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HomeMy WebLinkAboutR31-Economic Development Agency . . . 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: -------------.----------------------------------------------------------------------------------------------------------------------------- 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, ------------------------------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------..-------------------------------------------------------------- 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 --------------~-----------------------------------------------------------------------------..--.--------------------------_...------------ CommissionlCouncil Notes: ------------------------------------------------------------------------------------------------------------------ GYO:MP:01-22-01 Yellow Freight COMMISSION MEETING AGENDA MEETING DATE: 01-22-2001 Agenda Item Number: ..8.3J_ , , , ,. ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ 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. ------------------------------------------------------------------------------------------------------------------ GVO:MP:01-22-01 Yellow Freight COMMISSION MEETING AGENDA MEETING DATE: 01-22-2001 Agenda Item Number: ~l_ ~ 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 , ,,- "- ,"'-" '"" ~(Q)~V 3 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. 4 5 6 7 8 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 9 10 (the "Agency") approve the terms of a Property Owner Redevelopment (the "Agreement") for the II purpose of supporting the redevelopment and reuse of certain lands and providing reimbursement 12 fInancing for the construction of off-site street improvements adjacent to a new freight tenninal 13 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 15 Redevelopment Project Area, the General Plan; and 16 17 WHEREAS, the Project will result in the construction of an 115,178 square foot interior 18 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, 19 pursuant to Redevelopment Law. 20 21 NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 22 Section 1. The above recitals are true and correct. 23 Section 2. Pursuant to CEQA Regulations Section 24 25 Development Commission, as the governing board of the Agency, finds that as a responsibl 1"" agency under CEQA for the purpose of the redevelopment assistance provided to the Prope -1- 12118100 Yellow Freight SYSltm, Inc. , , ~ 13 !~ """ Owner under the terms of the Agreement, no further environmental review of the Project or th 3 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 4 approved the Project, subject to a number of conditions and development impact mitigatio 5 measures, and the Property Owner shall be responsible for complying with those conditions an 6 7 measures. A copy of the July 13, 2000 CEQA determination of the DRC of the City of S 8 Bernardino is on file with the Agency Secretary, 9 Section 3. 10 The Community Development Commission hereby approves the Agreement with the Property Owner. The Community Development Commission hereby II authorizes and directs the Executive Director to execute the Agreement on behalf of the Agency. 12 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 15 under the terms of the Agreement as hereby approved, 16 17 18 19 20 21 22 23 24 25 '''''''>- -2- 12118100 Yellow Freight System, Inc. ( ("'" '-2 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 3 Owner under the terms of the Agency Promissory Note from the special source of funds described 4 in the Agreement, shall be an "indebtedness of the Agency", as this term is defmed in Health and 5 Safety Code Section 33675. The Executive Director is hereby directed to cause the Statement of 6 7 Indebtedness for the Mount Vernon Corridor Redevelopment Project to include the indebtedness 8 of the Agency to the Property Owner, as evidenced by the Agreement and the Agency Promissory 9 Note, to be filed with the Auditor-Controller of San Bernardino County in the manner authorized 10 bylaw. 11 Section 5. The authorization to execute the Agreement is rescinded if the Agreement 12 is not fully executed by both parties within sixty (60) days of the passage of this Resolution. 13 Section 6. - '-4 IIII 15 IIII 16 IIII 17 IIII 18 IIII 19 IIII 20 IIII 21 IIII 22 23 IIII 24 IIII 25 IIII ',,- This resolution shall take effect immediately upon its passage. -3- 12118100 Yellow Freight System. Inc. 10 ESTRADA II LIEN 12 McGINNIS 13 SCHNETZ 14 SUAREZ C 15 ANDERSON 16 MCCAMMACK 17 18 19 20 l''''''- '- _. 1 2 3 4 5 6 7 8 9 COMMISSION MEMBERS: 21 22 23 24 25 26 27 28 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: -4- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO '- 2001 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 c 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: "- $lIf'<1(Sf.<laOl()() jmm 1 (i) -- ......... (ii) 10...... $li?'Qlaf.llGOllro jmm 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; I I , 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 , , i l I I i i I I 2 civil Code Section 3093 for the Development Project; ....... (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. /.*'~ '- 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. - UrWf.o.aOllro jrnm 3 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. ....... (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). -, , '- (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 - iI~(la01OO jmm 4 "- 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; iIf~ "- (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 - SlI?'alWllDO:llJJJ jmm 5 c c ......' 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 $l1?<JIll.f.~a01.OXl jmm 6 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. c "'- 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: sll?'<llll}.~ao~Oll jmm 7 (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 ....^"" u:r<ll8f.~aolcro jmm 8 c 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) . c (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. "- alI?'Q1a.f.I)O 0 1 Oll j mm 9 r- '- 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 10 r- ~ 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 '- SlI?'waf.llOOllro jmm 11 c ~, ~ . -, 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 12 - '- EXHIBIT "A" Vicinity Map and Leqa1 Description of the Property c SBEO/0001/DOC/420B-3 ~ 12/15/00 100 jrnm 13 '-. u - -r-=l)~ I'" ; rd 1 i I; I II i 1IIIli1dlllllllb ,II aT. U_~. 8T. -~- II I i III Jll I BIb ~I H II iN- ' r: ~. ~ ~ \ 0:: 0.. :~~:~'~~'i ~ ~~ ~ ~ . ~ ~:::~~~"~.~~~:,';,~ ~~ ~' ~ ~:I~<8c~ ~:~:,*';:':':';'''- ~".:., .... '1mi:~iLrntt;i.\ ~ :g~.... ., V~" """,,'" .....^i"I'l' @ ''''''''<''. ~ ; i : , ":: '-'- '="_.. ~i, ~e -. "'.....;.. ,i , ;,:::,'llllill 19m: ~~,\ · · 00.." '. uJ'iJJ ~ .., I C ~ \ \ . __ _..,..-~d., . .' ~l(:__:_____,AVE~ ----.-1-'--- '~:~~:::~~.,;.~ro';= .^.~~, '" ".' 4 '''':dJ~1I ~ 1 ~ .. .' 'I ~rITIi l1}k: 1\., ~~,Iijl~ - L~ I'" ~ n\= rl \~ . II >'1\."\ E> : l ,0 UUl , \ \ 11 ""'-r~\,-~. . ,'. t, '!'! 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I J .!n~ .s 0- <0;01 '=1 , 'I:b~'" -1 ~"i U:,Sl~1 -1 I I a:, <: 0.. ..!! ,ll:! :;e I .Ot;'t;69 IIt.CO.tO.OON I I " . I g 'o71t 6G'G='1 g I '" .OO.~t;P M.rO,tO.OON ~ ~ I ~ .8. 13:>!:l'v'd ~ ~---~ -------------~~+- ------------------- 0\ .. ., . . . . ,". ""0 - I .-g ~ or.) - .05rt;rl .OO'09t; M..rO.LO.OON I 't2 ::;: -;\1 M.rO.r.O.oON 1 Q3 "'~1 I 1 <: ,......, 3' I 1;) I'" , "" ~ 1', ~, ,... .J.... I ...... -1 .JU I '=1 ".!O , 9~ -:o:i WCll I -1:t. "'I~ I ~ol . UCrj I :to ,,~ J b~ :4 a:. I ~~ ;:~ 1----- IQ ---------~~ -+---------------- ~"'--_1 ~ I - I . It. .. \ .... ~ ll")~,,~o~ I:c;.. I ~ 'It) " 0 I "'\O~ _ ;::-:;a: I ~ , ~ :... 0'1 '1;) ffi :' I or.) ~'"!;:;;;..,.,o; '" IJ Co ~ ~ 1\1 n, J ,... ~~~e~"'" i::~.::; . o~ 'm ~ .11II11 ~ I '" '" -1 ~ ~. I d -1 ll::....!"<1 <: , <: -1 <( <0 I. I . -::) ::! C\l I Q.. L---i~---,..------ ~ 4 I MuLto,90.OON -----------------J I .t" '\ .. .' 0' ,tv'9r. .." ll::. ' I !J ~~ , II IS) I I 00 ~""<? .., -10-':. '.."" ~~! 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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. -- '- '-' - 10-20-00; 4:32PM;YELLOW REAL ESTATE ;Si13 344 4125 '# 4/ .... .' " . ) ,0 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. c - '- - 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 14 III i; ~ Alii ~ ~ ~ . I ~I II ,1"''''''' E &. '- 'I' ... l u I~ N . ..J W l u ; lit < , a. z~i 'f. I i~ t 13~~Wd~ . - .~ L~ ; i:J~ g.~ -. . ,. , . ~ II ~: ' . I';~ . ~'I I' I'. ~!- . ~ ,.~ :t~ eE' ,- I. :. . . '\' I ~III ~'8 ~L: Ell . G' ,- \- '"-, // II ~JI ~~~Oll III ~ d II 5"~ G..~ ;",:-r:l~. ~ . ~\.,-, ~, ;' ~,~I_; "" I' .' <:> t-- '", , " ::i!: ~~~I!!. "i' ',::1,1..,-1,_ i ,_ '~ ~ I.; l1' ,... '.. I ;11-- I'~ J:~lj!~ ~ !nil iI' . rr c ~l '(l ~ ~ , ,,- I ~t{ -rJ i I ~ i d :i ill!lil i'1 jl !i !I 1'1 I'" I I I, I, I'll I! I i I 111'1' II I I , ,llli illl :! Ii, I I I I - ,I ! ,III! b~; 11111 'I ! I '1 II II 'llll ! ~ d II jlll ;il.ll ~illllll! PI I ~ I III. 11111'.1 .. "'" . -. . .. , i!5. .. .. I .l .0L.. ( - 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'."~ "- .....,.' 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 . ....~ '- ""'~ '- '- .' SBEO/0001/DOC/420B,3 12/15/00 100 jmm EXHIBIT "C" Schedu~e of Pub~ic Agency Charges 15 Anticipated City Fees "- 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 - "';..,~ Exhibit C,xls '-' ,,PIN<>- '- '-' EXHIBIT "D" Description of Off-Site Public Street Work SBEO/0001/DOC/4208-3 12/15/00 100 jmm 16 r"""'- ........ 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 c 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. ....., _ . .~. ; -1-e.. ___" . 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 '-' Prepared by Chris !..ellennan @ Bremco Construction 582-595-4687 1of2 . . ./ _0 . .._-.0_ 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 , '-' -~ :' .:~::~ ",., ',' ~ . ," ~ ."'i:; . \-.: . :71. 't,.':::" ~::"h". , ,...... ..... : 0' : \....... Prepared by Chris Letterman @ Bremc;o Construction 562-595-4687 ,tlf, ,...... '- EXHIBIT "E" Agency Promissory Note ,-. '- SBEO/0001/DOC/420B-3 ~ 12/15/00 100 jmm 17 '- 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: '- [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 ~ SBEO\0001\DOC\4210-2 12\15\00 100 jrnm 1 c 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 {~ ~ SBEO\0001\DOC\4210-2 12\15\00 100 jrnm 2 ~~ 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 -'" ~ SBEO\0001\DOC\4210-2 12\15\00 100 jrnm 3 '- 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. ~ SBEO\0001\DOC\4210-2 12\15\00 100 jmm 4 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 '- 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] ........, SBEO\0001\DOC\4210-2 12\15\00 100 jrnrn 5 ...... , '- SBEO/0001/DOC/420B-3 ~ 12/15/00 100 jmm 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 12/15/00 115 jmm 1 "- c \....- ~...~- 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 12/15/00 115 jnun 2 - ,""""..... '- ....... [EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY] SBEO/0001/DOC/4211-1 12/15/00 115 jnun 3 - ** 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