Loading...
HomeMy WebLinkAboutR10-Economic Development Agency o o o DC! E LOP M E II r D E PAR r~ R r OF TIlE CIT!' OF SAIl BEIllWlDIlU REODEsr FOR COIMISSIOII/COUl'lCIL ACTIOR From: KENl'lETB J. HENDERSON Executive Director Subj ect: Il'ILAl'ID BEVERAGE FACILIT!' PURCHASE Al'ID SALE A~.[ Date: November 25, 1991 ------------------------------------------------------------------------------- SvnoDsis of Previous ComaissionlCouncil/Committee Action(s): On October 16, 1991, the Redevelopment Committee took action recommending to the Community Development Commission approval of the acquisition and purchase of the Inland Beverage Facilities and that this matter be forwarded to the Commission upon completion of the appropriate purchase agreement. On November 18, 1991, the Community Development Commission continued this item to December 2, 1991. ------------------------------------------------------------------------------- RecommPnded Motion(s): (COIDImitv Develooment Co_ission) MOTIOR A A RESOULTION OF THE COMMUNIT!' DEVE.OPMENT COMMISSION OF THE CIT!' OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ACQUISITION OF CERTAIN PRO PERT!' LOCATED IN THE CENTRAL CIT!' SOUTH REDEVELOPMENT PROJECT AREA AND AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONl'lECTION THEREWITH. MOTIOII B That the Community Development Commission authorize payment in the amount of $10,000 to Golwix Investments for real estate consultant services. Adm~ator ~Oll Executive Director Contact Person(s): Stafford Parker/Jim SharD Phone: 5081 Project Area(s): Central Citv South (CCS) Ward(s): One (1) Supporting Data Attached: Staff ReDort: Purchase Aareement FUNDING REQUIREMENTS: Amount: $ 1.285.000 Bond Proceeds Source: Budget Authority: Commission/Council lIotes: KJH:JWS:lag:2209J COIMISSIOII MEETIl'IG AGEl'IDA Meeting Date: 12/2/1991 Agenda Itell l'Iumber: L ~-' o o o o o DEVELOPMEBT DEPARTMEBT OF TIIB CITY OF SAB BBJllfARDIBO STAFF REPORT Inl_nd Beveraae Facilitv Acauisition The Development Department previously received an offer to purchase the property known as Inland Beverage Facility located at 223-227 South "G" Street, San Bernardino, California. The proposed acquisition is part and parcel to the assemblage of properties required for future development within the Central City South Redevelopment Project Area. Staff has prepared an informal in-house appraisal establishing the value of the property in the range of $1.1 to $1.4 million dollars. The deal points relative to the proposed transaction are as follows: 1. Seller: Mr. Thomas C. Mason, dba: Inland Beverage 2. Prouertv Location: 223-227 South "G" Street San Bernardino, California 92410 3. Assessor's Parcel IIuIIlbers: 0136-101-24 and 0136-101-27 ( 4. Prouertv Descriution: Approz1mately 2.18 acres of improved industrial/manufacturing land with approximately 39,139 square feet of warehouse industrial structures. 5. $1,075,000.00 all cash. Tenua of Sale: 6. Sales Price Consists of: a) $1,075,000 land, structures and improvements. b) $200,000 as and for a contribution towards the environmental remediation of the property to be paid through escrow. c) Seller and Inland Beverage Inc. shall, at no additional cost beyond the sellers contribution from close of escrow, guarantee to proceed and complete the entire environmental remediation of sald property in a expeditious and timely manner. Mr. Mason has given his personal obligation to remediate hazardous materials from the site to the standards and satisfaction of the County of San Bernardino Environmental Health Services Department and the Federal Environmental Protection Agency. (The agreement is reflected in the attached Exhibit "B" - page 8, Article VII - Environmental remediation - Section 7.00.) -------------------------------------------------------------------------------- KJH:JWS:lag:2209J COMMISSIOB RRBTIBG AGBJmA Meeting Date: 12/2/1991 Agenda Item Bum1Ier: 10 o o o o DEVELOPIIIJr DBPhUIIUI.L StilT REPORT In18Dd BeTeraae Facility Acquistion BOTember 20, 1991 Page lIlaber 2 o d) Seller shall retain the option of a six (6) month period of interim occupancy of said premises from close of escrow at no additional cost. e) Seller may exercise an additional six (6) months extension beyond the first six (6) month occupancy period for the sum of $5,OOO/month rental upon bUYer's approval. 7. Date of Closina: December, 1991. 8. Additional Detai18 to Close of E8crow: a) Seller retains full responsibility and guarantee of the completion for the site remediation and closure. b) Seller requires the Department to provide him with a letter of condemnation at the time of closing. In conclusion, the proposed acquisition facilitates the accomplishment of three (3) major goals within the Central CifY South Redevelopment Project Area, as follows: 1. With the purchase consummated, the seller shall relocate to another site within the City, which is more conducive to their warehouse and distribution activities. This matter will be formalized as to the specific location and related time periods in the negotiated purchase agreement. 2. The seller is the last user of the Southern Pacific rail spur in the area. Southern Pacific Rail Road has given the City a commitment to physically remove to Colton its trunk and spur line from the district upon the termination of its use by the seller. 3. Conclusively, the acquisition is part and parcel to the continued assemblage of properties required to promote and ensure the further development of the Southern Pacific property and the Central City South Redevelopment Project Area. On October 16, 1991, the Redevelopment Committee considered this matter and took action recommending to the Community Development Commission approval of same. In addition, the Committee directed that this matter be forwarded to the Commission upon the completion of the appropriate purchase agreement. -------------------------------------------------------------------------------- KJH:JWS:lag:2209J Co..uSSIOW IIBBTIlIG AGDDA Beeting Date: 12/2/1991 Aaenda Item Wullber: -10- o o o o o DBVELOPIID1' DBPAiu.n6ai STAn' RBPOft Inland Beyerage Faci1i~ Acqaiation November 20, 1991 Page lIuIIIber 3 Based upon the foregoing, staff recommends adoption of the form motion, which includes compensating Golwix Investments in the amount of $10,000 for real estate consultant services rendered to the Economic Development Agency in connection with this transaction. On November 18, 1991, the Community Development Commission continued this item and requested staff to perform the attached analysis (Exhibit "A") of the subsurface investigation. ~ON' B:l:ecutive Director Development Departaent ( ------------------------------------------------------------~------------------- KJH:JWS:lag:2209J ClHIISSION MlBTIBG AGBlfDA Meeting Date: 12/2/1991 Agenda Itea lIuIIIber: -10-- o c o o o Inl_ftd Beveraae Facility Acauisition Aft-lvsis af Subsurface Investi.ation In the sprina of 1986, Inland Beverage Distributors decided to remove all of its underground storage tank facilities. In the process of said removal, it was discovered that there might be potential environmental contamination caused by the onaoina leakage of said tanks. In the winter of 1986, a Phase I subsurface investigation report was completed at the sole cost to Inland Beverage of approximately $150,000. It was determined by this report that there were elevated levels of identified priority and non-priority pollutants. Furthermore, it was concluded that there may be a potential of non-identified elements of ground water contamination. In August, 1987, additional borings, soil samples and the installation of monitorina wells were conducted on the site. Information produced by these actions was analyzed in a Phase II Subsurface Investigation Report which was submitted to the County of San Bernardino Environmental Health Services Department for its review and comment. The Environmental Health Services Department prescribed the continued ongoina monitorina of results provided by the monitorina wells to help determine the degree of remedial action required. In an effort to quantify the monitored information, a "Results of the Reconaissance Gas Survey" report was prepared for I\lland Beverage in July, 1991. The results of said survey and the previous Phase I and Phase II subsurface investigation data was used to produce an interim report known as the "Assessment of Subsurface Petroleum Hydrocarbon Contamination" study. The conclusions of these reports and the previous data is that there are elevated levels of some identifiable pollutants. In addition, there is evidence which suggests that mitigation action of elevated concentrations of fuel hydrocarbons in soil and groundwater in the immediate area of the previous tank installations may be required by the Regional Water Quality Control Board. It is Staff's understandina that a final work plan for the additional assessment and remediation has been prepared and submitted to the California Regional Water Quality Control Board and the County of San Bernardino Environmental Health Services Department for approval. In an effort to expedite the proposed actions, Mr. Mason of Inland Beverage has secured a contract estimate for the site remediation and closure. The cost of said plan, which is in addition to the previous total expenditures of over $150,000, is approximately $227,700. Said action is estimated to take one (1) to two (2) years to complete. SMM: lag: 2203J EXHIBIT "An /0 /'. o 6' 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 , 221 23 24 25 26 27 28 , . ..-.. o Item: Exhibit -A- Action to be Taken: b COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA AGENDA November'18, 1991 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ACQUISITION OF CERTAIN PROPERTY LOCATED IN THE CENTRAL CITY SOUTH REDEVELOPMENT PROJECT AREA AND AUTHORIZING :THE EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH Purchase and Sale Agreement Adopt Resolution. Certified copy of Resolution to be re~urned to Saba , Green. IBIlOIOOOJISJI 10131191 J4J .' ~..... 10 , I o cS B -1T (. .:. \:.:; \ .. o l:) 1 2 3 4 5 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ACQUISITION OF CERTAIN PROPERTY LOCATED IN THE CENTRAL CITY SOUTH REDEVELOPMENT PROJECT AREA AND AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH 6 7 WHEREAS, the City of San Bernardino, California (the 8 "city"), is a municipal corporation and a charter city duly 9 created and existing pursuant to the Constitution and the laws of 10 the state of California; and 11 12 WHEREAS, the community Development Commission of the 13 City of San Bernardino (the "Commission") on behalf of the 14 Redevelopment Agency of the City' of San Bernardino (the 15 "Agency"), is a redevelopment agency, a public body, corporate 16 and politic of the State of california, organized and existing 17 pursuant to the community Redevelopment Law (Part 1 of Division 18 24) commencing with Section 33000 of the Health and Safety Code 19 of the State of California (the "Act"); and 20 21 WHEREAS, the Agency has determined that it would be ?? desirable fo~ th4!l ~f!el'ey 1-0 lie'!"!:>"e l':",...tain r"'l"J p1"rpe:>"ty ana 23 improvements located thereon which real property and improvements 24 are generally located at 223-227 South "G" Street (the 25 "Property") for the purposes of assembling such Property for 26 future development in a manner consistent with the Redevelopment 27 Plan for the Central City South Redevelopment Project Area (the 28 "Redevelopment Plan"); and - 1 - ~.." /0 /,- o b o ~. o o 1 WHEREAS, the Property is located within the project 2 area subject to the Redevelopment Plan and the Redevelopment Plan 3 provides for the acquisition of land within the project area for 4 redevelopment purposes; and 5 6 7 8 9 10 11 12 WHEREAS, the total purchase price to the Agency of the 13 Property as set forth in the Purchase and Sale Agreement shall be 14 the sum of One Million Two Hundred sevehty-Five Thousand Dollars 15 ($1,275,000) which purchase price shall be paid from bond 16 proceeds available from the project area subject to the 17 Redevelopment Plan; and 18 19 WHEREAS, upon the Agency'S acquisition of the Property 20 it is anticipated that such ~roperty shall be held for future 21 development in a manner consistent with the provisions of the 22 RAdeveloprnent Plan. WHEREAS, the Agency proposes to acquire the Property from the present owners thereof, Inland Beverage, a California corporation, pursuant to the terms of that certain Purchase and Sale Agreement, a copy of which is attached hereto as Exhibit "An and incorporated herein by this reference; and 23 24 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION 25 ACTING ON BEHALF OF THE' REDEVELOPMENT AGENCY OF THE CITY OF 26 SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 27 FOLLOWS: 28 - 2 - /0 o 6: 6 \' ... '~ '0 (.:' -' o 1 Section 1. The Recitals hereinabove are true and 2 correct and are incorporated herein by this reference. 3 4 Section 2. The. Commission hereby approves the 5 acquisition of the Property pursuant to the terms of that certain 6 Purchase and Sale Agreement, attached hereto as Exhibit "A", for 7 the purposes of assembling such land tor future development in a 8 manner consistent with the Redevelopment Plan. 9 10 Section 3. The Commission hereby authorizes the 11 Agency Chairman and Secretary on behalf of the Agency to execute 12 the Purchase and Sale Agreement and all other necessary documents 13 in connection therewith and take such actions as may be deemed 14 necessary in order to facilitate the adquisition of the Property 15 by the Agency. 16 17 18 19 20 21 ".,1 -'..!i' 23 24 25 26 27 28 - 3 - /v r' I o 6 C\ oj 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22L 23 24 25 26 27 28 f . '0 b RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION or THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ACQUISITION OF CERTAIN PROPERTY LOCATED IN THE CENTRAL CITY SOUTH REDEVELOPMENT PROJECT AREA AND AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH section 4. This Resolution shall take effect upon the date of its adoption. I HEREBY CERTIFY that the foreqoinq Resolution was duly adopted by the Community Development commission of the City of San Bernardino at a meeting thereof, held on the day of , 1991, by the following vote, to wit: commission Me~: AID !!AU ABSTAIN ABSENT ESTRADA REILLY HERNANDEZ MAUDSLEY MINOR POPE-LUDLAM MILLER ---L. day of Secretary The foregoing resolution ia hereby approved this , 1991. W. R. Holcomb, Chairman community Development cowmisaion of tha City of San Bernardino Approved as to form and legal content: By: ......:..:;::...':~' .~..:~ T) :~~M '~:.',:; ~ T~.!'~T. '. . . . ". ':' .::'::';1, IIIIlOOOOIlDOCIDl :"':;"''''J~ ~fI a,~_ 4 - lD ( o 6 8 STATE OF CAL2RNIA ) COUNTY OF SAM BERNARDINO ) 2 CITY OF SAM BERNARDINO ) ~ j 1 ss 3 I, Secretary of the Community Development Commission of the City of San Bernardino, DO HEREBY 4 CERTIFY that the foregoing and attached copy of Community Development Commission of the City of San Bernardino Resolution 5 No. is a full, true and correct copy of that now on file in this office. 6 IN WITNESS WHEREOF, I have hereunto .et my hand and 7 affixed the official .eal of the Community Development Commission of the City of San Bernardino this day of 8 ' 1991. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Secretary of the community Development Commission of the City of San Bernardino , - 5 - /0 - o o 10 o o EXHIBIT "B" PROPERTY ACQUISITION AGREEMENT ( /0 o b (, (5 (~,. (:5' PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (the "Agreement") is made and entered into as of the day of , 1991, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency") and THOMAS C. MASON, a married man as his sole and separate property ("Mason"). WITNESSETH the property (as Agency desires to WHEREAS, Mason desires to sell hereinafter defined) to the Agency and the purchase the property from Mason; and WHEREAS, in order to set forth the terms and conditions of such purchase and sale, the Agency and Mason desire to enter into this agreement. NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: ( ARTICLE I PURCHASE AND SALE Section 1.00. Purchase and Sale. Subject to the terms and conditions of this Agreement, Mason hereby agrees to sell, and convey to the Agency, and the Agency hereby agrees to purchase from Mason, all of Mason's right, title and interest in and to the following described property (COllectively, the "Property"): (a) 1.In4. That certain real property (the "Land") cOllllonly known as 223-227 South "0" Street, San Bernardino, california, and aore particularly described in Exhibit "A" attached hereto and incorporated herein by reference; (b) ImDrove.ents. All improvements, buildings, structures and. fixtures located un t1.1e Land (the "ImprClv_~nt5") save and except for refrigeration equipment currently existing on the Land, which equipment ..y be removed by Mason as hereinafter set forth; (c) Easements. All easements, if any, benefiting the Land or the Improvements; <:).J -1- Ii) ;1 , , o b 6: b b (d) Riahts and ADDurtenances. All rights and appurtenances pertaining to the foregoing, including any right, title and interest of Mason in and to adjacent streets, gores, alleys or rights of ways; and (e) Water Riahts. All water, water rights, sewer rights, water courses, wells, ditches and flUllles located on or appurtenant to the Land. ARTICLE II PURCHASE PRICE Section 2.00. Purchase price. The purchase price (the "Purchase Price") for the property shall be One Million Seventy- Five Thou.and Dollar. ($1,075,000.00), and shall be paid by the Agency to Mason, in immediately available fund., as follows: (a) DeDo.it. Within three (3) day. after execution of this Agreement by the partie. hereto, and final approval of the Agreement by the Community Development Commis.ion, the legi.lative body of the Agency (the "Commission"), an executed copy of the Agreement and the Agency's check for Five Thousand Dollars ($5,000.00) (the "Deposit") shall be delivered to First American Title Insurance Company, San Bernardino office (the "Escrow Agent"). The Deposit is to be invested by the Escrow Agent in an interest-bearing account for the benefit of the Agency. (b) Cash at closina. The belance of the Purchase Price shall be paid to Hason at Closing (a. hereinafter defined). ARTICLE III PURCHASER' S ACCEPTANCE OF PHYSICAL CONDITION OF PROPERTY Section 3.00. phvsical Condition. During the Inspection Period (a. hereinafter defined), the Agency lIhall have inspected the Property to the extent that the Agency deems nece.sary and desirable. The Agency's failurCl to notify Hason prior to the expiration of the In!!!,,,,ct"j~!l l>eriod as provided in Article X of this Agreement, shall constitute the Agency'. representation to Mason that the Agency is satisfied in all respects as to the location and physical condition of the Property, including without limitation the physical condition and structural integrity of any and all Improve.ents. The parties hereto acknowledge that, .s of the date of this Agreement, the Improvement. have been damaged by fire and that Mason intends to correct that damage to the extent necessary to maintain the Improvements in a habitable condition. The Agency agrees that the existence of such fire damage shall not -2- /l) ( c 6 6) ...... ,.' o ~. () be grounds for a determination by the Agency that it shall not proceed with the transactions contemplated in this Agreement, as provided in Section 10.00 of this Agreement. However, Mason agrees to return the Improvements to a habitable condition by the date that Mason'. tenant, InlaneS B.verag. (IInlaneS"), vacates the Property, irr.spectiv. of wh.th.r JnlaneS vacates the Property at the Closing, eSurinq the Initial'OCcupancy PeriocS (as her.inafter defined) or eSurinq the SeconeS Occupancy PeriocS (as hereinafter defineeS). Th. part i.. hereto furth.r acknowleeSg. that, pursuant to section 7.00 her.of,' Ma.on i. agreeing to remeeSiat. certain environmental contamination at the Property, aneS the parties hereto aqree that any environmental contaaination at the Property which Mason i. aqreeinq to remediate pursuant to S.ction 7.00 hereof, shall not be qrouneSs for a det.l'1IIination by the Agency that it shall not proceed with the transactions contemplated in this Agreement. Section 3.01. A. I. Statu. of Purcha.e. WITHOUT LIMITING THE EFFECT OF THE PROVISIONS OF SECTION 3.00 HEREOF, INSOFAR AS THEY RELATE TO MASON'S OBLIGATION TO RETURN THE IMPROVEMENTS TO A HABITABLE CONDITION AS OF THE DATE THAT INLAND VACATES THE PROPERTY, AND WITHOUT LIMITING THB EFFECT OF THE PROVISIONS OF SECTION 7.00 HEREOF, INSOFAR AS THEY RELATE TO MASON'S OBLIGATION TO REMEDIATE CERTAIN ENVIRONMENTAL CONTAMINATION AT THE PROPERTY, THE AGENCY ACKNOWLEDGES THAT FOLLOWING SUCH EXAMINATIONS AS THE AGENCY MAY ELECT TO MAKE DtJRING THE INSPECTION PERIOD, THE AGENCY WILL HAVE EXAMINED AND APPROVED ALL THINGS WITH RESPECT TO THE PROPERTY INCLUDING, WITHOUT LIMITATION, CONDITION, TOPOGRAPHY, SOIL, COMPLIANCE WITH LAWS, SUITABILITY FOR PROPOSED USE, COMPLIANCE WITH COVENANTS, CONDITIONS AND RESTRICTIONS, LOCATION, COST , AVAILABILITY AND CAPACITY OF, AND ALL OTHER MATTERS PERTAINING TO, UTILITIES AND SANITARY FACILITIES, AS THB AGENCY SHALL HAVE ELECTED TO MAKE. BASED UPON THE FOREGOING, THE AGENCY ACKNOWLEDGES AND AGREES THAT, EXCEPT FOR ANY REPRESENTATIONS, WARRANTIES OR COVENANTS OF OR IN THIS AGREEMENT, IT WILL BE PURCHASING THB PROPERTY "AS-IS" AND "WITH ALL FAULTS" AS OF THE CLOSE OF ESCROW. ARTICLE IV TITL! INSURANCE Section 4.00. Mason's Obliaation to Provide Title Insurance. Mason shall deliver to the Aqency, within ten (10) eSay. after the Eff.ctiv. Date, as hereinafter d.fined, a preliminary title report for an owner's title policy issued by First American Title Insuranc. Company, togeth.r with leqibl. copi.s of all restrictive covenants, .a.em.nt....arid other items li.ted as title exception. ther.in (.ach a "Titl. Defect"). Th. title policy to be issued to the Agency pur.uant to this .ection shall en.ure fee simple title to the Agency in the amount of the Purcha.. pric., -3- If) " o 6 8 1;;;.; () & subject only to the exceptions shown therein to which the Aqency has aqreed in writing. The Agency shall have ten (10) days atter its receipt ot the preliminary title report within which to disapprove any' Title Detects shown therein, such approval or disapproval to be within the Aqency'. reasonable discretion. It the Aqency hils to disapprove any particular Title Detect by written notice delivered to and received by Mason within such time period, then the Aqency shall be deemed to have approved such Title Defect. If the Aqency disapproves any such Title Defect by written notice delivered to and received by Mason within such ti.e period, then the Aqency may tenainate this Aqreement unless Mason (without any obliqation to do so) cures the Aqency's objection to such Title Defect. Title Defects which the Aqency approves or has been deemed to have approved pursuant to this Section shall be hereinafter referred to as the -Permitted Exceptions.- If Mason is unwillinq or unabla to satisfy any title requirement or to cure any Title Detect by the Closinq, then Mason shall have the option to either (a) extend the Closinq by that period of time which is reasonably required by Mason to satisfy the title requirement or to cure the Title Defect, or (b) terminate this Aqreement by written notice to the Aqency in accordance with the notice provisions of this Aqreement, in which case the Deposit and any other funds placed in the escrow by the Aqency shall be returned to the Aqency. The parties hereto acknowledqe that the Property is presently encumbered by a deed of trust which secures a loan funded throuqh the use of industrial development bonds and that Mason may elect to extend the Closinq, on a day to day basis, as may be necessary to effect the reconveyance of such deed of trust. ARTICLE V CLOSING Section 5.00. Closina Throuah Eserow. Subject to the provisions of this Agoreement, the Aqency and Mason shall consWlllllate and close the purchase and sale of the Property contemplated by this Aqre..ent when all of the conditions of closinq for the benefit of the partie. hereto have been satisfied or waiVed, but in no event later than November 29, 1991, or such later date as is neoessary to enable Mason to obtain a reconveyance of the deed ot tru.t securinq the industrial development bonds, or ~~ ~~~ f!r~t business day thereafter if such date does not occur on a business day, or at such other ti.e as the parties hereto may aqree upon in writinq (the -Closinq-). Subject to the provisions of this Aqreement relating to the extension of the Closinq, if the Closinq doe. not occur as a result of the failure of a condition, then the party hereto for whose benefit the condition exists may terminate this Aqreement, in which event the parties hereto shall have no further riqhts or obliqations pursuant to this Aqreement and the Escrow Aqent shall return to the Aqency the Deposit and any other funds placed in the escrow by the Agency. The purchase and sale -4- ID o ( c C-i o G) (' ,I , G~" d contemplated by this Agreement shall be consummated through an escrow which the Agency and Mason shall cause to be established with the Escrow Agent within three (3) days of the full execution of this Agreement by the parties and approval of this Agreement by the commission. The date on which said escrow is established shall be the "Effective Date." The parties hereto agree to be bound by the Escrow Agent's supplemental instructions which are attached to this Agreement as Exhibit "8" and also agree to be bound by any other escrow instructions or escrow agreement required by the Escrow Agent to perfona escrow and title services customarily performed within San Bernardino County, California. The Agency and Mason agree to provide the Escrow Agent with executed copies of any such escrow instructions or escrow agreement within five (5) days after receipt thereof from the Escrow Agent. Any escrow instructions or escrow agreement executed by the parties hereto shall be in accordance with the terms and provbions of this Agree.ent, and any conflict between such escrow instructions or escrow agreement and thb Agreement shall be resolved in favor of this Agreement. Section 5.01. Mason's Oblierations at Closiner. At .'. Closing, Mason shall deliver to the Escrow Agent the following documents Call duly executed and acknowledged by Mason, where required): , Ca)~. A grant deed in SUbstantiallY the form attached to this Agreement as Exhibit "C", executed by Mason and conveying the Land and all Improvements thereon to the Agency, subject to no exceptions other than the "Permitted Exceptions." Cb) Title PoliCY. An owner's title policy in CLTA standard fona, naming the Agency as the insured in the amount of the Purchase Price, insuring that the Agency owns fee simple title to the Property, subject only to the Penaittecl Exceptions. The Agency, at its option, may elect to cause the title company to endorse the owner's title policy in any manner the Agency dee_ appropriate, at the Agency's sole expense. Further, the Agency, at: its sole election, may require that the title policy be in an ALTA standard fona, in which case the Agency shall be responsible for the amount by which the cost for such ALTA policy exceeels the cost: for a CLTA policy. Cc) Forefern Person. An affidavit of Mason in the fona described by Treasury Regulation Section 1.1445-2 certifying that Mason is not a "foreign person" as defined in the federal Foreign Investment in Real Property Tax Act of 1980, and the 1984 Tax Reform Act, as amended. Section 5.02. The Aaencv's Oblieration at Closiner. At Closing, the Agency shall deliver to the Escrow Agent the following Call duly executed and acknowledged by the Agency, where required): -5- 10 o ( o co Wo c. " "'0 (a) Purchase Price. The Purchase Price, in immediately available tund., due credit being given tor the Deposit, including interest earned thereon. (b) Evidence of Authoritv. A copy ot the duly adopted Resolution ot the Commission, authorizing the execution, delivery and pertormance by the Agency ot this Agreem.nt and the documents required h.reby, and designating on. or more persons to .xecute such documents in the Agency's name in connection with this Agreement. Section 5.03. Closina Costs. Mason shall pay the tollowing closin9 costs: Mason's attorn.ys fees and costs, one half of the fees and costs du. to the Escrow Ag.nt for services rend.red as .scrow ag.nt; all pr_iwu and charg.s related to the' issuanc. of the own.rs title policy, .xc.pt as provid.d in Section 5.01(b) abov., and all abstract and title examination and oth.r costs r.lated to the issuanc. of the title policy. The Agency shall pay the following closing co.ts: the Ag.ncy' s attornays tees and costs, one half of the f.es and costs due to the E.crow Ag.nt tor s.rvice. rend.r.d as .scrow agent, and any change. relating to the is.uanc. of an ALTA title policy, if any, pur.uant to Section S.Ol(b) abov.. Any additional fees and charqes shall be divided betwe.n the Ag.ncy and Ma.on in accordance with the customary practic. in the County of San B.rnardino, California. << Section 5.04. Proration. All real .stat. and personal property tax.s and assessm.nts with respect to the Property (oth.r than with r.sp.ct to the transfer ther.of) for the y.ar in which the Closing occurs shall be prorat.d to the Closing. Section 5.05. D.liv.rv of Po.....ion. Subj.ct to the provisions ot this Aqr._ent r.lating to the Closing occurring no later than November 2', 1111, as that date aay be .xtend.d as provid.d her.in, upon the satisfaction by Mason of all of Mason'. Obligations as s.t forth h.r.inabove, and upon the satisfaction by the Agency of all of it. Obligations a. s.t forth h.r.inabove, and upon the satisfaction of any end all other conditions pr.cedent to this Aqr....nt, if any, the Escrow Agent shall di.tribute to the Ag.ncy and Mason the items and documents d.scribed in this Article V, resp.ctively, and the purchas. and sale transaction contemplat8!l in this Aqr._ent .hall be finally consummat.d. Delivery of possession of the proparty to the Agency shall be made at Closing, except a. s.t forth in Articl. VI. -6- . ~... IQ o b b (:: () , .. I . '- C) ARTICLE VI POSSESSION OF PROPERTY BY MASON AND/OR INLAND AFTER CLOSING Section 6.00. Interim OccuDancv. The Parties to this Aqreement aqre. that Ma.on and Inland .hall have the riqht to retain po..es.ion of the Prop.rty, includinq the u.e of all existinq Iaprovement., for a period of six (6) month. commencinq on the date of the Clo.. of E.crow (the "Initial Occupancy Period"). Said po..e.sion and occupancy .hall be at no cost to Ma.on or Inland for rent. Ma.on aqr.es that h. or Inland shall be solely respon.ibl. for all .xpen... of operation and maintenance of the Property durinq the t.rm of .aid occupancy. Ma.on aqree. that he or Inland .hall provide the Aq.ncy with evidence of liability insuranc. in a form, in amount., and by an in.urer acceptable to th. Aqency in it. reasonable di.cr.tion. Said in.uranc. .hall be maintained by Ma.on or Inland durinq the term of it. occupancy of th. Property at Ma.on'. or Inland'. .01. expen... It i. the intention of th. Partie. to thi. Aqr.ement that thi. Section .hall permit continued occupancy by Inland and/or Ma.on and the operation of Inland'. .xi.tinq busine.. from th. Property without payment by Inland or Ma.on to th. Aqency for .uch po.....ion, but without cost to the Aqency of any kind relatinq to Ma.on'. or Inland'. continued use and po..ession of the Property. l S.ction 6.01. Extension of Possession. The Parties further aqr.. that Mason or Inland may requ.st an additional six (6) month occupancy period, to Commence upon the completion of the Initial Occupancy Period by servinq written notice of such reque.t on the Aqency in accordance with the notic. provision. of this Aqreem.nt not 1... than thirty (30) day. prior to the termination of the Initial Occupancy Period. Upon such requ..t, the Aqency, in its sole diacr.tion, may qrant an .xtension of the occupancy period for a period not to .xcaed an additional six (6) months (the "Second Occupancy Period"). Durinq th. Second Occupency Period, all teras and conditions relating to the continued occupancy of the Property by Ma.on or Inland set forth in S.ction 6.00 shall apply, except that Mason or Inland shall pay a rental of $5,000.00 per month for each month or portion thereof durinq Which Ma.on and/or Inland occupies th. Property during the Second Occupancy Period, with .aid rent to be paid in advanc. on the first day ",- each month. Section 6.0Z. Notice of Intention to Vacate. Ma.on and/or Inland .hall qive the Aqency not less than thirty (30) days notice of his or its intention to vacate the Property. Section 6.03. Removal of Refriaeration EauiDment. Ma.on shall have the riqht to remove the pre.ently exi.tinq refriqeration equipment located on the Property at any time prior to the closinq, durinq Ma.on'. and/or Inland'. occupancy of the Property during the -7- ~-- Id o 6 o C ~: ~) f', Ci Initial Occupancy Period, or, if applicable, at any time durinq the Second Occupancy Period. A failure by Mason to remove said refrigeration equipment within thirty (30) days of the date of last occupancy of the Property by Mason and/or Inland shall be deemed a waiver of Mason's right to remove such equipment. ARTICLE VII ENVIRONMENTAL REMEDIATION Section 7.00. Environmental Remediation of ProDertv. The parties hereto acknowledge that Bright and Associates, of Placentia, California, have previously conducted a Phase I Subsurface Investigation of the Property, dated November, 1986, and a Phase II Subsurface Investigation of the Property, dated September, 1987 (COllectively, "Studies"). The parties hereto agree that Mason shall retain the responsibility of remediating any environmental contamination which is identified in the Studies, in a diliqent and timely manner and to the satisfaction of the government aqencies exercisinq jurisdiction over environmental contamination at the Property, notwithstanding the conveyance of the Property to the Agency as provided in this Agreement. SUbject to the provisions of Section 7.01, the cost of all such remediation, whether occurring prior to the Closinq or subsequent thereto, shall be the sole responsibility 6f Mason. The parties hereto acknowledge that such remediation shall not be completed before the Closing. Section 7.01. Aaencv Contribution to Environmental Remediation. In consideration of the covenants contained in this Agreement, the Agency agrees to pay to Mason, as and for a contribution towards the environmental remediation of the Property, the .~~ of Two Hundred Thousand Dollars ($200,000.00) (the "Agency Contribution"). Said SUII shall be paid through the Escrow Agent at the Closing. The Aqency Contribution shall be retained by Mason reqardless of the actual ultillate cost of remediation. NotWithstanding the total ultimate cost of such remediation, the Agency shall not be required to contribute any further _ounts towards such remediation which shall remain the sole responsibility "t Maeon. ARTICLE VIII , RISK OF LOSS Section 8.00. Casualty. Without limiting the ettect ot the provisions of Section 3.00 and Section 7.00 hereot, Mason assumes all risks and liability tor damage to or injury occurring to the Property by tire, stOrll, accident, or any other casualty or cause until the Closing has been consummated. Except for the tire -8- Jf) o . o 6. ...... ~. . () <S. o damaqll and environmental contamination which is provided in Section 3.00 and Section 7.00 hereof, if the Property, or any substantial portion thereof, suffers any damaqe prior to the Closinq from fire or other casualty, Mason shall serve written notice thereof on the Aqency within three (3) days of the occurrence of the event causinq such damaqe, upon which the Aqency may .ither (a) terminate this Aqreement by deliverinq writt.n notice to Mason of .uch termination within five (5) day. aft.r Mason notifies the Aqency of the casualty, or (b) consummate the Closinq, in which later event Mason shall deliver to the Aqency, at closinq, any insurance proceeds actually received by Mason in r.spect to such casualty or assiqn to the Aqency, at Closinq, all of Mason's riqht, title and interest in any claim to proceeds of any insuranc. coverinq such damaqe, provided that in no event shall the Aqency be entitled to receive payment or a..iqnment of insurance proceeds in an amount qreater than the Purchase pric.. If the Aqency fails to timely deliver to Mason writt.n notic. of t.rmination of this Aqr.em.nt as de.cribed in Ca) above, then the Aqency shall be d....d to have .l.cted to proceed in accordanc. with Cb) abov.. Thes. provisions shall not apply to the fire damaqe and .nviroftllental contamination which are referred to in Section 3.00 and Section 7.00 hereof. Section 8.01. Determination of Substantial Portion. For purpos.s of Section 6.00, a "substantial portion" of the Property shall be deemed to includ. any casualty loss equal to or qreater than twenty-five percent (25t) of the Purchas. price, and shall not include any casualty loss of less than .uch amount. If any casualty loss i. les. than a "substantial portion" of the Property, then Mason may elect to (a) terminate this Aqreement or (b) proceed with Closinq, in which event Mason shall deliver to the Aqency at the Closinq any proceeds actually rec.ived by Mason attributable to the Property from casualty loss, or shall assiqn to the Aqency at Closinq all of Mason's riqht, title and interest in and to any clab to such proceeds. Section 8.02. DisDosition of DeDosit. If the Aqency elects to terminate this Agreement pursuant to Section 8.00(a) above, then cont.mporaneously with such termination the Escrow Aqent shall iaaediately return the Deposit, toqether with all inter.st accrued thereon, to the Aqency, and upon the Aqency's receipt thereof, except as may be expressly otherwise provid4d herein, neither party hereto shall have any furth.r riqhts aqainst or obliqations to tne other under this Aqreement. -9- 10 o 6 b o (;J <.; ARTICLE IX DEFAULT AND REMEDIES Section 9.00. Default and Remedies. Ca) Aaencv Default. If the Agency refuses or fails to consUllllDate the purchase of the Property pursuant to this Agreement for any reason other than termination hereof pursuant to a right qranted hereunder to do so, or breach by Mason of his agreements hereunder, then Mason as his sole and exclusive remedy shall have the right to terminate this Aqreement by giving the Agency written notice thereof, in which event neither party hereto shall have any further rights, duties or obligations hereunder except as may be otherwise provided herein, and Mason shall retain, as liquidated damages, the Deposit toqether with all interest earned thereon. THE AGENCY AND MASON AGREE THAT IF THE AGENCY BREACHES IT DUTIES UNDER THIS AGREEMENT: CA) MASON'S DAMAGES WOULD BE DIFFICULT TO DETERMINE; AND (8) THE AMOUNT OF THE DEPOSIT REPRESENTS THEIR BEST AND MOST REASONABLE ESTIMATE OF MASON'S DAMAGES AT THE TIME OF THE EXECUTION OF THIS AGREEMENT. './ 1~ Agency's Initials Mason's Initials Cb) Mason Default. If Mason fails to perform any of his obligations hereunder, either prior to or at Closing, the Agency may terminate this Aqreement by notifying Mason thereof, at which time the Deposit, toqether with all interest earned thereon, shall be returned to the Agency. The Agency shall have such other remedies as may be available to it under law or equity, includinq specific performance of. this Aqreellent. In the event that Mason breaches his obliqations under this Aqre_ent subsequent to Closinq, Mason shall be responsible to the Agency for any actual monetary damages suffered by the Agency as a result of said breach, and the Agency shall have such l1dditional remedies as may be available to the Agency in law or at equit.y. Section 9.01. Fees and EXIlenses. If either party hereto brings suit to enforce this Agreement, then the prevailing party shall be entitled to recover from the other party reasonable attorneys fees and costs incurred by the prevailing party and to receive an award therefor from a court of competent juriSdiction. -10- '0 , o 6 16 I I 11 {..\ '.1 () \;..... o' ARTICLE X INSPECTION Section 10.00. InsDection. The Agency shall have until 5:00 p... Pacific Standard Tim. on the tenth day aft.r execution of this Agreement by both parties (th. "Inspection Period") to inspect the Property for structural soundn.ss or such oth.r purpose as the Agency .ay deem necessary and proper and to determine, in the Agency's r.asonabl. discr.tion, whether or not to proc..d with the transaction8 contemplat.d in this Agr....nt. In the .v.nt that the Agency, in its r.asonable discretion, is not satisfied with any aspect of the Property, and if the Ag.ncy and Mason have not reach.d a written agr.ement in settlem.nt th.reof on or before the last day of the Insp.ction Period, then the Ag.ncy shall d.liver to Mason a termination notic., to be r.c.ived by Mason on or before the last day of the Inspection P.riod, informing Mason of the Agency's desire to terminate this Agreement. If such notice is properly delivered, then the Escrow Agent shall i1llDediat.ly return the Deposit together with all interest accrued thereon, to the Agency without requiring any consent or notic. from Mason and, upon the Ag.ncy's rec.ipt ther.of, neith.r party h.r.to shall have any further rights against or obligations to the other under this Agr.ement, except as ..y be as may be otherwise expressly provided herein. If the Agency does not properly deliver a termination notic. to Mason within the time period provided in this section, then the Inspection of the Aqency shall be d.emed 8atisfactory to the Ag.ncy and the Agency shall be deemed to have acc.pted the Property in its existinq condition. Th.se provisions shall not apply to the fir. damage and environm.ntal contamination which are referred to in Section 3.00 and S.ction 7.00 hereof. Section 10.01. Access to ProDertv. During the Insp.ction Period, Mason and Inland shall provide the Aqancy and the Agency's agents with access to the Property upon r.asonable notice and duriD9 normal business hours. The Agancy's inspection of the Property shall not unreasonably disrupt the busin.ss operations of Mason or Inland. The Aqency shall be liable for any damaqe or i~jury to any person or property occasioned by the acts of the Aq.ncy, its employ.es, agents or representativ.s during any such inspection, and the Agency shall, and does h.reby, indemnify and hold harml.s. Mason and Inland and its ~ttic.r~, dir~o=s. agents and e.ploya.s from any and all liens, claim., demands or liability resulting th.refrom. -11- 10 o ". o c o ti'.i (~ t..':,.. - () ARTICLE XI. MISCELLANEOUS PROVISIONS Section 11.00. Broker's Commission. The Aqency and Mason each represent and warrant to the other that neither has employed, retained or consulted any broker, aqent or other finder with respect to the Property except as provided for below, and Mason and the Aqency shall each indemnify and hold the other harmle.. from and aqainst any and all Claim., demands, Causes of action, debt., liabilities, judqements and daaaqe., includinq, without limitation, co.ts and reasonable attorneys fe.. incurred in connection with the foreqoinq, which may be a...rt.d or recovered aqain.t the other on account of any brokeraqe f.., commi..ion or other compen.ation ari.inq in breach of this r.pre.entation and warranty. Ma.on acknowledqe. that he has retained Larry Taylor of Lee and As.ociate. and Al Steward of Schn.ider Commercial Brokeraqe, each . licen.ed re.l e.t.t. broker in C.lifornia and that he .hall cau.. any commi..ion owinq ther.to to be paid to .aid broker. by the E.crow Aqent from the Purcha.. Price. Such commis.ion i. compensation to the aforemention.d real e.tat. broker. as Ma.on'. aqent only. The Aqency .hall have no obliqation to pay .aid brok.r. a commi..ion or any other compen.ation for th.ir .ervice.. Ma.on shall have no obUqation to pay any commission or fee to any ag.nt or broker, other than the broker. identified hereinabov.. Section 11.01. Notices. All notice., demand. or request. required or permitted to be qiven pur.uant to this Aqre_ant shall be in writinq. If not otherwise provided her.under, .11 notice., demand. or reque.t. to be .ent to any party hereto .hall be d._ed to have been properly qivan or .erved by deUverinq the .am. personally to each party, by .endinq the .ame throuqh a nationally recoqniz.cl overniqht courier ..rvice, or by clepo.itinq the .ame in the United Stat.. maU, addr....d to .uch party, po.taqe prepaid, and r.qi.terecl or certified with r.turn r.c.ipt: request.d, at the followinq .ddr.....: As to the Aq.ncy: Redev.lopm.nt Aqancy of the City of San B.rnardino 201 North -E- Str..t, Third Floor San Bernardino, california 92401-1507 Attn: Executive Dir.ctor With copy to: Sabo , Gr.en 6320 Canoqa Avenu., Suite 400 Woodland Hill., California 91367 Attn: Charle. R. Green -12- ~..- IV o 6' b: [ , i"..-'L' <:1 ; ., I;.... o As to Mason: Thoma. C. Mason 223-227 South "G" Street San Bernardino, California 92410 Attn: Thoma. C. Ma.on With a copy to: Gresham, Varner, Savaqe, Nolan , Tilden 600 North Arrowhead Avenue Suite 300 San Bernardino, California 92401 Attn: Mark A. Ostoich First Am.rican Titl. Company P.O. Box 6327 San Bernardino, California 92412-6327 Attn: Le. Ann Adams As to Escrow Aq.nt: All notices, demand. and r.qu..t. shall be eff.ctiv. wh.n p.rsonally d.liver.d to the addr..... or rec.iVed by overniqht couri.r, or by the United Stat.s mail in accordance with the foreqoinq. Section 11.02. Bindina Effect. Thi. Aqreement shall bind and inure to the ben.fit of the parti.. h.r.to and their respective h.ir., .xecutor., administrators, leqal r.presentative., succes.ors and assiqns. ( S.ction 11.03. Countemarts. This . Aqr.ement may be executed in several count.rparts, .ach of which .hall be d.emed an original, and all of such counterparts toq.ther .hall constitut. one aqreem.nt, binding on all parties her.to. Section 11.04. M.raer of Aare.ment. Unlessotherwi.e specified in this Aqre.ment, all the term. and COnditions of this Aqre...nt .hall not .urvive the Clo.ing and .hall be ..rged into the Grant D.ed froa Ma.on to the Agency. S.ction 11.05. S.verabilitv. If all or any portion of any of the provi.ions of this Agr..m.nt shall be d.clar.d invalid, illegal or un.nforc.abl. by law. applicabl. ther.to, then the performance of said off.mding provi.ion or provision. shall be excused by the partie. hereto, and such invalidity". illegality or unenforceability shall not affect any other provision of this Aqreement. Section 11.06. CaD~ion.. The titles or captions of the provisions of this Aqr.ement are mer.ly for conv.ni.nce of reference and are not repres.ntation. of matt.r. included or excluded from such provision.. -13- - . 10 ( o , o 0" ~~~_.<I {'.~. ~. (-,. '-' (.J Section 11.07. Time: Entire Aareement. Time is of the essence of this Agreement. The parties hereto expressly acknowledge and agree that, with regard to the subject matter of this Agreement and the transactions contemplated herein, Ca) there are no oral agreements between the parties hereto, and Cb) this Agreement, including the defined terms and all exhibits and addenda, if any, attached hereto, embodies the final and complete agreement between the parties and supersedes all prior and contemporaneous negotiations, offers, proposals, agreements, commitments, promises, acts, conduct, course of dealing, representations, statements, assurances and understandings, whether oral or written and may not be varied or contradicted by evidence of any such prior or contemporaneous matter or bY evidence of any subsequent oral agreement of the parties hereto. Section 11.08. No Modifications Excent in writina. No modification or amendment of this Agreement shall be binding unless set forth in writing and signed by the party or parties to be bound by such modification or amendment. Section 11.09. Aareement Conditioned ODon ADDroval. Mason acknowledges and agrees that, notwithstanding any provision to the contrary contained in this Agreement, this Agreement and the Agency's obligations hereunder are expressly subject to and conditioned upon the acceptance and approval of this Agreement by the Commission. In the event that the Commission has not approved this Agreement within fifteen (15) days of the execution hereof by Mason, then this Agreement shall be null and void and the Deposit, if previOUSly made, shall be returned to the Agency, together with all interest accrued thereon, and neither the Agency nor Mason shall have any rights or liabilities hereunder. Section 11.10. Further Assurances. In addition to the act. and deeds recited herein and contemplated to be performed, executed and/or deliVered bY either Mason or the Agency, Mason and the Agency shall perfora, execute and/or deliver or cause to be performed, executed and/or delivered at the Closing, or if necessary, after the Closing, any and all further act., deed. and assurance. a. aay, from time to time, be rea.onably required to consummate the transactions contemplated in this Agree.ent. Section 11.11. No Existina Leases. Hason herebY warrants that, except for his Lease with Inland, upon Closing there will be no oral or written leases affecting the Property and hereby covenant. to and shall deliver to the Agency at Closing, but subject to the provisions of Article VI hereof, exclusive possession of the Property, free and clear of all tenants and/or other occupants and rights of any such parties. Mason agrees to provide to the Aqency, as a condition for clos. of escrow, a written abandonment by Inland of all of its interest in the Property. Said written abandonment shall not prevent Mason and/or -14- ID ( o 6 5' i.., ,,~ () .' , \ '.. o Inland froll continuing in po....sion ot the Prop.rty under the provision. ot Section. 6.00 or 6.01. Section 11. 12. Ca lendar Davs. All reterences to days in this Aqreement shall be deelled to be reference. to calendar days. IN WITNESS WHEREOF, the parties her.to have ex.cut.d this Purchase and Sale Agreement to beCOII. ettective a. ot the Ettective Date. Approved a. to torm: SABO , GREEN 0~20-- Special Agency Coun.el AFPRO\!EU AS TO FORM M.D LEG."L CONTENT A REDEVELoPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A Body Corporate and Politic Chairman Secr.tary ( ^pproved a. to form: GRESHAM, VARNER, SAVAGE, NOLAN , TILDEN ~;.(),I~.~L .J Attorney. tor Mason . SBllOIIlOOllDOCIS2d 11112191100 -15- 10 ,- . r' - ~ ("'" {;; 6 b EXHIBIT "A" LEGAL DESCRIPTION () , 10 () b r o PARCEL NO. 11 THE NORTH 200 PEET OF THI WEST 280 FEET or LOT 15, BLOCK 11, RANCHO SAN BERNARDINO, IN THI CITY or SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATI OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7, PAGE 2 or MAPS, IN THE OFrICE OF THE COUNTY RECORDER OF SAID COUNTY. SAID LAND IS INCLUDID WITHIN THB LAND SHOWN ON A MAP RECORDED IN BOOK 21, PAGB 91 OF RECORDS or SURVEY. . EXCEPT ALL or THB MINERALS AND MINERAL ORBS OF EVERY KIND AND CHARACTER NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING SAID LAND OR THAT MAY BI PRODUCID THIREFROM, INCLUDING WITHOUT LIMITING THI GENERALITY OF THB FOREGOING, ALL PETROLIUJI, OIL, NATURAL GAS AND OTHER HYDROCARBON SUBSTANCIS AND PRODUCTS DERIVED THEREFROM, TOGITHER WITH THI BXCLUSIVB AND PERPBTUAL RIGHT OF SAID GRANTOR, ITS SUCCESSORS AND ASSIGNS, OF INGRESS AND EGRESS BENEATH THI SURFACI OF SAID LAND TO EXPLORI FOR, IXTRACT, MINI AND REMOVI THI SAMI, AND TO MAltB SUCH USI OF THE SAID LAND BENIATH THI SURFACB AS IS NECISSARY OR USEFUL IN CONNECTION THEREWITH, WHICH USI MAY INCLUDI LATERAL OR SLANT DRILLING, BORING, DIGGING OR SINKING OF ,WBLLS, SHAFTS OR TUNNELS, PROVIDED, HOWEVER, THAT SAID GRANTOR, ITS SUCCESSORS AND ASSIGNS, SHALL NOT USI THB SURFACB OF SAID LAND IN THB lXERCISB OF ANY OF SAID RIGHTS, AND SHALL NOT DISTURB THB SURFACB OF SAID LAND OR. ANY IMPROVEMBNTS THEREON, AS RESERVED IN THB DBID FROM SOUTHERN PACIFIC LAND COMPANY, FILID FOR RECORD MARCH 1', 1'64, IN BOOK 6111, PAGB 30', OFFICIAL RICORDS. 6 PARt!RL NO.2. THI SOUTH 140 FEET OF THE NORTH 340 FlIT OF THE WIST 280 FlIT OF LOT 15, BLOCX 11, RANCHO SAN BlRNARDlHO, 111 THB CITY OF SAN BERNARDINO, COUNTY OF SAN BIRNARDINO, STATI OF CALIFORNIA, AS PIR MAP RECORDBD IN BOOK 7, PAG. 2 OF MAPS, III THE OFFICI OF THE COUNTY RICORDER OP SAID COUNTY. EXCIPTING THEREFROM THAT PORTION OF SAID PROPERTY LYING BELOW A DBPTH OF 500 PElT MIASURJ.D VBRTICALLY FROll TO CONTOUR 0'" T~I SURFACI THEREOF. b' EXHI!3IT ~ 10 _. C":: I:) o EXHIBIT "B" o SUPPLEMENTAL ESCROW INSTRUCTIONS ( o ( c' o ~.... ID (:- C:) ,. '. CEII~OVlSIOIlS /' \ o 1. DEPOSIT OF FUNDS' DISluasEKENTS You .hall d.po.it .11 funda rlcllv.d In Chi. ..crow In any bank lnlurld by an .,.ney .t .h. Unl..d 5..... Cov.rnaon.. Includln, you. .ttl11...d bonk, Flrae ~rlc.n Trult Coapany. In on. or aor. of your Ilner_1 ..crov de..nd accounc.. Th... funda ..y b. tr&nliflnlcl to any other 'Inarll "crow clelland accoune or accoune.. In chi abov. ~.d bank or banka. lncludln& tho.. ..lncalnld In your .ffl11acld bank. Juyar and Sal1ar acknowlld,1 thac '.crov h.ld.. vlll b. d.p..l.lne all tunda In .....v In . non. In...... b...ln, flduc;"1 .ccount .t Th, B.nk of C.llfornl'. All dl.bu.....n.. .hall b. .odo by y.ur chick. You ar. authorized not to c10.. ..crow or ell.bur.. uncll looel fundi have bean conllZ'11ld In "crov. 2. PIORArIOII AIlD ADJUSTllEIITS Th. ..pra..lon .c10.. ot I.crov. ~.d In chi. I'crow ".n. thl 4ace of which la.cruaenc. retarrad Co heraln ar. recorded and ralle.. only to prorations and/.. adJuo...n.. unl... .charvt.. ,p'.ltl.d. All P.....l.no and/or adJuo_nto ... t. be _ on .h. b..lo .f . 30-day ..nth unl... o.hervl.. lnotruct.d la veltln,. 3. IECORDATIOII or IJIStI1lIIIIrTS YOOl ... .ucho.la.. to &'O.on any ......nto doUVI&'Od throup thb ..crow, eM rleorellna .f which 1. ...e....1)' 01' proper 1ft the b,UM. of the .......t.d 'oU.y ot Tltl. Inoueanc.. 8 4. AIl'IIIOIlIZATIOIl TO IXlCUTI ASSICIIIIIM or IIlSllIAIICI POLICIU You are &VthOl'tZI' c. '.'cvel on Mllalf of the p&rel.. hereco tOC'll ...1paanc. of lDt.rlle 1a .. luu&DC' pollel.. (othlr than tlcl. lnaurancl) call" for In chi. .,en.: fOIVlr' ...lcr-ellu and pollel'. upon clo.. of ..er.v to the ',Int With the rlque.c, flr.t, that lft.lurlr COUI"C to .uch tr&uf.r and/or ..tach . lo..-payabl. cl_. and/.. IIIko .ucll ocha. addlUons or ...r'.'lons .. ..y h.YO be.a .,..ltl..ll, ..qut..d bo..la. .nd ...ond. .hat .h. .,.at cha...t... t.rv..d ouch poll. 1.. to cha p.rtl.. .ntltl.d to .b... I.. .11 oct. In .hb ...rov &'Ol.tlne ~. lnoueanc., lneludlne .dJuo...n.., It 'oy, you .hall b. tully pnt..t.d la .....lne chat .och poU., lo In t.r.. .nd that- cha ........ry p&'O.l.. cha..t.. boo be.a p.14. 5. AUTIIOlIZATIOIl TO nlIIltSH CO'IU YO\I ar. to funal.b & copJ of th... luCftlCclou, "'ncllMnc. therlco. cl..tq 'Uta..nc. and/or ., athel' docWMfttl ",o.lta. In cIIl. ..crow to the lindeI' or 1Incler.. thl 1'..1 ..tat. brok.r or broker. aDdIOI" the attomey or .tt.moy. lllYolV1d la tlal. tranlactln _ &,o....1t ot tIa. l.odor.. br.k... .r attol'Dlly. . ,. 'EIlSOIlAL no'Dn TAllII .. oxlllnoUoa or lnoueanc. II t. cha _e or p.,....t .t p...onol p..,.", tIM. b '.qul.ad ua1... .padfl..ll, &'Oquo.tod. 7. IlCIIT or CAllelU.\n~ ""y p.ny lnotructlnc ,... to .....01 thll ...row .hall tn. notl.o .t .anc.ll.u... III ,.... otflo., la veltlne. You .hall vitlala . r.........l. tx.. cha&'Oottor ..n, by oortItlad ..n, one oopy of cha nou... .. _ ot tha och.. P..tl.. .t cha &44...... .totod la tlalo ....ov. Ual... velttn obJ..Uon to .anc.U..lon lo fn.d la ,.... offl.. by . party vithla Clll (10) day. .!c.. do.. .t ..lllne. you ... .ucho.laad .t ,.... .ptl.n to ._ly vitia cha no.l.. .nd <10_ p.,..nt .f Y.u, ......U.tlon .har,.. a. p.ovldod In thl. .'.....nt. It vel.ton obJ..tlOll 10 tn.d, ,... ... .uchorh.d .t ,.... op.l... .. b.ld .11 ..nay ancl lnacl'UlMntl In chi. .Ie!'ov aDd take no furchel' acCion unell oeh.rvt.. directed. elthlZ' by the ,arct..' IIUcual written lutl'\lCtlona. or final order of . court of CDllplCanc Jvtlcllctloa. ( o .. ACTIOll III IIITDPLEADD Th. partl.. hareco &"1"'11, 111'" thae YOU. .. ..crow holder. have ch. ob.olut. rlpt .t your .l...l.a to tll. an ..tlon la Int.rpl.0d0. r.qul.ln, .h. p.rtl.. to &nov.. .Dd lltlflC& thol~ .oVlr.l .1.10. ODd rllbc. "'na th....lv.. .nd 'OU are .uth..h.d t. dopo.lt vltb cha clock ot cha .ourt .U cIo.....n.. .nd tundo h.ld In chI. ".rav. Ia tho oyont .uch actl... 1. tl1.d, tho p.rtlo. Jointly and I.verally air.. co pay your cancellation char... and COICI, expanse. and r...onabla ateam.,'. f... which you II" r.quire. to expand or incur in the In'.rpl..dar ...l.n, tho IIOUftt th..oot to b. tlx.d ODd Jud...nt .h.rol.. .. b. rendered by the court. Upon thl flline of thl acclon. you .hall th.r.~pon b. fully ral...., and ell.cher,l. fro. ,11 obll.atlofta to turcher perfor. any dutl.. or obUpUona Deh.wi.. lapo..ct by the tlraa of chi. "crow. Page 1 .f J ~.." 10 \.., . () I. o r- ,. TDlIIIlATIOII or ACEIICY OIUCATIOIIS It there 1. no action cakan on chi. ..crow wichta .1a C6, .onth. afeer the eet.. 1t.ie dat.- .. 'IC torCh 1ft the ..erow In.crucclen. or writt.n .aC.n.loft thereot. your .,.ftCy Oblt..clon .hall t.~lftat. ae ,our opelon and .ll dOCWHntl. Mnl.. or ochar It... held by you .hall .. ratUil'M. to the p.ru., depOIlUIII ..... In the ...at of cancellaclon of chi. ..erow, whIther ie b. Ie the nquelc of any of the ,ll'tl.. 01' ochervi... tbl f... aNi Chari" due Firse _cl.... ntll Ino..c.ne. Co...any, lnellldln. ."'."'1_.. lne.....d .nd/or authorlz.' ahall be borne '.~11y by the parcla. berlco (unl... ocharvl.. .Ir..~ co 'P.clfl..11y). o 10. COIlFUCTIIIC IllSTallCTIOII. Should 7ft b.fore 01' .fclr clo.. of ..cr.. nell... 01' hCO.. avar. of any oontU'.l111 ~'.''ld. o. cl.* vl.tIl r..poce .0 tIl1l ..crow or tIl. rip.. of .ny of rho p.rch. h.roro or any _,. or proper.,. depeoltM h.roln or .ff..r.d h...bJ'. ,.... .h.U ho... rho ripe to dhconU.... ...,. .r .11 f...rhor .... on yo..r p.re unell rho contUce 1. r...l.... to ,...... ..ehf....lon. ....,.... .hoU h.v. ch. f...rhor rip. r. 'o_ne. .r daf.... ...,. ..Uon ... ......Ml.... fo.. rho dor...lnorlon of rho coat11ce 00 ...owldo' In '.....roph 7 .... . of rho.. C.nor.l 'rovl.ol_ . U. f'IlIID' IITAIIIID III UCIOV It fo.. ...,. r...on fundo or. r...laM In ..crev, ,.... ..,. doducr th.rofr.. $15.00 00 . ..nrbl,. chorp 00 c...rodl_ rho..ot. 12. US1lU You ... noe to bo cone.mod vl.tIl ...,. .......lon of ......,. III ...,. lo.n or .ne....r_.. In...l...d In rho .roc..ollll .f till. ,.crev .... ,.... .r. h.r.b,. ro1....d of ...,. "'_110111.,. ... 11010111.,. th....fo... 6 13. IllDDlllIrY rot ATTOIIlIYS rus AllD CO.TS In tIl. .V.lle ...le 10 br......e 10,. ...,. por.,. to tIl10 .,crow, lneludlna tho rlrl. ...,...,. ... ...,. orho.. por.,.. 00 ...lnoe .??lo o....r. ... orhor., lnellldlna rho Url. c......,.. c1.1al1ll ...,. rlpe tIl.,. 110" haft 00 ...Ino. ..ch otller or _..lnee the tiel. c.,&D,. the.. 1n chae 'YII"C. the putt.. herlco .,1". Co lndoaU,. .... hold honl... tIlo Uel. c.......,. '..laoe ...,. .eeo....,.'. f... .nd co... lne......d 10,. Ie. 14. AIIEInlhIloll TO UCIOV IllSTallCTIOIIS AnJ' __II.. 0" .....l_e. to rho.. ..crev lno......Uono -.ee b. In vrlt1n.. tha.. ..crow lUClWlclou '....cicuce m. netn lacl'OV la.eve." the .,crow holdo.. .... tIlo p....l.. hor.... 15. SUPIUIIDlTAI. TAUS S.U... .... ...,.... ..lmovhdp rhoe rho .ubJoee ...,....,. _,. bo .ubJ.ce to .....l_n..l ...... .... 00 . roou1e .t chonp of _.....1. eMlll1 .1... rhroup till. ...rev. AnJ' -.....,. MJ..._ .... .1rho.. ....,. OIl roe.l.e .f . .....1_a..l .... 10111 vl.ll .. .... bJ' tIlo porel.. .....lda .t till. ..crow _ ..ccow holder 10 roloooM ot ...,. 11..,111.,. 111 CO_ClOll vl.tIl ._. 16. i'IILIIIIllAlt CIlAllCI or OlIIlIISHIr roIIl ...lor to clo.. ot ..crow...,.... vi!! b. ..nt . r..llalft11'J' Chon,. of o.n.rohl. Iopore, ""lt1l lo .......lr.d 10,. rho Coun"" Iocordec'. offlc. to o.collpon,. docuaenc. call.d for hlrata at the tt.e of recordiftl. Ie accordance with Sactlon 410.3 of ch. ....,.'ft\Ie and Taxation Coele. IllYII' 1. avan h, -..c raC\ll'n chI fom c..,l...d and .1ano. .rlo.. ro clo.. .f .'crow. It E.crev Heldor de.. no. rlcllve chi, report '1'101' co c10.. of ..crow, 'ur'~ luCborll.. "crow Holder to chor.. hlo accoune vlt1l $20.00 ""lob I. rho f.. rho ,-.,.Iocordor .h.r... for ...or.l111 tIl. do.d vlthouc tho" c...1.... f.... ...,.... 11 hor.b,. pue oa notlo. rhoe rho A.....or 11 ..q..i... eo 11011 oue tho fo.. fo.. c...l.UOlI laror on If lr hoe nor b..n fll.d .e clo.. .t "crow. 6 Page 2 of J ID ,: . ~ ."" (...J () (" o 17. CCOD nlllDS 1.\11 Th. parci.. under,c.nd thac all fYnda co clo.. "crow euac be d.poalc.d a suffici.nc nU8b.r of 4&y, prior to che cl... of '.crow In order to co.ply With SICtion 12413.1 of che C.llforfti. Insurance Code. Clnerall, 'P..kinl. vlre cran.tlrred tund. .ay bl depolicld inca our ..crow accounc anyct.1 prior Co thl clo.. of '.crow. C..hier', ch.ck. and clrcified chick. (drawn on & local bank) ~c be dep..iced inco our I.crov accounc no 1.clr than 12:00 noon thl bu. In... day b.fora cha clo.. of ..crow. For intomattoa conelmine holu 011 oth.lr e::.,.. of chaco. pha.. coneacc yo~r ..crow oftlclr. 11. uroaTIIlG TO till IIlfIIIW. UYIIlUI SavICI th. Tax a.t... Ace .t 11.. ,c..1.. cllee 'lue Mee1c... n.h In...ranc. COIlp.n, ..... r.por. e. clio In......1 a.""..... S.m.. ..cc.1" 1at.....1." raaord1n. .U r.al ....e. .........e1..... th18 1at....U.. 1ncllldo. -na o.h.. .h1n... clio ..Uee'. .oc1al .0CIIC1cy ........C and/.c .. 1.ne1f1..e1." _.. Ind to......dl.,. -... - ell. ac'" ..1.. ,r1.. of .... eC.llOocel.". thh h no. I ro""lr_e .....roe.. by 'lroe Mec1.... Tle1. 1_..... C__, b... roch.. I -.... .f ....1'1.,. v1e11 clio IIIV .. lov. th18 1nt....U.. ....e b. ,r_ded CO 'le.e Mec1... T1el. Inolle..... c:o.,...y ...." cIIe _1.,. .t Iocrov. "'" IIcrow ._e cl.... ...c ... .... ... "'c .cIIoc __.. bo ro..... "".n ell. 1ato....1.n 1. ,r_.. _ clio ..11.c ..re1f1.. .... OCCUC.., .t ell. 1nt.....1.n 1ft vr1Uft.. I, ......01.. .f clio.. ...row 11lOencu.no, clio poceh. I.knowl.da. r...1,e .f eII1. no.1... 6 11. TAX lUOlTIIlG AIID I/IntHD~IIlG OIUC4TIDIII 0' t1II PAXTIa STATI 1.\11 C.Uf.mlo 10""..... .... T&&IU.. Code S..e1.... 1UOS, UI15 _ 2U31 ,1... ",.1.1 ro""lroMft.. f.c .. ropocc1.,. .nd v1c1lhold1.,. .. "",.ca "".., C U chI ..111ftl ,cl.. l. .r....c chon '100,000 C.... hIIn4r.. choIIo_ do11.r.), Ind C 11) .ho ..Un hoe noe ro.ot"". . C.Uf.enla H__r. Propo~cy Tax 1a.IIp.loft d..r1.,. chi ,..c .f clio ..1.. _ C11ll "" ,...... e. .h. eronol.U." lro .. b. d1.b..r... .. .1cho~ C.) . ..11.c v1dO . 1... known o4ldr... .....ldo .f CoUfomla, oc (b) . 11_101 l.,COnodl.., .f clio ..U.~. tho Vlchhold1n. .... 11 ell... - o",.chl~' po"'lfte .f clio ..lU.,. ,r1.. .. .11.... 1n clio ......... th. ..Uee .., r._.. . v.1""c by ......01.,.: 'r_l.. T.. ".e. 1I1c1lhold .e S_. Uft1e P. O. lea "1 S..r...".., C4 95112.0651 (916) 169..900 FEDIlAt 1.\11 In......l ao_ Code Socel.. 1445 '1.... _101 r.....1co...... t.r ... ropore1.,. - v1chh.1.1.,.1D clio ,.rU.. .. . no1 ...... or_..U.. ""... chI ..Uee 11 . "'".r..1."e ,UID, . _....el. coepecIC1.. .~ ...._~.h1'. . ...el. .'epeC.elOll .c poccnoroll1, _cnUod by _-c..l.... Ie _-rulde.,e ..epecIChllO .c poccnocohlp.. 1l1dO c..po.e eb boell clio S.... Low _ ,.doc.l Low rof..... .. Iboyo. the ,aret.. co chla C~"'acClOft are ..lk1na aD 4CCOfney'.. accoqncanc'. or.och.r Ca 1,.clal1.c'. oplal.. concem", the .fflce of the.. 1.- Oft chte cran.act1on or ar. 1'.171.. .. their 0VIl ~l'd.e ~f t'h"fa !o.i\l#. ':be pu:l.. till '.4'11. tr~.ctloll &1'1 IIOf acel"1 on or 1'.171"1 on any .tac...nca ... or ..ictld 111 tho ...row .ffl..c, e1el. oftl..r, .r ocho~ .10.1", .ftl..e w1th r..,... t. tlX r.,oc.lnl oc v1chhc1.1na r.....1r..ft... SILLEI'S INITlAtS IUYEI'S INITIALS b' Pag. 3 of 3 If) , ' () EXHIBIT "e" o GRANT DEED 6' b (~. . C) ( 10 ( o REc:cOwG REOUlSTID BY: Redevelopllent Agency of the City of Sen Bernerdino 201 1I0rth -I- street, Third J'loor San Bernardino, California .2401 WHIII RECORDID MAIL TO: o Radevelopment Agency of the City of San Bernardino 201 1I0rth -I- Street, Third Floor San Bernardino, California .2401 Attn: 07.... Sharp, Project: Manager Thie Space for Recorder'a Use GRANT DEED c' o THE OIIDERSIGIIID GIWITOR(.) DECLARE(.) DOCUMEII'l'ARY TRAIISFER TAX ia IIOT APPLlCABLE/GOI1EIlH1f1P.IrIo ENTITY [) unincorporated area [) City of Parcel 110: [) ~uta4 on full valua of proparty conveyed, or [) coaputad on full value le.. value of Uens or enCUlllbrance. re.aining at ti.. of .al., and FOR A VALUABLE COIISIDERATIOII, receipt of Which ia hereby acknowledged, THOIIA8 C. MASOII, a un-ied un a. hi. .01. and separat. property (-Grantor- ) hereby GRAIITS, ASSIGIII, TRAIISFERS AND COIIVIYI to Th. R.d.velopment Agency of th. City of San B.rnardino, a body corporate and poUtic, all of th. right, titl. and inter..t of th. Grantor, .ubject: to all matters of r.cord, in that certain r.el property located in the City of San Bernardino, County of San Bernardino, stat. of caUfornia, a. .ore tully de.cribed in th. legal dascription attached h.nto .. Exhibit -A-, which is incorporated her.in by thi. r.f.renc.. III WITllESS WHEREOF, th. Grantor has cau.ed the.. pr..ents to be .xecuted thia _ day of , un. THOMAS C. MASOII 8'1'ATB OJ' CALIPOJlIlIA COtlllTl OJ' ) ) ... on thi. day of in t:he Y8U" un, before .., th. under.ilf\ed, . lIotary Pu))Uo in and for ..i4 county and stat., penonally app.ared Th_ C. ..aon, per.onally known to .. (or prOVed to m. on th. be.i. of aatiafactory .videnc.) to be th. per.on Who .xecuted the within instruaent, and acknowledged to .. that h. ex.cuted th. ..... (S19Jlatur.) ...... ( \ (II..., typ.dor pr1nted) (lpaC. above for Official Seal) o - I 10