docum.nt pr.paration f.e., recordiftfJ fee. or any other related .xpense.. .BeTIO. V. GIDIBOL ~.IUUI aim eoJIDl'I'%O.. 8501. Ift4..wlfla.~iea aa4 I.aur..a. .eaulr".D~.. A. Indemnitication: The Borrower und.rtake. and agr... to defend, indemnify and hold hal"llll... the City and any and all of the City'. offi- cer., agent., employ..., a..i9ft., and succes.or. in int.rest from and against all suit. and cau... of action, claim., cost of litigation, damage or liability of any nature what- soever, for death or injury to any person, including Bor- rower's employee. and agent., or damage or de.truction to any property of either party hereto or third per.ons in any manner arising by reason of or incident to the perfol"lllance of this Agreement on the part of the Borrower or sUbborrower any tier whether or not contribut.d to by any actor ommis- sion, active or passive, negligent or otherwi.e, except for the sole negligence of the City, or the 801e negligence of any of the city'. officer., agent. or employees. City ap- ~ ,- IJ eJ.., I ." .).2-- " J.J *~I I/....).~ ~dw(. #-~, If J.; -If ),,1 -- -.-. . ~ - o o o o Below are lis~the Community Development Block Grant items on the Agenda ,ot July 16, 1990, Numb.rs 21 through 37: RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVEWPMENT BWCK GRANT FUNDING AGREEMENT BETJIEEN THE CITY OF SAN BDlQRDINO AND YOUNG MEN'S CHRISTIAN ASSOCIATION. $20,000 ......tion of downtown f.cility for handic.p .cc...ibility/hoa.l.... RESOLUTION OF THE CITY OF SAN BERNARDINO AUTitORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVlWJIlIII!NT BWCK GRANT FUNDING AGREEMENT BETWEJ!:N THE CITY OF SAN .8ERNARDINO AND HIGHLAND .DISTRICT COUNCIL ON AGING, INC. $20,000 coatinuatioD of pr...nt proqr&a/.t.ffinq to provide ..nior ..nic... RESOLUTIN OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIUCTING THE EXECUTION OF A COMMUNITY DEVEWPIIENT BWCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BElUIARDINO AND FRA.EE coMMUNITY CENTER. '20,000 as.i.tanc. to no inco../low incoa. per.on. in ...rq.noy .itu.tion.. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIJtC:TING THE EXECUTION OF A COMMUNITY DEVEWPMENT BWCK GRANT lPtJIIt)ING AGREEMENT BETWEN THE CITY OF SAN BERNARDINO AND ~REATER SAN BERNARDINO AREA SPECIAL OLYMPICS. $10,000 I'UDd Ar.. Sp.ci.l Olyapic. proqr.. for d.v.lop..nt.lly di.abl.d. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVEWPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ROLLING START, INC. (DEAF SERVICES). $U,007 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF. A COMMUNITY DEVEWPMENT BWCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ROLLING START, INC. (HELPLINE). $15,000 Ifelepllone ..erg.ncy ...i.tanc.. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT. BLOCK GRANT FUNDING AGREEMENT BETWEEN 'l'HE CITY OF SAN BERNARDINO AND FIRST FUND OF CHILDREN'S RESOURCES. $20,000 Aid to .t- risk children. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND MEADOWBROOK AMATEUR BOXING ACADEMY, INC. (GYM EQUIPMENT; INSTRUCTION, ETC.) $11,500 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING ANp DIRECTING THE EXECUTION OF A COMMUNITY DEVEWPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND MEADOWBROOK AMATEUR BOXING ACADEMY. (CONSTRUCTION OF TOILET/SHOWER FACILITIES) $15,000 , " ~ ;3/ 1J..3.J., II-JJ *31 ./I3S iJj6 1t31 - - - .......-- - . . o . RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMtJRITY DEVELOPMER'l' BLOCK GRANT FUNDING AGREEMENT BETWBEN THE CITY OF SAN BERNARDINO AND THE BOYS AND GIRLS CLUB OF SAN BERNARDINO. (SECURITY SYSTEM, POOL CHLORINATION SYSTEM, ETC.) $12,000 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BE~ THE CITY OF SAN BERNARDINO AND THE BOYS AND GIRLS CLuiI OF SAN BERNARDINO. (EDUCATION PROGRAMS) $20,000 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT. BE'rWEEN THE CITY OF SAN BUHARDINO AND THE JUNIOR ALL AMERICAN FOOTBALL LEAGUE. $1,000 1'Ul'cha.e of equipaen~. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN T8E CITY OF SAN BERNARDINO AND INLAND MEDIATION BOARD. $25,000 Wail' Bou.in~ Pr~ram Services. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND BETHLEHEM HOUSE PROJECT, INC. $20,000 A8d.~&Dce ~o ba~~ere4 wo.en/chi14ren. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECl'ING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND EASTER SEAL SOCIETY/INLAND AREA HEAD INJURY SUPPORT PROGRAM. $20,000 Ai4 ~o lov/.o4era~e inco.e familie. vi~h victi.. of trauaa~ic hea4 injury. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND OFFICE OF AGING/CATHOLIC CHARITIES. $20,000 As.i.~anc. ~o elderly in achievinq/.ain~aininq in4epen4ence. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT' BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND STURGES FOUNDATION CENTER FOR THE FINE ARTS. $40,000 upqra4e of liqhtinq/soun4 sys~ams.