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HomeMy WebLinkAbout10282 .'. 21 22 23 24 'I 25 26 27 28 29 30 31 32 10 11 12 13 14 15 16 17 I 181 19 20 II , , . ... -,,.. , 1/ 2/ 31 RESOLUTION NO. /().;('€rJ.. A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE CITY HALL-EXHIBIT HALL FACILITIES SUBLEASE BETWEEN SAID CITY AND THE SAN BERNARDINO CIVIC CENTER AUTHORITY. 4 BE IT RESOLVED BY 'I'HE MAYOR AND COMMON COUNCIL OF 'l'Hfo; CI1'Y OF' 5 SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor of the City of San Bernardino is hereby 7 authorized and directed to execute on behalf of said City an 8 I Amendment to the City Hall-Exhibit Hall Facilities Sublease between 9 said City and the San Bernardino Civic Center Authority, a copy of which is attached hereto, marked Exhibit "A", and referred to and made a part hereof as fully as though set forth at length, I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a,~ c-h1:<J.oA~",d-/J'&7/n:lA.II meeting thereof held on the --7s-m,day of ~~"J- , 1970, by the following vote, to wit: Ayfs: Councilmen, L".I"....",L ,. .0M&,d,./)/ '7<,L~~ Z:::~~'1;t;;::~"'4 , NOES: ABSENT: ~ AL-YJ rJ ~~j,,~ City C rk The foregoing resolution is hereby approved this 2.. "lb";. , day of I '7?(~1' , 1970. ~ ~tr~aroino Approved as to form: ..7 ;:/~~ D .....C..<' ~ -tr C ty Attorney FILED MAy .~ ti 1970 , t, . . .- 5/25/70 CITY HALL - EXHIBIT HALL FACILITIES SUBLEASE THIS SUBLEASE dated for convenience as of May 1, 1970, by and between the SAN BERNARDINO CIVIC CENTER AUTHORITY (herein called "Authority"), a public entity and agency, duly organized and existing pursuant to an agreement entitled "Joint Exercise of Powers Agreement Between the City of San Bernardino, the County of San Bernardino, and the Redevelopment Agency of the City of San Bernar- dino Creating an Agency to be known as the San Bernardino Civic Center Authority", and the Cit,' of San Bernardino, California, (herein called "City"), a municipal corporation "\VITNESSETH: That for and in consideration of the mutual promises and agree- ments herein contained, the parties hereto agree as follows: SECTION 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Sublease, have the meanings herein specified. Agreement "Agreement" means that certain Agreement entitled: "Joint Exer- cise of Powers Agreement between the City of San Bernardino, the County of San Bernardino, and the Redevelopment Agency of the City of San Bernardino Creating an Agency to be known as the San Bernar- dino Civic Center Authority" under and pursuant to which the Author- ity has been organized, dated for convenience as of April 27, 1970. Base Rental "Base Rental" means the total rental due for the Project when completed, but does not include Additional Rental. Bonds "Bonds" means the revenue bonds to be issued by the Authority under and pursuant to the Resolution. Construction Contract "Construction Contract" means the construction contract or con- tracts providing for the construction of the Facilities, including, with- out limitation, the plans and specifications, any addenda thereto, and other construction documents, a copy of which is or will be on file in the office of the Secretary of the Authority and the City Clerk of the City, 1 .' 5/25/70 Facilities "Facilities" means the City Hall- Exhibit Hall, and all facilities appurtenant thereto or provided therefor together with any appur- tenances. "Facilities" includes all of the Project except the Site. Ground Lease "Ground Lease" means the City Hall- Exhibit Hall Ground Lease, dated for convenience as of May 1, 1970. · Notes . "N otes" IllPans the noh's which may be issned by the Authority . under and pursnant to the Resolntion. Project or Leased Premises "Project" means the Site and Facilities thereon. Said Project is sometimes referred to as "Leased Premises". Resolution "Resolution" means the Resolution to he adopted by the Authority providing for the issuance of its Bonds. Site "Site" means the real property on which the Facilities described herein are to be located, which is described in Exhibit A attached hereto and by this reference incorporated herein. Such real property is leased to Authority by means of the Ground IJease. Sublease "Sublease" means this City Hall- Exhibit Hall Facilities Sub- lease. Term "'J'erm" means the term of this Sublease as provided in Section 3 hereof. Trustee "Trustee" means the fiscal agent appointed under the Resolution and referred to therein as "Trustee" and any successor appointed as therein provided. SECTION 2. Sublease of Project The Authority hereby subleases to the City the Site subject to conditions, reservations, exceptions, and rights of way which are of record. The Authority hereby leases to the City the Facilities to be constructed thereon. 2 . 5/25/70 SECTION 3. Term. The term of this Sublease shall commence when the Project is substantially completed and available for occupancy and written notice thereof has been served on City, but in no event later than four (4) years from the date of execution hereof, plus any extension of com- pletion date provided under any Construction Contract. Although . this contemplates the City Hall and Exhibit Hall being substantially . compldcd and the City occupying both on the same date, it shall not preclude City and Authority from agreeing that the City may occupy all or part of the City Hall and/or the Exhibit Hall prior to the other being completed, provided rental is paid therefor as set forth in Section 4, and, in such case, the term of this Sublease shall commence upou such occupancy. This Sublease shall end on May 1, 2006, or such earlier time when the Bonds issued by the Authority pursuant to the Resolution have been retired or provision for payment has been provided for pur- suant thereto, and, at such time, any surplus funds remaining in the hands of the Trustee shall be paid to City. SECTION 4. Rental 'l'he City shall pay the Base Rental and the Additional Rental to the Authority in the amounts, at the times and in the manner set forth herein, said amounts constituting in the aggregate the total of the annual rentals payable under this Sublease as follows: (a) Base Rental. For the period commencing on (1) the date on which City shall be served with written notice that the Project has been substantially completed and is ready for occupancy, or (2) the date which City occupies all or part of the City Hall and/or the Exhibit Hall, whichever (1) or (2) occurs first, City agrees to pay to the Trustee for the account of the Authority in advance for each fiscal year rent at the · rate of $4R!l,OOO per annum, subject to adjustment as hereinafter set forth and rent sball cease when the Bonds have been paid or provision for payment has been made. In the event that the liability of City for rent at said annual rate does not commence on July 1, 1971, the rent to be paid for the remaining portion of the fiscal year in which such liability commences shall be prorated and shall be paid within thirty (30) days following commencement of such liability, but in no event later than the next succeeding June 30. During the remainder of the term of the lease to City, said rental shall be due on July 1 and may be paid On or before July 31 without penalty or interest in each fiscal year for use of the premises during said fiscal year. 3 5/25/70 (b) Additional Rental. In addition to and after the commencement of the Base Rental hereinabove set forth, the City shall pay to the Trustee for the account of the Authority an amount or amounts (herein- after called "Additional Rental") equivalent to the sum of the fol- lowing: (i) All taxes and assessments of any nature whatsoever, in- cluding, but not limited to, excise taxes, ad valorem taxes, ad valorem and specific lien special assessments and gross receipts taxes, if any, levied upon the Project or upon the Authority's interest therein or upon the Authority's operation thereof or the Authority's rental income derived therefrom. (ii) All expenses (not otherwise paid or provided for out of · the proceeds of the sale of Notes and/or Bonds of the Authority) . incidental to the issuance of the Kotes and/or Bonds and all ad- . ministrative costs of the Authority, including, without limiting the . w"nerality of the foregoing, salaries, wages, expenses, compensa- . tion and indemnification of the Trustee under the Resolution, fees . and charges of auditors, accountants, architects, attorneys and . engineers, and all other necessary administrative charges of the . Authority or charges required to be paid by it in order to comply · with the terms of the Notes and/or Bonds or of the Resolution and · to defend the Authority and its members. (iii) Insurance premiums, if any, on all insurance required or permitted under the provisions of Section 8 hereof. (iv) All costs and expenses which the Authority may incur in consequence of or because of any default by the City under this Sublease, including reasonable attorneys' fees and costs of suit in equity or action at law to enforce the terms and conditions of this Sublease. (v) All sums necessary to maintain at the amount of $2,500 the Working Capital Fund established pursuant to the Resolution. The Additional Rental payable hereunder shall be paid by the City within ten (10) days after notice in writing from the Authority to the City stating the amount of Additional Rental then due and payable and the purpose thereof; provided that the City's liability for Additional Rental shall be limited to the balance due under the Resolution. Nothing herein contained shall prevent the City from making from time to time contributions or advances to the Authority for any purpose now or hereafter authorized by law. 4 5/25/70 (c) Consideration. The payments of Base Rental and Additional Rental hereunder for each fiscal year of the term of this Sublease shall constitute the total rental for said fiscal year and shall be paid by the City for and in consideration of the right of use and occupancy, and the continued quiet use and enjoyment, of the Leased Premises for and during said fiscal year which the City receives. The parties hereto have agreed and determined that such total rental represents the fair rental value of the Leased Premises. In making such determina- tion, consideration has been given to the costs of acquisition and financ- ing the construction of the Facilities, the uses and purposes which will be served by the Facilities and the benefits therefrom which will accrue to the parties to the Agreement and the genm'al public by reason of the Facilities. (d) Budget. The City shall take such action as may be neces- sary to include and maintain all such total rental payments due here- under in each fiscal year in its budget for such fiscal year and further shall make the necessary appropriations for all such rental payments. The City shall furnish to the Authority and to the Trustee under the Resolution copies of the budget at least fifteen (15) days before final adoption thereof. 'fhe covenants on the part of the City herein con- tained shall be deemed to be and shall be construed to be ministerial duties imposed by law and it shall be the ministerial duty of each and every public official of the City to take such action and do such things as are required by law in the performance of such official duty of such officials to enable the City to cal'l'Y out and perform the covenants and agreements in this Sublease agreed to be cal'l'ied out and per- formed by the City. (e) Payment. Each annual Base Rental payment and each Addi- tional Rental payment shall be paid in lawful money of the United States of America, by warrant or check drawn against funds of the City, at the office of the Trustee in Los Angeles, California, or at such other place 01' places as may be set forth in the Resolution. Each annual Base Rental payment and each Additional Rental payment which is not paid when due shall bear interest at a rate which is the same as the average interest rate pel' annum which the Bonds bear from the date on which the Base Rental payment or Additional Rental payment, as the case may be, becomes due until the same is paid. Notwithstanding any dispute between Authority and City hereunder, City shall make all rental payments when due and shall not withhold any rental payments pending the final resolution of such dispute. In 5 .~ 5/25/70 the event of a determination that City was not liable for said rental payments or any portion thereof, said payments or excess of payments as the case may be shall be credited against subsequent rental payments due hereunder. (f) Adjustment of Base Rental. The Base Rental above set forth is based upon the schedule for adjustment of Base Rental, marked Ex- hibit B and made a part hereof. Such schedule is used for computing the yearly rent necessary for Authority to receive to enable it to pay the principal of and interest on its Bonds pursuant to the Besolution and to furnish the Authority with the necessary working capital and reserves. If practicable, when firm bids have been obtained and the interest rate or rates on the Authority's Bonds are known, Authority and City shall recompute the annual Base Rental in the same man- ner, based upon said figures, and shall adjust the annual Base Rental upwards or downwards to the new figure so determined. (g) Credit on Base Rental. There shall be credited against Base Rental any amount required to be so credited under the Resolution. SECTION 5. Construction of Project. The City, as agent for the Authority, shall construct, or cause to be constructed, the Facilities on the Site in accordance with the Con- struction Contract on file in the office of the City Clerk and the Secre- tary of the Authority. The Construction Contract shall be awarded to a contractor or contractors licensed under the laws of the State of California and such Construction Contract shall be awarded after competitive bidding following the procedures required by the applicable laws of the State of California relating to the awarding of contracts of a similar nature by the City. For the purpose of paying the cost of construction of the Facilities on the Site and all costs and expenses incidental thereto, including, but not limited to, architectural fees for · design of the Facilities, the Authority shall issue its Notes and/or . Bonds pursuant to the Resolution. Prior to July 1, 1970, the City . shall pay to the Authority $410,000, which thc Authority shall deposit · with the 'l'rustee for deposit in the Construction Fund. The City may order changes in the work during construction without the consent of the Authority; provided, however, that unless sufficient additional funds are provided therefor (i) the cost of the Project shall not exceed that which is established at the time when the Bonds are issued by the Authority, and (ii) the cost of change orders shall not exceed the reserve therefor established at such time. City shall take no action which extends the period of construction 6 5/25/70 beyond the period for which the Authority has funded interest on its Bonds unless sufficient additional funds are provided therefor. Any moneys remaining in the Construction Fund to be established under the Reso]ution after the construction and completion of the Faci]ities shall be applied by the Authority as provided in the Reso]ution. The Authority shall assume the obligations under the employment eon tracts of the City with the financing consultants and Bond Counsel, and shall become a client of said finns in accordance with the terms of said eon tracts. SECTION 6. Maintenance and Operation. The City shall, at its own expense, maintain the Leased Premises and all improvements thereon in good order, condition and repair. The City shall provide or eause to be provided all security service, custodia] service, janitor serviee, power, gas, telephone, light, heating and water, and all other public utility services. It is understood and agreed that in consideration of the payment by the City of the rental herein provided for, the Authority is only obligated to furnish the Leased Premises, and the Authority shall have no obligation to incur any expense of any kind or character in connection with the manage- ment, operation or maintenance of the Leased Premises during the term of this Sublease. The City shall keep the Leased Premises and any and all improvements thereto free and clear of all liens, charges and encumbrances. SECTION 7. Additions and Improvements. The City shall have the right during the term of this Sublease to make any additions or improvements to the Leased Premises, to attach fixtures, structures or signs, and to affix any personal property to the improvements on the Leased Premises, provided the use of the Leased Premises for the purposes contemplated in this Sublease are not im- paired. 'l'itJe to all persona] property placed in any of the improve- ments on the Leased Premises shall remain in the City. The title to any persona] property, improvements or fixtures placed on the Leased Premises by any sublessee or licensee of the City shall be controlled by the concession contracts entered into by the City. SECTION 8. Insurance. Authority shall, during the tenn of this Snblease, keep or cause to be kept a policy or po]ieies of insurance against Joss or damage to the 7 5/25/70 Leased Premises, and appurtenances and permanent equipment, re- sulting from fire, lightning, vandalism, malicious mischief, and such perils ordinarily defined as "extended coverage" and other perils as Authority and City may agree should be insured against on forms and in amounts satisfactory to each. City and Authority, as the case may be, shall be named as an additional insured under such policies of insurance as the building contractor or contractors may be required by Authority to carry during the construction of the Facilities. Should the contractor or contractors not be required to carry insurance with respect to earthquake damage during the term of the construction of the project, City shall carry such insurance and shall name Authority as beneficiary thereunder. Nothing herein shall be construed to require the Authority to carry insurance with respect to equipment or fixtures of the Leased Premises not provided by the Authority pursuant to the plans and specifications for construction of the Facilities. During the term of this Sublease, Authority shall keep or cause to be kept public liability and property damage policies protecting both Authority and City on forms and in amounts satisfactory to each. The Authority may also carry or cause to be carried such other insurance as is required by the Resolution. All premiums and charges due and payable by Authority for all of the aforesaid insurance shall be paid by the City in accordance with the provisions of Section 4. Any such premium for a period partly within such period shall be prorated. At the option of the City, any insurance required of the Authority hereunder may be provided by the City. Notwithstanding the generality of the foregoing, the Authority shall not be required to maintain or cause to be maintained any insur- ance which is not available from reputable insurers on the open market or more insurance than is specifically referred to above. SECTION 9. Damage by Fire, Earthquake, Etc. It is expressly understood and agreed that the rentals hereunder shall become due only in consideration of the right to occupy and use the Leased Premises from year to year, and, except as herein provided, it is the repsonsibility of Authority to provide such right at all times. In the event of destruction or damage to the Leased Premises by fire or earthquake or other casualty or events so that they become 8 5/25/70 wholly or partly unusable, Authority, at its option, may do either of the following: (1) Rebuild and repair the Leased Premises so that they shall be restored to use, in which case this Sublease shall remain in full force and effect. Any excess of insurance proceeds resulting from such destruction or damage (other than business [rent] interruption insurance) over the amount cxpended for such re- pairing or rebuilding, shall be paid to City, or (2) Declare this Sublease to City terminated and use any money collected from insurance against the destruction of or dam- age to the Leased Premises to the extent necessary to retire any outstanding securities or any debts or liabilities which Authority may have; provided, however, that if the Leased Premises can be repaired or rebuilt within the period for which Authority has in- surance against business (rent) interruption, and if Authority shall have sufficient funds from the proceeds of insurance or otherwise for the necessary repairing or rebuilding, Authority shall not proceed under this option without the City's consent. During such time as the Leased Premises are unusable, rent shall cease. No further rental payments shall accrue until such Leased Premises are again ready for occupancy and rental payments already made, if any, shall be equitably abated and adjusted accordingly. In the event of partial damage to, or destruction of, the Leased Premises, so as to render a portion thereof unusable by City, such rental payments (including those already made, if any) shall during the period of the partial unusability of the Leased Premises be in an amount that represents the fair market rental value of the remainder of the Leased Premises usable by City. . SECTION 10. Assignment, Fhlblease, Notes and Bonds. Neither this Sublease nor any interest of the City herein shall, at any time after the date hereof, without the prior written consent of the Authority, be mortgaged, pledged, assigned or transferred by City by voluntary act or by operation of law, or otherwise, except as specifically provided herein. The City shall at all times remain liable for the performance of the covenants and conditions on its part to be performed, notwithstanding any assigning, transferring or subletting which may be made. The City shall have the right to further sub- lease or permit the use of all or any part of the Leased Premises, but nothing herein contained shall be construed to relieve the City from 9 5/25/70 its obligation to pay rental as provided in this Sublease or relieve the City from any other obligations contained herein. The Authority · shall issue its Notes and/or Bonds under and pursuant to the Resolu- · tion. Should th!! Authority issue its Notes under and pursuant to the · Resolution tllP provisions of this Sublease relating to the Bonds and · the s!!enrity thereof, shall, unless the context oth!!rwise requires, b,; · applicahle to the Notes and such provisions shall he construed as if the · ddinition of "Bonds" included "Notes". Such Resolution shall operate . as an assignlllPnt of the Snblease to the Trustee for financing purposes. · TI1P Authority may provide for the execution of any and all instru- · ments necessary and proper in connection therewith. ,Vhen!!ver in this . Suhleas,' any consent or approval is required, the same shall not he · ullreasonabl~' withheld. Any items h,'rein required or permitted to be · done hy the Anthority, may, if so jlrovided under the Resolution, he · performed b~' the Trust!!e tllPrmmdt'r. SECTION 11. Eminent Domain If the whole of the Leased Premises, or so much thereof as to render the remainder unusable for the purposes for which the same was constructed, shall he taken under the power of eminent domain, then this Sublease shall terminate as of the day possession shall be so taken. If less than the whole of the Leased Premises shall be taken under the power of eminent domain, and the remainder is usable for the Project purposes, then this Sublease shall continue in full force and effect and shall not be terminated by virtue of such taking and the parties waive the benefit of any law to the contrary, in which event there shall he a partial ahatement of the rent hereunder in an amount equivalent to the amount by which the annual payments of principal of, and interest on, the outstanding Bonds of the Authority will be reduced in any applicable year by the application of the award in eminent domain to the call for redemption of outstanding Bonds. Any award made in eminent domain proceedings for the tak. ing or damaging of the Leased Premises in whole or in part shall be paid to the Trustee for the direct benefit of the holders of the Bonds and shall be used by the Trustee (together witb any other money which shall be or may be made available for such purpose), to call, as nearly as may be, a principal amount of bonds in each of the remaining ma- turities so that as nearly as possible in the discretion of the 'l'rustee equal annual payments of principal and interest on the outstanding bonds remaining will be maintained after said call. 10 5/25/70 In the event the amount so paid to the Trustee shall be more than sufficient to retire the Bonds then outstanding any such excess shall be paid hy the Trustee to the City. SECTION 12. Right of Entry. The Authority and its designated representatives shall have the right to enter upon the Leased Premises during reasonable business hours (and in emergencies at all times) (i) to inspect the same, (ii) for any purpose connected with the Authority's rights or obligations under this Sublease, or (iii) for all other lawful purposes. SECTION 13. Liens. Except for payments made or required to be made under the Resolution, the City shall payor cause to he paid, when due, all sums of money that may hecome due for, or purporting to be for, any labor, services, materials, supplies or equipment alleged to have been fur- nished or to be furnished to or for, in, upon or about the Leased Premises and which may he secured by any mechanics', materialman's or other lien against the Leased Premises, and/or the Authority's interest therein, and shall cause each such lien to be fully discharged and released; provided, however, that if the City and/or Authority de- sires to contest any such lien, this may be done, and if such lien shall be reduced to final judgment and such judgment or such process as may be issued for the enforcement thereof, is not promptly stayed, or if so stayed and said stay thereafter expires, then and in any such event the City shall forthwith pay and discharge said judgment. SECTION 14. Taxes. The parties understand and agree that the Leased Premises con- stitute public property free and exempt from all taxation; however, the Authority agrees to take whatever steps may be necessary, upon written request by the City, to contest any proposed tax or assess- ment, or to take steps necessary to recover any tax or assessment paid. The City agrees to reimburse the Authority for any and all costs and expenses thus incurred by the Authority. SECTION 15. Quiet Enjoyment. The parties hereto mutually covenant and agree that the City, by keeping and performing the covenants and agreements herein con- tained, shall at all times during the term, peaceably and quietly, have, hold and enjoy the Leased Premises. II '. 5/25/70 SECTION 16. Law Governing. This Sublease is made in the State of California under the Con- stitution and laws of such State and is to be so construed. SECTION 17. Notices. All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations here- under by either party to the other shall be in writing and shall be sufficiently given and served upon the other party, if sent by United States registered mail, rcturn receipt requested, postage prepaid and addressed as follows: City - City Clerk, City Hall, San Bernardino, California Authority - Secretary of the Authority, c/o City Clerk, City Hall, San Bernardino, California SECTION 18. Waiver. The waiver by the Authority of any breach by the City of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. SECTION ] 9. Defattlt by City. If (a) City shall fail to pay any rental payable hereunder within fifteen (15) days from the date such rental is payable, or (b) City shall fail to keep any such other terms, covenants or conditions con- tained herein for a period of twenty-five (25) days after written notice thereof from Authority to City, or (c) City shall abandon or vacate the premises, or (d) City's interest in this Sublease or any part thereof shall be assigned or transferred without the written consent of Author- ity, either voluntarily or by operation of law, or (e) City shall file any petition or institute any proceedings wherein or whereby City asks or seeks or prays to be adjudicated a bankrupt, or to be discharged from any or all of its debts or obligations, or offers to City's creditors to effect a composition or extension of time to pay City's debts, or asks, seeks or prays for a reorganization or to effect a plan of reorganization, or for a readjustment of City's debts, or for any other similar relief, or (f) any such petition or any such proceedings of the same or similar kind or character shall be filed, instituted or taken against City, then and in any of such events City shall be deemed to be in default hereunder. 12 5/25/70 If City should, after notice of such default, fail to remedy any default with all reasonable dispatch, in not exceeding thirty (30) days, then Authority shall have the right, at its option, without any further demand or notice (i) to terminate this Sublease and to re-enter the Leased Premises and eject all parties in possession thereof therefrom, using all necessary force so to do, or (ii) to re-enter the Leased Premises and eject all parties therefrom, using all necessary force so to do, and, without terminating this Sublease, re-Iet the Leased Premises, or any part thereof, as the agent and for the account of City upon such terms and conditions as Authority may deem advisable, in which event the rents received on such re-Ietting shall be applied first to the expenses of re-Ietting and collection, including necessary renovation and alteration of the Leased Premises, reasonable attorneys' fees, and any real estate commissions actually paid, and thereafter toward payment of all sums due or to become due to Authority hereunder, and if a sufficient sum shall not be thus realized to pay such sums and other charges, City shall pay Authority annually any cumulative net de- ficiency existing on the date when Base Rental is due hereunder. The foregoing remedies of Authority are in addition to and not exclusive of any other remedy of Authority. Any such re-entry shall be allowed by City without let or hindrance and Authority shall not be liable in damages for any such re-entry or be guilty of trespass. SECTION 20. N et-N et Lease. This Sublease shall be deemed and construed to be a "net-net lease" and the City hereby agrees that the rentals provided for herein shall be an absolute net return to the Authority, free and clear of any expenses, charges or set-offs whatsoever. SECTION 21. Execution. This Sublease may be simultaneously executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all together shall constitute but one and the same Sublease, and it is also understood and agreed that separate counterparts of this Sublease may be separately executed by the Authority and the City, all with the same full force and effect as though the same counterpart had been executed simultaneously by both the Authority and the City. SECTION 22. Validity. If anyone or more of the terms, provisions, promises, covenants or conditions of this Sublease shall to any extent be adjudged invalid, 13 ". 5/25/70 unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, pro- visions, promises, covenants and conditions of this Sublease shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. If for any reason this Sublease shall be held by a court of com- petent jurisdiction void, voidable, or unenforceable by the Authority or by the City, or if for any reason it is held by such a court that the covenants and conditions of the City hereunder, including the cove- nant to pay rents hereunder, is unenforceable for the full term here- under, then and in such event for and in consideration of the right of the City to possess, occupy and use the Leased Premises, which right in such event is hereby granted, this Sublease shall thereupon become, and shall be deemed to be, a lease from year to year under which the annual rentals herein specified will be paid by the City. If the Controller and/or Treasurer of the Authority are substituted for the Trustee pursuant to the Resolution, all references herein to Trustee shall be deemed to mean Controller and/or Treasurer as the case may be. 14 ,. 5/25/70 IN WITNESS WHEREOF, the parties hereto have caused this Sublease to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, as of the day and year first above written, CITY OF SAN BERNARDINO By Mayor Pro Tempore Attest: By City Clerk (Seal) SAN BERNARDINO CIVIC CENTER AUTHORITY By President Attest: Secretary (Seal) I HEREBY ApPROVE the form and legality of the foregoing Sublease this 4th day of May, 1970. RALPH H. PRINCE City Attorney and ex officio Attorney for the San Bernardino Civic Center Authority By 15 , . .~ 5/25/70 SAN BERNARDINO CIVIC CENTER AUTHORITY EXHIBIT A CITY HALL - EXHIBIT HALL SITE All that real property in the City of San Bernardino, County of San Bernardino, State of California, described as: All that real property situated within Central City Project, Calif. R-79 in the City of San Bernardino, County of San Bernardino, State of California, described as follows: That portion of Blocks 13 and 20, CITY OF SAN BERNARDINO per Map recorded in Book 7, Page 1 of Maps in the Office of the Recorder of said County and that portion of "3rd" Street as vacated by said City of San Bernardino per Resolution No. 10192, recorded April 6, 1970, in Book 7418, page 963, Official Records of said County described as follows: Commencing at the intersection of a line parallel with and distant 27.50 feet Easterly, measured at right angles, from the West line of said Block 20 with a line parallel with and distant 45.25 feet Southerly, measured at right angles from the centerline of Court Street, 56.00 feet wide, as said centerline now exists; thence South 89055'49" East along the last mentioned parallel line 196.84 feet; thence South 0004'11" West 210.00 feet to Point "A", being a point on a line parallel with and distant 210.00 feet Southerly, measured at right angles, from said last mentioned parallel line, said point being the TRUE POINT OF BEGINNING: thence South 89055'49" East 35.88 feet; thence South 0004'11" West 14.67 feet; thence North 89055'49" West 25.50 feet; thence South 0004'11" West 40.50 feet; thence South 89055'49" East 217.29 feet; thence South 0004'11" West 67.67 feet; thence North 89055' 49" West 15.83 feet; thence South 0004'11" West 15.75 feet; thence North 89055'49" West 31.00 feet; thence South 0004'11" West 6.17 feet; thence North 89055'49" West 25.50 feet; thence North 0004'11" East 21.92 feet; thence North 89055'49" West 99.59 feet; thence 16 5/25/70 South 0004'11" West 62.17 feet; thence North 89055'49" West 15.50 feet; thence South 0004'11" West 9.42 feet; thence North 89055'49" West 14.50 feet; thence South 0004'11" West 15.58 feet to a line parallel with and distant 420.00 feet Southerly, measured at right angles, from said last mentioned parallel line ; thence North 89055' 49" West along said parallel line 15.25 feet; thence North 0004'11" East 60.00 feet to a line parallel with and distant 360.00 feet Southerly, measured at right angles from said last mentioned parallel line; thence North 89055'49" West along said parallel line 163.04 feet; thence North 0004'11" East 15.25 feet; thence North 45004'11" East 11.78 feet; thence North 0004'11" East 25.00 feet; thence North 45004'11" East 11.79 feet; thence North 0004'11" East 70.83 feet; thence North 45004'11" East 11.78 feet; thence North 0004'11" East 13.92 feet to a line that bears North 89055'49" West from the point of Beginning; thence South 89055'49" East 127.54 feet to the TRUE POINT OF BEGINNING. 17 . 5/25/70 EXHIBIT B SAN BERNARDINO CIVIC CENTER AUTHORITY CIVIC CENTER FACILITIES REVENUE BONDS, FIRST ISSUE OF 1970 Estimated Fund Requirements' Total Project Cost Cost of construction..h....................__.............. $ 4,500,000" Estimated interest during construction (2'l months) at 6.9%.......hhh.__................... Estimated reserve fund......hh__h.................... Fees - architectural, financial, legal, printing ..........h h.... ........h._____...........__............ Contingency.................._____.........h..................__.. Sub. TotaL...................h...___................... Less: Estimated interest earnings 7%__........ Required Bond Issue........................h. Total 0stimated interest at 7%..____.........h..____. Total principaL........__.............h.......................... Total estimated bond service............ Less estimated interest earnings..... Total estimated revenues required.. Total estimated base rental (29 years)......... Estimated annual base rentaL____.........____....... 794,000 489,000 547,000 50,000 $6,380,000 'l80,000 $6,000,000 $ 8,664,000 6,000,000 $14,664,000 794,000 $13,870,000 $14,181,000 $ 489,000 " This schedule is for the purpose of enabling the adjustment of Base Rental to be made as is required by Section 4(f). ""This does not include the $410,000 direct contribution by the City of San Bernardino into the Authority's Construction Fund. 18 .' . ' .' . .~ P. O. BOX 1312 . SAN BERNARDINO. CALIFORNIA 92401 JERRY T. WINSTEAD CITY ADMINISTRATOR Mayor Members of the Common Council Druscillo Seccombe. . . First Word Edward S. Wheeler, Jr., Second Word William Kotona . Third Ward Robert l. Hammock Fourth Word Alan E. Guhin .. . Fifth Ward Norris Gregory, Jr. Sixfh Word Russell E. lackner. Seventh Word May 24, 1970 Honorable Mayor and Members of the Common Council Gentlemen: Enclosed you will find the necessary documents to be ratified by the Mayor and Common Council on May 25, 1970. These documents are essential for the City to be in full compliance with the Civic Center Authority's proposals for the $6,000,000 funding set for 2:00 p. m., May 25, 1970. Mr. Warren Beebe of O'Melveny & Myers (City Bond Counsel) has prepared this documentation together with allied resolutions. Time limitations due to preparation and printing considerations did not permit earlier delivery of this material as my office was not in receipt of same until Sunday, May 24, 1970. I would appreciate your bringing the enclosed documents with you to the Council meeting on Monday, May 25, 1970. Very truly yours, hl1/~ JERRY T. WINSTEAD CITY ADMINISTRATOR JTW:rm Enclosures 61