HomeMy WebLinkAboutR31-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REOUEST FOR COMMISSIONICOUNCIL ACTION
FROM:
GARY VAN OSDEL SUBJECT:
Executive Director 0 R ' ~ " ~':'A; L
January 16, 2001 I VIII W
TAX INCREMENT ASSISTANCE-
YELLOW FREIGHT SYSTEM, INC.
DATE:
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Svnoosis of Previous Commission/CouncillCommittee Action(s):
On November 9, 2000, the RDA Committee recommended to the Community Development Commission approval
of a Property Owner Redevelopment Agreement by and between the Agency and Yellow Freight System, Inc,
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Recommended Motion(s):
(Community Develooment Commission)
MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF TIlE
CITY OF SAN BERNARDINO APPROVING A PROPERTY OWNER
REDEVELOPMENT AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND
YELLOW FREIGHT SYSTEM, INC., AN INDIANA CORPORATION AND
AUTHORIZING THE EXECUTION OF THE AGREEMENT BY THE
EXECUTIVE DIRECTOR ON BEHALF OF THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
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Contact Person(s): Gary Van OsdellBarbara Lindseth
Phone: 663-1044
Project Area(s):
Mt. Vernon Corridor
Ward(s): First
Supporting Data Attached:1iI Staff Report iii Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LtrlMemo
FUNDING REQUIREMENTS: Amount: $811.545,00
Source: Tax Increment Revenue
SIGNATURE:
Budget Authority: Requested
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CommissionlCouncil Notes:
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GYO:MP:01-22-01 Yellow Freight
COMMISSION MEETING AGENDA
MEETING DATE: 01-22-2001
Agenda Item Number: ..8.3J_
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Tax Increment Assistance To Yellow Freil!ht Svstem. Inc. For Construction Of A Freil!ht
Terminal On West Rialto Avenue
BACKGROUND
In September of 1998, staff received notice from Yellow Freight System, Inc., of a desire to relocate
their freight operations from Barstow to San Bernardino and to discuss what assistance if any the
Agency might provide to offset anticipated relocation costs. For your information, Yellow Freight
System, Inc. (the "Developer") is a national carrier based in Overland Park, Kansas offering the
widest range of services for transportation and related movement of goods and materials. Yellow
Freight System is a subsidiary of Yellow Corporation (NASDAQ; YELL). From September 1998
on, discussions regarding the proposed relocation were sporadic at best, as the Developer
concentrated their efforts on negotiating a buy/sell agreement with BNSF for property on Rialto
Avenue. During this two-year period, staff discussions with the Developer focused on the
provisions of a performance based arrangement whereby Agency assistance for off-sites would be
tied to the amount of tax increment generated by the development.
On July 13,2000, Yellow Freight System, Inc. received approval from the Development Review
Committee for construction of a 115,178 s.f. Freight Terminal on a 31.5-acre site located at 1500
West Rialto Avenue, just south of the Santa Fe Intermodal Facility.
On or about August 15,2000, the Developer received title to the 31.5 acre site from BNSF.
CURRENT ISSUE:
The Developer is planning on investing approximately $12 million in total on the Project which will
consist of the following facilities: a 6,000 square foot office; an office structure that will house a
tractor shop; an inspection building and trailer; a dock building with 192 dock doors, and a bulk fuel
system. The facility incorporates a total of264 trailer parking spaces and 253 automobile parking
spaces on the property. Agency staff predicts that this investment will result in an assessed value of
approximately $9 million. Assuming all the financing is in place, the Developer anticipates that
building foundations and framing will be complete by February 15,2001 and site paving complete
no later than April 15, 2001. Yellow Freight expects to occupy the facility by June 2001.
The proposed project and refund oftax increment is consistent with the general plan ofthe City of
San Bernardino. On July 13, 2000, the Development Review Committee (DRC) evaluated the
potential environmental effects of the freight terminal construction improvements contemplated by
the Developer and approved a Development Permit II, Lot Line Adjustment and Demolition permit
for the project. The DRC has determined, in accordance with the California Environmental Quality
Act ("CEQA"), that the project was consistent with the Findings of Fact in Development Code
Section 19.44.060.
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GVO:MP:01-22-01 Yellow Freight
COMMISSION MEETING AGENDA
MEETING DATE: 01-22-2001
Agenda Item Number: ~l_
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Economic Development Agency Staff Report
Tax Increment Assistance - Yellow Freight
January 10,2001
Page Number -2-
The Developer is requesting that the Agency refund the cost of off-site improvements and City
impact and permit fees via an annual refund of tax increment that will result from improvements to
this property. The Developer has estimated the costs for off-site improvements and permit fees at
$811,545. If the proposed development goes on the Assessor's Rolls at $9,000,000, it will generate a
gross tax increment of approximately $90,000 annually. Staff proposes to reimburse the Developer
net increment available (subtracting mandated pass-throughs, the 20% set-aside and Agency set-
aside) every year for 10 years, up to a maximum of$811,545.
Staff believes that this is a project worthy of Agency economic assistance because it will bring 400
jobs upon opening with a projected increase to 600 jobs at the facility within two years. In addition,
this development will provide off-site street improvements that will be a benefit to this project and
to the continued success ofthe Santa Fe Intermodal Facility, meet the objectives and goals contained
within the Mt. Vernon Corridor Redevelopment Project Area Plan, and reduce blight in the area
through improvements to portions of Rialto Avenue, Rancho Avenue and Foothill Boulevard.
Fiscal Impact
Based on Agency staffs estimates, the Project will yield an estimated gross tax increment to the
Agency of approximately $90,000 per year through the life of the Mt. Vernon Corridor
Redevelopment Project Area (23 years), After deduction of the mandated pass-throughs and twenty
percent set-aside amounts and an Agency set-aside of $15,000, approximately $50,000 will be
available to the Agency annually for offsetting the cost of the proposed Project.
Recommendations
GVO:MP:01-22-01 Yellow Freight
COMMISSION MEETING AGENDA
MEETING DATE: 01-22-2001
Agenda Item Number: .8lL
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RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A
PROPERTY OWNER REDEVELOPMENT AGREEMENT BY AND
BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO AND YELLOW FREIGHT SYSTEM, 1Ne., AN INDIANA
CORPORATION AND AUTHORIZING THE EXECUTION OF THE
AGREEMENT BY THE EXECUTIVE DIRECTOR ON BEHALF OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO.
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WHEREAS, Yellow Freight System, Inc. (collectively, with any related entity, the
"Property Owner") has requested that the Redevelopment Agency of the City of San Bernardino
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(the "Agency") approve the terms of a Property Owner Redevelopment (the "Agreement") for the
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purpose of supporting the redevelopment and reuse of certain lands and providing reimbursement
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fInancing for the construction of off-site street improvements adjacent to a new freight tenninal
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development project at 1500 West Rialto Avenue, San Bernardino, California (the "Project");
and
WHEREAS, the Project is consistent with the goals of the Mt. Vernon Corridor
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Redevelopment Project Area, the General Plan; and
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WHEREAS, the Project will result in the construction of an 115,178 square foot interior
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area freight transfer and truck terminal facility by the Property Owner, and the completion of the
Project shall assist the Agency in accomplishment of its goal to reduce blight in the project area,
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pursuant to Redevelopment Law.
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NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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Section 1.
The above recitals are true and correct.
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Section 2.
Pursuant to CEQA Regulations Section
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Development Commission, as the governing board of the Agency, finds that as a responsibl
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agency under CEQA for the purpose of the redevelopment assistance provided to the Prope
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12118100
Yellow Freight SYSltm, Inc.
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Owner under the terms of the Agreement, no further environmental review of the Project or th
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Agreement by the Commission is necessary at this time in connection with its consideration 0
the approval of the Agreement. The City of San Bernardino has, by separate action, previousl
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approved the Project, subject to a number of conditions and development impact mitigatio
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measures, and the Property Owner shall be responsible for complying with those conditions an
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measures. A copy of the July 13, 2000 CEQA determination of the DRC of the City of S
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Bernardino is on file with the Agency Secretary,
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Section 3.
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The Community Development Commission hereby approves the
Agreement with the Property Owner. The Community Development Commission hereby
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authorizes and directs the Executive Director to execute the Agreement on behalf of the Agency.
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The Executive Director of the Agency is hereby authorized to make minor corrections, additions,
and clarifications to the Agreement prior to its execution by the Chairperson, provided said
changes are not substantive in nature, and do not increase the monetary impact to the Agency
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under the terms of the Agreement as hereby approved,
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12118100
Yellow Freight System, Inc.
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Section 4.
Subject to the satisfaction by the Property Owner of the conditions set
forth in the Agreement, the obligation of the Agency to make the reimbursements to the Property
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Owner under the terms of the Agency Promissory Note from the special source of funds described
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in the Agreement, shall be an "indebtedness of the Agency", as this term is defmed in Health and
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Safety Code Section 33675. The Executive Director is hereby directed to cause the Statement of
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Indebtedness for the Mount Vernon Corridor Redevelopment Project to include the indebtedness
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of the Agency to the Property Owner, as evidenced by the Agreement and the Agency Promissory
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Note, to be filed with the Auditor-Controller of San Bernardino County in the manner authorized
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bylaw.
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Section 5.
The authorization to execute the Agreement is rescinded if the Agreement
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This resolution shall take effect immediately upon its passage.
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12118100
Yellow Freight System. Inc.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING A PROPERTY OWNER
REDEVEWPMENT AGREEMENT BY AND BETWEEN THE REDEVEWPMENT
AGENCY OF THE CITY OF SAN BERNARDINO AND YELLOW FREIGHT
SYSTEM, INC., AN INDIANA CORPORATION AND AUTHORIZING THE
EXECUTION OF THE AGREEMENT BY THE EXECUTIVE DIRECTOR ON
BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a
meeting thereof,
held on the
day of
. 2001, by the following vote to wit:
AYES
NAYS
ABSTAIN ABSENT
Secretary
The foregoing Resolution is hereby approved this
day of
,2001.
JUDITH VALLES, Chairperson
Community Development Commission
of the City of San Bernardino
Approved as to form and legal content:
By:
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
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PROPERTY OWNER REDEVELOPMENT
AGREEMENT
(Yellow Freight System, Inc.)
THIS 2001 PROPERTY OWNER REDEVELOPMENT AGREEMENT (the
"Agreement") is dated as of January 8, 2001, by and between Yellow
Freight System, Inc" an Indiana corporation (the "Property Owner")
and the Redevelopment Agency of the City of San Bernardino, a body
corporate and politic (the "Agency"), and the Agreement is entered
into with respect to the following facts:
RECITALS
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The Property Owner has acquired from the Burlington
Northern - Santa Fe Railway Company certain lands situated at 1500
West Rialto Avenue, San Bernardino, California (the "Property").
The Property is located in the redevelopment project area described
in the Redevelopment Plan for the Mount Vernon Corridor
Redevelopment proj ect (the "Redevelopment Plan"). The general
location of the Property is shown on a vicinity map and is more
. particularly described in the legal description of the Property,
attached hereto as Exhibit "A" and incorporated herein by this
reference.
The Property Owner for itself and its successors and
assigns and the Agency for itself and its successors and assigns
have entered into this Agreement in order to implement the
Redevelopment Plan and for the benefit of the redevelopment project
area and the Property as authorized under Health and Safety Code
Section 33339.
NOW THEREFOR IN CONSIDERATION OF THE MUTUAL PROMISES AND
COVENANTS OF THE PARTIES, THE PROPERTY OWNER FOR ITSELF AND ITS
SUCCESSORS AND ASSIGNS AND THE AGENCY FOR ITSELF AND ITS SUCCESSORS
AND ASSIGNS, AGREE:
Section 1. Effective Date of Aqreement and Obliqation
of the Aqency to Make Certain Payments to the Property Owner. This
Agreement shall take effect following its approval by the Agency
and execution by the parties. The obligation of the Agency to make
the payments to the Property Owner under Section 3 of this
Agreement shall arise when each of the following conditions has
been satisfied by the Property Owner:
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(i)
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(ii)
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the Property Owner has submitted to the City of
San Bernardino (the "City") a completed
application for approval of the Development
proj ect to be constructed and installed on the
Property by the Property Owner and the City has
taken all final action as necessary or appropriate
to approve the Development Project, subject to all
applicable zoning and development standards and
building regulations of the City of San
Bernardino, The words "Development Project" as
used in this Agreement, mean and refer to the
improvement and economic revitalization of the
Property by the Property Owner as necessary or
appropriate to provide for the improvement and use
of the Property as a motor freight terminal
facility situated on approximately thirty one and
one-half (31.5) acres of land. The Development
Project shall include the construction of a
freight terminal facility with approximately 192
docks for truck loading and unloading, a truck
bulk fuel system, vehicle equipment maintenance
shops, storage and parking facilities for freight
transportation vehicles and trailers and employee
on-site parking and all related off-site public
improvements as necessary or appropriate to
accommodate the improvement of the Development
Project on the Property. A detailed description
of the functional elements of the Development
Project (the "Scope of Development and Schedule of
Performance") is attached as Exhibit "B." The
City is not a party to this Agreement and nothing
herein shall be deemed to create any interest in
the Property as may otherwise arise under
Government Code Section 65860 et sea;
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the Property Owner has completed the work of
improvement of the Development proj ect on the
Property, including the installation of the off-
site work to be conducted by the Property Owner in
various public street rights-of-way, as described
in Exhibit "D" as the "Public Improvement Items,"
by a date not later than December 31, 2001. For
the purposes of this Agreement, the words "work of
improvement of the Development Project" shall be
deemed "completed" on the date when the Property
Owner files its notice of completion as defined in
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civil Code Section 3093 for the Development
Project;
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(iii)
the City acting by and through its Department of
Public Works has accepted as complete the Public
Improvement Items;
(iv) the Property Owner has submitted to the Executive
Director of the Agency a true and correct copy of
the complete and certified payroll records for the
Public Improvement Items which evidence the fact
that prevailing wages have been paid to workers
employed by the Property Owner, or its general
contractor and each subcontractor thereof, to
construct and install any of the Public
Improvement Items. For the purposes of this
subparagraph the words "certified payroll records"
shall have the same meaning as set forth at
California Labor Code Section 1776; and
(v) the Notice of Memorandum of Agreement referenced
in Section 11, below, has been fully executed by
the parties and filed for recordation.
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Section 2. Conformity of the Development proiect With
the Redevelopment Plan,
(a) The Agency has found and determined as of the date
of this Agreement, the improvement of the Development proj ect
described in the Scope of Development and Schedule of Performance
(See: Exhibit "B"), and thereafter, the operation of the freight
terminal facilities on the Property is consistent with the
Redevelopment Plan.
(b) The Agency hereby finds and determines that the
redevelopment assistance to be provided by the Agency to the
Property Owner, subj ect to the completion of the Development
Project on the terms set forth in Section 3 of this Agreement, is
necessary and appropriate, and that the redevelopment covenants of
the Property Owner as contained in this Agreement shall materially
assist the Agency to eliminate conditions of blight in the
redevelopment proj ect area of the Mount Vernon Corridor
Redevelopment Project.
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Section 3. Aqency Contribution to Pay a Portion of
the Development Proiect Public Aqency Charqes, and Public
Improvement Items and Aqency Promissory Note Payable to the
Property Owner.
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(a) The improvement and completion of the Development
Project requires the Property Owner to pay various public capital
facility impact mitigation fees and public agency permit fees and
utility connection capital charges (collectively, the "Public
Agency Charges"). A written schedule of the Public Agency Charges
is attached hereto as Exhibit "CU. At the present time, the total
estimated amount of the Public Agency Charges is approximately
Three Hundred Thousand Dollars ($300,000.00).
(b) The improvement and completion of the Development
Project requires the Property Owner to design, construct and
install certain off-site public street improvements described in
Exhibit "D" as the Public Improvement Items. At the present time,
the total estimated cost of the Public Improvement Items is
approximately Five Hundred Eleven Thousand Five Hundred Eighty Five
Dollars ($511,585.00).
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(c) Subject to the terms and conditions of this
,Agreement, the Agency hereby agrees to pay the Property Owner from
time to time, but solely from the special source of funds described
herein, a sum not to exceed Three Hundred Thousand Dollars
($300,000.00) in the case of the Public Agency Charges and Five
Hundred Eleven Thousand Five Hundred Eighty Five Dollars
($511,545.00) in the case of the Public Improvement Items [for an
aggregate of both not to exceed Eight Hundred Eleven Thousand Five
Hundred Forty Five Dollars ($811,545.00)] which sums the Agency
shall use and apply to reimburse the Property Owner for the cost of
a portion of Public Agency Charges and the Public Improvement
Costs:
(i) the indebtedness of the Agency to the Property
Owner under this Section 3 shall be evidenced by
the Agency Promissory Note substantially in the
form attached hereto as Exhibit "E";
(ii) the principal amount of the indebtedness shall be
verified by the Executive Director following
completion of the Development proj ect and
acceptance of the Public Improvement Items (See:
Section l(ii) and (iii)) and upon the submission
of a suitably detailed accounting of the Project
Owner of the final sum of all Public Agency
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Charges and Public Improvement Costs incurred by
the Property Owner in connection with the
improvement of the Development Project together
with the certified payroll record for the Public
Improvement Items; provided, however, that in the
event that the total cost of the Public Agency
Charges and Public Improvement Items as actually
paid by the Property Owner may in the aggregate be
less than the sum of $811,545.00, then in such
event, the principal balance of the Agency
Promissory Note shall be such lesser amount;
(Hi)
the date of the Agency Promissory Note shall be
the day which is sixty (60) days following the
recordation of the notice of completion for the
Development proj ect by the Property Owner, as
provided in Section 1 (ii), above. No interest
shall accrue on the Agency Promissory Note;
(iv)
the Agency Promissory Note shall have a maturity
date which is the tenth (10th) anniversary
following its date, and if any unpaid principal
balance may be owing after such tenth (10th)
anniversary, such sum shall be waived and forgiven
by the holder of the Agency Promissory Note;
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(v) the Agency Promissory Note shall be payable solely
from the special source of funds described in the
Agency Promissory Note as the "Site Tax
Increment"--(e,g. a portion of the property taxes
payable on the Property each year from and after
the date of the Agency Promissory Note which are
allocated and paid to the Agency as tax increment
revenue from the Mount Vernon Corridor
Redevelopment proj ect, all as more particularly
described in the Agency Promissory Note) ;
(vi) the Agency shall execute and deliver the Agency
Promissory Note to the Property Owner within sixty
(60) days following the last of the following
dates to occur: (A) the date on which the Property
Owner has caused the notice of completion for the
Development Project to be recorded, as set forth
in Section l(ii); (B) the date on which the City
accepts the Public Improvement Items as complete;
(C) the date on which the Property Owner has
provided the Executive Director of the Agency with
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the final accounting of the total costs paid by
the Property Owner for the Public Agency Charges
and the Public Improvement Costs together with the
certified payroll record for the Public
Improvement Items.
(d) Subject to the completion of the Development
Project and the verification of the final amount of the Agency
indebtedness to the Property Owner as set forth in Section
3(c) (ii), the Agency hereby agrees to pledge certain property tax
increment revenues of the Agency as derived from the Property, and
as more specifically described in the Agency Promissory Note (the
"Site Tax Increment"), to pay the principal sum of the indebtedness
of the Agency to the Property Owner evidenced by the Agency
Promissory Note. Such pledge of the Site Tax Increment by the
Agency shall be subordinate to all existing and future indebtedness
of the Agency for the Mount Vernon Corridor Redevelopment Project
and all refinancings of such indebtedness. Such pledge of the Site
Tax Increment shall terminate on the earlier date of either payment
in full on the Promissory Note or the date which is ten (10) years
following the date of the Agency Promissory Note,
Section 4. Covenant of the Property Owner to Pay an
"In Lieu" Charqe to the Aqency in the Event That Durinq the Term of
the Promissory Note, the Property, or Portion Thereof, May Be
Leased, Ass iqned , or Acquired by an Entity Which is Exempt from
Payment of Ad Valorem Property Taxes. The redevelopment and use of
the Property by the Property Owner is of special interest and
concern to the Agency. The redevelopment of such lands in
accordance with the Agreement shall generate a special source of
property tax increment funds payable to the Agency in accordance
with Health and Safety Code Section 33760 to fund certain
redevelopment activities of the Agency. The obligations and
indebtedness of the Agency included, without limitation, the
obligations and indebtedness of the Agency which arise under the
Agreement and the obligation of the Agency to make certain payments
and contributions to the Low- and Moderate-Income Housing Fund from
the property tax increment funds payable to the Agency upon
completion of the redevelopment of the Property.
The Property Owner hereby covenants and agrees that in
the event that the Property or any portion thereof shall be
conveyed or leased by the Property Owner, its successors or assigns
to any entity or party, that is partially or wholly exempt from the
payment of ad valorem property taxes pertinent to the Property or
any portion thereof, during the term of the Agency Promissory Note,
the Property Owner, its successors or assigns shall pay the Agency
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a fee in lieu of payment of such taxes each year in an amount which
is determined by the Agency to be one percent (1%) of the full cash
t- value of such exemption from payments of ad valorem property
~ taxes. Such determination of "full cash value" for such in-lieu
payment purposes under this Section 4 shall be established by the
Agency each year, if necessary, in accordance with the ad valorem
property tax valuation principles and practices of Section 2 of
Article XIIIA of the California Constitution. In the event that
the Agency may hereafter determine that an amount is payable to the
Agency as an in-lieu payment under this Section 4 of the Agreement,
then such amount shall be paid to the Agency each tax year within
ninety (90) days following transmittal of the notice of invoice for
payment of the in-lieu amount by the Agency to the Property Owner.
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Section 5. Covenant Aqainst Unlawful Discrimination.
The terms and provisions of Health and Safety Code Section 33436
which prohibit various types of unlawful discrimination are hereby
incorporated into this Agreement by this reference.
Section 6.
the Property Owner.
Special Representations and Covenants of
(a) The Property Owner hereby agrees that in connection
with its construction and installation of the Public Improvement
Items, that not less than "prevailing wages", as this term is
defined at California Labor Code Section 1770 et seq., shall be
paid by the Property Owner, its contractor and any subcontractor to
all workmen employed in connection with the construction and
installation of the Public Improvement Items. The provisions of
California Labor Code Sections 1775 and 1776 shall be applicable to
the performance of this obligation of the Property Owner as relate
to the Public Improvement Items and to the remedies of the Agency
in the event of a breach of this obligation by the Property Owner.
(b) From and after the date of the delivery of the executed
Promissory Note to the Property Owner, the Property Owner for
itself and its successors and assigns hereby covenant and agree
upon the request of the Agency to provide the Agency with a true
and correct copy of all property tax assessment notices, property
tax bills and property tax assessment or payment correspondence by
and between the Property Owner and the Assessor and Property Tax
Collector of San Bernardino County.
Section 7. Maintenance Condition of the Property.
Subject to the delivery of the Agency Promissory Note to the
Property Owner as set forth in Section 3(c) (vi), the Property Owner
for itself, its successors and assigns hereby covenants and agrees
that:
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(a) The areas of the Property which are subject to
public view (including all existing improvements, paving, walkways,
~~ landscaping, exterior signage and ornamentation) shall be
~ maintained in good repair and a neat, clean and orderly condition,
ordinary wear and tear excepted. In the event that at any time
within ten (10) years following the date of recordation of the
Notice of Memorandum of Agreement as provided in Section 11, there
is an occurrence of an adverse condition on any area of the
Property which is subject to public view in contravention of the
general maintenance standard described above, (a "Maintenance
Deficiency") then the Agency shall notify the Property Owner in
writing of the Maintenance Deficiency and give the Property Owner
thirty (30) days from receipt of such notice to cure the
Maintenance Deficiency as identified in the notice. In the event
the Property Owner fails to cure or commence to cure the
Maintenance Deficiency within the time allowed, the Agency may
conduct a public hearing following transmittal of written notice
thereof to the Property Owner ten (10) days prior to the scheduled
date of such public hearing in order to verify whether a
Maintenance Deficiency exists and whether the Property Owner has
failed to comply with the provision of this Section 7(a). If upon
the conclusion of a public hearing, the Agency makes a finding that
a Maintenance Deficiency exists and that there appears to be non-
compliance with the general maintenance standard, described above,
thereafter the Agency shall have the right to enter the Property
~ and perform all acts necessary to cure the Maintenance Deficiency,
or to take other action at law or equity the Agency may then have
to accomplish the abatement of the Maintenance Deficiency. Any sum
expended by the Agency for the abatement of a Maintenance
Deficiency on the Property authorized by this Section 7(a) shall
become a lien on the Property. If the amount of the lien is not
paid within thirty (30) days after written demand for payment by
the Agency to the Property Owner, the Agency shall have the right
to enforce the lien in the manner as provided in Section 7(c).
(b) Graffiti as this term is defined in Government Code
Section 38772, which has been applied to any exterior surface of a
structure or improvement on the Property which is visible from any
public right-of-way adjacent or contiguous to the Property, shall
be removed by the Property Owner by either painting over the
evidence of such vandalism with a paint which has been color-
matched to the surface on which the paint is applied, or graffiti
may be removed with solvents, detergents or water as appropriate.
In the event that such graffiti may become visible from an adjacent
or contiguous public right-of-way but is not removed within 72
hours following the time of such application, the Agency shall have
the right to enter the Property and remove the graffiti without
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notice to the Property Owner. Any sum expended by the Agency for
the removal of such graffiti from the Property authorized by this
Section 7(b) in an amount not to exceed $250.00 per entry by the
Agency, shall become a lien on the Property. If the amount of the
lien is not paid within thirty (30) days after written demand for
payment by the Agency to the Property Owner, the Agency shall have
the right to enforce its lien in the manner as provided in Section
7 (c) .
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(c) The parties hereto further mutually understand and
agree that the rights conferred upon the Agency under this Section
7 expressly include the power to establish and enforce a lien or
other encumbrance against the Property, or any portion thereof, in
the manner provided under civil Code Sections 2924, 2924b and 2924c
in the as amount reasonably necessary to restore the Property to
the maintenance standard required under Section 7(a) or Section
7(b), including attorneys fees and costs of the Agency associated
with the abatement of the Maintenance Deficiency or removal of
graffiti and the collection of the costs of the Agency in
connection with such action. The provisions of this Section 7,
shall be a covenant running with the land for the term as provided
in Section 9 and shall be enforceable by the Agency. Nothing in
the foregoing provisions of this Section 7 shall be deemed to
preclude the Property Owner from making any alteration, addition,
or other change to any structure or improvement or landscaping on
the Property, provided that such changes comply with applicable
zoning and building regulations of the City,
Section 8. Defaults and Breach General. This
Agreement shall have no further force or effect in the event that
the Property Owner may fail to complete the improvement of the
Development Project by the date indicated in Section l(ii). In the
event that the Development Project may not be completed by such
date for any reason, then in such event, neither party shall be
under any further obligation under this Agreement, and the rights
of the parties hereunder shall be released and discharged. Failure
or delay by either party to perform any material term or provision
of Section 3, Section 4, Section 5 or Section 7 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 commences to cure, correct or remedy the alleged
default within thirty (30) calendar days after receipt of written
notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in
default hereunder.
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The party which may claim that a default has occurred
shall give written notice of default to the party in default,
specifying the alleged default. Delay in giving such notice shall
not constitute a waiver of any default nor shall it change the time
of default; provided, however, the injured party shall have no
right to exercise any remedy for a default hereunder without
delivering the written default notice as specified herein.
Any failure to delay by a party in asserting any of its
rights and remedies as to any default shall not operate as a waiver
of any default or of any rights or remedies associated with a
default. Except with respect to rights and remedies expressly
declared to be exclusive in this Agreement, the rights and remedies
of the parties are cumulative and the exercise by either party of
one or more of such rights or remedies shall not preclude the
exercise by it, at the same or different times, of any other rights
or remedies for the same default or any other default by the other
party.
In the event that a default of either 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. In the event of a breach, the party who is not in
,default shall be entitled to seek any appropriate remedy or damages
f"""' by initiating legal proceedings.
Section 9. Covenants Runninq With the Land. This
Agreement is expressly declared by the parties for themselves and
for the successors and assigns of each of them, to be for the
benefit of the Property and the redevelopment project area of the
Mount Vernon Corridor Redevelopment Project:
I
~
.......
(a) The provisions of Section 4, Section 6 (b) and
Section 7 of this Agreement are covenants which runs with the land
and the Property for a term of ten (lO) years from the date of the
Notice of Memorandum of Agreement as set forth in Section 11.
(b) [RESERVED - NO TEXT]
(c) The provisions of Section 5 of this Agreement are a
covenant which runs with the land and the Property in perpetuity.
Section 10. Early Termination of Aqreement By Property
Owner. The Property Owner may terminate this Agreement at its
discretion for any reason before the date on which the Agency
Promissory Note is executed and delivered to the Property Owner by
serving written notice of termination of the Agreement to the
'~,."
1a?<mlf.lIij010Xl jmm
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Agency which specifically refers to this Section 10 of the
Agreement. Upon receipt by the Agency of such written notice of
termination, the Agency shall cause to be recorded a release of the
Notice of Memorandum of Agreement, and thereafter the parties shall
be mutually release from any further obligation which arises under
this Agreement.
Section 11. Notice of Memorandum of Aqreement. The
parties hereby agree and declare that the successors and assigns of
each shall be bound by the terms of this Agreement. The parties
shall execute and the Agency shall cause to be recorded a Notice of
Memorandum of this Agreement substantially in the form as attached
hereto as Exhibit "F" and incorporated herein by this reference.
The Notice of Memorandum of Agreement shall be recorded promptly
upon the full execution of this Agreement by the parties.
c
Section 12. Jurisdiction of Courts and Attorneys'
Fees. All legal proceedings to enforce any provision or declare
any right under this Agreement shall be filed in the Superior Court
of the County of San Bernardino, California. If either party
hereto files any action or brings any action or proceeding against
the other arising out of this Agreement, then 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 attorney I s fees. For the
purposes of the preceding sentence, the words "reasonable
attorney's fees" include the salaries, costs and expenses of the
lawyers of the Office of the City Attorney of the City of San
Bernardino as allocated to the cost of the enforcement of this
Agreement on behalf of the Agency.
Section 13. Headinqs and Attachments. The headings of
each section of this Agreement are provided for purposes of
reference and convenience only and do not have any meaning which is
independent of the text of the section of the Agreement to which
they may generally correspond. The following list of attached
documents are part of this Agreement:
Exhibit "A"
Vicinity Map and Legal Description
of the Property
Exhibit "B"
Scope of Development and Schedule of
Performance
Exhibit "C"
Schedule of Public Agency Charges
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Exhibit "D"
Description of Off-Site
Street Work Included as
Improvement Items
Public
Public
Exhibit "E"
Agency Promissory Note
Exhibit "F"
Notice of Memorandum of Agreement
THIS 2001 PROPERTY OWNER REDEVELOPMENT AGREEMENT is dated
as of January 8, 2001, and this Agreement shall have no force nor
effect unless it has been approved by the governing body of the
Agency and executed by the authorized. officers of the Property
Owner and the Agency as evidenced by the signatures of each of them
which appear below. This Agreement may be executed in counterpart
and when fully executed by the parties, each counterpart shall be
deemed to be part of one original Agreement.
PROPERTY OWNER
Yellow Freight System, Inc.,
an Indiana corporation
. Date:
By:
By:
AGENCY
Redevelopment Agency of the
City of San Bernardino
Date:
By:
Approved As To Form:
By:
Agency Special Counsel
U?waf.110 0 :I.lrll j mm
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EXHIBIT "A"
Vicinity Map and Leqa1 Description of the Property
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~ 12/15/00 100 jrnm
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;913 344 4125
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LEGAL DESCRIPTION
REMAINDER PARCEL:
mOSE PORTIONS OF LOTS 5,6,7,22,23,24,25,26 AND 27, BLOCK 25, PER MAP RECORDED IN
MAP BOOK 7, PAGE 2, RECORDS OF SAN BERNARDINO COUNTY, STA'IB OF CALIFORNIA,
DESCRIBED AS FOLLOWS;
BEGINNING AT TIIE NORTIIEAST CORNER OF SAID LOT 7 OF SAID MAP; TImNCE SOUTH 890
54' 53" WEST, ALONGTIIENORTHLINE OF SAID LOT 7, ADISTANCE.OF 293.53 FEETTOnm
BEGINNING OF A NON-TANGENT CURVE Wl'IH A RADIUS OF 2,435.45 FEET AND A RADIAL
BEARING OF SOUTH 430 31' 01" WEST; THENCE NORTHWESTERLY ALONG SAID CURVE
CONCAVE TO nm SOUTHWEST THROUGH A CENTRAL ANGLE OF 3" IS' 53", AN ARC
DISTANCE OF 138.78 FEET; THENCE NORTH 49" 44' 52" WEST, A DISTANCE OF 253,59 FEET
TO nm BEGINNING OF A TANGENT CURVE WITH A RADIUS OF 2,715,65 FEET; nmNCE
NORTHWESTERLY ALONG SAID CURVE CONCAVE TO THE NORnmAST THROUGH A
CENTRAL ANGLE OF 60 14' 57", AN ARC DISTANCE OF 296.19 FEET; THENCE NORTH 43" 29'
55" WEST, A DISTANCE OF 100.82 FEET; IHENCE NORTH 74057' 55" EAST, A DISTANCE OF
214.92 FEET; TIIENCE NORTH 88" 09' 11" EAST, A DISTANCE OF 341.64 FEET; TIIENCE SOUTH
74008' 21" EAST, ADIST ANCE OF 209.83 FEET ; TIIENCE SOUTH 65018' 55" EAST, A
DISTANCE OF 247.77 FEET; THENCE NORTH 88056' 03" EAST , A DISTANCE OF 216.11 FEET;
THENCE NORTH 80016' 03" EAST, A DISTANCE OF 209,98 FEET; THENCE NORTH 82053' 59"
EAST, A DISTANCE OF 241.98 FEET TO A POINT HEREIN REFFERED TO AS REF. "A".:
THENCE SOUTH o(f 07' 03" EAST, A DISTANCE OF 452.00 FEET TO A POINT HEREIN
REFFERED TO AS REF. "B"; IHENCE SOUIH 89" 52' 5T' WEST, A DISTANCE OF 107.47 FEET;
THENCE SOUTH o(f 07' 03" EAST, A DISTANCE OF 135.50 FEET; THENCE NORTH 89052' 57"
EAST, A DISTANCE OF 18.00 FEET; THENCE SOUTH 00007' 03" EAST, A DISTANCE OF 560.00
FEET TO nm NORTH LINE OF RIALTO A VENUE; THENCE SOUTH 89052' 57" WEST ALONG
SAID NORTH LINE OF RIALTO A VENUE, A DISTANCE OF 447.27 TO TIIE NORTIlEASTERL Y
LINE OF LYTLE CREEK CHANNEL; THENCE NORTH 340 59' 24" WEST ALONG SAID
NORTImASTERLY LINE, A DISTANCE OF 42.50 FEET; IHENCE NORTH 50028' 11" WEST, A
DISTANCE OF 79.10 FEET TO IHE BEGINNING OF A NON-TANGENT CURVE WITH A RADIUS
OF 2,435.45 AND A RADIAL BEARING OF SOUTH 58005' 48" WEST; THENCE
NORTHWESTERLY ALONG SAID CURVE CONCA VB TO TIm SOUI'HWEST THROUGH A
CENTRAL ANGLE OF 40 03' 17", AN ARC DISTANCE OF 172.36 FEET TO nm EAST LINE OF
SAID LOT 7; TIlENCE NORTH 000 08' 47" WEST ALONG SAID EAST LINE OF SAID LOT 7, A
DISTANCE OF 336.47 FEET TO TIm POINT OF BEGINNING.
;....,
..' ,".' '-:'-l ,'..
PARCEL "A"
1llAT PORTION OF LOT 27, BLOCK 25, RECORDED PER MAP RECORDED IN MAP BOOK 7,
PAGE 2, RECORDS OF SAN BERNARDINO COUNTY, stA'IB OF CALIFORNIA, DESCRIBED AS
FOllOWS:
BEGINNING AT REF. "A" AS MENTIONED ABOVE; TIIENCE SOUTH o(f 07' 03" EAST, A
DISTANCE OF 452:00, TIIENCE NORTH 89052' 57" EAST, A DISTANCE OF 306.00 FEET;
THENCE NORTH 00. 07' 03" WEST, A DISTANCE OF 452.00 FEET; THENCE SOUTH 89052' 57"
WEST, A DISTANCE OF 306.00 TO THE POINT OF BEGINNING.
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10-20-00; 4:32PM;YELLOW REAL ESTATE
;Si13 344 4125
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PARCEL "B"
'!HOSE PORTIONS OF LOTS 4,5,27 AND 28 BLOCK 25, PER MAP RECORDED IN MAP BOOK 7
PAGE 2, RECORDS OF SAN BERNARDINO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS
FOLLOWS;
BEGINNING AT REF. ''B'' AS DESCRIBED IN REMAINDER PARCEL; THENCE SOUTH 89052' 57"
WEST, A DISTANCE OF 107.47 FEET; THENCE SOUTH 00007' 03" EAST, A DISTANCE OF
135.50 FEET; THENCE NORTH 89052' S7" EAST, A DISTANCE OF 18.00; THENCE SOUI'H (}(f' 07'
03" EAST, A DISTANCE OF 560.00 FEET TO THE NORTH LINE OFRIALTo AVENUE; THENCE
NORTH 89052' S7" EAST ALONG SAID NOR'lH LINE OF RIALTO AVENUE, A DISTANCE OF
140.00 FEET; THENCE NORTH od' 07' 03" WEST, A DISANCE OF 695.50 FEET; THENCE SOUTH
89.52' "" WEST, A DI~ANCE OF 50.53 FEET TO THE POINT OF BEGINNING.
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EXHI:BI:T "B"
Scope of Development (City Planning Department
Case No. DPI:I: No. 00-07) and Schedule of Performance
SBEO/0001/DOC/4208-3
12/15/00 100 jnun
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- Margaret Park
From: Steve. Roush [Steve.Roush@yellowcorp.com]
Sent: Wednesday, October 25, 2000 3:50 PM
To: mpark@sbrda,org
Subject: Yellow site
lll'."~
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You may have to help me some with the date of tit,le as this was involved in a tax-free exchange.
The date that we received title was on or about August 15, 2000. let me know if the exchange
process has any effect on this and we can confirm an actual date, if required. As to milestones,
depending on the Bulding permit, we have set the following: .
Foundations complete: 11/28/00
Metal Framing complete: 02115101
Paving complete: 4/15/01
The occupancy date has not been published at this other than we expect to be in the facility by
the end of the 2nd quarter, 2001,
Thanks for the help and let me know what other info I can provide.
Steve Roush
.
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SBEO/0001/DOC/420B,3
12/15/00 100 jmm
EXHIBIT "C"
Schedu~e of Pub~ic Agency Charges
15
Anticipated City Fees
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Public Works
Public Works Permits $ 92,000
Sewer Connection Fee $ 8,000
Drainage Fee $ 66,000
Traffic System Fee $ 34,000
Subtotal $ 200,000
Building & Safety
Building Permits $ 20,000
Water Department
Sewer Capacity Fee $ 43,000
Water Acquisition Fee $ 38,000
Subtotal $ 80,000
TOTAL $ 300,000
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Exhibit C,xls
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EXHIBIT "D"
Description of Off-Site Public Street Work
SBEO/0001/DOC/4208-3
12/15/00 100 jmm
16
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Exhibit "0"
Description of Off-Site Public Street Work
Project frontage along Rialto Avenue $155,445
Northeast comer of intersection of Rancho Avenue and Rialto $180,600
Avenue
Southeast comer of intersection of Rancho Avenue and Foothill $129,000
Boulevard
Future signalization of intersection of Intermodal Access and 4th $31,500
Street - Fair Share contribution
Future signalization of intersection of Rancho Avenue and Foothill $15,000
Boulevard - Fair Share contribution
Total estimated costs: $511,545
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Note:
All such work shall be designed, constructed and installed in accordance with
plans and specifications approved by the City Engineer. Upon completion of off-
site work by the Property Owner, the Property Owner is responsible for obtaining
the final acceptance and approval of such work from the City Engineer.
All workers employed in the improvement of such off-site work shall be paid not
less than "prevailing wage" as this term is defined in the Property Owner
Redevelopment Agreement. Upon completion of the off-site work, the Property
Owner shall deliver to the Agency a certified payroll record for such work as
prepared in accordance with Califomia Labor Code Section 1776.
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Yellow Freight System
,-.. , '.'" San Bemardino
....... - Offsite Improvement Estimate
10/25/00
Project frontage along Rialto Avenue
250 Planislenglneering $5,000
1000 General conditions $4,000
1400 Traffic control S3,OOO
2050 Staking $3,000
2110 Demolition $10,000
2200 Grading 515,000
2595 Catch basin relocation $7,500
2605 AC paving $15,000
2610 Striping/signage $11,000
2650 Signal rework 50
2650 Street lighting $12.000
2650 utility pole relocation $10,000
2705 Concrete 525,000
Subtotal $120,500
. Overhead & Proflt-7.5% $9,038
Contingency-20% ... "r) . $25,908
,,- ..
, Total $155,445
.......
NE comer of intersection of Rancho Ave.lRialto Ave.
250 Plans/engineering $10,000
1000 General conditions $4,000
1400 Traffic control $3,000
2050 Staking $3,000
2110 Demolition 510,000
2200 Grading $15,000
2595 Catch basin relocation 50
2605 AC paving $15,000
2810 Striping 55,000
2650 Signal rdWoik $40,000 .
2650 Street lighting 50
2650 utility pole relocation $10,000"
2705 Concrete $25,000
Subtotal 5140,000
Overhead & Proflt-7.5% 510.500
Contlngency-20% $30,100
Total 5180,600
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Prepared by Chris !..ellennan @ Bremco Construction 582-595-4687
1of2
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Yellow Freight System
l''--- San Bernardino
...." Offslte Improvement Estimate
10125/00
SE comer of Intersection of Rancho Ave.lFoothlll Blvd.
250 Plansfenglneeting $10.000
1000 General conditions $4,000
1400 Traffic control $3,000
2050 Staking $3,000
2110 Demolition 510,000
2200 Grading 515,000
2595 Catch basin relocation SO
2605 AC paving $15,000
2810 Striping $5,000
2650 Signal rework $0
2650 Street lighting $0
2650 Utility pole relocation $10,000
2705 Concrete 525,000
Subtotal 5100,000
Overhead & Proflt-7.S'll> $7,500
Contingency-20'll> $21,500
"- Total $129,000
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Prepared by Chris Letterman @ Bremc;o Construction 562-595-4687
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EXHIBIT "E"
Agency Promissory Note
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SBEO/0001/DOC/420B-3
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AGENCY PROMISSORY NOTE
(Mount Vernon Corridor Redevelopment Project -
Yellow Freight System)
NEITHER THE FAITH AND CREDIT NOR THE TAXING
POWER OF ANY PUBLIC AGENCY, INCLUDING THE CITY
OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO, IS PLEDGED TO
THE PAYMENT OF PRINCIPAL AND INTEREST HEREOF
Principal Amount:
Date:
$
~.
[Not to Exceed $811,545.00,
the specific amount shall be
verified by Property Owner
accounting of actual Public
Agency Charges incurred and
Public Improvement Costs
incurred: See Section
3(b) Iii) of the Agreement]
[Date of Agency Promissory
Note: See Section 3 (b) (iii)
of the Agreement]
Maturity Date:
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[10 years following date of
Agency Promissory Note
THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
PROMISSORY NOTE (the "Agency Promissory Note"), evidences an
indebtedness of the Redevelopment Agency of the City of San
Bernardino, a body corporate and politic (the "Agency") to Yellow
Freight System, Inc., an Indiana corporation (herein the "Holder").
The Agency Promissory Note is hereby tendered in accordance with
that certain 2001 Property Owner Redevelopment Agreement dated as
of January 8, 2001, (the "Agreement"), by and between the Holder
and the Agency with respect to the following facts:
RECITALS
This Agency Promissory Note is an indebtedness of the
Agency incurred in connection with the implementation of the
Redevelopment Plan for the Mount Vernon Corridor Redevelopment
Project; and
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This Agency Promissory Note evidences an indebtedness of
the Agency to the Holder for the repayment by the Agency to the
Holder of a loan for the payment of portion of certain Public
Agency Charges as set forth in the Agreement, which indebtedness
has been incurred by the Agency in connection with the
redevelopment by the Holder of certain real property located within
the redevelopment project area of the Mount Vernon Corridor
Redevelopment Project as more specifically described in the
Agreement (the "Property") .
FOR VALUE RECEIVED, THE AGENCY HEREBY PROMISES TO PAY TO
THE ORDER OF THE HOLDER AT SUCH ADDRESS AS THE HOLDER SHALL
DESIGNATE FROM THE SPECIAL SOURCE OF FUNDS AS HEREINAFTER
DESCRIBED, THE PRINCIPAL AMOUNT OF THE AGENCY PROMISSORY NOTE AT
THE TIMES SPECIFIED HEREIN FROM THE FUNDS AS AVAILABLE TO THE
AGENCY THEREFOR (HEREINAFTER DEFINED AS THE "SITE TAX INCREMENT")
IN ACCORDANCE WITH THE TERMS HEREOF:
Section 1. Unless otherwise provided herein, the
terms and phrases as used in this Agency Promissory Note shall have
the same meaning as found in the Agreement. A copy of the
Agreement is on file with the Agency Secretary.
Section 2. The Agency Promissory Note is tendered to
<:: the Holder in connection with the obligation of the Agency to repay
the Property Owner for a loan to the Agency of an amount to pay a
portion of the Public Agency Charges associated with the
improvement of the Development Project on the Property as set forth
in the Agreement. The principal amount of the Agency Promissory
Note on the date when the Development Project is deemed complete as
set forth in the Agreement is Thousand
Dollars ($ ) .
[EDITOR'S NOTE: THIS FIGURE ~LL BE INSERTED AT THE TIME OF
EXECUTION AND DELIVERY OF THIS AGENCY PROMISSORY NOTE PROMPTLY
FOLLO~NG COMPLETION OF THE DEVELOPMENT PROJECT AND AGENCY'S
RECEIPT OF SUBMISSIONS FROM HOLDER]
Section 3. No interest shall accrue on the
outstanding principal amount of the Agency Promissory Note.
Section 4. Installments of principal as may be due
hereunder shall be paid to the Holder solely from the Site Tax
Increment, as described in Section 7, below, annually on January 1
of each year, commencing with a first payment (pro rated) on the
January 1 following the date of this Agency Promissory Note.
Thereafter, payments of principal due on the Agency Promissory Note
{~
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~~ shall be paid solely from the Site Tax Increment on each subsequent
~ January 1, until the maturity date when the final payment shall be
made (pro rated); provided however, that no payment shall be due or
payable on the Agency Promissory Note on any such payment date
unless the Holder has first submitted appropriate written evidence
to the Agency that the property taxes as assessed for the Property
have been paid to the Tax Collector of San Bernardino County for
the fiscal year preceding the date when the payment of an
installment under the Agency Promissory Note is payable to the
Holder.
Section 5. The Agency Promissory Note shall have a
maturity date which is the tenth (10th) anniversary following the
date of this Agency Promissory Note, and if any unpaid principal
balance may be owing after the payment due the Holder from Site Tax
Increment on such tenth (10th) anniversary, such balance shall be
waived and forgiven by the Holder.
Section 6. The Agency may prepay the outstanding
principal balance on the Agency Promissory Note without penalty at
any time.
Section 7. Notwi thstanding any other provision of
..this Agency Promissory Note or the Agreement to the contrary, the
,,-. obligation of the Agency to the Holder to make payments of
~ principal hereunder prior to the maturity date shall be a special
limited obligation of the Agency and shall not be deemed to be a
general obligation of the Agency or the City of San Bernardino.
The sole source of repayment for the indebtedness of the Agency,
evidenced by the Agency Promissory Note, shall be derived from the
Site Tax Increment as follows:
the Site Tax Increment is a portion of the locally
assessed secured roll property tax increment revenues as
realized by the Agency each fiscal year from the Mount
Vernon Corridor Redevelopment Project from and after the
date of this Agency Promissory Note as a result of the
redevelopment of the Property by the Holder and the
receipt by the Agency of locally assessed secured roll ad
valorem property taxes paid with respect to the Property
which are allocated, paid to and received by the Agency
pursuant to Health and Safety Code Section 33670 (b) .
Said portion of the property tax increment revenues of
the Agency shall be determined as of each January 1,
prior to maturity of this Agency Promissory Note, by the
application of the following formula, following the date
of this Agency Promissory Note with respect to the
locally assessed secured roll ad valorem property taxes
-'"
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as paid to the Tax Collector of San Bernardino County for
the Property:
(Total Property Taxes paidll) - (Base Year Value.1.l) - (tax increment
revenue from the Property deposited to the Low and Moderate Income
Housing Fund11) - (Pass-Thru Amounts!!) -$15,000.00 = Site Tax Increment
The Agency Promissory Note shall not be payable out of
tax increment revenues derived from any other lands of the Mount
Vernon Corridor Redevelopment Project nor from any other funds of
the Agency. Neither the faith and credit nor the taxing power of
the City, the Agency nor the County of San Bernardino is pledged to
the payment of principal or interest on the Agency Promissory Note.
Section 8. Upon the date of maturity of the Agency
Promissory Note (and after the payment to the Holder of the Site
Tax Increment (pro rated), if any, on the tenth (10th) anniversary
date), all remaining unpaid principal of the Agency Promissory Note
shall be waived, discharged and forgiven by the Holder.
Section 9. The Holder may transfer or assign its
-right to receive payments of principal under the Agency Promissory
.0'- Note upon receipt by the Agency of written notice of such
~ assignment executed by the Holder and the new holder of the Agency
Notes on formula for the calculation of "Site Tax Increment" presented in Section
7, above:
1. "Total Property Taxes Paid" means the total amount of current tax year
locally assessed secured roll ad valorem property taxes assessed to the Property
and paid by the owner of the Property to the Tax Collector of San Bernardino
County.
2. "Base Year Value" means a portion of Total Property Taxes Paid which
is attributed to the assessed value of the Property for ad valorem property tax
assessment purposes as of January 1, 2000 [note: this value may be shown as of
January 1, 2000 on the State unitized property tax rolls for railroad utility
property],
3. "Tax increment revenues from the Property deposited to the Low-and
Moderate Income Housing Fund" means and refers to the portion of the tax
increment revenue of the Property which are by state mandate deposited each year
under Health and Safety Code Section 33334,3 to the Agency's low-and moderate
income housing fund.
4. "Pass-Thru Amounts" mean and refer to a portion of the tax increment
revenue of the Property which is subject to payment each year by the Agency to
one or more affected tax agencies under Health and Safety Code Sections 33401
and/or Section 33675.
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Promissory Note which indicates the new name and address for
...... payment to the holder of the Agency Promissory Note and which
written notice shall also state as follows:
"The undersigned assignee of the Agency Promissory Note
hereby acknowledges that the Agency shall have no
obligation to pay to the assignee any amounts of
principal as may be due thereunder except from a special
source of funds described in the Agency Promissory Note
as the "Tax Site Increment" and further .subject to the
condition that the assignee has first provided the Agency
with appropriate written evidence that locally assessed
secured roll property taxes for the Property have been
paid to the Tax Collector of San Bernardino County for
the fiscal year preceding the payment due under the
Agency Promissory Note."
of
THIS AGENCY PROMISSORY NOTE is executed on this ___ day
, 200 , at San Bernardino, California.
REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO
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By:
By:
(Seal)
ATTEST:
Agency Secretary
Approved As To Form:
Agency Special Counsel
[EDXTOR'S NOTE: AGENCY PROMrSSORY NOTE WILL BE EXECUTED AND
DELXVERED TO HOLDER FOLLOWXNG COMPLETXON OF THE DEVELOPMENT
PROJECT AND AGENCY'S RECErPT OF SUBMJ:SSXONS FROM HOLDER - SEE
SECTXON 3(C) (vi) OF THE AGREEMENT]
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SBEO\0001\DOC\4210-2
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SBEO/0001/DOC/420B-3
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EXHIBIT "F"
Notice of Memorandum of Aqreement
18
,IW">.'
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
.......
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite
San Bernardino, California
Attn: Executive Director
301
92401
(Space Above Line For Use By Recorder)
(Recordation of this Document Exempt
From Fees Payable to Recorder Under
Government Code Section 6103)
NOTICE AND MEMORANDUM OF 2001 PROPERTY OWNER
REDEVELOPMENT AGREEMENT
Redevelopment Agency for the City of
San Bernardino: Yellow Freight System, Inc. -
TO ALL INTERESTED PERSONS, PLEASE TAKE NOTICE
-
THIS NOTICE AND MEMORANDUM OF 2001 PROPERTY OWNER
REDEVELOPMENT AGREEMENT (the "Memorandum") is dated as of January
8, 2001, by and between Yellow Freight System, Inc., an Indiana
corporation (the "Property Owner") and the Redevelopment Agency of
the City of San Bernardino (the "Agency"). This Memorandum affects
certain real property in the City of San Bernardino, County of San
Bernardino, California, located at 1500 West Rialto Avenue San
Bernardino, California (the "Property"). The Property is more
particularly described in the two (2) page legal description
attached hereto as Exhibit "A" and incorporated herein by this
reference.
"'-
PLEASE TAKE FURTHER NOTICE that the Property Owner and
the Agency have entered into that certain "2001 Property Owner
Redevelopment Agreement," dated as of January 8, 2001, which
affects the Property and which includes community redevelopment
covenants of the Property Owner and the Agency which benefit and
burden the Property and which run with the land for the period of
time as set forth therein.
Section 4 of the Agreement is entitled:
Covenant of the Property Owner to Pay an "In
Lieu" Charae to the Aaency in the Event That
the Property. or Portion Thereof. Mav Be
~ SBEO/0001/DOC/4211-1
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Leased. AssiQned. or ACQuired by an Entity
Which is Exempt from PaYment of Ad Valorem
Property Taxes
Section 5 of the Agreement is entitled:
Covenant AQainst Unlawful Discrimination
Section 6 of the Agreement is entitled:
rProperty Owner Covenant
Confirmation of Taxesl
Reaardina
Section 7 of the Agreement is entitled:
Maintenance Condition of the Property
Interested persons may inspect a copy of the text of the
2001 Property Owner Redevelopment Agreement which is on file as a
public record of the Agency in the office of the Agency Secretary
during regular business hours.
This Memorandum may be executed by the parties in
counterpart. The recordation of this Memorandum is authorized by
-'action of the Agency under Government Code Section 6503 and Health
and Safety Code Sections 33337, 33338 and 33339.
PROPERTY OWNER
Yellow Freight System, Inc.,
an Indiana corporation
Date:
By:
By:
AGENCY
Redevelopment Agency for the City
of San Bernardino
Date:
By:
Executive Director
[ALL SIGNATURES
TO BE ACKNOWLEDGED]
SBEO/0001/DOC/4211-1
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[EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY]
SBEO/0001/DOC/4211-1
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): I - 22.-D \ Item # t2.3 \
Vote: Ayes 1- 'I Nays.e-- Abstain
Change to motion to amend original documents:
Resolution #
c (y /7.tO\ -s
I
Absent -4
.e-
Reso. # On Attachments: -===-
Contract term:
323-0\
Null/Void After: lot! {)1l1 'i
Note on Resolution of Attachment stored separately: --==-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W ICOUNTY Date:
See Attached: ~
Date Sent to Mayor: 1-.;! <i -0 \
Date of Mayor's Signature: 1-~5-01
Date of ClerklCDC Signature: I -(;IS -0 \
Reso. Log Updated: /"
Seal Impressed:
Date Memo etter
e:
See Attached:
See Attached:
Date Returned:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
e
d:
Yes ,/ No By
Yes No / By
Yes No / By
Yes No i/. By
Yes NO? By
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
EDA
/'
Finance
MIS
Water
Others:
Police Public Services
Notes:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: (YYl
Date: (-J(,"Ot