HomeMy WebLinkAboutR31-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
ORIGINAL
FROM: Maggie Pacheco
Executive Director
SUBJECT: Amendment No. 2 to the 1999 Grant
Agreement between the Redevelopment
Agency of the City of San Bernardino and
Casa Ramona, Inc., a California Non.Profit
Corporation
DATE: September 8, 2006
Svnopsis of Previous Commission/Council/Committee Action(s):
On August 24, 2006, Redevelopment Committee Members Johnson and Baxter unanimously voted to reconunend that
the Conununity Development Commission consider this action for approval, with certain conditions stated in this Staff
Report.
Recommended Motion(s):
(Communitv Development Commission)
Resolution of the Conununity Development Commission of the City of San Bernardino approving and
authorizing the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to
execute Amendment No.2 to the December 6, 1999, as subsequently amended, Grant Agreement by and
between the Agency and Casa Ramona, Inc., a California non-profit corporation
Contact Person(s):
Maggie Pacheco
Phone:
(909) 663-1044
Project Area(s):
N/A
Ward(s):
Supporting Data Attached: iii Staff Report iii Resolution(s) iii Agreement(s)/Contract(s) 0 Map(s) iii Letters
See Fiscal
FUNDING REQUIREMENTS: Amount: $ Impact Source: LowlMod Housing Fund
SIGNATURE:
Budget Authority:
1999 EDA Budget Appropriations
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P:\Agendas\Conun Dev Conunission\CDC 2006\09-18-06 CILSll Ramona - Final Amendment No_ 2 SR_doc
COMMISSION MEETING AGENDA
Meeting Date: 09/18/2006
Agenda Item Number: ~
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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AMENDMENT NO.2 TO THE 1999 GRANT AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CASA
RAMONA, INC., A CALIFORNIA NON-PROFIT CORPORATION
BACKGROUND:
On May 6, 1996, the Mayor and Common Council approved a revised second year Action Plan
component to the City's 1995-1999 CDBG Consolidated Plan. An allocation of $300,000 in CDBG
funds was included within this Action Plan for an activity referred to as the "New Casa Ramona
Project". The $300,000 in CDBG funds allocated to Casa Ramona, Inc. ("Casa Ramona"), was to be
used to pay the cost of preparing architectural plans, specifications and environmental documentation
for construction of a new Community/Senior Center to replace the old Casa Ramona building.
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In late May of 1996, as part of the preliminary environmental review process, Agency Staff contacted
the State Historical Preservation Office (SHPO) regarding the proposed "New Casa Ramona Project".
Subsequently, SHPO determined that the existing Casa Ramona building was eligible for listing on the
National Register of Historic Places. As a result of SHPO's determination, HUD advised Agency Staff
that it would not release CDBG funds to prepare plans and specifications if all or part of the existing
Casa Ramona building was demolished. However, given the cost of retrofitting the existing Casa
Ramona Community Center, it did not make economic sense for Casa Ramona to proceed with this
development option; therefore, the proposed CDBG allocation could not be used to prepare plans and
specifications for a new building. Consequently, Staff and Casa Ramona began seeking alternative
funding sources.
Located immediately contiguous and adjacent to the eXlstmg Casa Ramona Community Center
building is the Ramona Senior Housing Complex, which the Agency assisted with the construction
financing in order to provide affordable housing units for the elderly. Because of the location and
proximity to the Casa Ramona Community Center, the Ramona Senior Housing Complex was
developed with minimal amenities or without many of the service amenities that are typically an
integral part of elderly housing. Thus, the residents of the Ramona Senior Housing Complex are
dependent upon the existing Casa Ramona Community Center to meet their service needs. The
pending new Casa Ramona Community Center will enable Casa Ramona to provide additional and
enhanced services to meet the social, cultural, nutritional and recreational needs of the seniors
occupying the Casa Ramona Housing Complex as well as benefit other low and moderate-income
residents within and outside the Mount Vernon Corridor Redevelopment Project Area ("Project
Area"). Because of the integral nature of the Casa Ramona Community Center and the Casa Ramona
Housing Complex, on December 6, 1999, the Community Development Commission ("Commission")
approved a $240,000 Grant Agreement with Casa Ramona to substitute the loss of the CDBG funds
and to allow Casa Ramona to prepare their plans and specifications for the new Community Center.
The Commission also made specific findings related to the benefits associated with the proposed new
Community Center to the low and moderate-income residents living in the vicinity of Casa Ramona
Community Center, including, the Ramona Senior Housing Complex and adjacent Project Area
residents.
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P\Agendas\Comm Dev CommiS5ion\COC 2006\()9-18-06 Casa Ramona - Final Amendment No.2 SR,doc
COMMISSION MEETING AGENDA
, Meeting Date: 09/18/2006
Agenda Item Number: -1'<3/
Economic Development Agency Staff Report
Casa Ramona, Inc, - Amendment No. 2
Page 2 ,
\,.". In a letter dated December 3, 2002, Casa Ramona requested the Agency to modify the 1999 Grant
Agreement to allow them more time to complete the project. The Agency was further advised by Casa
Ramona, in a letter dated July 5, 2003, to delay their December 3, 2002, request to allow them more
time to thoroughly evaluate their needs and request to the Agency. On November 17, 2003, the
Commission approved Casa Ramona's request and approved Amendment No.1 to the 1999 Grant
Agreement by extending the project completion time to December 6, 2006. Amendment No.1 also
waived the requirement that Casa Ramona obtain one (I) executed letter of intent to lease from
prospective tenants for at least fifty percent (50%) of the new Community Center's square footage and
two (2) preliminary letters of commitment for funding the construction financing.
Since the approval of Amendment No.1, Casa Ramona has hired Jonathan Zane's Architectural firm
in Colton to design the Community Center, the office of Joe Bonadiman to conduct engineering
services, soils analysis to be undertaken by Southwest, Inc., and preparation of landscape plans by
Gary Malone, Landscape Architect, and retention of a space planner to assist with space planning and
the leasing of the Community Center leaseable areas. Their plans are expected to be completed by
September 30, 2006. Additionally, Casa Ramona is in the application process of securing State of
California Charter School start-up funds of $450,000, Revolving Loan funds of $250,000 and other
funding avenues to secure the construction funds needed for the project. Casa Ramona is also
formalizing partnerships with private and public agencies to lease spaces in the new center once it is
completed. Because Casa Ramona is a non-profit corporation, it has been a challenge raising the funds
and obtaining the construction funds needed for the project.
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CURRENT ISSUE:
The 1999 Grant Agreement and Amendment No. 1 contain performance date provisions requiring that
the new Community Center must be developed and Grant funds spent by December 6, 2006, or the
unspent Grant amount wilJ.remain with the Agency and any prior funds expended must be repaid to the
Agency at a three percent (3%) annual interest on a 10-year amortization schedule with equal,
consecutive monthly payments commencing on January 6,2007, through December 2017.
In light of the above progress, Casa Ramona, in the attached letter dated August I, 2006, requested an
eighteen (18) month extension (to June 6, 2008) to allow them more time to complete the construction
of the new Community Center. As of June 9, 2006, Casa Ramona has expended $86,092 in Grant
funds for architectural and landscape design work with a remaining unspent balance of$153,908.
However, at the August 24, 2006, Redevelopment Committee meeting, there was extensive discussions
on the length of time Casa Ramona is taking to complete the new Community Center, the lack of
progress and that Staff had learned Casa Ramona's Conditional Use Permit (CUP) had expired, and at
the conclusion of the discussion, the Redevelopment Committee recommended a thirty (30) month
time period to complete the new Community Center by Casa Ramona with the stipulation that this will
be the last extension granted to Casa Ramona. As a result of the Redevelopment Committee's
recommendation, Casa Ramona must complete the project not later than June 6, 2009, otherwise, the
Grant funds will become due and payable in equal consecutive monthly payments commencing on July
6,2009 through June 6, 2019, as provided in Amendment No.2.
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P:\Agemla$\Comm Dev Commission\CDC 2006\09-18-06 Casa Ramona _ Final All1tndment No.2 SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 09/18/2006
Agenda Item Number: !e:3J
Economic Development Agency Staff Report
Casa Ramona, Inc. - Amendment No. 2
Page 3
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ENVIRONMENTAL IMPACT:
Not applicable.
FISCAL IMPACT:
Funds for this Grant Agreement were appropriated and authorized by the Commission on December 6,
1999, and any carry over funds are reflected in the 2006-2007 EDA approved Housing Fund budget.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
i)
III 7 J:vJ.~
Maggie Pacheco, Executive Director
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COMMISSION MEETING AGENDA
Meeting Date: . 09/18/2006
Agenda Item Number: Il ~L
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1524 y/est 7th Street
San Bernardino, CA 92411
Telephone 909/889-0011
CASA RAMONA, INC.
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August 1,2006
Maggie Pacheco, Executive Director
San Bernardino Economic Development Agency
201 North E. Str~t, Suite 301
San Bernardino, CA 92401-1507
Re: Request for 18 Month Extension of 1999 Redevelopment Agency and Casa
Ramona, Inc. Grant Agreement ("Agreement").
Proposed Extension Period: December 6. 2006 to June 6. 2008
Dear Ms. Pacheco:
This letter is in response to your letter <l&ted July 31, 2006. Please accept my
...... appreciation of your acknowledgement and response to our inquiries/requestS of which
were outlined in our meeting of June 2, 2006. I would like to share additional
information regarding our progress and wish to formally request an 18 month extension
of the Redevelopment Agency and Casa Ramona Inc. Grant Agreement.
We are confident that this extension would enable us to carry out within this time frame
the exp~nditures associated with the Planning (planslPlan ~heck) and course of
construction activities ( (i) - (v) elementS/items) described in your letter.
Over the course of the last couple of years, we bad found it almost impossible to find an
architect that would do the plans for the New Casa RamOlia at a lowl;r cost thlIi1 KaddlI1ll;
who we had as the previollil architect for this construction project. We succeeded
eventually, by hiring Jonathlli1 Zane a local Architectural firm from Colton, CA to
finalize the plans. We also have the offices of Joe Bonadiman doing the engineering, as
welI as'the soils report engineered by Southwest Inc. and the Landscape Engineering
being completed by Gary Malone, Landscape Architect.
A pre-plan check meeting was held with Valerie Ross regarding our submis&ion of the
Conditional Use Permit (CUP) and the final plans. The' CUP and final Architectural
Plans wilI be addressed simultaneously by The Planning Department upon anticipated
completion of the plans within the next month. .
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"-" Casa Ramona is committed to providing services to the senior citizens in this area, as
well as our Child Development Center and anticipates expansion of these services within
the new facility. Additionally, at a meeting between you and Mr. Antolin Gomez he
apprised you of the intentions of Casa Ramona to establish a Charter School to be housed
in the new facility. The importance of the Charter School, aside from providing vital I
educational services to K -12 youth within the area, is that, there are a number of financial
incentives from the leasing of approximately 10,000 square feet of classroom space and
the prospect of receiving funds from the State of California Department of Education to
help offset some of the construction costs of the new facility.
The above mentioned arrangements would enable Casa Ramona Inc. to effectively secure
and service the construction loan for building the new facility. Additionally, Casa
Ramona is presently pursuing joint venture and partnership initiatives with private and
public non-profit agencies to provide Custom Vocational/Job Training and establishing
English Leamer and Citizenship Classes. As a result of these efforts, Casa Ramona
currently provides on-site English classes, GED and post secondary college enrollment
opportunities for area youth on Mondays and Wednesdays, through partnership with The
Latin Business Institute and DeAnza College from San Jose, California. Casa Ramona
Inc. will continue seeking other non-profits and public agencies to lease space to, which
in turn, will provide other vitally needed social services to seniors, youth and the general
public.
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The Casa Ramona community center has historically served the youthful segments of our
community. For example, during the late 1970's Casa Ramona established an innovative
gang intervention program that successfully brokered peace agreements between warring
San Bernardino and Colton gang rivals. Gang related violence and deaths took place on a
weekly basis in our neighborhoods for almost a year claiming many young lives. Through
our program gang pacts for peace were developed which included gangs from adjacent
jurisdictions. Direct youth oriented intervention and empowerment activities will be one
of the rnajot youth services to be housed in the new facility, coupled with our youth
leadership development programmed as part of the Casa Ramona Academy Charter
School's - school-culture.
Obviously, substantial progress has been made since we last communicated. The
Architectural Plans will be completed during September, 200611nd we look forward to I
building this facility during the proposed extension period. Therefore, costs associated
with sections (i) - (iii) detailed in the grant Agreement shall be covered fully, while the )
remaining balance of the grant funds should adequately cover section (iv) and especially
section (v) with the understanding that the community center would be completed by
June 6, 2008 ~.
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The planning and development of the New Casa Ramona Community Center facility has
been a long and difficult project in process. Non-profits doing what we propose to do, is
very difficult. Unlike the private sector, non-profits do not readily have the personnel
with the expertise, time or the money to produce projects in similar fashion.
.
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Simultaneous project activities are presently in process, all designed to cOme online
during and upon completion of the New Casa Ramona Community Center Facility. For
example:
. We will begin the plan appraisal and construction bidding once plans are
completed in September, 2006. This will take approximately 1 - 2 months
. We will move the completed sets of plans through the Plan Check, Demolition
permit and Engineering approval process. This will take approximately 4 - 6
Months. We project construction to take approximately 12 months less any
unforeseen delays due to technical or unpredictable acts of nature.
. We are interfacing with the San Bernardino Unified School District for Charter
School approval. The new facility will lease all required (approximately 10,000
Sq. Ft.) administration & classroom space to operate the charter school.
. We are in the application process in securing State of California Charter School
Start-Up funds ($450,000), Revolving Loan Funds ($250,000), and Technology
(Computer Network) and Facility Grant (reimbursement) funding.
. We are currently engaged in formalizing partnership relationships with local
public and private job training, and career education institutions to dovetail onto
our charter school development efforts and new facility leasing arrangements.
. Per our site specification, considerable facility space has been set-aside to meet
our Senior Citizen and Child Development Center's service expansion plans
within the new Casa Ramona Community Center.
........
We hope that this information is helpfl1l and sufficient to merit a positive response to this
extension and the previous requests for a space planner to facilitate and help expedite our
planning and construction efforts. We look forward to working closely with your office in
order to move forward with the building of this new facility, to which, the Casa Ramona
Board of Directors is fully committed and looks forward to hearing from you very soon.
Thank you very much for your assistance.
Sincerely _ C? t
~u---~
illas, Secretary
ona Board of Directors
CC: New C.R.
C.R. Board
C.R. Files
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
AMENDMENT NO.2 TO THE DECEMBER 6, 1999, AS SUBSEQUENTLY
AMENDED, GRANT AGREEMENT BY AND BETWEEN THE AGENCY
AND CASA RAMONA, INC., A CALIFORNIA NON-PROFIT
CORPORATION
WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a
9 public body, corporate and politic, organized and existing pursuant to the Constitution and laws of
10 the State of California and the Agency has the authority to provide financial assistance to non-
11 profit housing entities or public service providers, such as Casa Ramona, Inc., a California non-
12 profit corporation ("Casa Ramona"), for the purpose of improving affordable housing
13 opportunities for low and moderate-income persons; and
14
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WHEREAS, Casa Ramona proposes to develop a new community center ("Community
15 Center") for the benefit of the forty-four (44) unit Ramona Senior Housing Complex ("Senior
16 Housing Complex") and the low and moderate-income residents of the City, and said Community
17 Center is adjacent to the Mt. Vernon Corridor Redevelopment Project Area pursuant to the terms
18 of the December 6, 1999, Grant Agreement, and as subsequently amended by Amendment No.1
19 on November 17, 2003, between the Agency and Casa Ramona (the "Agreement"); and
20
WHEREAS, under the Agreement, after appropriate findings were made by the
21 Community Development Commission ("Commission") on December 6, 1999, pursuant to
22 Resolution No. CDC/1999-45, the Agency provided a grant in the amount of Two Hundred Forty
23 Thousand Dollars ($240,000) from the Agency's Housing Fund to Casa Ramona to assist with the
24 development of the new Community Center subject to those certain conditions and requirements
25 contained in the Agreement and said Community Center was to be completed by December 6,
26 2006; and
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P IAgendas\Resohuions\Resolutions\2006\09-]S-06 Casa Ramona Fillal Amendment No, 2 CDC Reso,doc
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1 . WHEREAS, Casa Ramona and the Agency desire to amend the Agreement in order to
2 extend the completion date to June 6, 2009, for development of the new Community Center in
3 accordance with the conditions and provisions of Amendment No.2 as attached to this Resolution
4 ("Amendment No.2").
5
NOW, TI-IEREFORE, TI-IE COMMUNITY DEVELOPMENT COMMISSION OF TI-IE CITY
6 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
7
Section 1.
The Commission hereby approves Amendment No. 2 to the December 6,
8 1999, Grant Agreement and as subsequently amended on November 17, 2003 and authorizes the
9
Executive Director of the Agency to execute Amendment No.2 as presented and considered at
10
this meeting. The Commission further authorizes the Executive Director of the Agency, subject to
11
the approval of Agency Counsel, to make minor and/or technical changes to the Amendment No.
12
2 provided that such changes or clarifications are not substantive and do not increase the Agency's
13
monetary obligation or change any dates for performance.
The Resolution shall become effective immediately upon its adoption.
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P\Agendas\ResolutiOlls\Resolulions\2006\09_IS.06 Casa Ramona Final Amendmenl NO.2 CDC Reso.doc
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
AMENDMENT NO.2 TO THE DECEMBER 6,1999, AS SUBSEQUENTLY
AMENDED, GRANT AGREEMENT BY AND BETWEEN THE AGENCY
AND CASA RAMONA, INC., A CALIFORNIA NON-PROFIT
CORPORATION
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7
meeting thereof,
Development Commission of the City of San Bernardino at a
, 2006, by the following vote to wit:
Navs
Abstain
Absent
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20 The foregoing resolution is hereby approved this
Secretary
day of
,2006_
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Patrick J_ Morris, Chairperson
Community Development Commission
of the City of San Bernardino
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Approved as to Form and Legal Content:
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26 By: ~7
Agenc 0 sel
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P,\Agendas\Resolutiolls\Resolutions\2006\09-IS-06 Casa Ramona Final Amendment No 2 CDC Reso.doc
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AMENDMENT NO.2
TO THE 1999 GRANT AGREEMENT BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND CASA RAMONA, INC.
(CASA RAMONA COMMUNITY CENTER REDEVELOPMENT PROJECT)
THIS AMENDMENT NO.2 TO THE DECEMBER 6, 1999 GRANT AGREEMENT
("Amendment No.2") dated September 18, 2006, is hereby made between Casa Ramona, Inc., a
California non-profit corporation ("Casa Ramona"), and the Redevelopment Agency of the City of
San Bernardino, a public body, corporate and politic ("Agency"), as set forth herein.
RECITALS
WHEREAS, the Agency is a public body, corporate and politic, organized and existing
pursuant to the constitution and laws of the State of California and the Agency has the authority to
provide financial assistance to non-profit housing entities or public service providers, such as Casa
Ramona, for the purpose of improving affordable housing opportunities for low and moderate
income persons; and
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WHEREAS, Casa Ramona, proposes to develop a new community center ("Community
Center") for the benefit of the forty-four (44) unit Ramona Senior Housing Complex ("Senior
Housing Complex") and the low- and moderate-income residents of the City and which Community
Center shall be adjacent to the Mount Vernon Corridor Redevelopment Project Area pursuant to the
terms of the December 6, 1999, Grant Agreement by and between the Agency and Casa Ramona
("1999 Grant Agreement"); and
WHEREAS, under the 1999 Grant Agreement, pursuant to the findings made by the
Community Development Commission of the City of San Bernardino ("Commission ") on December
6, 1999, by Resolution No. CDC/1999-45, the Agency is to provide a grant of Two Hundred Forty
Thousand Dollars ($240,000) (the "Agency Grant") from the Agency's low- and moderate-income
housing fund (the "Housing Fund") to Casa Ramona to assist with the development of the
Community Center subject to those certain conditions and requirements contained in the 1999 Grant
Agreement; and
'I......'
WHEREAS, in order to allow the Community Center to proceed, the Agency and Casa
Ramona desire to amend the 1999 Grant Agreement pursuant to which the Agency will (i) disburse
funds to Casa Ramona for the purpose of continuing the preparation of the architectural design and
engineer plans for the Community Center; (ii) extend the Schedule of Performance for the
completion of all architectural and engineering design work and to extend the time for the
completion of the construction of the Community Center from December 6,2006, to June 6, 2009;
and ifCasaRamona is unable to complete the project by this date, it is understood that the ten (10)
year amortization schedule of the Grant repayment will be modified to commence on July 6,2009,
and extend through June 6,2019, in accordance with the provisions herein; and
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P:\Agendas\Agmda Allachmems\Agmn-Amend 2006\09-18.06 Casa Ramona Final Am:ndment No. 2.doc
r WHEREAS, Amendment No. I to the 1999 Grant Agreement was approved by the
'- Commission on November 17, 2003, by Resolution No. CDC/2003-39 and since the date of such
approval, Casa Ramona has hired architects, landscape architects and soil analysis and other
consultants to design and prepare plans for the development of the new Community Center and
$86,092 of the Agency Grant funds have been expended, with a remaining balance of$153,908.
IN CONSIDERATION OF THE COVENANTS AND PROMISES OF THE PARTIES TO
THIS AMENDMENT NO.2, CASA RAMONA AND THE AGENCY HEREBY AGREE AS
FOLLOWS:
Section 1.
The section of the 1999 Grant Agreement as amended by Amendment No. I entitled
"Section 3. 6. - Agency Grant - Terms and Conditions of the Agreement" is amended in its entirety
to read as follows:
"6. The Agency shall not disburse any portion of the Agency Grant on or after June 6,
2009, pursuant to the 1999 Grant Agreement. In the event the planning and design of the New
Community Center Project is suspended by Casa Ramona or in the event that a Certificate of
Occupancy is not issued for the New Community Center Project by the City of San Bernardino
Building Department on or before June 6, 2009, the remaining balance of the Agency Grant which
has not been disbursed for the account of Cas a Ramona shall revert to the Agency and Casa Ramona
shall repay any previously disbursed amount of the Agency Grant to the Agency, together with an
.... interest at the rate of three percent (3%) per annum on a ten (10) year amortization schedule with
substantially equal, consecutive monthly payments to be remitted by Casa Ramona to the Agency
commencing on July 6, 2009, continuing through and including the final payment on June 6, 2019.
Casa Ramona acknowledges and agrees that there will be no further amendments and extensions
requested by Casa Ramona from the Agency to the 1999 Grant Agreement nor will the Agency grant
any further extensions to the 1999 Grant Agreement.
Except as set forth in the preceding paragraph of this Section I of this Amendment No.2, all
other provisions of the 1999 Grant Agreement and Amendment No. I shall remain in full force and
effect.
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IN WITNESS WHEREOF, Casa Ramona and the Agency have executed this Amendment
No.2 to the Agreement as of the date first written above.
Approved as to Form and Legal Content:
By:
r/~jL
Agency Co I
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
By:
Maggie Pacheco, Executive Director
CASA RAMONA
Casa Ramona, Inc., a California non-profit corporation
By:
Ray V. Coronado, Board President
By:
Jerry Casillas, Secretary
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