HomeMy WebLinkAboutR29-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
SUBJECT: 2003 PROPERTY OWNER
REDEVELOPMENT AGREEMENT-
OFFICE RETAIL/CENTER BY THE
TAHITI GROUP (514/540 N.
ARROWHEAD AVENUE - CENTRAL
CITY NORTH REDEVELOPMENT
____________________________________________________________________________________________~~Q_~_!C_<:_'!_~.R.J.:~L________________________________
Svnopsis of Previons Commission/Council/Committee Action(s):
FROM:
Maggie Pacheco
Deputy Director
DATE:
September 4, 2003
OR1G1NAL
On August 21,2003, Redevelopment Conunittee Members Estrada and Suarez voted to reconunend that the Conununity
Development Commission consider this action for approval.
___________________________.__________________~____________________d___________________________________________________...n_____________________________.______________--------------------------
Recommended Motion(s):
(Communitv Development Commission)
MOTION:
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO APPROVING AND AUTHORJZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY'") TO
EXECUTE A 2003 PROPERTY OWNER REDEVELOPMENT AGREEMENT BY AND BETWEEN
THE AGENCY AND TAHITI PARTNERS I, LLC, A LIMITED LIABILITY CORPORATION FOR
THE DEVELOPMENT OF AN OFFICEIRETAIL CENTER AT 514 AND 540 N. ARROWHEAD
A VENUE IN THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA
______..________________________________________u_______________________________________________________________--------------------------------------------------------------..----------------
Contact Person(s):
Colin StrangelMaggie Pacheco
Central City North
Phone:
(909) 663-1044
Project Area(s)
Ward(s):
1st
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LetlerslMisc.
FUNDING REQUIREMENTS Amount: $ 68,000
Source:
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Budget Authority:
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SIGNATURE:
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Commission/Conncil Notes:
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P:\Agendas\Comm Dev Commission\CDC 2003\03.09.15 The Tahiti Group Agreement.doc COMMISSION MEETING AGENDA
Meeting Date: 09/15/2003
Agenda Item Number: R.d... t-
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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2003 Propertv Owner Redevelopment Al!reement - Office Retail/Center bv The Tahiti Group
(514/540 N. Arrowhead Avenue - Central Citv North Redevelopment Proiect Area)
BACKGROUND:
The subject property consists of 30,740 square feet of vacant land at 514/540 North Arrowhead
Avenue ("Site") in the Central City North Project area ("Project Area"). The Site is on the northwest
comer of Fifth and Arrowhead Avenue on a highly visible comer close to major County and State
offices. The property was previously occupied by two Victorian era houses which were demolished
in the early 1990's, and the property has been an unimproved, vacant, dirt lot ever since. Long
standing San Bernardino developers, The Tahiti Group ("Developer"), who have been located in San
Bernardino for over forty years have entered into an 80 year lease for the Site and submitted a
proposed mixed use, 8,200 square foot office, retail complex which received a City Development
Permit Type II No. 01-23 on December 4,2001 ("Development"). The development would consist of
retail to the lower floor and offices to the upper floor. The retail would consist mainly of boutique
style restaurants and bistros of approximately 2,000 square feet each, with outdoor patio dining,
which is compatible with the downtown overlay. The Development was approved subject to certain
conditions of approval, including, but not limited to, the provision of off-site improvements.
CURRENT ISSUE:
Additional off site improvements such as curb, gutter, relocation of trees, etc., amount to $80,528
plus prevailing wage. This is a small, urban infill development, and, as such the project has a
projected return on investment shortfall of $95,300. The Project Area has a remaining life of 10 years
and the Development will generate gross tax increment to the Agency of $112,430 (after the 20%
housing set aside, $89,944) during this time. The Developer is seeking some assistance to help offset
the cost of the public improvements, and so to close the gap between the capital outlay and return on
investment. Upon completion of the Development, Staff proposes to make reimbursements to the
Developer in the amount of 65% of the tax increment generated, not to exceed $68,000 over the next
ten years.
While this is a greater percentage that is generally considered by the Agency, this is a small, difficult
to assemble lot which is an eyesore at the junction of two major arterial roads. The proposed
Development is extremely attractive and, taking into account the enormous success of the Subway
Sandwiches operation and the Arts on Fifth Street, it would indicate a market for this type of
operation exists in the downtown core. The lot is too small to attract a major developer so a unique
opportunity exists to develop this property by an experienced local developer, the alternative which
would be for the lot to remain vacant for at least another 10-15 years.
A Development Permit Type II was issued in December of 2001. It is anticipated that the
resubmission of the plans will be complete by January 15, 2004 with all permits issued by February
15, 2004. The Developer anticipates his financing will be in place by March I, 2004 with
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P:\AgcndasIConun Dcv ConunissionlCDC 2003\03-09-15 The Tahiti Group Agreemcnl.doc
COMMISSION MEETING AGENDA
Meeting Date: 09/15/2003
Agenda Item Number: ~
Economic Development Agency Staff Report
The Tahiti Group Agreement
Page 2
construction commencing March 30, 2004 and a Certification of Completion being issued no later
than August 1,2004.
ENVIRONMENTAL IMPACT:
None - Urban Infill Housing. Pursuant to Section 15332, the Project is exempt from California
Environmental Quality Act (CEQA) requirements.
FISCAL IMPACT:
Per the Developer's proforma:
Value of Development at Completion
Less: Current Land Valuation (Base)
$ 1,263,300
- 139,000
Increase in Valuation
$ Ll24.300
1% Yearly Tax Increment on Valuation
(or Over the 10-Year Period)
$ 11,243
112,430
65% or Not More than $68,000 to Developer for
Development Off-Sites
- 68,000
$ 44,430
Net to the Agency
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
_____..._______________~____________________~~___________________<________________________________u_________________________u__________________________________n____________________________.
P:\AgendasIComm Dev Commissioll\CDC 2003\03-09-15 The Tahiti Group Agrccment.doc
COMMISSION MEETING AGENDA
Meeting Date: 09/15/2003
Agenda Item Number: R.:J...1
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RESOLUa>> ~l(
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERt"lARDINO APPROVING
AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERt"lARDINO
("AGENCY") TO EXECUTE A 2003 PROPERTY OWNER
REDEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY
AND TAHITI PARTNERS I, LLC, A LIMITED LIABILITY
CORPORATION, FOR THE DEVELOPMENT OF AN OFFICEIRETAIL
CENTER AT 514 AND 540 N. ARROWHEAD AVENUE IN THE
CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA
WHEREAS, Tahiti Partners !, LLC, a Limited Liability Corporation, (collectively, with
any related entity, (the "Property Owner")) is the owner of certain property, (the "Property")
located in the redevelopment project area described in the Redevelopment Plan for the Central
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City North Redevelopment Plan for the Central City North Redevelopment Project (the
"Redevelopment Plan"); and
WHEREAS, the Property Owner has requested certain reimbursement financing from
the Redevelopment Agency of the City of San Bernardino (the "Agency") in connection with
the construction by the Property Owner of a mixed use officelretail facility situated on
approximately three quarters (3/4) acres of land and shall include the construction of a two
story complex comprising 7, I 00 square foot of restaurant/retail space with patio dining to the
first floor and 2,000 square foot of office space to the second story and all related off-site
public improvements (the "Project"); and
WHEREAS, the Project is consistent with the goals of the Redevelopment Plan; and
WHEREAS, the Project will assist the Agency in accomplishing its goal to reduce
blight in the redevelopment project area described in the Redevelopment Plan, pursuant to
the Community Redevelopment Law; and
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WHEREAS, Agency staff has prepared a 2003 Property Owner Redevelopment
Agreement (Tahiti Partners !, LLC, a Limited Liability Corporation) (the "Agreement").
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NOW THEREFORE, THE CO~'1TY DEVELOPMENT COMMISSION OF THE
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CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
FOLLOWS:
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Section I.
Pursuant to CEQA Regulations Section 15096, the Community
Development Commission, as the governing board of the Agency, finds that as a responsible
agency under CEQA for the purpose of the redevelopment assistance provided to the Property
Owner under the terms of the Agreement, no further environmental review of the Project or
the Agreement by the Commission is necessary at this time in connection with its
consideration of the approval of the Agreement. The City of San Bernardino has, by separate
action, previously approved the Project, subject to a number of conditions and development
impact mitigation measures, and the Property Owner shall be responsible for complying with
those conditions and measures. A copy of the 2001 CEQA determination of the Design
Review Committee of the City of San Bernardino is on file with the City Clerk.
Section 2.
The Community Development Commission hereby approves the
Agreement, which is attached to this Resolution as Exhibit "A." The Community
Development Commission hereby authorizes and directs the Executive Director to execute
the Agreement on behalf of the Agency. The Executive Director of the Agency is hereby
authorized to make minor corrections, additions, and clarifications to the Agreement prior to
its execution, provided said changes are not substantive in nature, are approved by the City
Attorney and do not increase the monetary impact to the Agency under the terms of the
Agreement as hereby approved.
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Section 3. Subject to the satisfaction by the Property O"mer of the conditions set
forth in the Agreement. the obligation of the Agency to make the reimbursements to the
Property Owner under the terms of the Agency Promissory Note from the special source of
funds described in the Agreement shall be an "indebtedness of the Agency", as this term is
defined in Health and Safety Code Section 33675. The Executive Director is hereby directed to
cause the Statement of Indebtedness for the Central City North Redevelopment Project to
include the indebtedness of the Agency to the Property Owner, as evidenced by the Agreement
and the Agency Promissory Note, to be filed with the Auditor-Controller of San Bernardino
County in the manner authorized by law.
The Resolution shall become effective immediately upon its adoption.
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A RESOLUTION OF THE COMMU:\'ITY DEVELOPME:\'T
COMMISSION OF THE CITY OF SAN BER1'lARDI:\'0 APPROVING
AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BER"IIARDlNO
("AGENCY") TO EXECUTE A 2003 PROPERTY OWNER
REDEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY
AND TAHITI PARTNERS I, LLC, A LIMITED LIABILITY
CORPORATION, FOR THE DEVELOPMENT OF AN OFFICE/RETAIL
CENTER AT 514 AND 540 N. ARROWHEAD AVENUE IN THE
CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Community Development Commission of the City of San Bernardino at a
meeting
thereof, held on the
day of
,2003, by the following vote to wit:
Commission Members:
Ayes
Nays
Abstain
Absent
ESTRADA
LONGVILLE
MCGINNIS
DERRY
SUAREZ
ANDERSON
MC CAMMACK
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Secretary
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The foregoing resolution is hereby approved this
day of
,2003.
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Judith Valles, Chairperson
Community Development Commission
of the City of San Bernardino
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Approved a"$
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By:
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
2003
PROPERTY OWNER REDEVELOPMENT
AGREEMENT
(Tahiti Partners I, LLC)
THIS 2003 PROPERTY OWNER REDEVELOPMENT AGREEMENT (the
"Agreement") is dated as of , 2003, by and between Tahiti Partners I, LLC, a
Limited Liability Corporation (the "Property Owner") and the Redevelopment Agency of the
City of San Bernardino, a body corporate and politic (the "Agency"), and the Agreement is
entered into with respect to the following facts:
RECITALS
The Property Owner has entered into an 80 year lease from the Stoll Family Trust
for certain lands situated at 514/540 North Arrowhead Avenue, legally described as APN
numbers 135-081-11; 12; 13; 14; 15 San Bernardino, California (the "Property"). The Property
is located in the redevelopment project area described in the Redevelopment Plan for the Central
City North Project Area (the "Redevelopment Plan"). The general location of the Property is
shown on a vicinity map and is more particularly described in the legal description of the
Property, attached hereto as Exhibit "A" and incorporated herein by this reference.
The Property Owner for itself and its successors and assigns and the Agency for
itself and its successors and assigns have entered into this Agreement in order to implement the
Redevelopment Plan and for the benefit of the redevelopment project area and the Property as
authorized under Health and Safety Code Section 33339.
NOW THEREFORE IN CONSIDERATION OF THE MUTUAL PROMISES
AND COVENANTS OF THE PARTIES, THE PROPERTY OWNER FOR ITSELF AND ITS
SUCCESSORS AND ASSIGNS AND THE AGENCY FOR ITSELF AND ITS SUCCESSORS
AND ASSIGNS, AGREE:
Section I. Effective Date of Agreement and Obligation of the Agency to
Make Certain Payments to the ProperlY Owner.
This Agreement shall take effect following its approval by the Agency and
execution by the parties. The obligation of the Agency to make the payments to the Property
Owner under Section 3 of this Agreement shall arise when all of the following conditions have
been satisfied by the Property Owner:
(a) the Property Owner has submitted to the City of San Bernardino (the
"City") a completed application for approval of the Development Project to be constructed and
installed on the Property by the Property Owner and the City has taken all final action as
necessary or appropriate to approve the Development Project, subject to all applicable zoning
and development standards and building regulations of the City of San Bernardino. The words
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"Development Project" as used in this Agreement, mean and refer to the improvement and
economic revitalization of the Property by the Property Owner as necessary or appropriate to
provide for the improvement and use of the Property as a mixed use office/retail facility situated
on approximately three quarters (3/4) acres of land. The Development Project shall include the
construction of a two story complex comprising 7, I 00 square foot of restaurant/retail space with
patio dining to the first floor and 2,000 square foot of office space to the second story and all
related off-site public improvements as necessary or appropriate to accommodate the
improvement of the Development Project on the Property. A detailed description of the
functional elements of the Development Project (the "Scope of Development and Schedule of
Performance") is attached as Exhibit "B." The City is not a party to this Agreement and nothing
herein shall be deemed to create any interest in the Property as may otherwise arise under
Government Code Section 65860 et seq;
(b) the Property Owner has completed the work of improvement of the
Development Project on the Property, including the installation of the off-site work to be
conducted by the Property Owner in various public street rights-of-way, as described in Exhibit
"c" as the "Public Improvement Items," by a date not later than August I, 2004. For the
purposes of this Agreement, the words "work of improvement of the Development Project" shall
be deemed "completed" on the date when the Property Owner files its notice of completion as
defined in Civil Code Section 3093 for the Development Project;
(c) the City acting by and through its Development Services Department has
. accepted as complete the Public Improvement Items;
(d) the Property Owner has submitted to the Executive Director of the Agency
a true and correct copy of the complete and certified payroll records for the Public Improvement
Items which evidence the fact that prevailing wages have been paid to workers employed by the
Property Owner, or its general contractor and each subcontractor thereof, to construct and install
any of the Public Improvement Items. For the purposes of this subparagraph the words "certified
payroll records" shall have the same meaning as set forth at California Labor Code Section 1776;
and
(e) the Notice of Memorandum of Agreement referenced In Section II,
below, has been fully executed by the parties and filed for recordation.
(f) failure to comply with these terms and conditions by the date specified in
Section I (b) shall render this agreement null and void.
Section 2.
Conformity of the Development Proiect With the Redevelopment
Plan.
(a) The Agency has found and determined as of the date of this Agreement,
the improvement of the Development Project described in the Scope of Development and
Schedule of Performance (See: Exhibit "B"), and thereafter, the operation of the mixed use
. retail/office facility on the Property is consistent with the Redevelopment Plan.
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(b) The Agency hereby finds and determines that the redevelopment
assistance to be provided by the Agency to the Property Owner, subject to the completion of the
Development Project on the terms set forth in Section 3 of this Agreement, is necessary and
appropriate, and that the redevelopment covenants of the Property Owner as contained in this
Agreement shal1 material1y assist the Agency to eliminate conditions of blight in the Central City
North redevelopment project
Section 3. Agency Contribution to Pay a Portion of the Development Proiect
Public Agency Charges, and Public Improvement Items and Agency Promissory Note Pavable to
the Property Owner.
(a) The improvement and completion of the Development Project requires the
Property Owner to pay various public capital facility impact mitigation fees and public agency
permit fees and utility connection capital charges (col1ectively, the "Public Agency Charges").
(b) The improvement and completion of the Development Project requires the
Property Owner to design, construct and instal1 certain off-site public street improvements
described in Exhibit "c" as the Public Improvement Items. At the present time, the total
estimated cost of the Public Improvement Items is approximately one hundred and five thousand
dol1ars ($ I 05,000) at prevailing wage
(c) Subject to the terms and conditions of this Agreement, the Agency hereby
agrees to pay the Property Owner from time to time, but solely from the special source of funds
described herein, a sum not to exceed sixty eight thousand Dol1ars ($68,000.00) for the cost of a
portion of the Public Improvement Costs:
(i) the indebtedness of the Agency to the Property Owner under this
Section 3 shal1 be evidenced by the Agency Promissory Note substantial1y in the form attached
hereto as Exhibit "D";
(ii) the principal amount of the indebtedness shal1 be verified by the
Executive Director fol1owing completion of the Development Project and acceptance of the
Public Improvement Items (See: Section I(b) and (c)) and Public Improvement Costs incurred by
the Property Owner in connection with the improvement of the Development Project together
with the certified payrol1 record for the Public Improvement Items; provided, however, that in
the event that the total cost of the Public Improvement Items as actual1y paid by the Property
Owner may in the aggregate be less than the sum of $68.000.00, then in such event, the principal
balance of the Agency Promissory Note shal1 be such lesser amount;
(iii) the date of the Agency Promissory Note shal1 be the day which is
sixty (60) days fol1owing the recordation of the notice of completion for the Development
Project by the Property Owner, as provided in Section l(b), above. No interest shal1 accrue on
the Agency Promissory Note;
(iv) the Agency Promissory Note shal1 have a maturity date which is
the tenth (1otb) anniversary fol1owing its date, and if any unpaid principal balance may be owing
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after such tenth (I O'h) anniversary, such sum shall be waived and forgiven by the holder of the
Agency Promissory Note;
(v) the Agency Promissory Note shall be payable solely from the
special source of funds described in the Agency Promissory Note as the "Site Tax Increment" -
(e.g., a portion of the property taxes payable on the Property each year from and after the date of
the Agency Promissory Note which are allocated and paid to the Agency as tax increment
revenue from the Central City North Project, all as more particularly described in the Agency
Promissory Note);
(vi) the Agency shall execute and deliver the Agency Promissory Note
to the Property Owner within sixty (60) days following the last of the following dates to occur:
(A) the date on which the Property Owner has caused the notice of completion for the
Development Project to be recorded, as set forth in Section I (b); (B) the date on which the City
accepts the Public Improvement Items as complete; (C) the date on which the Property Owner
has provided the Executive Director of the Agency with the final accounting of the total costs
paid by the Property Owner for the Public Agency Charges and the Public Improvement Costs
together with the certified payroll record for the Public Improvement Items.
(d) Subject to the completion of the Development Project and the
verification of the final amount of the Agency indebtedness to the Property Owner as set forth in
Section 3( c )(ii), the Agency hereby agrees to pledge certain property tax increment revenues of
the Agency as derived from the Property, and as more specifically described in the Agency
Promissory Note (the "Site Tax Increment"), to pay the principal sum of the indebtedness of the
Agency to the Property Owner evidenced by the Agency Promissory Note. Such pledge of the
Site Tax Increment by the Agency shall be subordinate to all existing and future indebtedness of
the Agency for the Central City North Redevelopment Project and all refinancings of such
indebtedness. Such pledge of the Site Tax Increment shall terminate on the earlier date of either
payment in full on the Promissory Note or the date which is ten (10) years following the date of
the Agency Promissory Note.
Section 4. Covenant of the Property Owner to Pay an "In Lieu" Charge to the
Agency in the Event That During the Term of the Promissory Note, the Property, or Portion
Thereof, May Be Leased, Assigned, or Acquired by an Entity Which is Exempt from Payment of
Ad Valorem Property Taxes,
The redevelopment and use of the Property by the Property Owner is of special
interest and concern to the Agency. The redevelopment of such lands in accordance with the
Agreement shall generate a special source of property tax increment funds payable to the Agency
in accordance with Health and Safety Code Section 33760 to fund certain redevelopment
activities of the Agency. The obligations and indebtedness of the Agency include, without
limitation, the obligations and indebtedness of the Agency which arise under the Agreement and
the obligation of the Agency to make certain payments and contributions to the Low- and
Moderate-Income Housing Fund from the property tax increment funds payable to the Agency
upon completion of the redevelopment of the Property,
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The Property Owner hereby covenants and agrees that in the event that the
Property or any portion thereof shall be conveyed or leased by the Property Owner, its successors
or assigns to any entity or party, that is partially or wholly exempt from the payment of ad
valorem property taxes pertinent to the Property or any portion thereof, during the term of the
Agency Promissory Note, the Property Owner, its successors or assigns shall pay the Agency a
fee in lieu of payment of such taxes each year in an amount which is determined by the Agency
to be one percent (1 %) of the full cash value of such exemption from payments of ad valorem
property taxes. Such determination of "full cash value" for such in-lieu payment purposes under
this Section 4 shall be established by the Agency each year, if necessary, in accordance with the
ad valorem property tax valuation principles and practices of Section 2 of Article XIIIA of the
California Constitution. In the event that the Agency may hereafter determine that an amount is
payable to the Agency as an in-lieu payment under this Section 4 of the Agreement, then such
amount shall be paid to the Agency each tax year within ninety (90) days following transmittal of
the notice of invoice for payment of the in-lieu amount by the Agency to the Property Owner.
Section 5.
Covenant Against Unlawful Discrimination.
The terms and provisions of Health and Safety Code Section 33436 which
prohibit various types of unlawful discrimination are hereby incorporated into this Agreement by
this reference.
Section 6.
Special Representations and Covenants of the Property Owner.
(a) The Property Owner hereby agrees that in connection with its construction
and installation of the Public Improvement Items, that not less than "prevailing wages", as this
term is defined at California Labor Code Section 1770 et seq., shall be paid by the Property
Owner, its contractor and any subcontractor to all workmen employed in connection with the
construction and installation of the Public Improvement Items. The provisions of California
Labor Code Sections 1775 and 1776 shall be applicable to the performance of this obligation of
the Property Owner as relate to the Public Improvement Items and to the remedies of the Agency
in the event of a breach of this obligation by the Property Owner.
(b) From and after the date of the delivery ofthe executed Promissory Note to
the Property Owner, the Property Owner for itself and its successors and assigns hereby covenant
and agree upon the request of the Agency to provide the Agency with a true and correct copy of
all property tax assessment notices, property tax bills and property tax assessment or payment
correspondence by and between the Property Owner and the Assessor and Property Tax
Collector of San Bernardino County.
Section 7.
Maintenance Condition of the Property.
Subject to the delivery of the Agency Promissory Note to the Property Owner as
set forth in Section 3(c)(vi), the Property Owner for itself, its successors and assigns hereby
covenants and agrees that:
(a) The areas of the Property which are subject to public view (including all
existing improvements, paving, walkways, landscaping, exterior signage and ornamentation)
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shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear
excepted. In the event that at any time within ten (10) years following the date of recordation of
the Notice of Memorandum of Agreement as provided in Section II, there is an occurrence of an
adverse condition on any area of the Property which is subject to public view in contravention of
the general maintenance standard described above, (a "Maintenance Deficiency") then the
Agency shall notify the Property Owner in writing of the Maintenance Deficiency and give the
Property Owner thirty (30) days from receipt of such notice to cure the Maintenance Deficiency
as identified in the notice. In the event the Property Owner fails to cure or commence to cure the
Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing
following transmittal of written notice thereof to tbe Property Owner ten (10) days prior to the
scheduled date of such public hearing in order to verify wbether a Maintenance Deficiency exists
and whether the Property Owner has failed to comply with the provision of this Section 7(a). If
upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance
Deficiency exists and that there appears to be non-compliance with the general maintenance
standard, described above, thereafter the Agency shall have the right to enter the Property and
perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or
equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency.
Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the
Property authorized by this Section 7(a) shall become a lien on the Property. If the amount of
the lien is not paid within thirty (30) days after written demand for payment by the Agency to the
Property Owner, the Agency shall have the right to enforce the lien in the manner as provided in
Section 7( c).
(b) Graffiti as this term is defined in Government Code Section 38772, which
has been applied to any exterior surface of a structure or improvement on the Property which is
visible from any public right-of-way adjacent or contiguous to the Property, shall be removed by
the Property Owner by either painting over the evidence of such vandalism with a paint which
has been color-matched to the surface on which the paint is applied, or graffiti may be removed
with solvents, detergents or water as appropriate. In the event that such graffiti may become
visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours
following the time of such application, the Agency shall have the right to enter the Property and
remove the graffiti without notice to the Property Owner. Any sum expended by the Agency for
the removal of such graffiti from the Property authorized by this Section 7(b) in an amount not to
exceed $250.00 per entry by the Agency, shall become a lien on the Property. If the amount of
the lien is not paid within thirty (30) days after written demand for payment by the Agency to the
Property Owner, the Agency shall have the right to enforce its lien in the manner as provided in
Section 7(c).
(c) The parties hereto further mutually understand and agree that the rights
conferred upon the Agency under this Section 7 expressly include the power to establish and
enforce a lien or other encumbrance against the Property, or any portion thereof, in the manner
provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably
necessary to restore the Property to the maintenance standard required under Section 7(a) or
Section 7(b), including attorneys fees and costs of the Agency associated with the abatement of
the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency
in connection with such action. The provisions of this Section 7, shall be a covenant running
with the land for the term as provided in Section 9 and shall be enforceable by the Agency.
6
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Nothing in the foregoing provisions of this Section 7 shall be deemed to preclude the Property
Owner from making any alteration, addition, or other change to any structure or improvement or
landscaping on the Property, provided that such changes comply with applicable zoning and
building regulations of the City.
Section 8.
Defaults and Breach - General.
This Agreement shall have no further force or effect in the event that the Property
Owner may fail to complete the improvement of the Development Project by the date indicated
in Section l(b). In the event that the Development Project may not be completed by such date
for any reason, then in such event, neither party shall be under any further obligation under this
Agreement, and the rights of the parties hereunder shall be released and discharged. Failure or
delay by either party to perform any material term or provision of Section 3, Section 4, Section 5
or Section 7 of this Agreement shall constitute a default under this Agreement; provided
however, that if the party who is otherwise claimed to be in default by the other party
commences to cure, correct or remedy the alleged default within thirty (30) calendar days after
receipt of written notice specifying such default and shall diligently complete such cure,
correction or remedy, such party shall not be deemed to be in default hereunder.
The party which may claim that a default has occurred shall give written notice of
default to the party in default, specifying the alleged default. Delay in giving such notice shall
not constitute a waiver of any default nor shall it change the time of default; provided, however,
the injured party shall have no right to exercise any remedy for a default hereunder without
delivering the written default notice as specified herein.
Any failure to delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
default. Except with respect to rights and remedies expressly declared to be exclusive in this
Agreement, the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party.
In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to seek
any appropriate remedy or damages by initiating legal proceedings.
Section 9.
Covenants Running With the Land.
This Agreement is expressly declared by the parties for themselves and for the
successors and assigns of each of them, to be for the benefit of the Property and the
redevelopment project area of the Central City North Redevelopment Project:
(a) The provisions of Section 4, Section 6(b) and Section 7 of this Agreement
are covenants which runs with the land and the Property for a term of ten (10) years from the
date of the Notice of Memorandum of Agreement as set forth in Section II.
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(b)
[RESERVED - NO TEXT]
(c) The provisions of Section 5 of this Agreement are a covenant which runs
with the land and the Property in perpetuity.
Section 10.
Earlv Termination of Agreement Bv Property Owner.
The Property Owner may terminate this Agreement at its discretion for any reason
before the date on which the Agency Promissory Note is executed and delivered to the Property
Owner by serving written notice of termination of the Agreement to the Agency which
specifically refers to this Section 10 of the Agreement. Upon receipt by the Agency of such
written notice of termination, the Agency shall cause to be recorded a release of the Notice of
Memorandum of Agreement, and thereafter the parties shall be mutually release from any further
obligation which arises under this Agreement.
Section II.
Notice of Memorandum of Agreement.
The parties hereby agree and declare that the successors and assigns of each shall
be bound by the terms of this Agreement. The parties shall execute and the Agency shall cause
to be recorded a Notice of Memorandum of this Agreement substantially in the form as attached
hereto as Exhibit "E" and incorporated herein hy this reference. The Notice of Memorandum of
Agreement shall be recorded promptly upon the full execution ofthis Agreement by the parties.
Section 12.
Attornevs' Fees.
If either party hereto files any action or brings any action or proceeding against
the other arising out of this Agreement, then the prevailing party shall be entitled to recover as an
element of its costs of suit and not as damages, its reasonable attorneys' fees as fixed by the
Court in such action or proceeding or in a separate action or proceeding brought to recover such
attorney's fees. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this Agreement on behalf of the Agency shall be considered as "attorneys' fees" for
the purposes of this section.
Section 13.
Headings and Attachments.
The headings of each section of this Agreement are provided for purposes of
reference and convenience only and do not have any meaning which is independent of the text of
the section of the Agreement to which they may generally correspond. The following is a list of
documents that are attached as part of this Agreement:
Exhibit "A"
Vicinity Map and Legal Description of the Property
Scope of Development and Schedule of Performance
Description of Off-Site Public Street Work
Agency Promissory Note
Notice of Memorandum of Agreement
Exhibit "B"
Exhibit "C"
Exhibit "D"
Exhibit "E"
8
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THIS 2003 PROPERTY OWNER REDEVELOPMENT AGREEMENT is dated
as of , 2003 and this Agreement shall have no force nor effect unless it has
been approved by the governing body of the Agency and executed by the authorized officers of
the Property Owner and the Agency as evidenced by the signatures of each of them which appear
below. This Agreement may be executed in counterpart and when fully executed by the parties,
each counterpart shall be deemed to be part of one original Agreement.
AGENCY
Redevelopment Agency of the
City of San Bernardino
Date:
By:
Gary Van Osdel, Executive Director
By:
Agency
PROPERTY OWNER
Date:
By:
Jack D. Vander Woude, Chairman Manager
By:
9
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EXHIBIT "A"
VICINITY MAP AND LEGAL DESCRIPTION OF THE PROPERTY
Vacant Land Northwest Comer of Arrowhead Avenue and 5th Street, 514/540 North Arrowhead
Avenue, San Bernardino: APN: 0135-081-11;12;13;14;15
10
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EXHIBIT "B"
SCOPE OF DEVELOPMENT AND SCHEDULE OF PERFORMANCE
Project approved with Development Permit Type II No. 01-23 for 8,200 square foot office/retail
center on approximately 30,740 square feet of land at the northwest comer of Arrowhead Avenue and
5th Street at 514/540 North Arrowhead Avenue in the CR-2 (Commercial Regional) land use in the
Central City North Project Area.
The project will consist of7,IOO square foot of retail space to the first floor with five units ranging
from 1,200 square feet to 1,900 square feet with inside and patio seating with the remainder being
office space to the second floor. There are 43 sparking spaces.
Certain public improvements are required such as work to curbs, gutters, signalization etc. which are
listed in more detail in Schedule "D" Description of Off- Site Public Street Work.
PROPOSED SCHEDULE OF PERFORMANCE
Construction drawings finalized:
January IS, 2004
Development Services approvals/Building Permits
February IS, 2004
Financing in Place
March I, 2004
Construction Commences
March 30, 2004
Certificate of Completion Issued
August I, 2004
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EXHIBIT "C"
DESCRIPTION OF OFF-SITE PUBLIC STREET WORK
DEMOLITION/CONCRETE
Removal of sidewalk, curbs and gutters and recast according to current codes
Creation of drive approaches
Creation of Handicapped ramp
Creation of Curb Inlet
Adjust manhole to grade
Relocate existing trees
. UTILITIES:
Installation oflateral sewer
Installation fire lateral
Relocate water meters
TRAFFIC:
Relocate street lights
.
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P:~Io~1 DepI\Colin\Tahiti Agreement.doc
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EXHIBIT "D"
AGENCY PROMISSORY NOTE
13
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AGENCY PROMISSORY NOTE
Tahiti Partners I, LLC
NEITHER THE FAITH AND CREDIT NOR THE TAXING
POWER OF ANY PUBLIC AGENCY, INCLUDING THE CITY
OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO, IS PLEDGED TO
THE PAYMENT OF PRINCIPAL AND INTEREST HEREOF
Principal Amount:
Date:
$ 68,000.00
(Sixty Eight Thousand Dollars)
.
[Not to Exceed $68,000.00, the
specific amount shall be verified by
Property Owner accounting of actual
Public Agency Charges incurred and
Public Improvement Costs incurred:
See Section 3(b)(ii) of the Agreement]
Date of Agency Promissory Note: See
Section 3(b)(iii) of the Agreement]
Maturity Date:
10 years following date of Agency
Promissory Note
THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
PROMISSORY NOTE (the "Agency Promissory Note"), evidences an indebtedness of the
Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency")
to Tahiti Partners I, a Limited Liability corporation (herein the "Holder"). The Agency Promissory
Note is hereby tendered in accordance with that certain 2003 Property Owner Redevelopment
Agreement dated as of ,2003, (the "Agreement"), by and between the Holder and
the Agency with respect to the following facts:
RECITALS
This Agency Promissory Note is an indebtedness of the Agency incurred in connection with
the implementation of the Redevelopment Plan for the Central City North Redevelopment Project;
and
This Agency Promissory Note evidences an indebtedness of the Agency to the Holder for the
repayment by the Agency to the Holder of a loan for the payment of portion of certain Public Agency
Charges as set forth in the Agreement, which indebtedness has been incurred by the Agency in
. connection with the redevelopment by the Holder of certain real property located withiilthe
I
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redevelopment project area of the Central City North Redevelopment Project as more spccifically
described in the Agreement (the "Property").
FOR VALUE RECEIVED, THE AGENCY HEREBY PROMISES TO PAY TO THE
ORDER OF THE HOLDER AT SUCH ADDRESS AS THE HOLDER SHALL DESIGNATE
FROM THE SPECIAL SOURCE OF FUNDS AS HEREINAFTER DESCRIBED, THE
PRlNCll' AL AMOUNT OF THE AGENCY PROMISSORY NOTE AT THE TIMES SPECIFIED
HEREIN FROM THE FUNDS AS A V AILABLE TO THE AGENCY THEREFORE
(HEREINAFTER DEFINED AS THE "SITE TAX INCREMENT") IN ACCORDANCE WITH
THE TERMS HEREOF:
Section I. Unless otherwise provided herein, the terms and phrases as used in this
Agency Promissory Note shall have the same meaning as found in the Agreement. A copy of the
Agreement is on file with the Agency Secretary.
Section 2. The Agency Promissory Note is tendered to the Holder in connection with the
obligation of the Agency to repay the Property Owner for a loan to the Agency of an amount to pay a
portion of the Public Agency Charges associated with the improvement of the Development Project
on the Property as set forth in the Agreement. The principal amount of the Agency Promissory Note
on the date when the Development Project is deemed complete as set forth in the Agreement is sixty
five percent of the gross tax increment over base value for the next ten years not to exceed Sixty
Eight Thousand Dollars ($68,000).
Section 3.
Promissory Note.
No interest shall accrue on the outstanding principal amount of the Agency
Section 4. Installments of principal as may be due hereunder shall be paid to the Holder
solely from the Site Tax Increment, as described in Section 7, below, annually on January I of each
year, commencing with a first payment (pro rated) on the January I following the date of this Agency
Promissory Note. Thereafter, payments of principal due on the Agency Promissory Note shall be
paid solely from the Site Tax Increment on each subsequent January I, until the maturity date when
the final payment shall be made (pro rated); provided however, that no payment shall be due or
payable on the Agency Promissory Note on any such payment date unless the Holder has first
submitted appropriate written evidence to the Agency that the property taxes as assessed for the
Property have been paid to the Tax Collector of San Bernardino County for the fiscal year preceding
the date when the payment of an installment under the Agency Promissory Note is payable to the
Holder.
Section 5. The Agency Promissory Note shall have a maturity date which is the tenth
(10th) anniversary following the date of this Agency Promissory Note, and if any unpaid principal
balance may be owing after the payment due the Holder from Site Tax Increment on such tenth (lOth)
anniversary, such balance shall be waived and forgiven by the Holder.
Section 6. The Agency may prepay the outstanding principal balance on the Agency
Promissory Note without penalty at any time.
2
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Section 7. Notwithstanding any other provision ofthis Agency Promissory Note or the
Agreement to the contrary, the obligation of the Agency to the Holder to make payments of principal
hereunder prior to the maturity date shall be a special limited obligation ofthe Agency and shall not
be deemed to be a general obligation of the Agency or the City of San Bernardino. The sole source
of repayment for the indebtedness of the Agency, evidenced by the Agency Promissory Note, shall be
derived from the Site Tax Increment as follows:
the Site Tax Increment is a portion of the locally assessed secured roll property tax increment
revenues as realized by the Agency each fiscal year from the Central City North
Redevelopment Project from and after the date of this Agency Promissory Note as a result of
the redevelopment of the Property by the Holder and the receipt by the Agency of locally
assessed secured roll ad valorem property taxes paid with respect to the Property which are
allocated, paid to and received by the Agency pursuant to Health and Safety Code Section
33670(b). Said portion of the property tax increment revenues of the Agency shall be
determined as of each January I, prior to maturity of this Agency Promissory Note, by the
application of the following formula, following the date of this Agency Promissory Note with
respect to the locally assessed secured roll ad valorem property taxes as paid to the Tax
Collector of San Bernardino County for the Property:
(Total Property Taxes Paid1)-(Base Year Value2)
The Agency Promissory Note shall not be payable out of tax increment revenues derived
from any other lands of the Central city North Redevelopment Project nor from any other funds of
the Agency. Neither the faith and credit nor the taxing power of the City, the Agency nor the County
of San Bernardino is pledged to the payment of principal or interest on the Agency Promissory Note.
Section 8. Upon the date of maturity of the Agency Promissory Note (and after the
payment to the Holder of the Site Tax Increment (pro rated), if any, on the tenth (lOth) anniversary
date), all remaining unpaid principal ofthe Agency Promissory Note shall be waived, discharged and
forgiven by the Holder.
Notes on formula for the calculation of "Site Tax Increment" presented in Section
7, above:
1. "Total Property Taxes Paid" means the total amount of current tax year
locally assessed secured roll ad valorem property taxes assessed to the Property
and paid by the owner of the Property to the Tax Collector of San Bernardino
County.
2. "Base Year Value" means a portion of Total Property Taxes Paid which is
attributed to the assessed value of the Property for ad valorem property tax
assessment purposes as of January 1, 20 [note: this value may be shown as of
January 1, 20__ on the State unitized property tax rolls for railroad utility
property] .
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Section 9. The Holder may transfer or assign its right to receive payments of principal
under the Agency Promissory Note upon receipt by the Agency of written notice of such assignment
executed by the Holder and the new holder of the Agency Promissory Note which indicates the new
name and address for payment to the holder of the Agency Promissory Note and which written notice
shall also state as follows:
"The undersigned assignee of the Agency Promissory Note hereby acknowledges that the
Agency shall have no obligation to pay to the assignee any amounts of principal as may be
due hereunder except from a special source of funds described in the Agency Promissory
Note as the 'Tax Site Increment" and further subject to the condition that the assignee has
first provided the Agency with appropriate written evidence that locally assessed secured roll
property taxes for the Property have been paid to the Tax Collector of San Bernardino
County for the fiscal year preceding the payment due under the Agency Promissory Note."
THIS AGENCY PROMISSORY NOTE is executed on this _ day of
2003, at San Bernardino, California.
REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO
Executive Director
(Seal)
ATTEST:
Agency Secretary
Approved As To Form:
Agency Special Counsel
4
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EXHIBIT "E"
NOTICE OF MEMORANDUM OF
2003 PROPERTY OWNER REDEVELOPMENT AGREEMENT
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency of the
City of San Bernardino
201 North "EN Street, Suite 301
San Bernardino, California 92401
At tn: Executive Director
(Space above line reserved for use by Recorder)
(Recordatior. of this Document Exempt from Fees
Payable to Recorder under Governme~t Code
Section 6103)
NOTICE OF MEMORANDUM OF
2003 PROPERTY OWNER REDEVELOPMENT AGREEMENT
Redevelopment Agency of the City of San Bernardino
(Tahiti Partners I, LLC)
TO ALL INTERESTED PERSONS, PLEASE TAKE NOTICE
NOTICE OF MEMORANDUM OF 2003 PROPERTY OWNER
AGREEMENT (the "Memorandum") is dated as of
2003 by and between Tahiti Partners I, LLC, a
Limited Liability Corporation (the "Property Owner") and the
Redevelopment Agency of the City of San Bernardino (the "Agency").
This Memorandum affects certain real property in the City of San
Bernardino, County of San Bernardino, California, located at
514/540 North Arrowhead Avenue, San Bernardino, California (the
"Property"). The Property is more particularly described in the
legal description attached hereto as Exhibit "I" and incorporated
herein by this reference.
THIS
REDEVELOPMENT
PLEASE TAKE FURTHER NOTICE that the Property Owner and
the Agency have entered into that certain "2003 Property Owner
Redevelopment Agreement," dated as of , 2003,
which affects the Property Owner and the Agency which benefit and
burden the Property and which run with the land for the period of
time as set forth therein.
Section 4 of the Agreement is entitled:
Covenant of the Property Owner to Pay an "In Lieu"
Charge to the Agency in the Event That During the
Term of the ~romissory Note, the Property, or
Portion Thereof, May Be Leased, Assigned, or
Acquired by an Entity Which is Exempt from Payment
of Ad Valorem Property Taxes.
Exh. "E" - 1
F: \:::ier 1 ca.l Ser...: ,=,es Dept \MilrgOlre': \Agreemer.ts-Arr,endments\Agrmts-A:nend 2003\03-09-15 7ar.:: l Memo 0 f Aqrr.~. doc
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Section 5 of the Agreement is entitled:
Covenant Against Unlawful Discrimination.
Section 6 of the Agreement is entitled:
Special Representations and Covenants of the
Property Owner.
Section 7 of the Agreement is entitled:
Maintenance Condition of the Property.
Interested persons may inspect a copy of the text of the
2003 Property Owner Redevelopment Agreement which is on file as a
public record of the Agency in the office of the Agency Secretary
during regular business hours.
This Memorandum may be executed by the parties in
counterpart. The recordation of this Memorandum is authorized by
action of the Agency under Government Code Section 6503 and Health
and Safety Code Sections 33337, 33338 and 33339.
PROPERTY OWNER
Tahiti Partners I, LLC,
a Limited Liability Corporation
Dated:
By:
Jack D. Vander Woude,
Chairman Manager
AGENCY
Redevelopment Agency of the
City of San Bernardino,
a body corporate and politic
Dated:
By:
Gary Van Osdel,
Executive Director
(ALL SIGNATURES TO BE ACKNOWLEDGED)
Exh. "E" - 2
f: \C1"r :cal Serv ices ['ep~ \MargHet \Agreeme.'lts-A:"end:rr,e"ts \Ag:mts-Amend 2003\03-09-15 ,ahi tl Memo 0: Ag:nt doc
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EXHIBIT "1"
Legal Description of the Property
Vacant Land Northwest Corner of
514/540 North Arrowhead Avenue,
11; 12; 13; 14; 15
Arrowhead Avenue
San Bernardino:
Exh. "1" to Exhibit "E" -3
and 5th Street,
APN: 0135-081-
?:\Cler:cal Sex-vices Dept\MargiHet\Ag,eements-Arr.e,-,dmerlts\Agrmts-Arnend 20CJ\03-'J9-1S ,a:Jltl Memc c,! Agmt Clc:C
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
~EeflVi C CIH CI Fi-!'i
INTER-OFFICE MEMORANDUM
'03 OCT 27 P 4 :23
TO:
Michelle Taylor, Senior Secretary, City Clerk's Office
--1\\ ~Margaret Parker, Secretary
FROM:
SUBJECT:
Executed Document
DATE:
October 27, 2003
Enclosed is the fully executed Agreement pertaining to the following resolution:
CDC12003-31 2003 Property Owner Redevelopment Agreement
(Tahiti Partners I, LLC)
Please let me know if you have any questions.
Thank you,
Margaret
Enclosure
cc: Barbara Lindseth (with Original Executed Agreement)
Barbara Sharp (with Copy of Agreement)
Colin Strange (with Copy of Agreement)
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): q -I S-C5S Item # {L'C.'9 Resolution #
Vote: Ayes 1-'/ Nays .!Cr Abstain e-
Change to motion to amend original documents:
c.Oc.-!c.t:O::<,-,3 \
Absent .Q-
Reso. # On Attachments: ~ Contract term: .-
Note on Resolution of Attachment stored separately: =---
Direct City Clerk to (circle 1): PUBLISH, POST, RECORD W/COUNTY By:
Null/Void After: -
Date Sent to Mayor: q- fl- 0-3
Date of Mayor's Signature: "\-1<-<:) S
Reso. Log Updated:
Seal Impressed:
~
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Date of ClerklCDC Signature:
Cl-\ ':=;~6:.~
Date Memo/Letter Sent for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Attached:
Date Returned: Ie.? 'I-CiS
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Yes ./ No By
Yes No ...L By
Yes N01 By
Yes NO-5 By
Yes No By
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance Dev. Services EDA"/ Finance
Police Public Services Water Others:
MIS
Notes:
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: ~
Date:
Revised 0 II 12/0 I