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HomeMy WebLinkAboutR09-RDA Item - - - - - o o - Redevelopment Agency · City of San Bernardino -~ NarIh "D" s...... FaRlhFJaor . SIll BemonIiDo, CaIifamia 92418 (714) 384-5081 FAX (714) 888-9413 PrIde ~ ~- AUGUST 15. 1990 H.A.B. DEVELOPMENT CORPORATION LOAN REQUEST SynopsIs of PrevIous Commlsslon/Councl1/Commlttee ActIon: 03-12-90 The Redevelopment CommIttee recommended approval of the deal poInts as modIfIed. 07-19-90 The Redevelopment CommIttee recommended approval and that the Item be forwarded to CommIssIon for acceptance. Recommended MotIon: (COMMUNITY DEVELOPMENT COMMISSION) That the ExecutIve DIrector be authorIzed to execute the attached Owner PartIcIpatIon Agreement and" such documents as are requIred for Its ImplementatIon. Respectfully Submltted. ExecutIve DIrector SupportIng data attached: YES Hard-: 6th FUNDING REQUIREMENTS: $2,130.000 Project: NH & SC CommIssIon Note s : 3157H Agenda of: Auqust 20. 1990 Item No. ~ ..;C'~ o o S T A F F R E P 0 R T On March 19, 1990, the CDC authorized an Owners Participation Agreement with H.A.B. Land Development Company to construct two bridges and a roadway across Cable Creek and Devils Canyon flood control channels. The agreement was never signed by H.A.B. who then requested changes. The staff is proposing a substitute agreement which will provide a $2,130,000 loan for roadway and bridge construction. The loan would bear interest at 10-1/41 and be all due and payable seven (7) years from the completion of the improvements. This will provide access for the development of a 44 acre parcel of industrial land with extensIve freeway frontage. BACKGROUND H.A.B. owns a 44 acre site located south of Interstate 215, between the Cable Creek and Devils Canyon flood control channels (see attached map). The previous agreement provided for a $1,500,000 loan with interest at 91, secured by a second trust deed with the principal, all due and payable five (5) years from completion of the improvements. H.A.B. is now requesting that the loan agreement be modified to run for seven (7) years rather than five (5) to provide them more time to find end users and to increase the loan amount from $1,500,000 to $2,130,000. The benefit to the Agency is that the additional money would be used to payoff the existing first trust deed on the property putting the Agency in a first trust deed position. H.A.B. has also agreed to pay 10-1/41 interest instead of the previous 91. The attached estimate of value indicates the site would have a value of $3,000,000 after the access and utilities have been provided. This still appears to provide an adequate ratio of value to loan amount. The City and businesses in the local area would benefit by the construction of a road across the property connecting Industry Parkway on the north to Hallmark Parkway on the south. The adjoIning of these two roads would provide better access for users in the State College and Northwest industrial parks and also improve emergency services access to the properties on the north. DEAL POINTS The deal points are as follows: 1. H.A.B. to build two bridges and roadway connecting Industrial Parkway and Hallmark Parkway, including curbs, gutters, landscaping and underground utilities all built to City specificatIons and on alignment approved by the City Engineer. Bidding and selection process are subject to Agency approval. 2. 3157H ~- o o 2. Bridges, roadway and necessary right-of-way to be granted to City following completion. 3. Agency to make H.A.B. a loan of $2.130,000 at 10-1/4t interest, wIth quarterly Interest only payment for seven (7) years from the issuance of the CertifIcate of CompletIon at whIch time prIncipal and interest shall be all due and payable. 4. Loan to be disbursed by draw in 1/3 Increments upon approval by the Executive Director that 1/3 of the project has been completed and approval of the disbursement by the Commission. Ten percent of each disbursement to be withheld and paId at the end of the project when all Indebtedness has been paId, or if with the final disbursement, It will be paid, and when the Certificate of Completion has been issued. Agency can pay retained proceeds directly to creditors. 5. Loan secured by Deed of Trust In fIrst position which can be partIally released upon payment of 150t proportionate payments ($76,230 per acre), wIth a mInImum release of five (5) acres. 6. Covenants, ConditIons and RestrictIons (CC&R's) must be recorded whIch, among other thIngs, require grantees of all or a portIon of the subject property to enter into a Development Agreement with the Agency. FaIlure to do so gives the Agency the right to set the grantIng deeds aside. The Development Agreement will be approved In escrow. BENEFITS Based upon standard assumptions, the Agency can expect the following to take place on the forty-four acres: Industrial Buildings Completed Value Tax Increment (.6t) Development Fees 575,000 SF $11,900.000 $78,540/yr $69,OOO/yr $476.000 500 Jobs Utility Tax New Jobs These are in addItion to the health and safety benefits of creating a proper vehicular circulation system for the State College Business Park and the Northwest Industrial Park. RECOMMENDATION That the staff complete the recommended agreement and that It be forwarded to the CDC upon executIon by H.A.B. Development. 3. 3157H o o 1m PRELIMINARY ESTIMATE OF VALUE February 21, 1110 HAS DEVELOPMENT PARCEL The site Ihown on the atte~ IIaP is cc.priMd of "1.5 acru (1,107,70C0 SF) located lOuth of Interstate 215 betlMen the Cable Creek flood control channal and the Devl1s Canyon diveraion channal. It is a ....r.lly level parcel but hes no vehicul.r 'Cca.. and is not ..riled by existing utiliti... The Genar.l Plan specifies. l.nd un desil11l.tion of ....vy Industri., .nd there .re no speci., pl.nning restrictions on the site 10 f.r .. we are ware. The property fe~tures excellent visfbl1ity on 1-215 in both directions. ~ CURRENT OWNER The property w.. purcheMd by the H.A.B. Develoc-ent Corp:. on Juna .., 1187 for net,ooO (fO...../SF) with a 201 down pe~t and a note with undisclOMd tenu "cured by a 1st Truat IlMcf (... the atte~ CclIrpa s_ry). The trust deed is in the IlIIOUnt of 8830,100. COMPARARl~ Ul~R AND PARC~LR o 1. A 8 acre parcel (..rked as -A- on the 1IaP) 11as i-.cliately south of the subjact property and was 101d in AUllUst, 111811, for 81.38/SF (1M the attached Caaps sllllllary). An ....s....nt district hes baan foreed and is currently constructing road and util1ty illprovaments at an .dditional cost of 80.1a/SF. The indicated acqUisition cost is therefore 81.U/SF for land thet is si_flar in nature andzonfng to the sUbjact parcel except thet it has no acce.. problems. 2. Two parcels i-.cliataly aastarly of the sUbject (..rked as -B- and -CO) are fnside the St.te Colle.. Business Park and heve baan 11sted for two yaars at a sales price of 82.DO/SF but ,....in unsold. Partly becausa the.. parcels are If.1ted fn depth, and partly because they are at the and of whet is affactfvely a very long cvl-da-..c, they are priced well under the balance of the parcels in the park which start at 82.75/SF. The land u.. deSignation at this end of the Businass Park is Light Industrfal. INDICAT~D VAlU~ Based upon these indicators and a ..naral knowledge of other ..las in the area it appears thet a range of 81.75 (gross) to 82.00 (nat) per SF would be appropriate to the site after adeau.te .cce.. and utilities have battn Dravided. At 81.75 for the "1.5 acres, the indicated value would be 83,183,5"5 or, say: 83,000,000 THREE MILLION DOLLARS o o o ( J .IC-1626-09-87 tJ vJ CDMPS 1'7:;~00-:(:)~4::~r/6 COMN INCClUOIIATIQ 1105 L__. FIrS.. 71h Aaar '-' a.;o. CA .111 (11111) 4S?-22?4 - ~ o (U')U8-3t41 -;.';':"';~~"':::";~;<'::""":;;':~"" -. ::.::";,;,":~.:;..,,,:-::., :....~':.:;:.M.~ . '.' :, ", o ......,.."'<.'...;.. COMMERCIAL LAND lllA &0_ ACUAGI IV of .ate ivY/Pepper Linde "n "~.ardino, CA '2407 ::.,...'.......... . . .:-.; ..~.' .::'",... BUVEA: (714 )881-01" I.A.I ana De.. Co. c/o lenry A. lick1er P.O. loa 2007 lrwindalei CA .1706 .;.<;,.;..-;-.:.....:,_.:..;;}~. ..:.:;;':,....:.:::~.::.., ,-.,. ;. .:.:..... ,:....,.;.;",,;:::.' '~'.. .....' ...d:...'.... .--"_','" ,- SELLER: Ian "rna~dino ".oc., G.P. c/o "nford I. kbulbofer 70.11 ~a..ri.k La. laacbo lIirafe, CA .2270 ':'M:(:;';',-:,:,~;",;,;,:~ ..; ..,....:...,..<o.;..,.,::.;...':N:; .':.... .._~...,>.:':,...,. .... "-':';"';""'~"_'" ..... ...:;. ...; ,/, ,,:.,;.,. Clo.nf date I Jane 4, 1'87 Doc..ent . I 1.8285 Sale prioe I ,78',000(c) Down payalltl U58,200/20, Acre. GRI 41.50 ftl _/A. $/aere GRI '1,,012 _~I _/A. Sq ft GRI 1,807,740 _~I _/A. '/.qftGRI $.44 _~I _/A. ZOninf I lilA, Ian IIImazd1no U.e I 1o1d for in.e.t8ent I 18t ~D Idler '630,800 _/A. La.. 1 l.pn_t.1 IIone Off.ite. I "ter . atilitie. a.ailable, .ever .eeded l'L"aU frtl _/A. ~nU .del _/Ap 'fl'ade 1.0 .... .:.-..,.,..,....::.;.::..,..~.._...:;.... -,.;..",:,v.~.:.,:. 4'-Fl' PLAT MAP: ..e below : Lafdl for au 45,41 . annlDbenCl . 100\ ad:Jo~lJ at 46 Land. of ~ , Mater Q). Ilk 7 1'9 32 .:; :.- \\ l' ~~ \:1 y ~__\~m! ~ ~itle 00.1 _ot .hown ..--.--........-.- .......-- ........~.....If_ _............. ......,,-.,.,.:...;:..'... . f USTING: BROKERAGE IEWNG: (Brokerage unknown) '- (aurar 18 broker and repre.ented .elf) . .:._-".~.' 1hI.1fo... . ___ __.... .....r..... fnIM............ ........ __.............. _-.:v......., ........ -1Iv CClMPS INCCIAPOIilAlIO. CClMPS . ...... ... Of CtIMI'I ~'Im. ~r I}. ill lIlY '- _1IlI __ - - Of COMI'I MJOI"ACIRA'IIO......... '. AI..... ,-. _ ClIp, ~.. '1I311v CClMPS 1foCOIlIIOAA'Im. (CCMPS] COMPaIHCOflPORATm ac-i"'\,1l1-U-I' I: ... ~o '110,000(0) ..../. .. .....~. .... ......... -. .... CA fttl1 (11') 4I?.z274 . ~ttJ o VITAL DATA: ..0..... I Aafu1: I, 1.1. Dol. ,1:' I Ill,., *1&10 .zloe I "'0,000(0) Dowa "~1:1 ".O,OOO/IOOt acn. D: 1.00 ft: ./A", "... D: "0,000 ft: ./A", .. ~ D: IG,IIO ft: ./A", ".~ D: '1.11 ft: ./A", 1-.... : ZIr, Cl1:!" d.... 0.. : .014 'OIl ........--..1: . PLAT MAP:I.....U-11 I.lrl:... ~ C.,U,I' 1&,"-8'- loud I -......... ~ 1.0-. : .... ..~.-..1": J.na1-11a1: cd.1:1" 1ft J.pnaa1:.: .... OUal1:u : &111:0 AU ~af' ~: ./A", ~af' ecIe: ./A", ~. :.0 -... .,.....w .'........'.:-.....;..........,.,.... .....-,.....,......,'.,....w.o,;".--...:.,....,..-., .~_:.'.~..-....,,...... :,'~. ....,....0:>:.; 2i.Ua co:rkR lllui.ou 2i.1:1e --..------...-.- -.... -..---. '\ . -"-"', w..........-._'..... ..._w~_............_.,....._N.. UmNG: BROKERAGE SELLING: (Iloo-..) (Za .... kobng.) ":~',:-;-;,".. ~:"':_<' __ "~...... T ~ .;.~,.>>..:-"....,....'-.. .... ,.. II . ..-...4...... ................. ............ ......-:-0:-.=.... II ~ ~.. II -~ II_~. .........-..,... 0llIINIIllDll'Oll11lD, 0llIIN ........__OllIIN.ICC _ .'_ _~=_ ...........-- OllIIN'I~urCn~TID ..~ .-. 1l.tU........... - n,,,,J_,,, OllIIN..cc lllIATID. o o 1 2 OWNER PARTICIPATION AGREEMENT 3 THIS AGREEMENT IS ENTERED INTO THIS day of , 4 1990 by and among the REDEVELOPMENT AGENCY OF THE CITY OF SAN 5 BERNARDINO (the "Agency"), and H.A.B. LAND DEVELOPMENT COMPANY, a 6 California Corporation, (the "Participant"). Agency and 7 Participant hereby agree as follows: 8 9 I. [100] SUBJECT OF AGREEMENT [101] A. Purpose of Agreement 10 The purpose of this Agreement is to effectuate the 11 Redevelopment Plan for the Northwest Redevelopment Project (the 12 "Project") by providing for the development of the Site, which is 13 situated within the Northwest Redevelopment Project Area (the 14 "Project Area") of the Project. This Agreement is entered into 15 for the purpose of developing the Site and not for speculation in 16 land hOlding. The completion of the development of the Site 17 pursuant to this Agreement is in the vital and best interest of 18 the City of San Bernardino, California (the "City") and the 19 health, safety and welfare of its residents, and in accord with 20 the public purposes and provisions of applicable state and local 21 laws and requirements under which the Project has been 22 undertaken. 23 It is contemplated that, so long as the development 24 provided for in this Agreement is first accomplished in 25 conformity with the terms herein set forth, participant may 26 subdivide, convey and devote to other redevelopment activities 27 consistent with the Redevelopment Plan the remaining property on 28 DAB/ses/HAB.agr July 17, 1990 1 ~- o o 1 2 the site. 3 [102] B. The Redevelopment Plan 4 The Redevelopment Plan was approved and adopted on 5 July 6, 1982 by Ordinance No. MC-189 of the Common Council of the 6 City of San Bernardino; said ordinance and the Redevelopment Plan 7 as so approved (the "Redevelopment Plan") are incorporated herein 8 by reference. 9 [103] C. The Site 10 The Site is that certain real property designated on 11 the Site Map (Attachment NO.1) and described in the "Legal 12 Description of the Site", which is attached hereto as Attachment 13 No. 2 and is incorporated herein by this reference. 14 The Site is that certain real property, title to which 16 15 is held by the participant. 17 18 D. [104] Parties to the Agreement 1. [105] The Agency 19 politic, exercising governmental functions and powers and The Agency is a public body, corporate and 20 organized and existing under Chapter 2 of the Community 21 Redevelopment Law of the State of California (Health and Safety 22 Code Section 33020 et seg.). The principal office of the Agency 23 is located at 300 North "D" Street, San Bernardino, California 24 92418. 25 "Agency", as used in this Agreement, includes the 26 Redevelopment agency of the City of San Bernardino, and any 27 assignee of or successor to its rights, powers and 28 DAB/ses/HAB.agr July 17, 1990 2 o o 1 2 responsibilities. 3 2. [106] The Participant 4 The Participant is H.A.B. Land Development 5 Company, a California Corporation. The principal office and 6 mailing address of the Participant for purposes of this Agreement 7 is 10700 Jersey Blvd., Suite 450, P.o. Box 33S, Rancho Cucamonga, S CA 91730. 9 The Participant qualifies as an owner participant 10 pursuant to the Redevelopment Plan and rules promulgated pursuant 11 thereto pertaining to owner participation. 12 13 14 3. [107] Prohibition Against Change in ownership, Management and Control of the Participant The qualifications and identity of the 15 Participant are of particular concern to the City and the Agency. 16 It is because of those qualifications and identity that the 17 Agency has entered into this Agreement with the Participant. No lS voluntary or involuntary successor in interest of the Participant 19 shall acquire any rights or powers under this Agreement except as 20 expressly set forth herein. 21 The Participant shall not assign all or any part 22 of this Agreement or any rights hereunder without the prior 23 written approval of the Agency, which approval the Agency may 24 grant, withhold or deny at its discretion. In the event of such 25 transfer or assignment: (1) the assignee shall expressly assume 26 the obligations of the Participant pursuant to this Agreement in 27 writing satisfactory to the Agency; (2) the original Participant 2S DAB/ses/HAB.agr July lS, 1990 3 - -- o 0 1 2 shall remain fully responsible for the performance and liable for 3 the obligations of the Participant pursuant to this Agreement; 4 and (3) any guarantees provided to assure the performance of the 5 Participant's obligations under this Agreement shall remain in 6 full force and effect. 7 In the absence of specific written agreement by 8 the Agency, no such transfer, assignment or approval by the 9 Agency, shall be deemed to relieve the Participant or any other 10 party from any obligation under this Agreement. 11 All of the terms, covenants and conditions of 12 this Agreement shall be binding upon and shall inure to the 13 benefit of the Participant and the permitted successors and 14 assigns of the Participant. Whenever the term "Participant" is 15 used herein, such term shall include any other permitted 16 successors and assigns as herein provided. 17 The restrictions of this Section 107 shall 18 terminate and be of no further force and effect upon the issuance 19 by the Agency of a Certificate of Completion in the form attached 20 hereto as Attachment No. 5 as provided in Section 324 upon 21 completion of the Participant Improvements described in Section 22 302 of this Agreement and Attachment No.4. 23 24 II. [200] CONDITION OF THE SITE A. [201] Vesting of Title to the Site 25 As of the date of this Agreement Title to the Site is 26 vested in Participant. 27 28 / / / DAB/ses/HAB.agr July 17, 1990 4 - - - o o 1 2 [202] B. Condition of the Site 3 Participant assumes all risk and responsibility for 4 any demolition and clearance of the Site as necessary for the 5 provision of Participant Improvements. Participant assumes all 6 risk and responsibility as to the suitability of the Site for the 7 proposed development. Agency makes no representations or 8 warranties concerning the Site, its suitability for the use 9 intended by the Participant, or the surface or subsurface 10 conditions of the Site. If the soil or other surface or 11 subsurface conditions of the Site are not in all respects 12 entirely suitable for the use or uses to which the Site will be 13 put as of the date of this Agreement, Participant shall not be 14 excused from further performance under this Agreement and it 15 shall be the responsibility and obligation of Participant and not 16 Agency to take such action as may be necessary to place the Site 17 in a condition entirely suitable for the commencement, 18 development, and completion of the Participant Improvements. 19 III. [300] DEVELOPMENT 20 A. [301] Development by Participant 21 Participant and Agency agree that the central purpose 22 of this Agreement is to provide for the development of the Site 23 in a manner consistent with the Redevelopment Plan. Participant 24 shall develop on the Site two bridges and roads connecting 25 Industrial Parkway and Hallmark Parkway, including curbs, gutters 26 and landscaping built to specifications of the City of San 27 Bernardino. 28 DAB/ses/HAB.agr July 17, 1990 5 . 10 IL o o 1 2 [302] 1. Scope of Development 3 The Site shall be developed by Participant as 4 provided in the "Scope of Development", which is attached hereto 5 as Attachment No. 4 and is incorporated herein. 6 The development shall include any plans and 7 specifications submitted to Agency for approval, and shall 8 incorporate or show compliance with all applicable mitigation 9 measures and entitlements. 2. [303] Design Concept Drawings 11 By the respective times set forth therefor in the 12 Schedule of Performance (Attachment NO.3), Participant shall 13 prepare and submit to the City of San Bernardino ("The City") for 14 the approval of the City Engineer, Design Concept Drawings and 15 related documents containing the overall plan for development of 16 the Site. The Site shall be developed as established in this 17 Agreement and such documents, except as changes may be mutually 18 agreed upon between Participant and Agency. Any such changes 19 shall be within the limitations of the Scope of Development 20 (Attachment No.4). 21 22 23 24 25 26 27 28 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 engineering and architectural review and written approval. The bridge and roadway plans shall be prepared by DAB/ses/HAB.agr July 17, 1990 6 o o 1 2 a registered civil engineer who may be the same firm as 3 Participant's civil engineer. 4 The landscaping and finish grading plans shall be 5 prepared by a professional landscape architect who may be the 6 same firm as Participant's landscape architect. 7 During the preparation of all drawings and plans, 8 staff of Agency and Participant shall hold regular progress 9 meetings to coordinate the preparation of, submission to, and 10 review of drawings, plans and related documents. The staff of 11 Agency and Participant shall communicate and consult informally 12 as frequently as is necessary to insure that the formal submittal 13 of any documents to Agency can receive prompt and complete 14 consideration. 15 4. [305] Cost of Construction 16 The cost of developing the Property and 17 constructing all Participant Improvements thereon shall be borne 18 by Participant subject to the Agency loan provided for in Section 19 315. 20 5. [306] Construction Schedule 21 Participant shall promptly begin and thereafter 22 diligently prosecute to completion the construction of the 23 Participant Improvements and the development of the Property. 24 Participant shall begin and complete all construction and 25 development of the Participant Improvements within the times 26 specified in the Schedule of Performance (Attachment NO.3). 27 Participant shall strictly conform to all time requirements and 28 DAB/ses/HAB.agr July 17, 1990 ~- 7 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o 1 2 limitations set forth in this Agreement. The bidding and 3 selection process of a contractor for the project shall be 4 subject to prior approval of Agency. 5 6. Bodily Injury and Property Damage Insurance [307] 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 agency of the insurance 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 DAB/ses/HAB.agr July 17, 1990 8 o o 1 2 officers, agents, and employees as additional insureds under the 3 policy. The certificate by the insurance carrier shall contain a 4 statement of obligation on the part of the carrier to notify City 5 and the Agency of any material change, cancellation or 6 termination of the coverage at least thirty (30) days in advance 7 of the effective date of any such material change, cancellation 8 or termination. Coverage provided hereunder by Participant shall 9 be primary insurance and not contributing with any insurance 10 maintained by Agency or City, and the policy shall contain such 11 an endorsement. The insurance pOlicy or the certificate of 12 insurance shall contain a waiver of subrogation for the benefit 13 of the City and Agency. 14 Participant shall furnish or cause to be 15 furnished to Agency evidence satisfactory to Agency that any 16 contractor with whom it has contracted for the performance of 17 work on the Site or otherwise pursuant to this Agreement carries 18 workers' compensation insurance as required by law. 19 20 21 22 23 24 25 26 27 28 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 Site, Participant shall, at its own expense, secure or cause to be secured any and all permits which may be required by the City or any other governmental agency affected by such construction, development or work. / / / DAB/ses/HAB.agr July 17, 1990 9 o o 1 2 8. [309] Rights of Access 3 For the purpose of assuring compliance with this 4 Agreement, representatives of Agency and the City shall have the 5 right of access to the Site, without charges or fees, at normal 6 construction hours during the period of construction for the 7 purposes of this Agreement, including, but not limited to, the 8 inspection of the work being performed in constructing the 9 improvements, so long as they comply with all safety rules. Such 10 representatives of Agency or of the City shall be those who are 11 so identified in writing by the Executive Director of Agency. 12 Agency shall hold the Participant harmless from any bodily injury 13 or related damages arising out of the activities of Agency and 14 the City as referred to in this Section 309 and resulting from 15 the gross negligence or willful misconduct of the City or Agency. 16 This Section 309 shall not be deemed to diminish or limit any 17 rights which the City or Agency may have by operation of law 18 irrespective of this Agreement. 19 9. [310] Local, State and Federal Laws 20 Participant shall carry out the construction of 21 the Participant Improvements and all related activities on the 22 Site in conformity with all applicable laws, including all 23 applicable federal and state labor standards: provided, however, 24 participant and its contractors, successors, assigns, 25 transferees, and lessees are not waiving their rights to contest 26 any such laws, rules or standards. Participant and its 27 contractors and sub-contractors shall pay prevailing wages to all 28 DAB/ses/HAB.agr July 17, 1990 10 o o 1 2 employees on the project. 3 4 10. [311] Antidiscrimination During Construction Participant, for itself and successors and 5 assigns, agrees that in the construction of the improvements 6 provided for in this Agreement, Participant shall not 7 discriminate against any employee or applicant for employment 8 because of race, color, creed, religion, age, sex, marital 9 status, handicap, national origin or ancestry. 10 [312] B. Taxes, Assessments, Encumbrances and Liens 11 Prior to issuance of a Certificate of Completion with 12 respect to all of the Participant Improvements pursuant to this 13 Agreement, Participant shall not place or allow to be placed on 14 the Site or any part thereof any mortgage, trust deed, 15 encumbrance or lien other than as expressly allowed by this 16 Agreement. Participant shall remove or have removed any levy or 17 attachment made on any of the Site or any part thereof, or assure 18 the satisfaction thereof within a reasonable time but in any 19 event prior to a sale thereunder. 20 21 C. [313] Prohibition Against Transfer of the Site, the Buildings or Structures thereon and Assignment of Agreement 22 Prior to the issuance by the Agency of a Certificate 23 of Completion as to any building or structure, Participant shall 24 not, except as permitted by this Agreement, without the prior 25 written approval of Agency, make any total or partial sale, 26 transfer, conveyance, assignment or lease of whole or any part of 27 the Site or of the buildings or structures on the Site. This 28 DAB/ses/HAB.agr July 17, 1990 11 - - - - - - o o 1 2 prohibition shall not be deemed to prevent a transfer expressly 3 permitted pursuant to Section 107 of this Agreement, or the 4 granting of temporary or permanent easements or permits to 5 facilitate the development of the Site. 6 [314] D. Loan Agreement: Deed of Trust 7 1. [315] Loan Agreement 8 Agency and Participant shall enter into a Loan 9 Agreement in the form of Attachment No. 6 by which Agency shall 10 loan Participant an amount not to exceed $2.13 Million for the 11 construction of Participant Improvements. Said loan shall be at 12 an interest rate of 10.25% with interest only payments quarterly 13 for seven years from the completion of improvements as evidenced 14 by the issuance of the Certificate of Completion as provided in 15 Section 324. Participant shall be entitled to draw on the loan 16 proceeds in 1/3 increments upon recommendation by the Executive 18 17 Director that 1/3 of the project has been completed and approval by the Community Development Commission. From each 1/3 19 disbursement Agency shall withhold 10% which amount shall only be 20 disbursed to Participant upon evidence of the payment or 21 satisfaction of all indebtedness relating to the project, 22 including payrolls and bills for materials and equipment (or that 23 with the remaining funds such payment or satisfaction will be 24 achieved), that might subject the Site or Agency to liability. 25 At the option of the Agency it may pay the retained proceeds 26 directly to the holders of any such indebtedness with such 27 payments becoming part of the loaned proceeds. 28 DAB/ses/HAB.agr July 17, 1990 12 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - - - - o o 1 2 3 2. [316] Deed of Trust To secure said loan, Participant shall execute a 4 Deed of Trust in the form of Attachment No.7. Said Deed of 5 Trust shall provide for partial releases of the affected Site 6 based on 150% proportionate payments. Said Deed of Trust shall 7 be a First Deed of Trust on the property. E. [317] Mortgage, Deed of Trust, Sale and Lease-Back Financing; Rights of Holders 1. [318] No Encumbrances Except Mortgages, Deeds of Trust, or Sale and Lease-Back for Development Except as otherwise provided in this Agreement, 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 Site, 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 1eases- back contain the provisions of Sections 321 and 322 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 DAB/ses/HAB.agr July 17, 1990 13 ~- 10 11 12 13 14 15 16 17 18 19 o o 1 2 loan association, or other similar lending institution and such 3 lender shall be deemed approved unless rejected in writing by the 4 Agency within fifteen (15) days after written notice thereof is 5 received by the Agency. The form of approval by Agency shall be 6 in writing which references this Section 318, executed by the 7 Executive Director of the Agency. 8 9 2. [319] 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. Nothing in this Agreement shall be deemed to construe, permit or authorize any such holder to devote the Site to any uses or to construct any improvements thereon, other than those uses or Participant I.aprovements provided for or authorized by this Agreement. 3. [320] Notice of Default to Mortgagee or Deed or Trust Holders; Right to Cure 20 With respect to any mortgage or deed of trust 21 granted by Participant as provided herein, whenever Agency shall 22 deliver any notice or demand to Participant with respect to any 23 breach or default by Participant in completion of construction of 24 the Participant Improvements, Agency shall at the same time 25 deliver to each hOlder of record of any mortgage or deed of trust 26 authorized by this Agreement a copy of such notice or demand. 27 Each such holder shall (insofar as the rights of Agency are 28 DABjsesjHAB.agr July 17, 1990 14 - - o o 1 2 concerned) have the right, at its option, within thirty (30) days 3 after the receipt of the notice, to cure or remedy or commence to 4 cure or remedy any such default and to add the cost thereof to 5 the mortgage debt and the lien of its mortgage. Nothing 6 contained in this Agreement shall be deemed to permit or 7 authorize such hOlder to undertake or continue the construction 8 or completion of the Participant Improvements (beyond the extent 9 necessary to conserve or protect the Participant Improvements or 10 construction already made) without first having expressly assumed 11 the Participant's obligations to Agency by written agreement 12 satisfactory to Agency. The holder, in that event, must agree to 13 complete, in the manner provided in this Agreement, the 14 Participant Improvements to which the lien or title of such 15 hOlder relates, and submit evidence satisfactory to Agency that 16 it has the qualifications and financial responsibility necessary 17 to perform such obligations. Any such holder properly completing 18 such Participant Improvements shall be entitled, upon compliance 19 with the requirements of Section 324 of this Agreement, to a 20 Certificate of Completion (as therein defined). 21 22 23 24 25 26 27 28 4. [321] 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 Site or any part thereof has not exercised the option to construct or if it has exercised the option and has not proceeded diligently with DAB/ses/HAB.agr July 17, 1990 15 - 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - - - - - o o 1 2 construction, Agency may purchase the mortgage or deed of trust 3 by payment to the holder of the amount of the unpaid mortgage or 4 deed of trust debt, including principal and interest and all 5 other sums secured by the mortgage or deed of trust. If the 6 ownership of the Site or any part thereof has vested in the 7 hOlder, Agency, if it so desires, shall be entitled to a 8 conveyance from the holder to Agency upon payment to the holder 9 of an amount equal to the sum of the following: a. The unpaid mortgage or deed of 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 Site 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 f. date of payment by Agency: less Any income derived by the lender from operations DAB/Ses/HAB.agr July 17, 1990 16 10 11 12 13 14 15 16 17 - - - - o o 1 2 conducted on the Site (the receipt of principal and 3 interest payments in the ordinary course of business 4 shall not constitute income for the purposes of this 5 6 subsection (f)). 5. [322] Right of the Agency to Cure Mortgage or Deed of Trust Default 7 8 9 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, and such costs and expenses shall be included as part of the loan proceeds under Section 315. F. [323] Right of Agency to Satisfy other Liens on the Site 18 Prior to the completion of construction of the 19 Participant Improvements, and after Participant has had written 20 notice and has failed after a reasonable time, but in any event 25 26 27 28 bond against, which are not shall have the / / / / / / / / / DAB/ses/HAB.agr July 18, 1990 17 - ~ - - o o 1 2 or encumbrances and to ~nclude the cost thereof as part of the 3 loan proceeds under Sect~on 315. 4 G. [324] Cert~f~cate of Complet~on 5 Promptly after complet~on of all Part~c~pant 6 Improvements ~n conform~ty w~th th~s Agreement, Agency shall 7 furn~sh Part~c~pant w~th a Cert~f~cate of Complet~on (Attachment 8 No.5) upon wr~tten request therefor by Part~c~pant. Agency 9 shall not unreasonably w~thhold any such Cert~f~cate of 10 Complet~on. The Execut~ve D~rector may execute such Cert~f~cate 11 of Complet~on on behalf of Agency. Such Cert~f~cate of 12 Complet~on shall be a conclus~ve determ~nat~on of sat~sfactory 13 complet~on of the construct~on requ~red by th~s Agreement upon 14 the S~te and the Cert~f~cate of Complet~on shall so state. 15 Agency may also furn~sh Part~c~pant w~th a Cert~f~cate of 16 Complet~on for port~ons of the ~mprovements upon the S~te as they 17 are properly completed and ready to use ~f Part~c~pant ~s not ~n 18 default under th~s Agreement. After recordat~on of such 19 Cert~f~cate of Complet~on, any party then own~ng or thereafter 20 purchas~ng, leas~ng or otherw~se acqu~r~ng any ~nterest ~n the 21 S~te or the Part~c~pant Improvements shall not (because of such 22 ownersh~p, purchase, lease or acqu~s~t~on), ~ncur any obl~gat~on 23 or l~ab~l~ty under th~s Agreement except that such party shall be 24 bound by any covenants conta~ned in the documents establ~sh~ng 25 covenants on the S~te ~n accordance w~th the prov~s~ons of 26 Sect~on 401 of th~s Agreement which shall be appl~cable accord~ng 27 to ~ts terms. 28 DAB/ses/HAB.agr July 17, 1990 18 - 14 o o 1 2 If the Agency refuses or fails to furnish a 3 Certificate of Completion for the Site, or part thereof, after 4 written request from Participant, the Agency shall, within thirty 5 (30) days of written request therefor, provide Participant with a 6 written statement of the reasons Agency refused or failed to 7 furnish a Certificate of Completion. The statement shall also 8 contain Agency's opinion of the actions that Participant must 9 take to obtain a Certificate of Completion. If the reason for 10 such refusal is confined to the immediate availability of 11 specific items of materials for landscaping, Agency will issue 12 its Certificate of Completion upon the posting of a bond by the 13 Participant with Agency in an amount representing the value of the work not yet completed. If Agency shall have failed to 15 provide such written statement within said thirty (30) day 16 period, Participant shall be deemed entitled to the Certificate 17 of Completion, and Participant's obligation shall be deemed to be 18 satisfied. 19 Such Certificate of Completion shall not constitute 20 evidence of compliance with or satisfaction of any obligation of 21 the Participant to any holder of any mortgage, or any insurer of 23 22 a mortgage securing money loaned to finance the Participant Improvements, or any part thereof. Such Certificate of 24 Completion is not a notice of completion as referred to in the 25 California Civil Code, Section 3093. 26 Prior to the issuance of the Certificate of Completion 27 Participant shall grant to the City of San Bernardino the 28 DAB/ses/HAB.agr July 17, 1990 19 ~- - o o 1 2 Participant improvements which are the subject of this Agreement 3 and such additional right-of-way as described in the improvement 4 plan approved by the City Engineer. Such grant shall be on a 5 form in a manner approved by the City of San Bernardino. 6 [325] G. Conditions, Covenants and Restrictions 7 Prior to the issuance of the Certificate of Completion 8 Participant shall prepare, and following approval by Agency shall 9 record conditions, covenants and restrictions affecting the Site 10 which shall; among other things, contain the nondiscrimination 11 provisions of Section 401, and shall require every grantee, 12 vendee under contract of sale, or lessee of all or any 13 undeveloped portion of the Site to enter into a Development 14 Agreement with the Redevelopment Agency. The execution of such 15 Agreement shall be a condition precedent to any such deed, 16 contract of sale or lease. Any such deed, contract of sale, or 17 lease given without such Development Agreement may be set aside 18 by the recordation of a Certificate of such failure by the 19 Redevelopment Agency. 20 H. [326] Property Acquisition 21 The parties understand and agree that the property 22 between the present termination of Hallmark Parkway and the 24 23 southerly flood control channel is not under the ownership or control of Participant. The acquisition of a right-of-way for 26 25 the construction of the roadway improvements as described in this Agreement is the responsibility of Agency. If Agency does not 27 acquire such right-of-way within ninety (90) days of the date of 28 DAB/ses/HAB.agr July 17, 1990 20 o o 1 2 this Agreement the obligation of Participation to construct that 3 portion of the roadway improvements shall be excused. Should 4 eminent domain be necessary the ninety (90) day period shall be 5 extended to one hundred eighty (180) days. 6 III. [400] USE OF THE SITE 7 [401] A. Uses 8 Participant covenants and agrees for itself, its 9 successors, its assigns, and every successor in interest to the 10 Site or any part thereof, that during construction and 11 thereafter, Participant and such successors and such assignees, 12 shall devote the Site to the uses specified in the Redevelopment 13 Plan as may be amended from time to time for the periods .of time 14 specified therein. The Participant further covenants and 15 warrants that Participant shall develop improvements on the Site 16 in accordance with the Scope of Development (Attachment No.4). 17 Participant covenants to develop and operate the Site (or cause 18 it to be operated) in conformity with all applicable laws. The 19 foregoing covenants shall run with the land. 20 Participant covenants by and for itself and any 21 successors in interest that there shall be no discrimination 22 against or segregation of any person or group of persons on 23 account of race, color, creed, religion, sex, marital status, 24 age, handicap, national origin or ancestry in the sale, lease, 25 sublease, transfer, use, occupancy, tenure or enjoyment of the 26 Site, nor shall Participant itself or any person claiming under 27 or through it establish or permit any such practice or practices 28 DAB/ses/HAB.agr July 17, 1990 21 o o 1 2 of discrimination or segregation with reference to the selection, 3 location, number, use or occupancy of tenants, lessees, 4 subtenants, sublessees or vendees of the Site. The foregoing 5 covenants shall run with the land. 6 Participant shall refrain from restricting the rental, 7 sale or lease of the Site on the basis of race, color, creed, 8 religion, sex, marital status, handicap, national origin or 9 ancestry of any person. All such deeds, leases or contracts 10 shall contain or be subject to substantially the following 12 11 nondiscrimination or non-segregation clauses: 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 DAB/ses/HAB.agr July 17, 1990 22 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 o o 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: "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 DAB/ses/HAB.agr July 17, 1990 23 10 -- o o 1 2 premises, nor shall the transferee himself or herself or any person claiming under or through him or her, 3 4 establish or permit any such practice or practices of discrimination or segregation with reference to the 5 6 7 8 9 selection, location, number use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises." [402] B. Maintenance of the Site 11 Improvements and all other improvements on the Site and shall Participant shall maintain the Participant 12 keep the Property free from any accumulation of debris or waste 13 materials. 14 Participant further agrees to maintain the Site in a 15 neat and attractive manner until construction of the improvements 16 described in this Agreement is complete so as not to, in the 17 reasonable determination of an appropriate officer of the City, 18 be a public nuisance, or be detrimental to the health, safety and 19 welfare, or impair value of property within one thousand (1,000) 20 feet of the Site, and agrees that in the event Participant fails 21 to do so, Agency may enter upon the Site for the purposes of 22 performing necessary and desirable maintenance, that Participant 23 will be responsible for the cost of any such maintenance 24 undertaken by Agency, which shall be paid within thirty (30) days 25 after receipt by Participant of written demand therefor. 26 Participant agrees to prepare and record Covenants, Conditions 27 and Restrictions approved by Agency, consistent with this Section 28 DAB/Ses/HAB.agr July 17, 1990 24 o o 1 2 402 including the maintenance responsibilities outlined in this 3 Agreement which may not be amended nor revoked without the 4 approval of Agency. 5 Participant shall also maintain the landscaping 6 required to be planted under the Scope of Development (Attachment 7 NO.4) in a healthy condition. If, at any time, Participant 8 fails to maintain said landscaping, and said condition is not 9 corrected after expiration of thirty (30) days from date of 10 written notice from Agency, Agency may perform the necessary 11 landscape maintenance and Participant shall pay such costs as are 12 reasonably incurred for such maintenance. 13 Issuance of a Certificate of Completion by Agency 14 shall not affect Participant's obligations under this Section. 15 C. [403] Rights of Access 16 Agency, for itself and for the City and other public 17 agencies, at their sole risk and expense, reserves the right to 18 enter the Site or any part thereof at all reasonable times for 19 the purpose of construction, reconstruction, maintenance, repair 20 or service of any public improvements or public facilities 21 located on the Site. Any such entry shall be made only after 22 reasonable notice to Participant, and Agency shall indemnify and 23 hold Participant harmless from any costs, claims, damages or 24 liabilities pertaining to any entry. This Section 403 shall not 25 be deemed to diminish or limit any rights which the City or 26 Agency may have by operation of law irrespective of this 27 Agreement. 28 DAB/ses/HAB.agr July 17, 1990 25 -- o o 1 2 3 [404] D. Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction 4 The covenants established in this Agreement and the 5 deeds shall, without regard to technical classification and 6 designation, be binding for the benefit and in favor of Agency, 7 its successors and assigns, as to those covenants which are for 8 its benefit. The covenants contained 'in this Agreement shall 9 remain in effect until the termination date of the Redevelopment 10 Plan. The covenants against racial discrimination shall remain 11 in perpetuity. 12 Agency is deemed the beneficiary of the terms and 13 provisions of this Agreement and of the covenants running with 14 the land, for and in its own rights and for the purposes of 15 protecting the interests of the community and other parties, 16 public or private, in whose favor and for whose benefit this 17 Agreement and the covenants running with the land have been 18 provided. The Agreement and the covenants shall run in favor of 19 Agency, without regard to whether agency has been, remains or is 20 an owner of any land or interest therein in the Site or in the 21 Project Area. Agency shall have the right, if the Agreement or 22 covenants are breached, to exercise all rights and remedies, and 23 to maintain any actions or suits at law or in equity or other 24 proper proceedings to enforce the curing of such breaches to 25 which it or any other beneficiaries of this Agreement and 26 covenants may be entitled. 27 28 / / / DAB/ses/HAB.agr July 17, 1990 26 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o 1 2 V. [500] GENERAL PROVISIONS 3 [501] Notices, Demands and Communications Between the Parties A. 4 Written notices, demands and communications between 5 6 7 8 9 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 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 deiivered 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: Non1iabi1ity 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 DAB/ses/HAB.agr July 17, 1990 27 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 u o o 1 2 obligations under the terms of this Agreement. 3 Participant represents and warrants that it has not 4 paid or given, and shall not payor give, any third party any 5 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, 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. DAB/ses/HAB.agr July 17, 1990 28 - o o 1 2 Part~c~pant ~s not ent~t1ed pursuant to th~s Sect~on 3 503 to an extens~on of t~me to perform because of past, present, 4 or future d~ff~cu1ty ~n obta~n~ng su~tab1e temporary or permanent 5 f~nanc~ng for the development of the S~te. 6 [504] Inspect~on of Books and Records D. 7 Agency has the r~ght at all reasonable t~mes to 8 ~nspect the books and records of Part~c~pant perta~n~ng to the 9 S~te as pert~nent to the purposes of th~s Agreement. Part~c~pant 10 has the r~ght at all reasonable t~mes to ~nspect the pub1~c 11 records of Agency perta~n~ng to the Property as pert~nent to the 12 purposes of the Agreement. 13 14 15 VI. [600] DEFAULTS AND REMEDIES A. [601] Defaults - - General Subject to the extens~ons of t~me set forth ~n Sect~on 16 503, fa~lure or delay by any party to perform any term or 17 prov~s~on of th~s Agreement const~tutes a default under th~s 18 Agreement. The party who so fa~ls or delays must ~mmed~ately 19 commence to cure, correct, or remedy such fa~lure or delay, and 20 shall complete such cure, correct~on or remedy w~th d~l~gence. 21 The ~njured party shall g~ve wr~tten not~ce of default 22 to the party ~n default, spec~fy~ng the default compla~ned of by 23 the ~njured party. Except as requ~red to protect aga~nst further 24 damages, and except for Sect~ons 319 and 321 of th~s Agreement, 25 the ~njured party may not ~nst~tute proceed~ngs aga~nst the party 26 ~n default unt~l th~rty (30) days after g~v~ng such not~ce. 27 Fa~lure or delay ~n g~v~ng such not~ce shall not const~tute a 28 DAB/ses/HAB.agr July 17, 1990 29 o o 1 2 waiver of any default, nor shall it change the time of default. 3 [602] B. Legal Actions 4 [603] 1. Institution of Legal Actions 5 In addition to any other rights or remedies 6 hereunder, Agency or Participant may institute legal action to 7 cure, correct or remedy any default, to recover damages for any 8 default, or to obtain any other remedy consistent with the 9 purpose of this Agreement. Any legal actions initiated pursuant 10 to this Agreement or otherwise with respect to its subject matter 11 must be instituted in the Superior Court of the County of San 12 Bernardino, State of California, in an appropriate municipal 13 court in that county, or in the Federal District Court in the 14 Central District of California, as appropriate. 15 2. [604] Applicable Law 16 The laws of the State of California shall govern 17 the interpretation and enforcement of this Agreement. 18 3. [605] Acceptance of Service of Process 19 In the event that any legal action is commenced 20 by Participant against Agency, service of process on Agency shall 21 be made by personal service upon the Executive Director or in 22 such other manner as may be provided by law. 23 In the event that any legal action is commenced 24 by any party against Participant, service of process on such 25 party shall be made by personal service upon Participant .or in 26 such other manner as may be provided by law, and shall be valid 27 whether made within or without the State of California. 28 DAB/ses/HAB.agr July 17, 1990 30 o o 1 2 [606] C. Rights and Remedies are Cumulative 3 Except as otherwise expressly stated in this 4 Agreement, the rights and remedies of the parties are cumulative, 5 and the exercise by any party of one or more of such rights or 6 remedies shall not preclude the exercise by it, at the same or 7 different times, of any other rights or remedies for the same 8 default or any other default by any other party. 9 [607] D. Inaction Not a Waiver of Default 10 Any failures or delays by any party in asserting any 11 of its rights and remedies as to any default shall not operate as 12 a waiver of any default or of any such rights or remedies, or 13 deprive any party of its right to institute and maintain any 14 actions or proceedings which it may deem necessary to protect, 15 assert or enforce any such rights or remedies. 16 17 E. [608] Remedies and Rights of Termination 1. [609] Damages 18 Prior to the recordation of a Certificate of 19 Completion with respect to all of the Participant Improvements, 20 if either participant or Agency defaults with regard to any of 21 the provisions of this Agreement, the non-defaulting party shall 22 serve written notice of such default upon the defaulting party. 23 If the default is not cured by the defaulting party within thirty 24 (30) days after service of the notice of default, the defaulting 25 party shall be liable to the other for any damages caused by such 26 default. 27 28 / / / DAB/ses/HAB.agr July 17, 1990 '31 ~- 1 2 3 4 5 6 7 8 9 10 11 12 \ 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o 2. [610] Action for Specific Performance If either Participant or Agency defaults under any of the provisions of this Agreement 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 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. 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 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 a 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 and restrictions of this Agreement shall extend to and shall be binding upon and DAB/Ses/HAB.agr July 17, 1990 32 o o 1 2 ~nure to the benef~t of the he~rs, executors, adm~n~strators, 3 successors and ass~gns of Part~c~pant. 4 Upon the term~nat~on of the restr~ct~ons ~mposed by 5 Sect~on 107 of th~s Agreement, wh~ch term~nate upon the ~ssuance 6 by Agency of a Cert~f~cate of Complet~on w~th respect to all of 7 the part~c~pant Improvements pursuant to th~s Agreement, all of 8 the terms, covenants, cond~t~ons and restr~ct~ons of th~s 9 Agreement wh~ch do not term~nate upon the ~ssuance of such 10 Cert~f~cate of Complet~on shall be deemed to be, and shall, 11 const~tute terms, covenants, cond~t~ons and restr~ct~ons runn~ng 12 w~th the land. 13 VIII. [800] ENTIRE AGREEMENT, WAIVERS 14 Th~s Agreement ~s executed ~n two (2) dupl~cate or~g~nals, 15 each of wh~ch ~s deemed to be an or~g~nal. Th~s Agreement 16 ~ncludes pages 1 through 37 and Attachments 1 through 7, wh~ch 17 const~tute the ent~re understand~ng and agreement of the part~es. 18 No pr~vate ent~ty shall be deemed to be a th~rd party 19 benef~c~ary w~th respect to any prov~s~ons of th~s Agreement. 20 Th~s Agreement ~ntegrates all of the terms and cond~t~ons 21 ment~oned here~n or ~nc~dental hereto, and supersedes all 22 negot~at~ons or prev~ous agreements among the part~es or the~r 23 predecessors ~n ~nterest w~th respect to all or any part of the 24 subject matter hereof. 25 All wa~vers of the prov~s~ons of th~s Agreement must be ~n 26 wr~t~ng by the appropr~ate author~t~es of Agency and Partic~pant, 27 and all amendments hereto must be ~n wr~ting by the appropriate 28 DAB/ses/HAB.agr July 17, 1990 33 , o o 1 2 authorities of Agency and Participant. 3 Each individual signing below represents and warrants that 4 he has the authority to execute this Agreement on behalf of and 5 bind the party he purports to represent. 6 IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY 7 This Agreement, when executed by Participant and delivered 8 to Agency, must be authorized, executed and delivered by Agency 9 on or before thirty (30) days after signing and delivery of this 10 Agreement by Participant or this Agreement shall be void, except 11 to the extent that Participant shall consent in writing to a 12 further extension of time for the authorization, execution and 13 delivery of this Agreement. The date of this Agreement shall be 14 the date when it shall have been signed by the Agency as 15 evidenced by the date first above shown. 16 17 18 19 20 21 22 23 24 25 26 27 28 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / DAB/ses/HAB.agr July 17, 1990 34 - L. L - o o 1 2 IN WITNESS WHEREOF, Agency, and Participant have executed 3 this Agreement on the day and date first above shown. 4 "Agency" 5 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 6 7 By: Executive Director 8 9 APPROVED AS TO PROGRAM: 10 By: Redevelopment Manager 11 APPROVED AS TO FORM 12 AND LEGAL CONTENT: 13 14 Agency Counsel 15 "Participant" 16 17 18 19 20 21 22 23 24 25 26 27 28 DAB/ses/HAB.agr July 17, 1990 35 - - ;Jl ~ o o 1 2 STATE OF CALIFORNIA ) )ss. ) 3 COUNTY OF SAN BERNARDINO 4 5 On this day of , in the year , before me, the undersigned, a Notary Public in and 6 for the State of California, personally appeared Robert J. Temple personally known to me (or proved to me on the basis of 7 sat~sfactory evidence) to be the person who executed this instrument as the Executive Director of the REDEVELOPMENT AGENCY 8 OF THE CITY OF SAN BERNARDINO and acknowledged to me said Agency executed it. 9 10 11 12 (SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 Signature of Notary Public 25 26 27 28 DAB/ses/HAB.agr July 17, 1990 36 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 On It.u4 u~ !5 I \"~D , before me, the undersigned, a Notary Public in.!. and for said State, personally appeared j:h;~,.,< bo. ,&It:.lbJlL !f I.. O. \oY-WI~ , 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 ~~~Ag~ of the corporation that executed the within instrument, and acknowledged to me that such corporation executed the same. WITNESS my hand and official seal. f!;J,J ~ ~A1AV o 1 2 3 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO 4 5 6 7 8 9 (SEAL) f)- OFFICIAL SEAL . RICHARD E. PENN Notary Public-Califomia LOS ANGELES COUNlY My Comm. Elcp. May 19. 1991 DAB/ses/HAB.agr July 17, 1990 37 ~- o ) )ss. ) o o '., r - o o 1 2 3 ATTACHMENT NO. 2 4 That portion of Blocks 45 and 46, and that unnumbered lot adjoining Block 46 on the west of the lands of Irvington Land and 5 Water Company, as per plat recorded in Book 1, Records of Survey, Page 32 Records of said County; in Book 3 of Maps, Page 9, 6 Records of said County; and Sections 12 and 13, Township 1 North, Range 5 West, San Bernardino Base and Meridian; Section 18, 7 Township 1 North, Range 4 West, San Bernardino Base and Meridian, according to the extension of the lines of the Official 8 Government Survey extended into the Muscupiabe Rancho, all in the City of San Bernardino, County of San Bernardino, State of 9 California, lying Southwesterly of the Southwesterly line of that certain Parcel of land, as conveyed to the State of California by 10 deed recorded October 25, 1955, in book 3772, Page 93, Official Records, as instrument No. 55, as parcel "B"; and Northerly, 11 Northeasterly and Easterly of that certain parcel of land, as conveyed to the San Bernardino County Flood Control District by 12 Deed recorded July 27, 1948, in Book 2268, Page 146, Official Records; and Northerly and Northwesterly of that certain parcel 13 of land, as conveyed to said San Bernardino County Flood .Control District by Deed recorded July 27, 1948, in Book 2268, Page 142, 14 Official Records. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DAB/ses/HAB.agr July 17, 1990 - 1 2 3 4 1. 5 6 7 8 2. 9 10 11 12 13 14 3. 15 16 17 18 19 4. 20 21 22 23 24 25 26 27 28 o o ATTACHMENT NO. 3 SCHEDULE OF PERFORMANCE Execution of Agreement by Agency. Agency shall approve and execute this Agreement, and shall deliver one (1) copy the reo f t 0 Participant. Not later than thirty (30) days after the date of execution and submission of two (2) copies of this Agreement to Agency by Participant. Obtain Design Review Approval. Agency and City approve Design Concept Drawings and right-of-way alignment (sufficient time should be allowed for possible initial denial by either Agency or City). Obtain Bidding and S e 1 e c t ion 0 f Contractor Process Approval. Agency approves process for bidding and selection of contractor as required by Section 306. Not later than ninety (90) days after the effective date of this Agreement. Not later than one hundred twenty (120) days after the effective date of this Agreement. Submit Completed Construction and grading plans. Participant will submit completed construction and grading plans and all other plans and documents required by Section 304. Not later than one hundred eighty (180) days after the effective date of this Agreement. Page 1 of 2 DAB/ses/HAB.agr July 17, 1990 1 2 5. 3 4 5 6 7 6. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o Obtain plan check approval, obtain building permits and commence construction, Participant shall obtain necessary plan check approval, obtain all building permits and beg i n construction. Not later than two hundred seventy (270) days after the effective date of this Agreement. Complete Construction. Participant shall complete construction and obtain a Certi- ficate of Completion. Not later than four hundred fifty (450) days from the effective date of this Agreement. Page 2 of 2 DAB/ses/HAB.agr July 17, 1990 o o 1 2 ATTACHMENT NO.4 3 SCOPE OF DEVELOPMENT 4 I. GENERAL DESCRIPTION 5 The Site is specifically delineated on the Site Map (Attachment No.1) and the Legal Description (Attachment No.2) 6 pursuant to Section 103 of this Agreement. 7 II. DEVELOPMENT 8 Participant shall develop the Site with two bridges crossing Cable Creek and the concrete flood control channel 9 southerly of the Site and roadways connecting Industrial Parkway and Hallmark Parkway all to specifications of the City of San 10 Bernardino. Such development shall include curbs, gutters, sidewalks and facilities for underground electrical power, water, 11 . sewer, telephone, cable TV, natural gas and such other utilities as designated by the City Engineer. 12 Participant shall complete all of the improvements set 13 forth in this Scope of Development (Attachment No.4) to be constructed in one phase. All of the improvements to be provided 14 by the Participant on the Site constitute the "Basic Participant Improvements." The Basic Participant Improvements and all those 15 off-site improvements, which are required in connection with this development (if any), and which are required to be provided by 16 the Participant (the "Off-Site Improvements") together constitute the "Participant Improvements". 17 The Participant shall commence and complete the Participant 18 Improvements by the respective times established therefor in the Schedule of Performance (Attachment No.3). 19 20 III. DEVELOPMENT STANDARDS The Participant Improvements shall be developed in 21 accordance with City specifications and requirements of the City Engineer and the following development standards. 22 A. Landscaping. The Participant shall provide and 23 maintain landscaping within the public rights-of-way and the proposed public rights-of-way and within setback area along all 24 street frontages and conforming with the Design Concept Drawings as approved by Agency. 25 Landscaping shall consist of trees, shrubs and installation 26 of an automatic irrigation system adequate to maintain such plan material. The type and size of trees to be planted, together 27 28 Page 1 of 3 DAB/ses/HAB.agr July 17, 1990 10 o o 1 2 wi th a landscaping plan, shall be subject to approval by the City's Planning Department prior to planting. 3 B. utilities. Sewer, drainage and utility lines, 4 conduits or systems shall not be constructed or maintained above the ground level of the Site unless such installations are within 5 approved enclosed structures, and shall conform to requirements of the City of San Bernardino or other applicable governmental or 6 private agency having jurisdiction of the work. Storm drainage for all hard surfaced areas shall be drained or may be sheet 7 flowed to storm sewers. No drainage shall flow across public sidewalks. All non polluted waste water, such as waste air 8 conditioning water, shall be drained to the storm or sanitary drainage systems as permitted by local codes. 9 IV. PUBLIC IMPROVEMENTS AND UTILITIES Participant, at its own cost and expense, shall provide or 11 cause to be provided the following public improvements within the time set forth for the completion of the Participant Improvements 12 in the Schedule of Performance (Attachment No.3): 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1. Improvement as required by the City by resurfacing, rebuilding or new construction of the existing streets, 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 Site and the public rights-of-way) traversing the Site on the alignment approved by the City Engineer. No street widening is anticipated in connection with the Property. Installation of street lighting, signs and fire hydrants in connection with the Site as may be required. Installation of public sidewalks along the frontage of the roadway traversing the Site or within the rights- of-way lines of such public streets, and appropriate street landscaping which Agency or City might require. 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 Site by reason of the redevelopment contemplated by the Redevelopment Plan and the development of the 2. 3. 4. Page 2 of 3 DAB/ses/HAB.agr July 17, 1990 -- o o 1 2 3 4 Site. Agency shall not be responsible for, nor bear any portion of the cost of, installing the necessary utility connections within the boundaries of the Site 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 e1ectrio, gas, telephone or other public lines owned by a public utility company within or without suoh boundaries, and Participant shall secure any permits required for any such installation without expense to Agency. 5 6 7 8 Those of the improvements required to be provided pursuant 9 to this Part IV of the Scope of Development (Attachment No.4) which are located off the Site described in Attachment No. 1 10 oonstitute the "Off-Site Improvements." 11 V. DEMOLITION AND SOILS 12 Participant assumes all responsibility for surface and subsurface conditions at the Site, and the suitability of the 13 Site for the Participant Improvements. If the surface and subsurface conditions are not entirely suitable for such 14 development and use, Participant shall at its cost take all actions necessary to render the Site entirely suitable for suoh 15 development. Participant has undertaken all investigation of the Site it has deemed necessary and has not received or relied upon 16 any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at 17 its cost all demolition required in connection with the development of Participant Improvements. 18 19 20 21 22 23 24 25 26 27 28 Page 3 of 3 DAB/ses/HAB.agr July 17, 1990 - - - - o o 1 2 ATTACHMENT NO. 5 3 4 ) ) ) ) ) ) ) ) ) [Space above for Recorder.] RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: 5 6 7 8 9 CERTIFICATE OF COMPLETION FOR 10 CONSTRUCTION AND DEVELOPMENT 11 WHEREAS, pursuant to that certain Owner's Participation Agreement entered into between the Agency, and H.A.B. Land 12 Development Company, a California Corporation ("Participant") dated as of ("OPA"), relating to that 13 certain real property described on Exhibit 1, attached hereto and incorporated herein, the Participant is entitled to the issuance 14 of a Certificate of Completion upon the completion of those improvements required by the OPA to be developed by the 15 Participant (the "Participant Improvements"); and 16 WHEREAS, such certificate shall be conclusive determination of satisfactory completion of the construction required by the 17 OPA; and 18 WHEREAS, the Agency has conclusively determined that the construction on the above described real property required by the 19 OPA has been satisfactorily completed; 20 21 22 23 24 25 26 27 28 / / / / / / / / / / / / / / / / / / / / / Page 1 of 4 DAB/ses/HAB.agr July 17, 1990 - 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - h o o 1 2 NOW THEREFORE, 3 1. The Agency does hereby certify that the construction of the Participant Improvements has been fully and satisfactorily 4 performed and completed. 5 2. Nothing contained in this instrument shall modify in any other way other provisions of the Agency Deed or the DDA. 6 All executory obligations of the Participant pursuant to the DDA shall remain in full force and effect. 7 IN WITNESS WHEREOF, the Agency has executed this 8 certificate this day of , 19 9 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Executive Director Page 2 of 4 DAB/ses/HAB.agr July 17, 1990 - 9 10 11 - - o o 1 2 STATE OF CALIFORNIA ) )ss. ) 3 4 COUNTY OF SAN BERNARDINO 5 On this day of ,19 before me, the undersigned, a Notary Public in and for said State, 6 personally appeared , known to me (or proved to me on the basis of satisfactory 7 evidence) to be the person who executed this instrument as the Executive Director of the Redevelopment Agency of the City of San 8 Bernardino and acknowledged to me that the Redevelopment AGency of the City of San Bernardino executed it. Signature of Notary Public 12 (SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 3 of 4 DAB/ses/HAB.agr July 17, 1990 o o 1 2 EXHIBIT 1 3 4 That certain parcel of land in the City of San Bernardino, County of San Bernardino, State of California, described as 5 follows: 6 That portion of Blocks 45 and 46, and that unnumbered lot adjoining Block 46 on the West of the Lands of Irvington Land and 7 Water Company, as per plat recorded in Book 1, Records of Survey, Page 32, Records of said county; in Book 3 of Maps, Page 9, 8 Records of said county; and Sections 12 and 13, township 1 North, range 5 West, San Bernardino Base and Meridian; Section 18, 9 township 1 North, range 4 West, San Bernardino Base and Meridian, according to the extension of the lines of the Official 10 Government Survey extended into the Muscupiabe Rancho, all in the City of San Bernardino, County of San Bernardino, State of 11 California, lying Southwesterly of the Southwesterly line of that certain parcel of land, as conveyed to the State of California by 12 deed recorded October 25, 1955, in Book 3772, Page 93 Official Records, as instrument No. 55, as parcel "B"; and Northerly, 13 Northeasterly and Easterly of that certain parcel of land, as conveyed to the San Bernardino county Flood Control District by 14 deed recorded July 27, 1948, in Book 2268, Page 146, Official Records;; and Northerly and Northwesterly of that certain parcel 15 of land, as conveyed to said San Bernardino County flood Control District by deed recorded July 27, 1948, in Book 2268, Page 142, 16 Official Records. 17 18 19 20 21 22 23 24 25 26 27 28 Page 4 of 4 DAB/ses/HAB.agr July 17, 1990 o o 1 2 ATTACHMENT NO. 6 3 4 Deed of trust wi1:h assignment of rent Deed of trust made on , 1990, by H.A.B. Land 5 Development Company, a California Corporation, hereinafter called 6 trustor, whose address is 10700 Jersey Blvd., Suite 450, P.o. Box 7 338, Rancho Cucamonga, CA 91730 to First American Title Insurance 8 Company, a California Corporation, hereinafter referred to as 9 trustee, whose business address is in 10 favor of the Redevelopment Agency of the City of San Bernardino, 11 hereinafter referred to as beneficiary, whose business address is 12 300 North "0" Street, City Hall, San Bernardino, CA 92418. 13 14 trustee in trust, with power of sale, all that property, Trustor irrevocably grants, transfers, and assigns to 15 including all easements and rights of way used in connection 16 therewith or as a means of access thereto, in the City of San 17 Bernardino, County of San Bernardino, State of California, 18 described as follows: See Exhibit "A" attached hereto and 20 19 incorporated herein; Together with the rents, issues, and profits thereof, 21 subject however to the right reserved by trustor in Paragraph B- 22 16 hereof to collect and apply such rents, issues, and profits, 23 prior to any default hereunder; 24 For the purpose of securing payment of the indebtedness 25 evidenced by a promissory note executed by trustor, dated 26 , 1990, in the principal sum of Two Million One 27 Page 1 of 14 28 DAB/ses/HAB.agr July 17, 1990 ~.- o o 1 2 Hundred Thirty Thousand Dollars ($2,130,000.00), payable to 3 beneficiary or order, and each extension thereof: and performance 4 of each agreement to trustor incorporated herein by reference or 5 contained herein. 6 A. To protect the security of this deed of trust, trustor 7 agrees: 8 1. To maintain the property in good condition and repair: 9 not to remove or demolish any building or improvement thereon: to 10 complete promptly in workmanlike manner any improvement hereafter 11 constructed thereon and to restore promptly in workmanlike manner 12 any improvement thereon that is damaged or destroyed, and to pay 13 when due all costs incurred therefor or in connection therewith: 14 to comply with all laws, ordinances, regulations, covenants, 15 conditions, and restrictions affecting the property: not to 16 commit or permit any waste thereof or any act upon the property 17 in violation of law or of covenants, conditions, or restrictions 19 18 affecting the property. 2. To appear in and defend any action or proceeding 20 purporting to affect the security hereof or the rights or powers 21 of beneficiary or trustee: and also, if at any time beneficiary 22 or trustee is a party to or appears in any such action or 23 proceeding, or in any action or proceeding to enforce any 24 obligation hereby secured, to pay all cost and expenses paid or 25 incurred by them or either of them in connection therewith, 26 including, but not limited to, cost of evidence of title and 27 Page 2 of 14 28 DAB/ses/HAB.agr July 17, 1990 o o 1 2 attorneys' fees in a reasonable sum. 3 3. To pay (a) at least 10 days before delinquency, all 4 taxes and assessments affecting the property, all assessment upon 5 water company stock, and all rents, assessments, and charges for 6 water appurtenant to or used in connection with the property; (b) 7 when due, all encumbrances, charges, and liens, with interest, on 8 the property or any part thereof, which appear to be prior or 9 superior hereto; and (c) all costs, fees, and expenses of this 10 trust. 11 4. If trustor fails to make any payment or to do any act 12 as herein provided, then beneficiary or trustee (but without 13 obligation so to do, and with or without notice to or demand upon 14 trustor, and without releasing trustor from any obligation 15 hereOf) may (a) make or do the same in such manner and to such 16 extent as either deems necessary to protect the security hereof, 17 beneficiary or trustee being authorized to enter upon the 18 property for such purpose; (b) appear in or commence any action 19 or proceeding purporting to affect the security hereof or the 20 rights or powers of beneficiary or trustee; (c) pay, purchase, 21 contest, or compromise any encumbrance, charge, or lien that, in 22 the judgment of either, appears to be superior hereto; and in 23 exercising any such power, beneficiary or trustee may incur 24 necessary expenses, including reasonable attorneys' fees. 25 5. To pay immediately and without demand all sums 26 expended hereunder by beneficiary or trustee, with interest from 27 Page 3 of 14 28 DAB/ses/HAB.agr July 17, 1990 15 - o o 1 2 date of expenditure at ten and one quarter per cent (10.25%) per 3 annum. 4 B. It is mutually agreed that: Any award of damages made in connection with the 5 1. 6 condemnation for public use of or injury to the property or any 7 part thereof is hereby assigned and shall be paid to beneficiary, 8 who may apply or release such moneys received therefor upon any 9 indebtedness secured hereby in such order as beneficiary 10 determines, or at the option of beneficiary the entire amount so 11 received or any part thereof may be released to trustor. Such 12 application or release shall not cure or waive any default or 13 notice of default hereunder or invalidate any act done pursuant 14 to such notice. 2. The acceptance by beneficiary of any payment less than 16 the amount then due shall be deemed an acceptance on account only 17 and shall not constitute a waiver of the obligation of trustor to 18 pay the entire sum then due or of beneficiary's right either to 19 require prompt payment of all sums then due or to declare 20 default. The acceptance of payment of any sum secured hereby 21 after its due date will not waive the right of beneficiary either 23 22 to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. No waiver of any 24 default shall be a waiver of any preceding or succeeding default 25 of any kind. 26 27 28 3. At any time or from time to time, without liability Page 4 of 14 DAB/ses/HAB.agr July 17, 1990 16 - - - o o 1 2 therefor and with or without notice, upon written request of 3 beneficiary and presentation of this deed and the secured note 4 for endorsement, and without effecting the personal liability of 5 any person for payment of the indebtedness secured hereby or the 6 effect of this deed upon the remainder of the property, trustee 7 may reconvey any part of the property, consent to the making of 8 any map or plat thereof, join in granting any easement, or join 9 in any extension agreement or any agreement subordinating the 10 lien or charge thereof. 11 4. Upon written request of beneficiary stating that all 12 sums secured hereby have been paid, surrender of this deed and 13 the note to trustee for cancellation and retention, and payment 14 of its fees, trustee shall reconvey, without warranty, the 15 property then held hereunder. The recitals in such reconveyance shall be conclusive proof of the truthfulness thereof. The 19 18 persons legally entitled thereto." 17 grantee may be designated in such reconveyance as "the person or 5. Additional portions of the property subject to the 20 lien of this deed of trust, selected by trustor, but not less 21 than five (5) acre portions, shall be released from the lien 22 hereof from time to time on payment against the outstanding 23 principal balance at the rate of Seventy Six Thousand Two Hundred 24 Thirty Dollars ($76,230) per acre. 25 Regardless of whether trustor prepays any part of the 26 principal of the secured debt, partial release shall be granted 27 Page 5 of 14 28 DAB/ses/HAB.agr July 17, 1990 - - o o 1 2 at the rate of one acre for every timely payment of Seventy Six 3 Thousand Two Hundred Thirty Dollars ($76,230) of the principal of 4 such debt with a minimum release of five (5) acres. If trustor 5 sells a lot or lots, or a portion or portions of the property 6 encumbered hereby, and gives written notice of such fact to 7 beneficiary, beneficiary will be deemed to have agreed that it 8 will execute a partial release of such property from the lien 9 hereof whenever the release amount computed as specified above is 10 paid to beneficiary. Trustor may give such notice to beneficiary 11 at any time before there is a trustee's sale of the property. At 12 any time trustor is in default in payments to be made to 13 beneficiary hereunder, any amounts paid to and received by 14 beneficiary for execution of releases pursuant to the terms of 15 this paragraph after notice of default and election to sell has 16 been recorded shall not, unless the requirements of Section 2924c 17 of the Civil Code are fully met by or on behalf of trustor, waive 18 the right of beneficiary to continue its plans to have the 19 property SOld, nor shall they have any effect on the exercise by 20 beneficiary of the acceleration privilege contained herein, 21 except to entitle the person effecting such payment to the 22 release of the property for which the release amount was paid, 23 and insofar as beneficiary is concerned, to constitute a credit 24 against the secured debt. 25 Beneficiary acknowledges that the ability of trustor 26 to procure releases promptly is of the utmost importance. 27 Page 6 of 14 28 DAB/ses/HAB.agr July 17, 1990 o o 1 2 Therefore, beneficiary will at all times maintain at its 3 principal place of business a person who is authorized to 4 execute such releases on behalf of beneficiary, and such releases 5 will be executed and delivered, when sought in compliance with 6 the provisions contained herein, not later than ten days after 7 written demand for such release has been made on beneficiary. 8 6. If trustor or any subsequent owner of the property 9 covered hereby shall occupy the property, or any part thereof, 10 after any default in payment of any amount secured by this deed 11 of trust, trustor or such owner shall pay to beneficiary in 12 advance on the first day of each month a reasonable rental for 13 the premises so occupied. On failure to pay such reasonable 14 rental, trustor or such owner may be removed from the premises by 15 summary dispossession proceedings or by any other appropriate 16 action or proceeding. 17 7. If default is made in payment of any indebtedness or 18 in performance of any agreement hereby secured, then 19 beneficiary, with or without notice to trustor, may declare all 20 sums secured hereby immediately due and payable by instituting 21 suit for the recovery thereof or for the foreclosure of this 22 deed, or by delivering to trustee a written declaration of 23 default and demand for sale, as well as a written notice of 25 24 default and of election to cause the property to be sold, which notice trustee shall cause to be filed for record. If such 26 declaration is delivered to trustee, beneficiary also shall 27 Page 7 of 14 28 DAB/ses/HAB.agr July 17, 1990 ~- o o 1 2 deposit with trustee this deed, the secured note, and all 3 documents evidencing expenditures secured hereby. 4 8. Should trustor, without the consent in writing of 5 beneficiary, voluntarily sell, transfer, or convey his interest 6 in the property or any part thereof, or if by operation of law, 7 it be SOld, transferred, or conveyed, then beneficiary may, at 8 its option, declare all sums secured hereby immediately due and 9 payable. Consent to one such transaction shall not be deemed to 10 be a waiver of the right to require such consent to future or 11 successive transactions. 12 9. After the time then required by law has elapsed after 13 recordation of such notice of default, and notice of sale having 14 been given as then required by law, trustee, with or without 15 demand on trustor, shall sell the property at the time and place 16 fixed in the notice of sale, either as a whole or in separate 17 parcels and in such order as trustee determines, at public 18 auction, to the highest bidder, for cash in lawful money of the 19 United States, payable at time of sale. Trustee may postpone 20 from time to time sale of all or any portion of the property by 22 21 public announcement at the time and place of sale originally fixed or at the last preceding postponed time. Trustee shall 23 deliver to the purchaser its deed conveying the property SOld, 24 but without any covenant or warranty, express or implied. The 25 recitals in such deed of any matters or facts shall be conclusive 26 proof of the truthfulness thereof. Trustor, trustee, 27 28 Page 8 of 14 DAB/ses/HAB.agr July 17, 1990 13 o o 1 2 beneficiary, or any other person may purchase at the sale. 3 10. After deducting all costs, fees, and expenses of 4 trustee and of this trust, including cost of evidence of title 5 and reasonable attorney fees in connection with sale, trustee 6 shall apply the proceeds of sale to payment of (a) all sums 7 expended under the terms hereof and not theretofore repaid, with 8 accrued interest at ten and one quarter per cent (10.25%) per 9 annum, and (b) all other sums then secured hereby in such order 10 as beneficiary, in the exercise of its sole discretion, directs. 11 The remainder, if any, shall be paid to the person or persons 12 legally entitled thereto. 11. Before trustee's sale, beneficiary may rescind such 14 notices of default and of election to cause the property to be 15 sold by delivering to trustee a written notice of rescission, 16 which notice, when recorded, shall cancel any prior declaration 17 of default, demand for sale, and acceleration of maturity. The 18 exercise of such a right of rescission shall not constitute a 19 waiver of any default then existing or subsequently occurring, or 20 impair the right of beneficiary to deliver to trustee other 21 declarations of default and demands for sale or notices of 22 default and of election to cause the property to be SOld, or 23 otherwise affect any provision of the secured note or of this 24 deed or any of the rights, obligations, or remedies of 25 beneficiary or trustee hereunder. 26 27 28 12. Beneficiary may from time to time, as provided by Page 9 of 14 DAB/ses/HAB.agr July 17, 1990 o o 1 2 statute, or by a writing signed and acknowledged by him and 3 recorded in the office of the county recorder of the county in 4 which the land or such part thereof as is then affected by this 5 deed of trust is situated, appoint another trustee in place and 6 stead of trustee herein named: and thereupon, the trustee herein 7 named shall be discharged, and the trustee so appointed shall be 8 substituted as trustee hereunder with the same effect as if 9 originally named trustee herein. 10 13. If two or more persons are designated as trustee 11 herein, any or all powers granted herein to trustee may be 12 exercised by any of such persons if the other person or persons 13 is unable, for any reason, to act. Any recital of such inability 14 in any instrument executed by any of such persons shall be 16 15 conclusive against trustor, his heirs and assigns. 14. All leases now or hereafter affecting the property are 17 hereby assigned and transferred to beneficiary by trustor. 18 Trustor hereby covenants that none of such leases will be 19 modified or terminated without the written consent of 21 20 beneficiary. 15. When requested so to do, trustor shall give such 22 further written assignments of rents, royalties, issues, and 23 profits: of all security for the performance of leases: and of 24 all money payable under any option to purchase, and shall give 25 executed originals of all leases, now or hereafter on or 26 affecting the property. 27 Page 10 of 14 28 DAB/ses/HAB.agr july 17, 1990 - o o 1 2 16. Trustor reserves the right, prior to any default in 3 payment of any indebtedness or performance of any obligation 4 secured hereby, to collect all such rents, royalties, issues, and 5 profits, as but not before they become due. Upon any such 6 default, trustor's right to collect such moneys shall cease, not 7 only as to amounts accruing thereafter, but also as to amounts 8 then accrued and unpaid. In the event of default, beneficiary, 10 security for the indebtedness hereby secured, either in person 9 with or without notice and without regard to the adequacy of 11 or by agent, or by a receiver to be appointed by the court, (a) 12 may enter upon and take possession of the property at any time 13 and manage and control it in beneficiary's discretion and, (b) 14 with or without taking possession, may sue for or otherwise 15 collect the rents, issues, and profits thereof, whether past due 16 or coming due thereafter, and apply the same, less costs and 17 expenses of operation and collection, including reasonable 19 18 attorney's fees, upon any obligation secured hereby and in such order as beneficiary determines. None of the aforesaid acts 20 shall cure or waive any default hereunder or invalidate any act 21 done pursuant to such notice. Beneficiary shall not be required 22 to act diligently in the care or management of the property or in 23 collecting any rents, royalties, or other profits that it is 24 hereby authorized to collect, and shall be accountable only for 25 sums actually received. 26 27 28 17. Without affecting the liability of trustor or of any Page 11 of 14 DAB/ses/HAB.agr July 17, 1990 - o o 1 2 other party now or hereafter bound by the terms hereof for any 3 obligation secured hereby, beneficiary, from time to time and 4 with or without notice, may release any person now or hereafter 5 liable for performance of such obligation, and may extend the 6 time for payment or performance, accept additional security, and 7 alter, substitute, or release any security. 8 18. In any action brought to foreclose this deed or to 9 enforce any right of beneficiary or of trustee hereunder, trustor 10 shall pay to beneficiary and to trustee attorneys' fees in a 11 reasonable sum, to be fixed by the court. 12 19. No remedy hereby given to beneficiary or trustee is 13 exclusive of any other remedy hereunder or under any present or 15 14 future law. 20. The pleading of any statute of limitations as a 16 defense to any and all obligations secured by this deed is hereby 17 waived, to the full extent permisSible by law. 18 19 indebtedness secured hereby, and if such indebtedness is secured 21. In the event of default in the payment of any 20 at any time by any other instrument, beneficiary shall not be 21 obligated to resort to any security in any particular order; and 22 the exercise by beneficiary of any right or remedy with respect 23 to any security shall not be a waiver of or limitation on the 24 right of beneficiary to exercise, at any time or from time to 25 time thereafter, any right or remedy with respect to this deed. 26 27 28 22. Trustor shall, upon request made by beneficiary, Page 12 of 14 DAB/ses/HAB.agr July 17, 1990 10 f') <. o 1 2 furnish the beneficiary with annual statements covering the 3 operations of the property. 4 23. Beneficiary may collect a "late charge" not to exceed 5 an amount equal to four per cent (4%) per calender month, or 6 fraction thereof, on the amount past due and remaining unpaid on 7 any instalment that is not paid within ten (10) days from the due 8 date thereof, to cover the extra expense involved in handling 9 delinquent payments. 24. This deed applies to, inures to the benefit of, and 11 binds, all parties hereto, their heirs, legatees, devisees, 12 administrators, executors, successors, successors in interest, 13 and assigns. The term "beneficiary" means the owner and holder, 14 including pledgees, of the note secured hereby, whether or not 15 named as beneficiary herein. In this deed, whenever the context 16 so requires, the masculine gender includes the feminine and 17 neuter, and the singular number includes the plural, and all 19 18 obligations of each trustor hereunder are joint and several. 20 executed and acknowledged, is made a public record as provided 25. Trustee accepts this trust when this deed, duly 21 by law. Trustee is not obligated to notify any party hereto of 22 pending sale under any other deed of trust or of any action or 23 proceeding in which trustor, beneficiary, or trustee is a party 24 unless brought by trustee. 25 26 27 28 / / / / / / Page 13 of 14 DAB/ses/HAB.agr July 17, 1990 ~- 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 r) (. o 1 2 Trustor requests that a copy of notice of default and 3 of any notice of sale hereunder shall be mailed to him at the 4 address set out opposite his name, immediately below. 5 MAILING ADDRESS FOR NOTICES 6 H.A.B. Land Development Company 10700 Jersey Blvd., Suite 450, P.O. Box 338 Rancho Cucamonga, California 91730 7 8 Executed at San Bernardino, California-on the date first above written. 9 [Signature] Trustor Page 14 of 14 DAB/ses/HAB.agr July 17, 1990 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 r) <.. o 1 2 3 STATE OF CALIFORNIA ) )ss. ) COUNTY OF SAN BERNARDINO 4 5 On undersigned, a appeared personally satisfactory who executed before me, the Notary Public in and for said State, personally 6 7 8 9 , known to me or proved to me on the basis of evidence to be the person 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. DAB/ses/HAB.agr July 17, 1990 r'i <. o 1 2 EXHIBIT "A" 3 4 That certain parcel of land in the City of San Bernardino, County of San Bernardino, State of California, described as 5 follows: 6 That portion of Blocks 45 and 46, and that unnumbered lot adjoining Block 46 on the west of the lands of Irvington Land and 7 Water Company, as per plat recorded in Book 1, Records of Survey, Page 32 Records of said county: in Book 3 of Maps, Page 9, 8 Records of said County: and Sections 12 and 13, township 1 North, range 5 West, San Bernardino Base and Meridian: Section 18, 9 township 1 North, range 4 West, San Bernardino Base and Meridian, according to the extension of the lines of the Official 10 Government Survey extended into the Muscupiabe Rancho, all in the City of San Bernardino, County of San Bernardino, State of 11 California, lying Southwesterly of the Southwesterly line of that certain parcel of land, as conveyed to the State of California by 12 deed recorded October 25, 1955, in book 3772, Page 93, Northerly, Northeasterly and Easterly of that certain parcel of land, as 13 conveyed to the San Bernardino County Flood COntrol District by Deed recorded July 27, 1948, in Book 2268, Page 146, Official 14 Records: and Northerly and Northwesterly of that certain parcel of land, as conveyed to said San Bernardino County Flood Control 15 District by Deed recorded July 27, 1948, in Book 2268, Page 142, Official Records. 16 17 18 19 20 21 22 23 24 25 26 27 28 DAB/ses/HAB.agr July 17, 1990 r'1 t, o 1 2 ATTACHMENT NO. 7 3 PROMISSORY NOTE SECURED BY DEED OF TRUST 4 $2,130,000.00 Place: Redevelopment Agency 300 North "D" Street San Bernardino, CA 92418 5 6 Date: 7 FOR VALUE RECEIVED, the undersigned jointly and severally 8 promises to pay to the Redevelopment Agency of the City of San 9 Bernardino (the "Agency") or its successors, the sum of Two 10 Million One Hundred Thirty Thousand Dollars ($2,130,000.00), and 11 to pay interest on the unpaid principal amount of this Note from 12 the date hereof, at the rate of Ten and one quarter per centum 13 (10.25%) per annum, until paid. Interest only payments on this 14 Note are payable on the First Day of each January, April, July, 15 and October following the date of this Note, with all principal 16 and interest due and payable seven (7) years after the issuance 17 of a Certificate of Completion pursuant to that certain Owners 18 Participation Agreement entered into between the Redevelopment 19 Agency and H.A.B. Land Development Company dated 20 , in lawful money of the United States at the principal 21 office of the Agency, 300 North "D" Street, Third Floor, City 22 Hall, San Bernardino, CA 92418, or at such other place as may 23 from time to time be designated by the Agency in writing. This 24 Note shall become immediately due and payable in the amount of 25 unpaid principal, with interest,upon transfer of title of the 26 property described in the Deed of Trust securing this Note to any 27 Page 1 of 3 28 DAB/seS/HAB.agr July 17, 1990 10 ~ L' o 1 2 person, firm or corporation other than the undersigned and except 3 as provided in said Deed of Trust, whether such transfer of title 4 be voluntary, involuntary, or by operation of law. 5 The undersigned reserves the right to prepay at any time 6 all or any part of the principal amount of this Note without the 7 payment of penalties or premiums. All payments on this Note 8 shall be applied first to the interest due on the Note and then 9 to the principal due on the Note, and the remaining balance shall be applied to late charges, if any. Except as provided below, 11 all quarterly payments on this Note shall be credited as of the 12 due date thereof without adjustment of interest because paid 13 either before or after such due date. 14 IN THE EVENT the undersigned shall fail to pay the 15 quarterly interest payment when due, and if such failure be 16 subsisting Thirty (30) days thereafter, the unpaid principal 17 amount of this Note, together with accrued interest and late 18 charges, shall become due and payable, at the option of the City, 19 without notice to the undersigned. Failure of the Agency to 20 exercise such option shall not constitute a waiver of such 21 default. No default shall exist by reason of nonpayment of any 22 required interest payment so long as the amount of optional 24 23 prepayments already made pursuant hereto equals or exceeds the amount of the required payments. If the payments on this Note 25 are not paid within Ten (10) days of the due date~ the 26 undersigned shall pay to the Agency a late charge of 4% per 27 Page 2 of 3 28 DAB/ses/HAB.agr July 17, 1990 - - . ~ ( o 1 2 calendar month, or fraction thereof, on the amount past due and 3 remaining unpaid. If this Note be reduced to judgment, such 4 judgment shall bear the statutory interest rate on judgments. 5 In no event shall the total interest and late charge 6 payable hereunder exceed the maximum amount of interest permitted 7 under the usury laws of the State of California. 8 If suit is instituted by the Agency to recover on this 9 Note, the undersigned agrees to pay all costs of such collection 10 including reasonable attorney's fees and court costs. 11 THIS NOTE is secured by a Deed of Trust of even date, duly 12 filed for record in the office of the County Recorder of the 13 County of San Bernardino, State of California. 14 DEMAND, protest and notice of demand and protest are hereby 15 waived and the undersigned hereby waives, to the extent 16 authorized by law, any and all homestead and other exemption 17 rights which otherwise would apply to the debt evidenced by this 18 Note. 19 IN WITNESS WHEREOF, THIS NOTE has been duly executed by the 20 undersigned, as of its date. 21 22 23 24 25 26 27 28 (witness) Page 3 of 3 DAB/ses/HAB.agr July 17, 1990 --