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RESOLUTION NO.
7Y-~Y
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AMENDMENT TO DISPOSITION AGREEMENT FOR THE
CONVENTION-EXHIBITION CENTER AND HOTEL; AND GRANTING AN EXTENSION
FOR THE EFFECTIVE DATE OF START OF CONSTRUCTION.
WHEREAS, the City of San Bernardino entered into a
Disposition Agreement for the Convention-Exhibition Center and
Hotel on January 16, 1978, with San Bernardino Grand Hotel, Inc.,
a California Corporation and the Redevelopment Agency of the City
of San Bernardino, California; and
WHEREAS, pursuant to Article IV, Section 4.03.A., the
Redeveloper, San Bernardino Grand Hotel, Inc., agreed that con-
struction of the Convention-Exhibition Center and the Hotel would
commence within twelve (12) months after the execution of the
Agreement; and
WHEREAS, although diligent efforts have been made by the
Redeveloper to secure sufficient financing to commence and complet
construction of the project, it has been unable to so do because
(1) the usury laws of the State of California prohibit the lending
of money at a rate of interest in excess of 10%, and (2) lending
institutions throughout the nation have been unwilling to provide
financing for this project at a rate of interest of 10% or less
because they have been able to place loans in other states at,a
higher rate; and
WHEREAS, the Redeveloper is confident that interest rates
will decrease prior to January 1, 1980, and it will therefore be
able to secure adequate financing for the project; and
WHEREAS, the Redeveloper is willing to pay the sum of
$1,000 per month in consideration of receiving an extension of
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1 time within which to commence construction; and
2 WHEREAS, the City of San Bernardino and the Redevelopment
3 Agency of the City of San Bernardino are willing to grant such
4 an extension,
5 NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SAN
6 BERNARDINO AS FOLLOWS:
7
1. The Mayor of the City of San Bernardino is hereby
8 authorized and directed to execute on behalf of said City an
9 Amendment to the Disposition Agreement for the Convention-
10 Exhibition Center and Hotel with the San Bernardino Grand Hotel,
11 Inc., and said Redevelopment Agency, authorizing an extension for
12 the construction of said Center and Hotel.
]3 I HEREBY CERTIFY that the foregoing resolution was duly
14 adopted by the Mayor and Common Council of the City of San
15
Bernardino at a
~&d;Z/J
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meeting thereof,
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held on the
~~ day of ~MNA1f<
, 1979, by the following
17 vote, to wit:
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Councilmen
AYES:
J
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20
NAYS:
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ABSENT:
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The foregoing resolution is hereby approved . ~
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J.no
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day Ofyl"/M.kt?~
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nornar
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81979
-2-
CITY CLERf<S OFFICE