HomeMy WebLinkAboutR37-Economic Development Agency
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CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
FROM: Maggie Pacheco
Executive Director
SUBJECT:
ANR Homes, Inc. - Redevelopment Project
Study and Exclusive Right to Negotiate
Agreement (Seccombe Lake - Central City East
and IVDA Redevelopment Project Areas)
DATE:
July 2, 2007
SvnoDsis of Previous Commission/Council/Committee Action(s):
On May 24, 2007, Redevelopment Conunittee Members Estrada and Johnson unanimously voted to recommend that the
Community Development COIrunission consider this action for approval.
Recommended Motion(sl:
(Mavor and Common Council)
A: That the Mayor and Common Council of the City of San Bernardino consent to a Redevelopment Project Study and
Exclusive Right to Negotiate Agreement by and between the Redevelopment Agency of the City of San Bernardino
("Agency") and ANR Homes, Inc., (Seccombe Lake. Central City East and IVDA Redevelopment Project Areas)
(Community Develooment Commission)
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 a
Redevelopment Project Study and Exclusive Right to Negotiate Agreement by and between the Agency and ANR
Homes, Inc. ("Developer") (Seccombe Lake . Central City East and Inland Valley Development Agency
__~e<i_e~~I()JlIE-'-llt_~~?j_e_c_t_i\.r~~sL______.____________________n____________n___n_________________n___________________________________________________n
B:
Contact Person(s):
Maggie Pacheco
Phone:
(909) 663.1044
Project Area(s):
Central City East and IVDA
Redevelopment Project Areas
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Ward(s):
Supporting Data Attached:
o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s)
FUNDING REQUIREMENTS:
Amount: $
-0-
Source:
N/A
Budget Authority:
N/A
SIGNATURE:
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Commission/Council Nates:
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COMMISSION MEETING AGENDA
Meeting Date: 07/1612007
Agenda Item Number: R.~7
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
ANR HOMES, INC. - REDEVELOPMENT PROJECT STUDY AND EXCLUSIVE RIGHT
TO NEGOTIATE AGREEMENT (SECCOMBE LAKE -
CENTRAL CITY EAST AND IVDA REDEVELOPMENT PROJECT AREAS)
BACKGROUND/CURRENT ISSUE:
In 1991, the State conveyed approximately 40 acres ofland for Seccombe Lake Park (the "Property")
to the City of San Bernardino (the "City") with the condition that it be used only for park purposes in
perpetuity, unless, the State Legislature by specific act, permitted other uses, sale or disposition of the
Property. Assembly Bill No. 1457 ("AB 1457") which was approved by the Legislature and signed
into law by Governor Arnold Schwarzenegger on September 30, 2006, allows the City to sell up to
12.5 acres of the Property to the Redevelopment Agency of the City of San Bernardino (the "Agency")
for disposition to a private developer for redevelopment purposes, which said Property must be sold at
fair market value as determined by an appraisal for that portion of the Property to be sold. AB 1457
requires the City to identify, acquire and improve a 12.5 acre replacement park site within the
proximity of the Property prior to the sale of any portion of the Property. In addition, other terms such
as the preparation of a detailed land plan showing properties that will be acquired and developed for a
replacement park land, the land proposed to be sold and the remaining property must be approved by
the Mayor and Common Council of the City of San Bernardino ("Council") and then forwarded to the
State Department of Parks and Recreation (the "State") for approval.
As a prerequisite of disposing of any portion of the Property, Agency Staff issued a Request for
Qualification ("RFQ") on December 26, 2006, to 49 local and regional residential or mixed-use
developers to solicit qualifications to assist the City and the Agency in the redevelopment efforts for
the portion of the Property to be disposed. Of the 49 RFQ's that were sent to the developers, only 5
responded and said 5 developers were invited to respond to the Request for Proposal ("RFP") that was
issued on March 28, 2007.
The RFP asked the developers to submit a development concept plan for the approximate 12.5 acre
portion of the Property, identify a strategy to assist the Agency in acquiring replacement park land, a
conceptual plan for the replacement park, a detailed description of the proposed development,
including amenities and proposed land uses and its connection or relationship to Seccombe Lake. A
mandatory question and answer pre-submittal proposal meeting was held on March 9, 2007, at which
time all 5 developers were in attendance. By the RFP deadline of April 26, 2007, 3 developers had
responded to the RFP: GRF Enterprises, Inc., ANR Homes, Inc., (ANR) and TELACU Development,
LLC, and the remaining 2 developers, Watt Genton Associates and Barratt American, Inc., indicated
that they would not be able to respond to the RFP.
On May 3, 2007, the interview panel that consisted of Staff from the County of San Bernardino
Administrative Office, the Inland Valley Development Agency ("IVDA"), the City Development
Services Department, the Agency, the Mayor's Chief of Staff and Councilwoman Estrada, met to
review and listen to the 3 proposals presented by the developers. At the conclusion of the
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COMMISSION MEETING AGENDA
Meeting Date: 07/16/2007
Agenda Item Number: R~7
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Economic Development Agency Staff Report
ANR Homes, Inc. - Seccombe Lake ERN
Page 2
presentations, the panel deliberated, evaluated and rated each developer. The panel unanimously
agreed that ANR met all the RFP submittal criteria and received the most points according to the rating
system established by Agency Staff.
ANR has performed extensive development in the City as ANR Industries, Inc., Meadowbrook Park
Homes, Inc., and AGA Properties, Inc., and the general partners are Agustin Rodriguez and George
Jordan, owners of ANR Homes, Inc. ANR has completed in-fill single-family homes in the
Meadowbrook Park Revitalization Area under the Development Agreement with the Agency,
developing in excess of 35 new homes. Moreover, ANR is doing business as San Marcos Paloma
Homes, Inc., and is planning to develop 95 single-family homes on the north side of Walnut Avenue,
and 48 single-family homes on the south side of Walnut Avenue in the IVDA and Mt. Vernon Corridor
Redevelopment Project Areas. In December 2006, ANR broke ground on the live/work development
of a 12-unit loft on a 1.3-acre lot on the north side of 3rd Street between Sierra Way and Waterman
Avenue. ANR also recently started the development of Montelena, a new one lot condominium
subdivision consisting of 54 single-family homes on the west side of the City. Additionally, ANR has
developed several in-fill homes in and around the City along the south side of 5th Street, and they are
presently evaluating the redevelopment or reuse prospect of the Rudy Hernandez Community Center
for a possible live/work development under an approved 2007 Exclusive Right to Negotiate Agreement
with the Agency.
With regards to the subject matter, ANR has proposed a distinctive residential community
("Renaissance Park") consisting of 96 attached townhomes ("Cove") designed in clusters of 3-6 units;
104 detached townhomes in a mediterranean cottage-like setting ("Homecoming"), 13-14 units per
acre, and Tapestry consisting of 112, 3-story attached townhomes in its own gated community between
Sierra Way, Waterman Avenue and 7th Street; a Pavilion at Renaissance Park, a 52,000 square foot
retail village along Waterman Avenue between 5th and 7th Streets equal to approximately 10 acres, a
new public park along the north side of 7th Street, and enhancements to Seccombe Lake, reuse of the
YWCA swimming pool and development of a community center ("Conceptual Development Plan").
Additionally, the proposal presented is conceptual in nature and will require the Agency and ANR to
work together to identify an attractive, creative and an aesthetically pleasing development that will be
complimentary to the many other developments pending within the downtown core of the City and
meets the criteria established by AB 1457. The proposal will also require that the Agency afford other
affected privately owned property owners an opportunity to participate in the redevelopment process
pursuant to the Owner Participation Rules for the Central City East Redevelopment Project Area and
the California Community Redevelopment Law ("CRL").
To pursue this Conceptual Development Plan, it is proposed that the Agency and ANR enter into a
Redevelopment Project Study and Exclusive Right to Negotiate Agreement ("Agreement"), enabling
the Agency and ANR to work collaboratively on the following items:
· Refine the Conceptual Development Plan, including the development plan boundaries,
preparation of a master land assemblage program, providing 30-day owner participation notices
to affected privately owned property owners before the effective date of the proposed
Agreement, preparation of a development proforma, including a market feasibility analysis,
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COMMISSION MEETING AGENDA
Meeting Date: 07/16/2007
Agenda Item Number: /l.J7
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Economic Development Agency Staff Report
ANR Homes, Inc, - Seccombe Lake ERN
Page 3
preparation of a replacement park plan which will involve acquiring approximately 3-4 acres of
additional privately owned land north of 7th Street for assembly with other City owned
properties and submittal of said replacement park to the State, obtaining appraisals for those
privately owned parcels for private development and replacement park, environmental analysis,
etc, The proposed term of the Agreement is 18 months from the effective date.
· Payment of all costs associated with the Agreement will be borne by ANR and a deposit in the
sum of $60,000 will accompany the Agreement.
ENVIRONMENTAL IMP ACT:
The ERN is categorized as Statutory Exemption under the California Environmental Quality Act
("CEQA") per Public Resource Code Sections 21102 and 21150.
FISCAL IMPACT:
None.
RECOMMENDATION:
That the Mayor and Common Council adopt the Motion and the Community Development
Commission adopt the attached Resolution.
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Maggie Pacheco, Execut e Director
________________4_~.___________________________________...___________________..._______________________.__..._______________________________.~__u_______________.______________
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COMMISSION MEETING AGENDA
Meeting Date: 07/1612007
Agenda Item Number: RJ7
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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 A
REDEVELOPMENT PROJECT STUDY AND EXCLUSIVE RIGHT TO
NEGOTIATE AGREEMENT BY AND BETWEEN THE AGENCY AND ANR
HOMES, INC. ("DEVELOPER") (SECCOMBE LAKE - CENTRAL CITY
EAST AND INLAND VALLEY DEVELOPMENT AGENCY
REDEVELOPMENT PROJECT AREAS)
WHEREAS, in 1991, the State conveyed approximately 40 acres of land for Seccombe
Lake Park (the "Property") to the City of San Bernardino (the "City") with the condition that it be
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used only for park purposes in perpetuity, unless, the State Legislature, by specific act, permitted
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other uses, sale or disposition of the Property; and
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WHEREAS, Assembly Bill No. 1457 CAB 1457") which was approved by the Legislature
and signed into law by Governor Arnold Schwarzenegger on September 30, 2006, allows the City
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to sell up to 12.5 acres of the Property to the Redevelopment Agency of the City of San Bernardino
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(the "Agency") for disposition to a private developer for redevelopment purposes, which said
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Property must be sold at fair market value as determined by an appraisal for that portion of the
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Property to be sold; and
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WHEREAS, AB 1457 reqUires the City to identify, acqUire and improve a 12.5 acre
replacement park site within the proximity of the Property prior to the sale of any portion of the
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21 Property. In addition, other terms such as the preparation of a detailed land plan showing properties
22 that will be acquired and developed for a replacement park land, the land proposed to be sold and
23 the remaining property must be approved by the Mayor and Common Council of the City of San
24 Bernardino ("Council") and then forwarded to the State Department of Parks and Recreation (the
25 "State") for approval.
26 WHEREAS, the City is the owner of the Property located on the northeast comer of Sierra
tit 27 Way and 5th Street, the Seccombe Lake are located within the Central City East Redevelopment
28 Project Area ("Project Area"), as generally depicted in Exhibit "A" of the Redevelopment Project
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1 Study and Exclusive Right to Negotiate Agreement (the "Agreement"), attached hereto; and
2 WHEREAS, the City desires for the Agency to consider and study the feasibility of
3 redeveloping at least 12.5 acres of the Property for a mixed-use residential village development of
4 12.5 acres ofreplacement park; and
WHEREAS, ANR Homes, Inc. (the "Developer") is qualified to assist the Agency to
undertake the study of specific plans for a coordinated and economically sustainable redevelopment
project of the Property, which will require acquisition, specific study, evaluation and planning by
the City, the Agency and the Developer as applicable, of appropriate and feasible community
redevelopment alternatives pursuant to the terms of the Agreement; and
WHEREAS, in accordance with the provisions of the California Environmental Quality Act
("CEQA"), the Agreement is exempt from the provisions ofCEQA.
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
Section 1.
The Community Development Commission of the City of San Bernardino
("Commission") hereby approves the Agreement by and between the Agency and the Developer in
the form as presented at the meeting of the Commission at which this Resolution is adopted and
hereby authorizes the Executive Director of the Agency to execute the Agreement on behalf of the
Agency, together with such technical and conforming changes as recommended by the Executive
Director of the Agency and approved by the Agency Counsel.
Section 2.
The Commission hereby finds that the Agreement is exempt from CEQA.
The Resolution shall become effective immediately upon its adoption.
Section 3.
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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 A
REDEVELOPMENT PROJECT STUDY AND EXCLUSIVE RIGHT TO
NEGOTIATE AGREEMENT BY AND BETWEEN THE AGENCY AND ANR
HOMES, INC. ("DEVELOPER") (SECCOMBE LAKE - CENTRAL CITY
EAST AND INLAND VALLEY DEVELOPMENT AGENCY
REDEVELOPMENT PROJECT AREAS)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
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Development Commission of the City of San Bernardino at a
meeting
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thereof, held on the
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day of
,2007, by the following vote to wit:
Commission Members:
Ayes
Nays
Abstain
Absent
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ESTRADA
12 BAXTER
13 BRINKER
14 DERRY
15 KELLEY
16 JOHNSON
17 MC CAMMACK
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21 The foregoing Resolution is hereby approved this
Secretary
day of
,2007.
Patrick]. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
Approved as to Form:
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27 By: (~;<<11
AgenCY\':o~
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REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REDEVELOPMENT PROJECT STUDY AND
EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT
ANR HOMES, INC.
(SECCOMBE LAKE PROJECT)
This Redevelopment Project Study and Exclusive Right to Negotiate Agreement is dated as of
July 16, 2007 (this "Agreement"), and is entered into by and between ANR Homes, Inc., a California
corporation (the "Developer"), and the Redevelopment Agency of the City of San Bernardino, a public
body, corporate and politic (the "Agency").
RECITALS
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A. The Agency desires to encourage and effectuate the redevelopment of certain real
property located north of Seccombe Lake on the north side of 5th Street between Sierra Way and
Waterman Avenue and then northerly to 7'h Street consisting of approximately 12.5 acres (the "Site")
within the Central City East Redevelopment Project Area (the "Project Area"), commonly referred to
as the Seccombe Lake Area in the City of San Bernardino ("City") and the Site is a part of the overall
44 acres, which consists of the actual Seccombe Lake and adjacent landscaped areas (the areas that are
in addition to the Site are referred to herein as the "Remainder Site"), together with privately owned
properties adjacent to Waterman A venue which may, if deemed feasible, be acquired by the Developer
(the "Waterman Avenue Properties") for redevelopment purposes, and additional public park
expansion properties located north of 7th Street some of which are privately owned and others which
are owned by the City (the "Park Relocation Properties") all as the Site, the Remainder Site, Waterman
A venue Properties and the Park Relocation Properties are further depicted on the "Site Map" attached
hereto as Exhibit "A" for purposes of this Agreement; and
B. The City is the fee owner of the improved Site and the Remainder Site and desires for
the Agency to explore the redevelopment of the Site into private development with mixed uses to
enhance the continued use of the Remainder Site by the City as a public park and the use of Park
Relocation Properties as a public park for replacement public park land in lieu of the current public
park uses on the Site, and the City has taken official action through the Mayor and Common Council
on July 16, 2007, to recognize and provide consent to the Agency in furtherance of its attempts to
market the Site to the Developer pursuant to this Agreement and the proposed Project DDA (as
hereinafter defined); and
C. The Developer intends to explore opportunities to redevelop the Site and the Waterman
Avenue Properties into a mixed-use project (the "Project") which will include a replacement park on
an acre-for-acre basis on the Park Relocation Properties with comparable amenities within proximity to
the Site and intended to be located north of 7'h Street at the Park Relocation Properties in accordance
with the requirements of Section 540 I of the California Public Resources Code Chapter 2.5, known as
the Public Park Preservation Act of 1971 (the "Act") and the requirements of ABI457 as adopted by
the California Legislature in 2006, which became effective as of January I, 2007, and ABI457
provides for the sale by the City of not to exceed 12.5 acres of the Site with the intent for the City to
e retain the Remainder Site for continued recreational and park purposes; and
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D. The Remainder Site consists of the Seccombe Lake, which has existed within the
Project Area since on or about 1987, being after the adoption date of the Redevelopment Plan for the
Project Area; and
E. The Project Concept Plan (defined herein as the "Project Concept Plan" and attached
hereto as Exhibit "B") involves the Site and the Waterman Avenue Properties, and contemplates the
possible purchase by the Developer from the Agency of the Site only after the Agency has completed
the Site acquisition from the City as surplus property and in compliance with the Act and AB1457; the
Agency and the Developer intend to work together in good faith to explore the possibility of
redeveloping the Site and the Waterman Avenue Properties as provided in this Agreement; in the event
that the Project is determined to be infeasible, either party may terminate this Agreement, and, if it is
determined that the Project is financially feasible, the Developer will negotiate with the Agency for the
redevelopment and acquisition of the Site, and if an Agreement is reached between the Developer and
the Agency, it may be documented by a Project Disposition and Development Agreement (the "Project
DDA") which will also include the development of the Waterman Avenue Properties and the
relocation of the public park lands currently located on the Site to the Relocation Park Properties; and
F. The Agency is entering into this Agreement, without limitation, to facilitate the
redevelopment of the Site to foster the community economic development goals and objectives of the
Agency and the City, including the elimination and the spreading of blight, as the same relates to the
Project Area and to better utilize the Remainder Site and the Relocation Park Properties for public park
purposes; and
G. In connection with the preparation of the Project DDA and prior to consideration of the
approval of such Project DDA, the Agency and the Developer will prepare and circulate an initial
study (the "Initial Study") in accordance with the California Environmental Quality Act of 1970, as
amended ("CEQA"); and
H. Based upon information furnished by the Developer to the Agency, together with
further investigations to be conducted by the Agency, the Developer is qualified to assist the Agency to
undertake the study of and plans for a coordinated and economically sustainable redevelopment project
in the Project Area, including the Site, which will require further specific study, evaluation and
planning by the City and the Agency, as applicable, of appropriate and feasible community
redevelopment program alternatives; and
I. The Developer and the Agency believe it is appropriate for the Agency, in consultation
with the Developer, to review by Agency Staff, those studies, reports and investigations to be
conducted by the Developer in furtherance of the Project Concept Plan (as defined in Section 4 hereof)
by the payment of the related costs and expenses (collectively, the "Project Concept Plan Costs" and as
further described in Section 5 hereof) as part of a program for the study of feasible redevelopment
programs for the Site, subject to the terms and conditions as set forth below.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
PROMISES SET FORTH HEREIN, THE DEVELOPER AND THE AGENCY HEREBY
AGREE, AS FOLLOWS:
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1. The Nel!otiation Period and the Term of Al!reement.
a. The rights and duties of the parties established by this Agreement shall commence
following: (i) the approval ofthis Agreement by the governing body of the Agency and after such time
as this Agreement has been fully executed by the parties within the period of time authorized herein,
and (ii) not less than thirty (30) calendar days after the Agency has concluded the owner participation
process for the Waterman Avenue Properties, and (iii) the timely deposit of the ERN Fee as defined in
and as further provided in Section 2 hereof (such date after the satisfaction of the requirements of (i),
(ii) and (iii) above being the "Effective Date"). This Agreement will continue in effect until a date
which is eighteen (18) months from the Effective Date unless such date shall have been first extended
as authorized under Section I.b.(2) of this Agreement or in the event this Agreement is otherwise
terminated as provided in Section l.c. Such time period during which this Agreement shall be in effect
(including any extensions of time approved by the Agency) is referred to as the "Negotiation Period."
b. This Agreement shall automatically terminate, without further notice or action, and be
of no further force or effect, except for the provisions of Section 24 hereof, twelve (12) months
following the Effective Date, unless prior to that time:
(1) the parties execute the Project DDA, as described below, which will include,
without limitation, other relevant community redevelopment covenants acceptable to the Agency and
such other.terms and conditions mutually acceptable to the parties, in which case this Agreement shall
terminate on the Effective Date of the Project DDA; or
(2) the parties each agree to extend the term of this Agreement in writing to a
specific date not later than six (6) months after the scheduled termination date, subject to the Executive
Director of the Agency first making a finding through reasonable discretion that satisfactory progress
is being made to complete the Project DDA as set forth in Section 3, and the Agency, at its sole
discretion, shall so authorize by the official action of the governing board of the Agency, execution of
any such amendment or extension to the scheduled termination date.
c. This Agreement can be terminated prior to the eighteen (18) months following the
Effective Date only if:
(I) the Executive Director of the Agency determines through the exercise of
reasonable discretion that the Project Concept Plan and the other financial feasibility information,
submitted by the Developer to the Executive Director of the Agency within one hundred twenty (120)
calendar days from the Effective Date of this Agreement as further provided in this Agreement is not
satisfactory to warrant the continuation of discussions for a Project DDA. If the Executive Director of
the Agency makes this determination, the Executive Director of the Agency shall have the right to
terminate this Agreement immediately upon (i) the facsimile transmission by the Executive Director of
the Agency of written notice of termination to the Developer, or (ii) upon receipt of written notice of
termination through other means from the Executive Director of the Agency to the Developer; or
(2) a party terminates this Agreement as provided under Section Lb., Section 21 or
Section 22, as applicable.
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2. Refundable DeposiUEarnest Monev.
In consideration for this Agreement, the Developer or its designee shall deliver to the Agency,
a check in the amount of Sixty Thousand Dollars ($60,000) (the "ERN Fee") which shall be remitted to
the Agency as a condition of the occurrence of the Effective Date of this Agreement. In the event the
Developer fails to deliver the ERN Fee to the Agency within ten (10) calendar days after receipt of
written notice from the Agency, this Agreement shall be of no further force and effect and the Agency
shall not be required to execute and deliver this Agreement to the Developer. The Developer
recognizes that the Agency shall not execute and deliver this Agreement, and has not so executed and
delivered this Agreement, until the conditions for the occurrence of the Effective Date have been
satisfactorily met, including the remittance of the ERN Fee. This deposit of the ERN Fee shall be
refunded to the Developer if the Agency is unable to purchase the Site for the Project and or the
Project is determined to be infeasible. Such ERN Fee shall be applied towards the purchase price of
the Site as may be provided in the Project DDA if it is approved by the governing body of the Agency
and after the Site has been declared as surplus property to the needs of the City and the requisite
replacement park site or sites such as the Relocation Park Properties, or other suitable properties, have
been identified by the Developer and approved by the City. As further provided in the final sentence
of Section II hereof, if the Negotiation Period is not extended or the Project DDA is not entered into
regardless of the reason, the ERN Fee shall be returned to the Developer. The ERN Fee shall only be
retained by the Agency in the manner as provided in Section 22 upon an uncured default of the
Developer under this Agreement.
3. Developer Acknowledl!meots.
a. The Developer hereby acknowledges and agrees that no provision of this Agreement
shall be deemed to be an offer by the Agency or an acceptance by the Agency of any offer or proposal
from the Developer to convey any interest in the Site to the Developer. Any studies relating to the Site
and the Project Concept Plan that may hereafter be undertaken by the Developer, in its sole discretion,
shall be the sole responsibility of the Developer and shall not be deemed to be undertaken for the
benefit of the Agency or the City.
b. The qualifications and identity of the Developer are of particular concern to the
Agency. The Agency has relied on these qualifications and identity in entering into this Agreement
with the Developer. During the term of this Agreement, no voluntary or involuntary successor-in-
interest of the Developer shall acquire any right or power under this Agreement. The Developer shall
not assign all or any part of this Agreement or any rights hereunder. Upon the occurrence of any
material change in interest or control, whether voluntary or involuntary, in membership, ownership,
management or control of the Developer (other than such changes occasioned by the death or
incapacity of any individual), the Agency may terminate this Agreement by serving a ten (10) day
written notice of such termination, referencing this Section, on the Developer.
4. Proiect Concept Plan.
a. From and after the Effective Date, the Developer shall initiate the preparation of a
feasibility study for the redevelopment of the Project Concept Plan proposed by the Developer, which
shall include a preliminary financial feasibility study relating to the development of the Project (the
"Project Concept Plan"). As soon as practical, following the Effective Date, the Developer shall retain
the services of a firm or firms of community redevelopment planning, engineers, architects, financial
consultants, land use planners and environmental consultants to produce all necessary reports, studies
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and environmental documentation and other investigations, surveys and reports appropriate in
connection with the Project Concept Plan and the evaluation of the Project Concept Plan proposed by
the Developer and for the processing of all entitlements required to be obtained from the City together
with the required environmental review and processing. All third party costs incurred by the
Developer as part of the preparation of the Project Concept Plan shall be paid solely by the Developer
in accordance with Section 5 of this Agreement.
The Agency and the Developer shall undertake compliance with all requirements of the CEQA,
including the preparation of an Initial Study based upon the Project Description and Project Concept
Plan provided by the Developer. The Developer shall pay for the cost of said studies.
b. The Developer may modify the description of the Project Concept Plan at any time;
provided, however, that substantial modifications of the Project Concept Plan shall:
(i) be subject to the acceptance and approval of the Executive Director of the
Agency which approval shall not be unreasonably withheld, conditioned or delayed;
(ii)
environmental
indicated.
depending on the nature of such modification, a suitable modification of the
and other elements of the Project Concept Plan as modified may also be
The Agency and/or the Executive Director of the Agency may request that the Developer
consider modifications to the description of the Project Concept Plan from time-to-time. The final
form of each such modification shall be subject to the reasonable approval of the Executive Director of
the Agency and the Developer.
c. All third-party consultants, if any, retained and paid for by the Agency, to review any
study, report or document prepared by or on behalf of the Developer, as part of the Project Concept
Plan shall be subject to the sole control and direction of the Agency. The work product of any such
person shall be the property of the Agency. The Agency shall have the right to use and republish such
work product for any purpose subject to the reasonable consent of the Developer.
d. Subject to the terms and conditions of this Agreement, the Developer shall undertake an
economic feasibility study of the Project Concept Plan as part of the Project Concept Plan consisting of
the elements as set forth below:
(A) Preparation by the Developer in consultation with the Agency of a financial
feasibility study or other similar analysis for the development of the Project Concept Plan on the Site
and the Waterman Avenue Properties, setting forth the plan for the redevelopment and acquisition of
the Site and an estimate of development costs, project income and a pro forma statement of Project
Concept Plan capital return, including, without limitation, the following:
(I) final projections of debt and equity that will be required of the Developer to
undertake the Project Concept Plan, including construction and permanent
financing of the private structures and infrastructure financing for all publicly
owned facilities; and
(2)
final projection of a financial contribution to support the Project; and
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(3)
final projections of financial assistance anticipated for the Project Concept Plan,
including source, dollar amount, timing of the necessity for such funds and the
probable repayment sources; and
(4) final projections of overall development costs, including private and public
improvements, park replacement costs, Project Concept Plan assessed values,
revenues designated by sources, dollar amounts and property taxes for the
development.
An initial draft of a document, including the study elements identified in subparagraphs (I)
through (4) above shall be completed by the Developer and submitted to the Agency within six (6)
months following the Effective Date. Thereafter, provided that the Executive Director of the Agency
has not terminated this Agreement due to the insufficiency or inadequacy of the Project Concept Plan
as set forth in Section I.c., the parties shall refine the draft document of the Project Concept Plan as
submitted by the Developer in accordance with a schedule to be mutually agreed upon for the
refinement of the work for such studies, including the content and scope thereof, to be mutually
approved by the parties, which approval shall not be umeasonably withheld.
(B) The Developer, in consultation with the Agency, shall prepare a proposed
development plan for the Site and the Waterman Avenue Properties, to include, without limitation:
(I)
proposed land use categories, including proposed zoning and General Plan
changes, if any, necessary to accommodate the Project Concept Plan to
accommodate the intended development; and
(2) proposed time schedule and cost estimates for the development and proposed
public and private infrastructure upgrades, proposed publicly owned facilities,
public improvements, public infrastructure and private development; and
(3) proposed financing plan identifying the timing of receipt by the Developer and
the Agency, as applicable, of the financing sources for all private and public
improvements proposed in the Project Concept Plan, by phase, if applicable; and
(4) proposed proforma which shall include a financing plan for the acquisition of
the Site and the Waterman Avenue Properties and the Relocation Park
Properties, replacement costs for the Site whether at the Relocation Park
Properties or elsewhere, and all other development costs to be incurred by the
Developer as necessary for the Project Concept Plan.
The development plan for the Project Concept Plan as described above may be revised
from time-to-time in accordance with a schedule of preparation and revisions as may be mutually
approved by the parties.
e. [ Intentionally omitted]
f. Within six (6) months after the Effective Date, the Developer shall inform the Agency,
in writing, whether based on the information set forth in this Section, the Developer believes that the
Project Concept Plan is feasible. Thereafter, the Developer and the Agency may proceed to negotiate
the final form of an agreement, in which the specific terms for the redevelopment of the Site may be
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set forth on terms mutually acceptable to the parties as may be contained in the Project DDA, subject
to the final approval thereof by the parties each at their sole and absolute discretion and after the City
has declared the Site as surplus to the needs of the City and suitable replacement park land and
facilities have been identified as required by the Act and AB 1457.
g. The Developer shall submit each of the items of information described in this Section to
the Executive Director of the Agency within the time periods set forth above. Within fifteen (15)
calendar days after receipt of any such information, the Executive Director of the Agency shall
determine whether such information is satisfactory. If the specific item of information is
unsatisfactory to the Executive Director of the Agency, the Executive Director of the Agency shall
notify the Developer in writing of the reason or reasons that the information is unsatisfactory. If the
Executive Director of the Agency does not make a determination regarding any item of information
submitted by the Developer under this Section 4, within twenty (20) calendar days after receipt of such
information by the Agency, the information as submitted by the Developer shall be deemed submitted
in acceptable form to the Agency. The determinations to be made by the Executive Director of the
Agency under this subsection shall, in no manner, bind or constitute the approval of the Agency
regarding, without limitation, plans, specifications, engineering, architecture, uses, tenants, sale prices,
the Project Concept Plan or the Project DDA.
5. Proiect Concept Plan Costs.
For the purposes of this Agreement, "Project Concept Plan Costs" shall mean and refer to the
costs and expenses of third party consultants who are engaged by the Developer, under written
contract, to undertake one (I) or more elements of the Project Concept Plan, including the
environmental review and processing and the preparation of all required studies and reports in
furtherance of the entitlements to be requested by the Developer from the City or the Agency. Project
Concept Plan Costs shall include third party costs incurred by the Developer in connection with the
preparation or submission of any information relating to the Project Concept Plan on which any
element of the Project Concept Plan may be based, including civil engineering expenses, traffic
consultant fees, architectural fees, financial consultants, accounting fees and similar expenditure
items. In addition to the Project Concept Plan Costs incurred and paid by the Developer, each party
shall bear its own legal fees and costs and for consultants and service providers which such party
engages, including, but not limited to, the costs to be borne by the Agency, pursuant to paragraph 4.c.
above. Notwithstanding the foregoing, the Developer understands that the Agency may request and
the Developer shall consider that the Developer enter into one (I) or more separate written agreements
pursuant to which the Developer would reimburse the Agency for specifically budgeted, identified and
capped third party independent consultant costs which the Agency may desire to enter into based on
staffing unavailability for purposes of undertaking a comprehensive review of the Project Concept
Plan.
6. ObIil!ations ofthe Developer.
During the Negotiation Period, the Developer shall proceed diligently and in good faith to
perform the following:
a. Consider the redevelopment of the Project Concept Plan, including, without limitation,
the selection of the design of improvement elements as appropriate for the Project Concept Plan in
addition to any residential, commercial or retail elements of the Project Concept Plan; and
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b. Review and provide the Project Concept Plan information described in Section 4 and
submit an executed copy of the final form of the Project DDA to the Executive Director of the Agency
on or before the end of the Negotiation Period (or such later date corresponding to an authorized
extension of the Negotiation Period in accordance with Section I); and
c. Consult with the Agency and the Executive Director of the Agency on a regular basis
and keep the Agency and the Executive Director of the Agency advised on the progress of the
Developer in completing its obligations under this Agreement.
d. Prepare the necessary plan, alternative site selection analysis and economic analysis as
required by the Act and ABI457 to assure compliance by the City with the Act and AB1457 for
purposes of obtaining the replacement park site and facilities as mandated by the Act and AB1457.
Such shall be undertaken by the Developer to provide the basis for the release of the municipal park
restrictions as to the Site to thus allow the parties to proceed with the Project DDA as contemplated by
this Agreement.
e. Attempt to acquire through negotiated purchase such additional properties comprising
the Waterman Avenue Properties to the east of the Site and fronting on Waterman Avenue to extend
the Project Concept Plan to include as many other underutilized properties as may be feasible.
7. Al!encv Acknowledl!ments.
The Agency hereby acknowledges and agrees that no provision of this Agreement shall be
deemed to be an offer by the Developer as an acceptance by the Developer of any offer or proposal
from the Agency to purchase any interest in the Site. Any studies undertaken by the Agency not
relating to the Site shall be the sole responsibility of the Agency.
8. Al!encv not to Nel!otiate with Others.
a. The Agency currently deems the Site to be appropriate for initiation of preliminary
concept plans for the redevelopment of the Project Concept Plan, subject to release of the requirements
imposed by the Act and ABl457 upon the Site, and the Developer appears to be well qualified to
undertake the task of planning the details for the redevelopment of the Site.
b. During the Negotiation Period, and subject to the Agency's compliance with the
California Community Redevelopment Law ("CRL"), the Agency shall negotiate exclusively with the
Developer with respect to the Site and the W aterman Avenue Properties during the Negotiation Period.
The Agency shall not negotiate with any other person or entity regarding either the disposition of the
Site or the redevelopment of the Project Concept Plan on the Site and the Waterman A':enue
Properties. The term "negotiate," as used herein, shall be deemed to preclude the Agency from
accepting any other offer or proposal from a third party to either acquire from the Agency any interest
in any of the Site or the Waterman Avenue Properties (in whole or in part) or redevelop the Site or the
Waterman Avenue Properties, and from considering other redevelopment proposals for the Site or the
Waterman Avenue Properties with third persons or entities; provided, however, any person may submit
to the Agency and the Agency may consider any proposal for the disposition and/or redevelopment of
any lands adjacent to the Site or the Waterman Avenue Properties not contemplated under this
Agreement.
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c. Notwithstanding any other provision of this Agreement, during the Negotiation Period,
the Agency shall not be precluded from furnishing, to persons or entities unrelated to the Developer,
information in the possession of the Agency relating to the redevelopment of any other land owned or
controlled by the Agency in close proximity to the Site except for the Site. Consideration of the
redevelopment of the Site under the terms of the Redevelopment Plan shall remain in the sole and
exclusive purview of the Agency subject to release of the restrictions imposed upon the City by the Act
and AB1457. The Agency may also provide any other information in its possession that would
customarily be furnished to persons requesting information from the Agency concerning its activities,
goals and matters of a similar nature, or as required by law to be disclosed upon request.
9. Al!ency Cooperation.
During the Negotiation Period, the Agency will make a good faith effort to:
a. Request and secure the required release of all restrictions and covenants on the Site
from the State of California and cooperate with the City for the consideration of the plan to be prepared
and presented by the Developer to assure compliance with the Act and ABI457 by the City in the
release of the municipal park restrictions currently imposed upon the Site by the Act and AB1457.
b. At the request of the Developer, use its best efforts to assemble written materials and
documents Telating to the Site that are in the possession of the Agency.
c. Use its best efforts to provide appropriate comment to the Developer with respect to one
(I) or more conceptual development plans, as may be proposed by the Developer for the Project
Concept Plan, and the redevelopment of the Site and the Waterman Avenue Properties, including, but
not limited to, conceptual plans or studies of the vacation, realignment or abandonment of public
property, right-of-way and facilities, the installation and improvement of public improvements and
environmental evaluation of the Project Concept Plan.
d. Use its best efforts to provide the Developer with limited access to the Site and the
Remainder Site during the Negotiation Period for the purpose of conducting customary due diligence
investigations thereon, including environmental investigations of the subsurface or any structure
thereon. These rights will be subject to the terms and conditions of a separate environmental
investigation and inspection license agreement to be agreed upon by the Agency and the Developer at
some later date, if applicable.
e. Use its best efforts to provide the Developer with information or copies of studies
performed or to be performed relative to the Site and the Remainder Site.
f. Use its best efforts to formalize the Project DDA with the Developer, wherein the
Agency agrees to transfer to the Developer, subject to obtaining the Site from the City after
compliance with the requirements of the Act and AB 1457 for the development of public parks on the
Relocation Park Properties, the Site for such consideration to be agreed upon by the parties, including
the development of the Project Concept Plan.
g. Use its best efforts to assist the Developer in obtaining the entitlements necessary to
develop the Project Concept Plan on the Site and the Waterman Avenue Properties, but without
incurring any costs associated with said Project Concept Plan.
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h. Use its best efforts without the incurring of any consultant or legal expenses to utilize
Agency Staff personnel to expedite compliance under the CEQA for the Project Concept Plan in
addition to the CEQA compliance for any zoning changes, adoption of a specific plan (the "Specific
Plan") if required by the Developer, General Plan amendments and all other entitlements necessary for
the development of the Project Concept Plan on the Site and the Waterman Avenue Properties,
suggested by the Developer in its proposed conceptual development plan, referred to in Section 4.d.(B)
above, or at any other time during the Negotiation Period.
10. Nel!otiation of Project DDA.
During the Negotiation Period, the Agency and the Developer shall negotiate diligently and in
good faith to prepare and attempt to enter into a Project DDA. Both of the parties shall exercise their
best efforts to complete discussions relating to the final terms and conditions of the Project DDA and
such other matters, as may be mutually acceptable to the parties for the redevelopment of the Project
Concept Plan on the Site and the Waterman Avenue Properties, prior to the expiration of the
Negotiation Period, but neither party, after such diligent and good faith negotiations, shall be bound by
any term or provision of this Agreement to complete any such negotiations or to execute any final
Project DDA. The parties recognize that nothing contained in this Agreement cornmits or binds the
City to declare the Site as surplus to the needs of the City or to determine the most effective method to
seek compliance with the Act and ABI457 for the acquisition and development of the Relocation Park
Properties with public parks.
II. Consideration for this Al!reement and Reservation of Ril!hts.
In consideration for the Agency's entering into this Agreement, the Developer will undertake its
obligations under this Agreement and provide the Agency with copies of all studies and reports and
other non-confidential or non-attorney-client privileged information generated by the Developer or its
consultants regarding the Project Concept Plan or the Site and the Waterman Avenue Properties.
Notwithstanding the foregoing, the Developer shall provide all information required under Section 4.d.
in its entirety as set forth therein and in accordance with Section 13. All information as may be
provided by the Developer to the Agency, which is of a confidential nature shall be subject to the
provisions of said Section 13 which provides that the Agency agrees to maintain the confidentiality of
any financial and/or proprietary information of the Developer that is exempt from disclosure as a
Public Record pursuant to Government Code Sections 6254.15 and 6255. The parties agree that, if this
Agreement terminates for any reason, the Agency fails to extend the Negotiation Period or the Project
DDA is not finally approved by the Agency for any reason, neither party shall be under any further
obligation to the other party regarding the disposition, acquisition, reuse, redevelopment or
development of the Project Concept Plan on the Site and the Waterman Avenue Properties and the
ERN Fee shall be returned to the Developer.
12. Planninl! and Desil!n; Related Acknowledl!ments of the Parties.
Certain development standards and design controls for the Project Concept Plan may be
established between the Developer and the Agency in negotiation of, or in the final form of the Project
DDA, but it is understood by both parties that the Project Concept Plan and the redevelopment of the
Site must conform to the City's development, design and architectural standards. Agency Staff shall
use its best efforts to cooperate with the Developer's professional associates in providing information
and assistance in connection with the Developer's preparation of drawings, plans and specifications.
Nothing in this Agreement shall be considered as an approval of any plans or specifications for the
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Project Concept Plan or the Site and the Waterman Avenue Properties, itself, by either the Agency or
the City.
13. Developer Financial Disclosures.
The Developer acknowledges that it may be requested to make certain confidential financial
disclosures to the Agency, its staff or legal counsel, as part of the financial due diligence investigations
of the Agency relating to the potential disposition of the Site to the Developer. The parties recognize
that such financial disclosures may contain sensitive information relating to other business transactions
of the Developer, that the disclosure of such information to third parties could impose commercially
unreasonable and/or anti-competitive burdens on the Developer and, correspondingly, diminish the
value or fiscal benefit that may accrue to the Agency upon the disposition of the Site to the Developer,
if the terms for such disposition are mutually agreed upon. Accordingly, the Agency agrees to
maintain the confidentiality of any of the Developer's financial and/or proprietary information that is
exempt from disclosure as a Public Record pursuant to Government Code Sections 6254.15 and 6255.
In the event that the Agency refuses to disclose records at the request of Developer, the Developer
shall indemnify, defend (subject to the approval of the Developer's selected legal counsel by the
Agency Counsel), and hold harmless, including payment of attorneys' fees, the City and the Agency
from any action, lawsuit or other proceeding initiated to obtain access to documents that may be
determined to be exempt from disclosure pursuant to the applicable provisions of the Public Records
Act.
14. Nondiscrimination.
The Developer shall not discriminate against nor segregate any person, or group of persons on
account of race, color, creed, religion, sex, marital status, handicap, national origin, sexual orientation,
or ancestry in undertaking its obligations under this Agreement.
15. Compliance with Law.
The Developer acknowledges that the Project DDA, if mutually agreeable terms are
established, may require the Developer (among other things) to carry out the construction of certain
improvements in conformity with all applicable laws, including all applicable planning and zoning
laws, environmental planning and safety laws and federal and State labor and wage laws that will
require the payment of the prevailing wage rates, all as shall be further set forth in the Project DDA.
16. Required Approvals.
No Project DDA between the parties shall have any force or effect, nor shall the Agency be
deemed to be a party to any agreement for the disposition of any real or personal property to the
Developer, until the terms and conditions of the Project DDA are considered and approved by the
governing body of the Agency, following the conclusion of a noticed public hearing, as required by the
CRL.
17. Press Releases.
The Developer agrees to discuss any press releases it may propose relating to the Site, the
Waterman Avenue Properties and the Relocation Park Properties with the Executive Director of the
Agency or their designee, prior to publication, to assure accuracy and consistency of the information.
The Agency shall not issue press releases or make public disclosure of information concerning the Site
or the Developer's proposals (unless the Developer has consented thereto), except as may be required
by applicable law.
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18. Notices.
All notices required hereunder shall be presented in person or by fax and by First Class
certified or registered United States mail with return receipt requested. Notice shall be deemed
confirmed by United States mail effective the second (2nd) business day after deposit with the United
States Postal Service. Notice by personal service shall be deemed effective upon delivery. Any party
may change their address for receipt of notice by notifying the other parties in writing.
TO DEVELOPER:
ANR Homes, Inc.
Attn.: George Jordan, Vice President
10702 Hathaway Drive, Suite I
Santa Fe Springs, California 90670
Telephone: (562) 777-7807
Fax: (562) 777-7808
TO AGENCY:
Redevelopment Agency of the City of San Bernardino
Attn.: Maggie Pacheco, Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Telephone: (909) 663-1044
Fax: (909) 663-2294
19. Acceptance of Aereement by the Developer.
The Developer shall acknowledge its acceptance of this Agreement by delivering three (3)
counterpart executed copies of this Agreement signed by an authorized party on behalf of the
Developer. The delivery by the Developer to the Agency of the executed counterpart copies of this
Agreement shall be completed in the manner required by Sections 1 and 2 or thereafter, this
Agreement shall have no further force and effect with respect to any party.
20. Authority.
This Agreement may be executed in counterparts, and when fully executed by the parties, each
such counterpart shall be deemed to be one (1) original document. Each signatory to this Agreement
represents and warrants that he or she has the authority to execute this Agreement on behalf of the
principal whom he or she purports to represent.
21. Optional Termination by the Developer.
Provided the Developer is not in default, the Developer may, in its sole and absolute discretion,
exercise an election to suspend the Project Concept Plan and thereafter, this Agreement shall terminate
and the parties shall be mutually released from any further obligations hereunder; provided, however,
that the Developer gives thirty (30) calendar days' prior written notice to the Agency and has paid all
amounts of the Agency's expenses that were incurred by the Agency in reliance upon any separate
written agreement or agreements with the Developer wherein the Developer has agreed to reimburse
the Agency for specifically budgeted and identified third party independent consultants, which the
Agency has sought to retain due to the unavailability of staff to review the Project Concept Plan.
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Provided the Agency is not in default, the Agency may, in its sole and absolute discretion,
exercise an election to suspend the Project Concept Plan, and this Agreement shall terminate and the
parties shall be mutually released from any further obligation hereunder thirty (30) calendar days
following written notice by the Agency to the Developer. No termination of this Agreement shall
relieve, diminish or nullify the obligations of the Developer pursuant to Section 24 hereof.
22. Defaults and Breach - General.
a. Failure or delay by any party to perform any material term or prOVISIOn 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 cures, corrects or remedies the alleged default
within thirty (30) calendar days after receipt of written notice specifying such default, such party shall
not be deemed to be in default hereunder.
b Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not result in a waiver of any default or of any rights or remedies associated with such a
default.
c. In the event that a default of any 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 unless such party who is alleged to be in default is in the process of diligently prosecuting the
cure of such default, such cure was commenced immediately upon receipt of notice as set forth above
and such breach cannot be cured within said thirty (30) calendar days even though the cure was
commenced in a timely manner.
d. In the event of a breach, the party who is not in default shall be entitled to seek any
other appropriate remedy by initiating legal proceedings. The successful party in any such legal
proceeding shall be entitled to recover its reasonable attorneys' fees as an element of its damages,
either as part of such legal proceedings or in a separate legal action to recover such attorneys' fees.
e. In the event that a breach has occurred under this Section 22, the party who is not then
in default may terminate this Agreement by serving the other party with a written notice of termination
and thereafter, the Agreement shall terminate thirty (30) calendar days following the date of service of
the notice of termination on the other party. In the event the Developer defaults under this Agreement
and the Agency terminates this Agreement due to the uncured default of the Developer, the sole and
exclusive remedy of the Agency for such default shall be the retention of the ERN Fee as a liquidated
damage amount which is hereby agreed to by the Developer is reasonable under the circumstances.
The provisions of Section 24 shall survive any termination of this Agreement and the obligations of the
Developer pursuant to said Section 24 shall be in addition to any retention of the ERN Fee by the
Agency for a performance default by the Developer under this Agreement.
23. Attornevs' Fees.
If any party hereto files any action or brings any action or proceeding against the other arising
out of this Agreement, or is made a party to any action or proceeding brought by a third party, then as
between the Developer and the Agency, 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 attorneys' fees. As
between the Developer and the Agency, the prevailing party shall be entitled to recover as an element
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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 attorneys' fees.
24. Indemnification.
The Developer agrees to indemnify, protect, defend (if requested by the Agency and/or the
City) and hold the Agency and/or the City, and their officers, employees and agents, harmless from
and against, without limitation, all actions, causes of action, claims, demands, damages, judgments,
costs, expenses and penalties (including, without limitation, attorneys' fees, court costs, consultant fees
and costs, and all attorneys' fees and court costs incurred in connection with all appeals), to the extent
arising from or related to any uncured default by the Developer hereunder or any intentional
misconduct or negligent act or omission of the Developer, its agents, employees and/or independent
contractors (and the successors and/or assigns of each of them) in performing, omitting, or failing to
perform, in its obligations hereunder (collectively, the "Claims"); provided, however, that (i) the
foregoing indemnity obligation shall not apply to the extent any Claims arise out of any default by the
Agency in performing its obligations set forth in this Agreement or to the extent the Agency has
engaged in any intentional misconduct or is guilty of gross negligence and (ii) the foregoing indemnity
obligation shall not cover any Claim for exemplary or punitive damages unless the Developer is guilty
of malice. The Agency and/or the City shall give the Developer written notice of the occurrence of
any Claim for which the Agency and/or the City seek indemnity under this Section as promptly as
practicable following the Agency's and/or the City's knowledge of the occurrence of such matter and
the Agency and/or the City shall reasonably cooperate with the Developer in the defense of any such
Claim. This indemnity provision shall survive the execution, delivery, expiration and/or termination of
this Agreement.
25. Developer Acquires No Interest in the Site or Remainder Site.
The Developer hereby acknowledges that it has not acquired and will not acquire, by virtue of
the terms of this Agreement, any legal or equitable interest in the Site or the Remainder Site. Nothing
contained in this Agreement shall commit the Agency in advance to accept and approve the final form
of the Project DDA except in the manner required pursuant to the provisions of the CRL at a duly
noticed public hearing of the Community Development Commission of the City of San Bernardino as
the governing body of the Agency.
26. Governinl! Law; Venue.
The parties hereto acknowledge that this Agreement has been negotiated and entered into in the
State of California. The parties hereto expressly agree that this Agreement shall be governed by,
interpreted under, and construed and enforced in accordance with the laws of the State of California.
Further, the parties to this Agreement hereby agree that any legal actions arising from this Agreement
shall be filed in the California Superior Court, in the Court of San Bernardino, Central District.
27. Severability.
If any term, provision or portion of this Agreement or the application thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the
application of such term or provision or portion thereof to persons or circumstances other than those as
to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and
provision ofthis Agreement shall be valid and enforced to the fullest extent permitted by law.
4827-6035-9937.1827-6035-9937.1827-6035-9937.1
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28. No Intent to Create Third Party Beneficiaries.
The parties intend that the rights and obligations under this Agreement shall benefit and burden
only the parties hereto, and do not intend to create any rights in, or right of action to or for the use or
benefit of any third party, including any governmental agency, who is not one (1) of the parties to this
Agreement.
29. Waivers.
No waiver of any breach of any covenant or provision herein contained shall be deemed a
waiver of any preceding or succeeding breach thereof, or of any other covenant or provision herein
contained. No extension of the time for performance of any obligation or act to be performed herein
shall be deemed to be an extension of the time for performance of any other obligation or act to be
performed under this Agreement.
30. Entire Al!reement.
This Agreement (including Exhibit "A" and Exhibit "B" attached hereto) is the final expression
of, and contains the entire agreement between the parties with respect to the subject matter hereof and
supersedes all prior understandings with respect thereto. This Agreement may not be modified,
changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written
instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise
expressly permitted herein. This Agreement may be executed in one (I) or more counterparts, each of
which shall be an original, and all of which together shall constitute a single instrument.
31. Time of Essence.
Except as provided in Section 21 of this Agreement, time is strictly of the essence with respect
to each and every term, condition, obligation and provision hereof and that failure to timely perform
any of the terms, conditions, obligations or provisions hereof by any party shall constitute a default
under this Agreement by the party, so failing to perform subject to such failure to timely perform being
waived by the non-defaulting party at their sole option and discretion.
32. Construction.
Headings at the beginning of each section, paragraph and subparagraph are solely for the
convenience of the parties and are not a part of this Agreement. Whenever required by the context of
this Agreement, the singular shall include the plural and the masculine shall include the feminine and
vice versa. This Agreement shall not be construed as if it had been prepared by one (1) of the parties,
but rather as if both parties had prepared the same. Unless otherwise indicated, all references to
Sections are to this Agreement. All Exhibits referred to in this Agreement are attached hereto and
incorporated herein by this reference.
/II
/II
/II
4827-6035-9937.1827-6035-9937.1827-6035-9937.1
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PJAgendasfAgenda AttachmentslAglTllS-Amend 2007/07.16-.07 ANR Ho~. Int-Final S=mbe lake Projea ERN do.;
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IN WITNESS WHEREOF, ANR Homes, Inc., and the Redevelopment Agency of the City of
San Bernardino execute this Redevelopment Project Study and Exclusive Right to Negotiate
Agreement on the dates indicated next to each of the signatures of their authorized representatives as
they appear below.
Dated:
Date:
Approved as to Form and Legal Content:
By:
4827-6035-9937.1827-6035-9937.1827-6035-99 J7.1
DEVELOPER
ANR Homes, Inc.,
a California corporation
By:
Its:
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
By:
Maggie Pacheco, Executive Director
PIAgendaslAgendaAnachmenlsiAgmls-Amcnd 2007107-16-07 ANR Ho~s, Ine -Final Seccombe lake Project ERN doc
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EXHIBIT "A"
Site Map
(including the Site, the Remainder Site, the Waterman Avenue Properties
and the Relocation Park Properties)
4827-6035-9937.1827-6035-9937.1827-6035_99371
17
P/AgendaslAgenda Attach~nts/Agrtts-Amend 2007107-]6_07 ANR Homes, IlK -Final Sa:combe lake Project ERNcio<;
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EXHIBIT "B"
Project Concept Plan
PIAgcndaslAgenda Attachmcnw'Agmts_Amend 2007/07_16_07 ANR Homes, Inc.-final Seccombc lake Project ERN doc
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