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I CITY OF SAN BERNARDINO -
REQUEST !;OR COUNCIL ACTION
File DJ. ,.l-ype II 94-21
Authorization to Execute Agreement
Subject: with Ruba Enterprises - Deferral
of Development Fees for Denny's
Restaurant @ 5975 Palm Avenue
From: ROGER G. HARDGRAVE
Dept: Public Works
Date: 12-6-94
Synopsis of Previous Council action:
09-06-94 -- Authorization granted to execute Owner Participation
Agreement (OPAl with Ruba Enterprises approving a loan
for $1,400,000.
~D:.\H' , "'FI<'LCE'J
13 DEC 9< 3: 31
Recommended motion:
Adopt resolution.
cc: Shauna Clark
Jim Penman
Stafford Parker
Al Boughey
iJ~
Contact person:
Roqer G. Hardqrave
Staff Report, Agreement
& Resolution
Phone:
5025
Supporting data attached:
Ward:
6
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (Acct, No.)
(Acct. DescriPtion)
Finance:
Council Notes:
75.0262
Agenda Item No.
.C; -;:-~
CITY OF SAN BEROARDINO - REQUESTOOR COUNCIL ACTION
STAFF REPORT
A building for general commercial uses was constructed in
connection with the ARCO Service Station, at 5975 Palm Avenue.
Development fees were paid at time of development as established
for general commercial uses.
The owner has since been successful in attracting a
Denny's Restaurant to occupy the cOMmercial building. Extensive
tenant improvement will be nee Qed to convert the building for use
as a restaurant. Development fees for a restaurant are consider-
ably different than for a general commercial building. The addi-
tional amount of Storm Drainage Fees is $6,235.08, and the
Traffic System Fee is $11,860.00.
The developer arranged financing for the conversion of
this building, and construction of the required number of
additional parking spaces, without being aware of the additional
amounts due for Storm Drainage and Traffic System Fees. There-
fore, no funds are presently available to finance these addi-
tional fees.
The Agreement presented for your consideration provides
that these additional amounts of development fees may be deferred
for up to two (2) years from the date of issuance of the
temporary Certificate of Occupancy. The final Certificate of
Occupancy will not be issued until these development fees have
been paid in full.
URGENCY CLAUSE:
The applicant has applied for development permits, and needs to
get this issue of the fees resolved, in order that construction
can proceed on conversion of the existing commercial building for
a Denny's Restaurant.
12-6-94
75-0264
c
o
1
RESOLUTION NO.
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREENENT WITH RUBA ENTERPRISES, INC., RELATING
3 TO THE DEFERRAL OF ADDITIONAL STORM DRAINAGE AND TRAFFIC SYSTEM
FEES FOR CONVERSION OF A BUILDING AT 5975 PALM AVENUE FOR A
4 DENNY'S RESTAURANT.
5
6
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
hereby authorized and directed to execute, on behalf of said
City, an Agreement with Ruba Enterprises relating to the deferral
of additional Storm Drainage and Traffic System Fees, for
conversion of a building at 5975 Palm Avenue for a Denny's
Restaurant. A copy of said agreement is attached hereto, marked
Exhibit "A" and incorporated herein by reference as fully as
though set forth at length.
SECTION 2.
The agreel'lent shall not take effect until
fully signed and executed hy both parties. The City shall not be
obligated hereunder unless and until the agreement is fully
executed and no oral agreement relating thereto shall be implied
or authorized.
SECTION 3.
This resolution is rescinded if the parties
to the agreement fail to execute it within ninety (90) days of
the passage of this resolution.
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12-6-94
1.l.\.J..oVVO
I
.n.u J..I..I.VJ..\..L.I..J.1.i.~U
J:.".~GI....V.J. .LUL'l
REEMENT WITH
DEFERRAL OF DEVELOPMENT FEES.
:>
RUBA
ENTERPRISES RELATING TO
. .
'~ ,
1
I HEREBY CERTIFY that the foregoing resolution was duly
2 adopted by the Mayor and Common Council of the City of San
3 Bernardino at a
4 day of
5 Council Members:
6 NEGRETE
7 CURLIN
8 HERNANDEZ
9 OBERHELMAN
10 DEVLIN
11 POPE-LUDLAM
meeting thereof, held on the
, 1994, by the following vote, to-wit:
AYES
NAYS
ABSTAIN
ABSENT
12 MILLER
13
14
15
16
day of
17
Rachel Clark, City Clerk
The foregoing resolution is hereby approved this
, 1994.
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Approved as to form
and legal content:
Tom Minor, Mayor
Ci ty of San Bernardino
James F. Penman
City Attorney
By
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c
o
EXHIBIT
-A-
A G R E E MEN T
THIS AGREEMENT, made and entered into this day of
, 199_, by and between the City of San
Bernardino, CA, a municipal corporation of the State of
California, hereinafter referred to as "CITY," and Ruba
Enterprises, a California Corporation
hereinafter referred to as "DEVELOPER."
WITNESSETH:
permits
general
WHEREAS, DEVELOPER
to construct tenant
commercial building
has applied for the appropriate
improvements as required to convert a
for use as a Denny's Restaurant 1 and
WHEREAS, DEVELOPER has also applied for the appropriate
permits to construct additional parking spaces to accommodate the
additional demand for the Denny's Restaurant 1 and
WHEREAS, Development Permit Type II No. 94-21 was
approved for construction of the additional parking spaces by the
Development Review Committee (DRC) at their regularly scheduled
meeting of 11-17-941 and
WHEREAS, the conditions of approval for Development
Permit Type II No. 94-21 require payment of development fees for
Storm Drainage ($6,235.08), and Traffic Systems ($11,860.00), in
the total amount of $17,095.081 and
WHEREAS, DEVELOPER has requested that these development
fees be deferred from issuance of building permits to no more
than two years from issuance of a temporary Certificate of
Occupancy Permit for the Denny's Restaurant, due to the fact that
these fees are not included in the construction financing.
NOW, THEREFORE, it is mutually agreed as follows:
SECTION 1. City will issue a temporary Certificate of
Occupancy for the Denny's Restaurant, at 5975 Palm Avenue, upon
satisfactory completion of all items of work required under
Development Permit Type II No. 94-21.
required
deferred
issuance
SECTION 2. The following listed Development Fees,
by Development Permit Type II No. 94-21, are hereby
to a time no longer than 2 years from the date of
of the temporary Certificate of Occupancy:
Storm Drainage
Traffic System
Total
$ 6,235.08
11,860.00
$ 17,095.08
SECTION 3. DEVELOPER shall pay the full amount of these
development fees to CITY no more than two (2) years from the date
of issuance of the temporary Certificate of Occupancy.
- -
AGREEMENT: DE<:)RAL OF DEVELOPMENT FEES ~ DENNY'S RESTAURANT
SECTION 4. DEVELOPER shall sign a promissory note
guaranteeing payment of these development fees within two (2)
years.
SECTION 5. DEVELOPER acknowledges that failure to pay
the full amount of these development fees, within two years from
date of issuance of the temporary Certificate of Occupancy, shall
constitute good and sufficient grounds for revocation of the
temporary Certificate of Occupancy.
IN WITNESS WHEREOF, the parties here':o have caused this
First Amendment to Agreement to be executed ~n the date written
above by their duly authorized officers on their behalf.
CITY OF SAN BERNARDINO
ATTEST:
By
Tom Minor, Mayor
Rachel Clark, City Clerk
RUBA ENTERPRISES, INC.
By
Atef Fakhoury
Approved as to form
and legal content:
Title:
Telephone:
James F. Penman
City Attorney
By_
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