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HomeMy WebLinkAbout1985-064 24 1 RESOLUTION NO. 85-64 2 RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF CERTAIN REAL ESTATE IN THE SOUTHEAST INDUSTRIAL PARK PROJECT AREA BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO ITHE MILES & HALL PARTNERSHIP (HEALTH & SAFETY CODE SECTION 33433). I BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF ISAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. 3 4 5 6 7 (a) The Redevelopment Agency of the City of San Bernardino ("Agency") proposes to sell to the Miles & Hall Partnership, 8 9 ("Developer"), certain real estate within the Southeast Industrial 10 Park Project Area, the legal description of which is set forth in [IEXhibit "A" attached hereto and incorporated herein by reference as though set forth in full, for the sum of $537,000, which will I be paid by the Developer in cash. 11 12 13 14 (b) Notice of the time and place of hearing has been given 15 as required by law. 16 (c) Agency has made available for public inspection and 17 copying a summary of financial aspects of the proposed sale. 18 (d) The summary of financial aspects represents that the 19 fair market value of the interest to be conveyed by Agency, 20 determined at the highest use permitted under the plan, is 21 $537,000. 22 (e) All hearings have been held as required by Health and 23 Safety Code Section 33433. SECTION 2. Determination. Based upon the representations of 25 Agency, it is found and declared that the consideration for the 26 real property described in Exhibit "A", in accordance with 27 covenants and conditions governing the sale, is not less than the 28 fair market value of the property determined at the highest use 1 permitted under the plan for the Southeast Industrial Park Project 2 Area. SECTION 3. Approval. The Mayor and Common Council of the 4 City of San Bernardino hereby approve the sale of said property 3 5 upon the terms and conditions set forth in this resolution and the 6 summary of financial aspects. 7 I HEREBY CERTIFY that the foregoing resolution was duly 8 adopted by the Mayor and Common Council of the City of San 9 Bernardino at a meeting thereof, held on rp.gl11~r 10 the 4th day of F'phrllF>ry , 1985, by the following vote, 11 to wit: 12 AYES: Council Members Castaneda. Reilly. Hernandez. 13 Marks. Ouiel. Strickler 14 NAYS: None 15 16 ABSENT: Council Member Frazier 17 ~/;;?d/~~/ ./ City Clerk 18 The foregoing resolution is hereby / J"C/f./ day 19 of , 1985. February 20 21 22 Approved as to form: ./~~~ "City ttorney 23 24 25 26 27 28 -2- . . EXInBIT A - LEGAL DESCRIPl'ICN The property oovered by this Agreement is property located in the City of San Bernardino, County of San Bernardino, and State of California, described as follows: Parcels One through Six, inclusive, Parcel Map No. 5480, according to the map thereof recorded in Book 61 of Parcel Maps, pages 94-95, official records of San Bernardino County, California. . EXHIBJT A 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 Recording Requested by: 2 REDEVELOPMENT AGENCY 3 When Recorded, Mail to: 4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CA 300 North "D" Street, Room 320 San Bernardino, CA 92418 5 6 7 8 9 DISPOSITION AND JOINT DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AND MILES & HALL PARTNERSHIP, A CALIFORNIA LIMITED PARTNERSHIP SOUTHEAST INDUSTRIAL PARK PROJECT AREA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DISPOSITION AND JOINT DEVELOPMENT AGREEMENT SOUTHEAST INDUSTRIAL PARK PROJECT AREA THIS AGREEMENT is made and entered into this day of , 1985, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a public body, corporate and politic, hereinafter called the "Agency" and MILES & HALL PARTNERSHIP, a California Limited Partnership, hereinafter individually and collectively called the -Redeveloper". RECITALS This agreement is made with reference to the following facts: (a) In furtherance of the objectives of the Community Redevelopment Law of the State of California (Health & Safety Code of the State of California, Sections 33000 et seq.), the Agency has undertaken a program for redevelopment of blighted areas in the City of San Bernardino, California, and, in this connection, pursuant to Ordinance No. 3583 of the City of San Bernardino, California, effective July 23, 1976, the City and the Agency have approved and adopted the "Redevelopment Plan". Pursuant to the provisions of the Redevelopment Plan, the Agency and the City have undertaken and are now carrying out the responsibility for a redevelopment project, designated as the Southeast Industrial Park Project (hereinafter called the "Project" and the area within the Project being hereinafter 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 called the "Project Area"). The boundaries of the Project Area are described in the Redevelopment Plan which, by this reference, is incorporated herein and made a part hereof. (b) That certain parcel of real property more particularly described in Exhibit "A", attached hereto and by this reference made a part hereof (hereinafter called the "Property.), is located within the boundaries of said Redevelopment Project, and under said Redevelopment Plan may be developed for private use. (c) The Redeveloper had made an Offer to Purchase and to redevelop such property in accordance with the uses specified in the Redevelopment Plan. It is recognized that it may be necessary to modify the actual improvements, and such modifications will be subject to the approval of the Agency. (d) The Agency has considered all pertinent data and analysis, including the reports of its consultants and the reports and recommendations of its staff, and the Agency believes that the redevelopment of the Property pursuant to the provisions of this Agreement is in the best interests of the City and employment growth, and is in accord with the public purposes ana provisions of applicable laws and regulations under which the Project is governed. (e) Pursuant to the provisions of California Health and Safety Code 3343, the Agency gave notice and held a public hearing on February 4, 1985, at which time the form of this Agreement was available for public examination. By Resolution No. , adopted on February 4, 1985, the Agency approved the execution of this Agreement, and determined that the method of disposition provided for in this Agreement is the most effective method for accomplishing the objectives of the Agency. -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (f) On the basis of the foregoing, and the undertakings of the Agency and the Redeveloper under this Agreement, the Agency desires to sell and the Redeveloper desires to purchase said Property in accordance with the provisions of the Redevelopment Plan and this Agreement. NOW, THEREFORE, IT IS AGREED between the parties hereto as follows: I. Sale of Property. Conveyance Terms. (a) Subject to all terms, covenants, and conditions of this Agreement, the Agency agrees to convey the Property to the Redeveloper at a total acquisition price of Five Hundred Thirty Seven Thousand ($537,000) Dollars. Said acquisition price(s) shall be paid as specified in Exhibit "D". (b) The Redeveloper will immediately upon the execution of this Agreement, in addition to a $16,000.00 good faith deposit satisfactory to the Agency, complete the improvements of the area known as Cooley Court, at a cost to Redeveloper of approximately $50,000. This work shall be commenced forthwith, and be completed by Redeveloper prior to delivery of title to Phase I. The improvements shall be forfeited to Agency if Redeveloper fails to close escrow on Phase I. For the purpose of making such improvements, Redeveloper is authorized to enter upon the subject property upon execution hereof as soon as Redeveloper has obtained the requisite grading and other permits for Cooley Drive improvements from the City of San Bernardino. Such authority to enter upon the property shall be only for making the Cooley Drive improvements and as specified in Section 3{f). Escrow may close in two or more Phases, as set forth in Exhibit C, with Redeveloper to take title by Phases as set forth therein. -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (c) Upon the close of escrow, as to any particular phase, title to the Property shall be conveyed to the Redeveloper, and all sums due the Agency from the escrow shall be paid to the Agency. Title shall be conveyed by grant deed(s) substantially in the form attached hereto as Exhibit "B", and by this reference made a part hereof. The Agency shall prepare such deed(s). The usual seller's share of charges of said escrow holder shall be paid by the Agency, and the usual buyer's share of charges of said escrow holder for handling said escrow and the cost of recording said deed(s) shall be paid by the Redeveloper. (d) The Redeveloper shall have the right to enter into possession of the Property at the close of escrow as to each phase to accomplish the purposes of this Agreement. (e) The title to the Property conveyed by the Agency to the Redeveloper shall be a marketable title free and clear of all encumbrances and exceptions, except as follows: (i) The title shall be subject to the conditions and restrictions set forth in the Declaration of Restrictions, recorded October 15, 1976, in Book 9033 at Page 813, of the official records in the County of San Bernardiino, California, the terms of which are incorporated herein by reference. (ii) Subject to the provisions of all of the agreements, covenants and conditions undertaken by the Redeveloper under this Agreement. -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Obligations of Agency. The Agency shall be responsible for and complete the actions set forth on Exhibit "CO and agrees to use its best efforts to complete them in accordance with the schedules established in Exhibit "CO and "D", coincident with the completion of the required actions to be taken by the Redeveloper. 3. Obligations of Redeveloper. (a) The Redeveloper agrees to be responsible for and complete the actions set forth on Exhibit "D" within the time schedule set forth therein. (b) Prior to the commencement of the above improvements as to each Phase, the Redeveloper agrees to submit to the Agency elevations and schematics therefor. If said elevations and schematics conform to said Redevelopment Plan, to Exhibit "E", "General Data Design", attached hereto and made a part hereof, and to the provisions of this Agreement, the Agency shall promptly approve them in writing. (c) All improvements shall be constructed in accordance with all applicable state and local laws and regulations and shall conform to the provisions of this Agreement. (d) Prior to the close of escrow as to each Phase, and as a condition precedent to the obligation of the Agency to convey the Property to the Redeveloper, the Redeveloper shall submit to the Agency satisfactory evidence that the Redeveloper has the capital and financing commitments necessary for the construction of the improvements and -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 II 23 , I 24 ! jl 25 I II 26 27 II ii I 28 I i I evidence that Redeveloper has properly filed for a building permit with appropriate working drawings. Such evidence shall include an unconditional and irrevocable commitment by a qualified lending entity to provide the funding needed for that Phase of the Project. (e) Agency shall have the right at all times to enter upon the property for inspection and progress evaluation. (f) Prior to delivery of the Property to the Redeveloper, the Agency shall permit the Redeveloper access thereto, whenever and to the extent necessary to carry out the provisions of this Agreement; and subsequent to such delivery, the Redeveloper shall permit access to the Property to the Agency and the City whenever and to the extent necessary to carry out the provisions of this Agreement. In no case shall there be any compensation payable or charge made in any form by or to either party for any such access. 4. Certificate of Completion. (a) Promptly after completion of the improvements as to any individual Phase, in accordance with the provisions of this Agreement, the Agency will furnish the Redeveloper with an appropriate Certificate of Completion. Such certificate by the Agency shall be a conclusive determination of satisfactory termination of the agreements and covenants of this Agreement and the Grant Deed as to such Phase, with respect to the obligation of the Redeveloper, and its successors and assigns, provided that such certification and such determination shall not -6- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 constitute evidence of compliance with, or satisfaction of, any obligation of the Redeveloper to any holder of any trust deed or mortgage, or any insurer of any trust deed or mortgage, securing money loaned to finance the improvement, or any part thereof. Cb) The certification provided for in this Section shall be in such form as will enable it to be recorded with the County Recorder of San Bernardino County. If the Agency shall refuse or fail to provide the certification in accordance with the provisions of this Section, the Agency shall, within ninety (90) days after written request by the Redeveloper, provide the Redeveloper with a written statement indicating in detail in what respects the Redeveloper has failed to complete the improvements in accordance with the provisions of this Agreement or is other wise in default and what measures or acts will be necessary in the opinion of the Agency, for the Redeveloper to take or perform in order to obtain such certification. 5. Maintenance. Ca) The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Property, or any part thereof, that the Redeveloper and such successors and assigns shall to the Agency's satisfaction properly maintain the parking areas and landscaped areas and parkways on the Property as shown on the plans and specifications for the Property approved by the Agency, and required by the conditions and restrictions referred to in paragraph leCil. -"1- i. i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) In the event Redeveloper, its successors or assigns fails to perform the maintenance as provided herein, the City and/or Agency shall have the right to enter the Property and undertake or cause to be undertaken, such maintenance activities. In such event, Redeveloper shall reimburse the City and/or the Agency for all reasonable sums incurred by it for such maintenance activities. 6. Restrictions on Use. The Redeveloper agrees for itself, and its successors and assigns, and every successor in interest to the Property, or any part thereof, that the Redeveloper and such successors and assigns shall: (a) Devote the Property to, and only to and in accordance, with the uses specified in the Redevelopment Plan. (b) Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry in the sale, lease, sublease, rental or transfer or in the use, occupancy, tenure, or enjoyment of the Property or any improvements erected or to be erected thereon, or any part thereof, nor shall the Redeveloper itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property, or any part thereof. (c) All advertisements, including signs, for sale and/or rental of the whole or any part of the Property shall -8- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 include the legend, "An Open Occupancy Building" in type or lettering of easily legible size and design. The words "Project" or "Development" may be substituted for the word "Building" where circumstances require such substitution. 7. Covenants Bindinq Upon Successors in Interest: Period of Duration. It is intended and agreed, and the Deed, the form of which is attached hereto as Exhibit "B", shall expressly so provide, that the arrangements and covenants provided in Section 5 and 6 hereof shall be covenants running with the land. Except as otherwise specifically provided in this Agreement, such covenants and agreements shall be binding to the fullest extent permitted by law and equity, for the benefit and in favor of, and shall be enforceable by, the Agency, its successors and assigns, the City and any successor in interest to the Property, or any part thereof, and the owner of any other land (or of an interest in such land) in the Project Area which is subject to the land use requirements and restrictions of the Redevelopment Plan, against the Redeveloper, its successors and assigns and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. It is further intended and agreed that the agreement and covenant provided in subdivision (a) of Section 6 hereof limiting the property to uses consistent with the Redevelopment Plan shall remain in effect for a period of forty-five (45) years from the date upon which said Ordinance became effective. However, the -9- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 I 22 II 23 II 24 I 25 26 27 28 agreements of Paragraph 5 relating to maintenance and the covenants provided in subdivision (b) of Section 6 hereof relating to non-discrimination shall remain in effect without limitations as to time. Such agreements and covenants, including those specified in subdivision (a) and (b) of Section 6 hereof, shall be binding on the Redeveloper itself, each successor in interest to the Property, and every part thereof, and each party in possession or occupancy, respectively, only for such period as such successor or party shall have title to, or an interest in or possession or occupancy of, the Property or part thereof. The terms wuses specified in the Redevelopment Planw and Wland usew referring to provisions of the Redevelopment Plan, or similar language in this Agreement, shall include the Property and all buildings, and shall include all requirements or restrictions of the Redevelopment Plan pertaining to such Property. 8. Agency Rights to Enforce. In amplification, and not in restriction of the provisions of the preceding Section, it is intended and agreed that the Agency and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in Sections 5 and 6 hereof, both for and in their or its own right, and also for the purposes of protecting the interests of the community and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Agency, for the entire period during which such J -10- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 agreements and covenants shall be in force and effect, without regard to whether the Agency has at any time been, remains, or becomes an owner of any land or interest therein to, or in favor of which, such agreements and covenants relate. The Agency shall have the right, in the event of any breach of any such agreement or covenant, to exercise all of the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries or such agreement or covenant may be entitled. Any leases made by the Redeveloper covering the subject Property shall include all applicable restrictions, covenants and conditions set forth in Sections 5 and 6 of this Agreement. The Redeveloper and the Agency agree to cooperate in enforcing such restrictions, covenants and conditions. 9. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the improvements provided for in the Agreement that (a) The Redeveloper shall not discriminate against any employee or applicant for employment because of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. The Redeveloper shall take the necessary Affirmative Action to ensure that applicants are employed and that employees are treated during employment without regard to their race, sex, marital status, color, creed, religion, physical handicap, national -11- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 [I origin or ancestry. Such Affirmative Action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection for training, including apprenticeship. The Redeveloper agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Agency setting forth the provisions of the nondiscrimination clause. (b) The Redeveloper shall, in all solicitations or advertisements for employees placed by or on behalf of the Redeveloper, state that all qualified applicants will receive consideration for employment without regard to race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. (c) The Redeveloper shall comply with all applicable local, State and Federal laws and regulations. (d) In the event of the Redeveloper's noncompliance with the nondiscrimination clause of this Section, or with any of said laws, rules or regulations, the Agency may enforce such provision through court action by any means available and appropriate, through injunction, action for damages, or any combination of actions authorized by law. (e) The Redeveloper shall include the provisions of subdivisions (a) through (c) of this Section in every contract, and shall require the inclusion of these provisions in every subcontract entered into by any of its -12- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 contractors, unless exempted by the applicable laws, rules or regulations and such provisions shall be binding upon each such contractor, subcontractor, or vendor, as the case may be. The Redeveloper shall take such action with respect to any construction contract or subcontract, as the Agency may direct, as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Redeveloper becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Agency, the Redeveloper may require the Agency to enter into such litigation to protect its interest. 10. Minimum and Prevailing Wage Rates for Laborers and Mechanics and Penalty. All laborers and mechanics employed upon the work covered by this contract shall be paid unconditionally and not less often than once each week, and without subsequent deduction or rebate on any account (except such payroll deductions as are made mandatory by law and such other payroll deductions as are permitted by the applicable regulations issued by the Secretary of Labor, United States Department of Labor, pursuant to the Anti- Kickback Act, the full amounts due at the time of payment computed at wage rates not less than those contained in the wage determination decision of said Secretary of Labor, plus all fringe benefits payable under any contract between an employer and unions representing comparable trades in the area, regardless of any contractual relationship which may be alleged to exist between the Contractor or any -13- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 subcontractor and such laborers and mechanics. Redeveloper further agrees that this section shall inure to the benefit of the Agency and all laborers and mechanics employed upon the work covered by this contract as third party beneficiaries and that the Agency or any aggrieved employee may file an action in any court of competent jurisdiction against the Redeveloper or any of its contractors or subcontractors for the recovery of the difference between the wage rates actually paid and the wage rates legally required to be paid under the provisions of this section and any applicable regulations, statutes and laws. Redeveloper further agrees to pay reasonable attorney fees and court costs if the Agency or employee prevails. II. Prohibition Against Assignment and Transfer. (a) Representations as to the Redevelopment. The Redeveloper represents and agrees that its acquisition of the Property, and its other undertakings pursuant to this agreement, are and will be used, for the purpose of redevelopment of the Property and not for speculation in landholding. Construction of the improvements is to be done by or for the Redeveloper. The Redeveloper further recognizes the importance of the redevelopment of the property to the general welfare and the community; and that the qualifications and identity of the Redeveloper are of particular concern to the community and the Agency, and that Redeveloper has been selected from several prospective Redevelopers based on its plans, experience and expertise. -14- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) Prohibition against transfer of property and Assignment of Agreement. The Redeveloper convenants, represents and Agrees for itself, and its successors and assigns, that it will not, prior to the proper completion of the improvements, make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust or power, or transfer in any other mode or form of, or with respect to, this agreement or the Property, or any part thereof or any interest therein, or any contract or agreement to do any of the same, other than a lease, without the prior written approval of the Agency; provided that, prior to the issuance by the Agency of the certificate provided for in Section 4(a) hereof as to completion of construction of the improvements on the Property, the Redeveloper may enter into any agreement to sell, lease, or otherwise transfer, after the issuance of such certificate, the Property or any part thereof or interest therein, which agreement shall not provide for payment of, or on account of, the purchase price or rent for the Property, or the part thereof or the interest therein to be so transferred, prior to the issuance of such certificate. This provision shall not be deemed to prevent encumbrance by way of security for, and only for (i) the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to making the improvements under this Agreement, and (ii) any other purposes authorized by this Agreement, nor shall it -15- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 I 27 , ,I 28 I preclude sale or conveyance as to any individual parts or parcels of the Property on which the improvements to be constructed thereon have been completed, and which, by the term of this Agreement, the Redeveloper is authorized to conveyor lease as such improvements are completed. (c) In determining whether Agency should consent to an assignment or transfer prior to completion of the improvements provided for herein, the Agency shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval, that (I) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the Agency, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper (or, in the event the transfer is of, or relates to, part of the Property, such obligations to the extent that they relate to such part.) (2) Any proposed transferee, by instrument in writing satisfactory to the Agency and in recordable form, shall, for itself and its successors and assigns, expressly assume all of the obligations of the Redeveloper under this Agreement and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject (or, in the event the transfer is of, or relates to part of, the Property, such obligations, conditions, and restrictions to the extent that they relate to such part); provided that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, -16- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall whatever the reason, not have assumed such obligations or so agreed, shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Agency) relieve or release such transferee or successor of or from such obligations, conditions, or restrictions, or deprive or limit the Agency of, or with respect to, any rights or remedies or controls with respect to the Property or the construction of the improvements. It is the intent of this subsection, together with other provisions of this Agreement, that (to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate legally or practically, to deprive or limit the Agency of, or with respect to, any rights or remedies or controls provided in, or resulting from, this Agreement with respect to the Property and the construction of the improvements that the Agency would have had, had there been no such transfer or change. (3) There shall be submitted to the Agency for review all instruments and other legal documents involved in effecting transfer(including any "side letters"l, and if approved by the Agency, its approval shall be indicated to the Redeveloper in writing. -16- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 I 23 I 24 II 25 (4) The consideration payable for the transfer by the transferee, or on its behalf, shall not exceed an amount representing the actual cost (including carrying charges) to the Redeveloper of the Property (or allocable to the part thereof or interest therein transferred) and the improvements, if any, theretofore made thereon by it, it being the intent of this provision to preclude assignment of this agreement or transfer of the Property (or any parts thereof other than those on which all improvements contemplated have been completed and which Redeveloper is entitled to a Certificate of Completion) for profit prior to the completion of the improvements and to provide that, in the event any such assignment or transfer is made (and is not cancelled), the Agency shall be entitled to increase the purchase price to the Redeveloper or its assigns by the amount that the consideration payable for the assignment or transfer is in excess of the amount that may be authorized pursuant to this subdivision, and such consideration shall, to the extent it is in excess of the amount so authorized, belong to, and forthwith be paid to, the Agency. (5) The Redeveloper and its transferee shall comply with such other conditions as the Agency may find desirable in order to achieve and comply with the purposes of the Community Redevelopment Law; provided that, in the absence of specific written agreement by the Agency to the 26 I contrary, no such transfer or approval by the Agency thereof 27 II shall be deemed to relieve the Redeveloper, or any other 28 party bound in any way by this Agreement or otherwise with -17- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 respect to the construction of the improvements, from any of its obligations with respect thereto. (c) Redeveloper shall disclose its actual costs of land to all prospective tenants for purposes of development packages. Redeveloper shall not sell, transfer or lease said land separate and distinct from a development package as approved by the Redevelopment Agency. 12. Default. (a) In the event of any default in, or breach of, this Agreement by Redeveloper or any successor prior to the time Agency has conveyed all of t~e subject property to Redeveloper, the Agency may institute such proceedings as may be necessary or desirable in its opinion to cure or remedy such default or breach, including, but not limited to, proceedings to compel specific performance and the right to apply any funds paid theretofore to Agency to, and in payment of, the damages suffered by it, or by the City (in the form of loss of tax revenues from the Property, or the anticipated improvements thereon, or otherwise) as a result of the default or breach. Redeveloper shall lose its rights to develop Phase II and/or Phase III if escrow as to any such Phase is not closed within the time limit set for any such Phase. Agency need not close escrow as to Phase II or Phase III if Redeveloper is already in default as to any earlier Phase. (b) In the event that Agency has conveyed some part but not all of the subject property to the Redeveloper, and Redeveloper has failed to complete the construction time -18- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 schedule for a Phase or Phases for which conveyance has been made in full compliance with the terms of this agreement, the Agency may declare the Redeveloper to be in default under the provisions of this agreement. (c) Agency agrees that Redeveloper may avoid such default on a one-time basis by securing an extension in advance of declaration of default in an extension is needed despite Redeveloper'S best efforts to comply fully with the time schedules imposed in this agreement. A one-time extension shall be granted if requested prior to declaration of default, by Redeveloper tendering to Agency a payment in lieu of taxes at the rate of $4,000.00 per acre per year, but such extension shall be valid for no more than three months. If additional extensions are needed, Agency may, in its discretion, approve such extensions on such terms as it deems fit, the $4,000.00 per acre Rin lieu" fee not being precedent for any such additional extension. (d) Once a default has been declared by Agency, Redeveloper will have the first option on a one-time basis only to buy the remaining property at fair market value. If Redeveloper desires to purchase such property at market value and cure the default, the property shall be appraised by an independent appraiser satisfactory to both Redeveloper and Agency. If no agreement on an appraiser is reached, each party shall nominate an appraiser, and the twp appraisers so established shall select a third impartial appraiser, and the value established by any two of them shall prevail. -l9- 1 2 3 4 5 I; . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (e) Once the appraised value has been established, the Redeveloper may purchase the remaining property at that value, and development time schedules shall be adjusted to give the Redeveloper sufficient reasonable time to fulfill its development commitment. This agreement shall remain in full force and effect, eKcept that Redeveloper will have no further right to cure a future default. (f) The Agency shall have the right to reenter and take possession of the Property and to terminate (and revest in the Agency) the estate conveyed by the deed(s) to the Redeveloper in the event that subsequent to conveyance of the Property, or any part thereof, to the Redeveloper and prior to completion of the improvements as certified by the Agency if: (1) The Redeveloper (or successor in interest) shall fail to pay real estate taxes or assessments on the Property or any part thereof when due, or shall place thereon any encumbrance or lien not authorized by this Agreement, or shall suffer any levy or attachment to be made, or any materialmen's or mechanic's lien or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged, or provision satisfactory to the Agency made for such payment, removal or discharge, within ten (10) days after written demand by the Agency so to do; provided, however, the Redeveloper shall have the right to contest, in good faith, by appropriate proceedings, any such lien or encumbrance, and to substitute an -20- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 appropriate bond in lieu of the payment,- removal, or discharge or such lien or encumbrance; or (2) Redeveloper transfers the Property, or any' part thereof in violation of this Agreement. It is the intent of this subsection, together with the other provisions of this Agreement, that the conveyance of the Property to the Redeveloper shall be made upon, and that the Deed(s) shall contain a condition subsequent, to the effect that, in the event of any default, failure, violation, or other action or inaction by the Redeveloper specified in the subsection (f), the Agency at its option may declare a termination in favor of the Agency of the title, and of all the rights and interest in the Property conveyed by the Deed(s) to the Redeveloper. (g) If the Agency records in the office of the County Recorder of San Bernardino County a written Declaration of Forfeiture referring to the Deed(s) by which the Property is conveyed to the Redeveloper, then said Deed(s) and conveyance is null and void, and all interest thereby conveyed shall forthwith and without further notice to the Redeveloper become forfeited and shall revert to the Agency; provided, that such condition subsequent and any revesting of title as a result thereof in the Agency shall always be subject to and limited by, and shall not defeat, render invalid, or limit in any way (i) the lien of any mortgage or trust deed authorized by the Agreement and executed for the purpose of obtaining funds to acquire and/or develop the Property, and (ii) any rights or interests provided in this -21- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ~ 27 28 Agreement for the protection of the holders of such mortgages or trust deeds, or (iii) any Certificate of Completion which has released any part of portion of the property from the continued effect of this Agreement. (h) The Agency shall have the right to institute such actions or proceedings as it may deem desirable for effectuating the purposes of subsections (f) and (g) including also the right to execute and record or file with the County Recorder of San Bernardino County a written declaration of the termination of all rights and title of the Redeveloper, and (except for such individual parts or parcels sold, and subject to such mortgages, liens and leasehold interests as provided in subsection (a) of this Section) its successors in interest and assigns, in the Property and the revesting of title thereto in the Agency, provided that any delay by the Agency in instituting or prosecuting any such actions or proceedings or otherwise asserting its rights under this Section 12 shall not operate as a waiver of such rights or to deprive it of, or limit, such rights in any way (it being the intent of this provision that the Agency should not be constrained, so as to avoid the risk of being deprived of, or limited in, the exercise of the remedy provided in this Section because of concepts of waiver, laches, or otherwise, to exercise such remedy at a time when it may still hope otherwise to resolve the problems created by the default involved), nor shall any waiver in fact made by the Agency with respect to any specific default by the Redeveloper under this Section be -22- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 considered or treated as a waiver of the rights of the Agency with respect to any other defaults by the Redeveloper under this Section or with respect to the particular default, except to the extent specifically waived. (i) In the event that title to the Property shall revest in the Agency in accordance with the provisions of Subsections (f) and (g) of Section 12, the Agency shall, pursuant to its responsibilities under the Community Redevelopment Law, use its best efforts to resell the Property (subject to such mortgage liens as provided in Subsection (g) of this Section) as soon and in such manner as the Agency shall find feasible and consistent with the objectives of such law, and of the Redevelopment Plan as hereafter amended from time to time, to a qualified and responsible party or parties (as determined by the Agency) who will assume the obligation of making or completing the improvements or such other improvements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified in the Redevelopment Plan, as hereafter amended from time to time. Upon such resale of the Property, the proceeds thereof shall be applied as follows: First: To reimburse the Agency, on its own behalf or on behalf of the City, for all costs and expenses incurred by the Agency, including, but not limited to, real estate broker commissions, if any, paid by the Agency, attorneys fees and salaries of personnel, in connection with the sale and recapture, management and resale of the Property (but less any income derived by the Agency from the Property in -23- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 connection with such management), all taxes and assessments with respect to the Property (or, in the event the Property is exempt from taxation or assessment on such charges during the period of ownership thereof by the Agency, an amount equal to such taxes and assessments, or charges (as determined by proper assessing officials) as would have been payable if the Property were not so exempt), and payments made or necessary to be made to discharge any encumbrances or liens existing on the Property at the time of revesting of title thereto in the Agency or to discharge or prevent from attaching or being made any subsequent emcumbrances or liens due to obligations, defaults, or acts of the Redeveloper, its successors or transferrees, and expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Property; and any amounts otherwise owing the Agency by the Redeveloper and its successors or transferrees; such reimbursement shall include carrying costs or interest at the rate Agency is then realizing on its investment, covering the period of time from incurring of expenses to reimbursement. Second: To reimburse the Redeveloper, its successors or transferees up to the amount equal to (i) the sum of the purchase price paid by it for the Property and the cash actually invested by it in making any of the improvements of the Property and reasonable carrying charges less (ii) any gains or income withdrawn or made by it from this Agreement or the Property. -24- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 I 21 I 22 I 23 II 24 I: i 25 26 27 28 Third: Any excess remaining shall be retained by the Agency. 13 . Pefaul t by l!,genCySubseque.nt. _t.Q Conveyance. In' the event that the Agency is unable to comply with each and every condition hereinabove set forth, with the exception of those conditions which are to be performed by the Redeveloper, the Redeveloper and its successors and assigns may initiate an action to compel the Agency to repurchase the Property at the purchase price specified in Section 1 with interest, and, in addition, to compel the Agency to reimburse the Redeveloper for any and all sums expended by the Redeveloper for the undeveloped portions of the Property. Loss of prospective profits shall not be considered as to any breach under this section. Such action to compel repurchase shall be the sole remedy available to Redeveloper for breach by Agency of this agreement. 14. Cumulative Remedies: Waivers. (a) The rights and remedies of the parties to this agreement, shall be cumulative, and the exercise by either party of anyone or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party, except where remedies are specifically limited (e.g., Section 13). No waiver by either party with respect to the performance, or manner, or time thereof, or any obligation of the other party or any condition to its own obligation under this agreement shall be considered a waiver of any -25- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 rights of the party making the waiver with respect to the particular obligation of the other party or condition to its own obligation beyond those expressly waived and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or any other obligations of the other party. (b) The Redeveloper, for itself and its successors and assigns, and all other persons who are or who shall become, whether by express or implied assumption or otherwise, liable upon, or subject to, any obligation or burden under this agreement, hereby waives, to the fullest extent permitted by law and equity, any and all claims or defenses otherwise available on the ground of its (or their) being or having become a person in the position of a surety, whether real, personal, or otherwise, or whether by agreement or operation of law, including, without limiting the generality of the foregOing, any and all claims and defenses based upon extension of time, indulgence, or modification of terms of contract. (c) In this agreement time is of the essence. 15. AQency Employees. Members. No member, official, or employee of the Agency shall have any financial interest, direct or indirect, in this agreement or the Property, nor shall any such member, official, or employee participate in any decision relating to this agreement or to the Property, which affects his or her financial interests or the interests of any corporation, partnership, or association in hich he or is, directly or indirectly, interested. No -26- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 member, official, or employee of the Agency shall be personally liable to the Redeveloper or any successor in interest in the event of any default or breach by the Agency or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of this agreement. 16. Attorney's Fees. Redeveloper agrees if any action is brought against Redeveloper for breach of any of the covenants or conditions of this agreement to pay reasonable attorney's fees and court costs if the Agency prevails. 17. Notice. Any notice to be given by either party to the other shall be given by certified mail, return receipt requested, postage prepaid, addressed as shown on their then current letterheads. 18. Merger. None of the provisions of this agreement are intended to or shall be merged by reason of any deed(sl transferring title to the Property from the Agency to the Redeveloper or any successor in interest, and any such deed(sl shall not be deemed to affect or impair the provisions and covenants of this agreement. 19. Ei~h~~o Modify. Terminate. Amend. This agreement may be terminated, extended, modified or amended as to all of the Property or any part thereof, for which a Certificate of Compliance has not been issued, with the consent of the Agency and all parties then having an interest in the Property. No such termination, extension, modification or amendment shall be effective until a written instrument -27- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 setting forth the terms of the same has been executed, acknowledged and recorded in the Office of the Recorder of San Bernardino, California. 20. ~rating Memoranda. It is recognized that the redevelopment of the Project Area in accordance with the Redevelopment Plan will require a close degree of cooperation between the Agency, the Redeveloper and the City of San Bernardino. It is further realized that experience will demonstrate changes that will be required in the improvements, maintenance and use of the Project Area and that a certain degree of flexibility will be required; and it is to preserve such flexibility that certain items have been covered in this agreement in general terms only, with the understanding that details are to be set forth in "Operating Memoranda.- Each operating memorandum shall be approved by the Agency and the Redeveloper and shall be attached hereto as an addendum and become a part thereof and may be changed and amended from time to time as necessary with further approval by the parties. 21. Assistance from the City. It is recognized that the Agency's performance of its covenants under this agreement will require the cooperation and assistance of the City. The Agency will use its best efforts to obtain such cooperation and assistance so as not to delay or prevent its performance under this agreement. 22. Validity Contingency. This agreement shall not become effective for any purpose unless the original, duly executed by the Redeveloper, is returned and received by the -2R- 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 Agency within ten (10) days from the receipt thereof by the Redeveloper. 2 3 23. Execution. This agreement is executed in counterparts, each of which shall be deemed to be an 4 5 original, and such counterparts shall constitute one and the 6 same instrument. 7 EXECUTED at , California, 8 9 this day of , 1985. AGENCY: REDEVELOPER: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MILES & HALL PARTNERSHIP By By Chairman General Partner By By Secretary General Partner Approved as to legal form and adequacy: AGENCY COUNSEL BY_~~&#.' -29- [I ii, I 1 2 ACKHOWLBDGIlERTS 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 I 22 II 23 II 24 II I 25 26 27 28 -3'1- 1 2 LIST OP ATTACHED EXHIBITS 3 4 Exhibit "A" - Legal Description Exhibit "B" - Grant Deed 5 6 7 8 9 Exhibit "CO - Undertakings and Obligations of Agency Exhibit -D- - Undertakings and Obligations of Redeveloper Exhibit -E- - General Design Data 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -31- EXInBrr A - u:G,&.L IESCRIPl'ICl'l '!be property covered by this Agreement is property located in the City of San Bernardino, County of San Bernardino, and State of California, described as follows: Parcels One through Six, inclusive, Parcel Map No. 5480, according to the map thereof recorded in Book 61 of Parcel Maps, pages 94-95, official records of San Bernardino County, California. , -3~- 1 2 GRANT DEED 3 The REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, 4 CALIFORNIA, a public corporation, hereinafter called the Grantor, 5 in consideration of the sum of 6 7 8 Dollars ($ 9 ), to be paid by 10 hereinafter called the Grantee, and in further consideration of 11 the covenants and conditions herein contained and to be kept and 12 performed by the Grantee, does hereby grant to the Grantee all 13 that real property situated within the 14 Project Area, in the City of San Bernardino, 15 County of San Bernardino, State of California, hereinafter called 16 the .Property., described as follows: 17 SEE EXHIBIT .A" ATTACHED HERETO. 18 The Grantee does hereby acknowledge receipt of a copy of the 19 Redevelopment Plan for the 20 approved by Ordinance No. 21 which Ordinance was adopted proj ect Area, of the City of San Bernardino, , which is 22 hereinafter referred to as the "Redevelopment Plan", said 23 Redevelopment Plan containing as a part thereof that certain 24 I Declaration of Restrictions which became effective with said 25 Ordinance and which is hereinafter referred to as the 26 .Restrictions". 27 The Grantee, for i tsel f, its successors and assigns, does 28 . ' hereby covenant and agree with, and for the beneflt of, the:i .~~~. ~~ "j .......,.,.W;..., "';;'.>--: ..~ II" IHi 11: -~'fi"f' tilL' . .-"~.l" ~." ,. . ,.,.. ' ' '... .".. ,.".,-33-,., '. ..... ," " " " .,.., . ~~. ~ -,:,~"...r ~"_,,,,~",,'~';I.lti."..~"I::':' .,... \,; ~:.;~.,. ~fj 1~~1i8": ~ ~ ,,~.~:~~~:~;:~..~ :'''~:.~r~~':~~i':..~... ./ """",~'h - :, ".~~,:'''f\'.-.'':-C'':..:' "*~~' ~. f,~:~_'.~',;;"'l~.~. 1 Grantor, its successors and assigns, as follows: 2 1. Grantee, its successors and assigns, will hold, occupy 3 and use the aforesaid real property subject to and in accordance 4 with all the terms, conditions, limitations, restrictions, 5 requirements and covenants set forth in the Redevelopment Plan 6 and the Restrictions. Said terms, conditions, limitations, 7 restrictions and covenants "running with the land" and shall be 8 bind i ng for the benefi t and in favor of, and be enforceable by, 9 the Grantor, its successors and assigns, the City of San 10 Bernardino, and any successor in interest to the Grantee of the 11 Property or any part thereof, and the owner of any other land in 12 the Project Area. 13 2. (a) The Grantee herein covenants by and for himself, 14 his heirs, executors, administrators, and his successors and 15 assigns, and every successor in interest to the Property, or any 16 part thereof, and all persons claiming under or through them, 17 that the Grantee, and such successors and assigns, shall 18 19 20 21 22 (1 ) Devote the Property to, and only to and in specified in accordance wi th, the the uses Redevelopment Plan. (2) Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical 23 national origin, handicap, ancestry, age or 24 handicapped status in the sale, lease, sublease, 25 rental or transfer or in the use, occupancy, tenure or 26 enjoyment of the Property or any improvement erected 27 or to be erected thereon, or any part thereof, nor 28 shall the Grantee himself or any person claiming under . 11..Fi. .'JiIlfI.:Jor~,P.,...:.:"t-1t1'1io:'VJI ..1Il...Mll:y...............'f.l'-.- , ',' ,-34-.. ' , ' ,..,'" " I..t......~.."'.~_..".~~~..#': ~_~.:..:v: ":. t::~-. ..~..ltIi""','.lfr: .;t.... :~.~~.;..~.-t..:-~, ...~"4~.;,.~.,.:\ ..::~-~~...{.:.:. ,.;" '. lIl-'-":'" :.',>:';,~'~';':.'-~ '. 1 2 3 or through him, establish or permit any such practice or practices of discr imination or segregation wi th reference to the selection, location, number, use or 4 5 occupancy of tenants, lessees, subtenants, sublessees, or vendees of the property, or any part thereof. 6 (b) The foregoing agreements and covenants, as set 7 forth in subdivision (a) of Section 2 of this Deed, 8 shall be covenants running with the land, and they 9 shall in any event, without regard to technical 10 classification or designation, legal or otherwise, and 11 12 except only as otherwise specifically provided in this Deed by binding to the fullest extent permitted by law and equity, for the benefit and in favor of, and be 13 14 enforceable by the Grantor, its successors and 15 assigns, the City of San Bernardino, California, and 16 any successor in interest to the Property or any part 17 thereof, and the owner of any other land (or of an 18 19 interest in such land) in the subject Project Area, which is subject to the land use requirements and 20 21 22 23 restrictions of the assigns and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. It is 24 further intended and agreed that the agreement and 25 26 27 covenant provided in subsection (1) of subdivision (a) of Section 2 of this Deed shall remain in effect for a period of forty five (45) years from the date upon which said Ordinance became effective, at which tim~ ~., .'J. 1iI1I'f.'.r.i1_ :~. ...... ~ j r J ~M~~:'1J ".rJIIII. llh.".,-.-.rll-lil.LI/I',: " '... ...,\"....~;; >'~"~ .;.:,-'.. ...,. ..;.........~~...""" ;i~~:4i.Jlli..~::7~..,t;;.;:.~.'1,.:;..(.~., ~~.......:.;~ .:;,II;a......,..."'......~:'..r.:..--:..... ".~ " '.', . ~...,.,.. ,.'.....", . ..... ..'l(ftIB!T""B- ' 28 ...................~"*. ..;,:~~d.~.._.~~:.'..~ ~..:. 1 2 3 4 5 6 such agreement and covenant shall terminate, and that the agreement and covenant provided in subsection (2) of subdivision (a) of Section 2 hereof shall remain in effect without limitation as to time provided, that such agreements and covenants shall be binding on the Redeveloper itself, each successor in interest to the 7 Property, and every part t,hereof, and each party in 8 possession or occupancy, respect ively, only for such 9 period as such successor or party shall have title to, 10 11 12 or an interest in or possession or occupancy of, the Property or part thereof. The term .uses specified in the Redevelopment Plan" and .land use" referring to 13 provisions of the Redevelopment Plan, or similar 14 language, in the Agreement shall include the land and 15 16 all buildings, housing, and other requirements or restrictions of the Redevelopment Plan pertaining to 17 such land. 18 3. In amplification and not in restriction of, the 19 provisions of Section 2, hereof, it is intended and agreed that 20 the Grantor and its successors and assigns shall be deemed 21 beneficiaries of the agreements and covenants provided in said 22 Section 2 hereof, both for and in their or its own right and also 23 for the purposes of protecting the interests of the Ci ty and 24, other parties, public or private, in whose favor or for whOSe 25 benefit such agreements and covenants have been provided. Such 26 agreements and covenants shall run in favor of the Grantor, for 27 the entire period during which such agreements and covenants 26 shall be in force and effect, without regard to whether the:t '!"~a""" -......'.'. ~'iitl '*4(;'.~.... ........:...h~~ _'.~...*'''''''''':~, ........,."""..~....": 36 " ' . ':9' .H..... ._'~ .~~ .....~~ ........... ~..: .E.~ :-r."f~ .........:_.~:.-~.i~..'...:i~,......lt(!'f'...~ -.. .~~Jot .~)~ :'~./t- .",.r.~:.."":~'" ~:" .~'. ........ ..... .~.."'!.. . ":' ..W't'YVTD-,a..... . ~...' .... ~ . :~:M~"'~~ a.;.~';'~'~'.'L......~.., 1 Grantor has at any time been, remains, or is an owner of any land 2 or interest therein, or in favor of which, such agreements and 3 covenants relate. The Grantor shall have the right, in the event 4 of any breach of any such agreement or covenant, to exercise all 5 the rights and remedies, and to maintain any actions or suits at 6 law or in equity or other property proceedings to enforce the 7 curing of such breach of agreement or covenant, to which it o,r 8 any other beneficiaries of such agreement or covenant may be 9 entitled. 10 4. In the event Grantee shall default in the performance 11 of Grantee's undertakings for the construction of certain 12 improvements on the aforesaid real property within the time and 13 in the manner set forth in that certain Disposition and Joint 14 Development Agreement between the Grantor and the Grantee, dated 15 16 17 19 , and hereinafter referred to as the , -Agreement-; or if the Grantee shall fail to pay real estate when due; taxes shall assessments place thereon or or any 18 encumbrance or lien unauthorized by the Agreement, or shall 19 20 21 suffer any levy, lien, or attachment to be made, or there is in violation of the Agreement, any transfer of the Property or any part thereof, and if, thereafter, Grantor shall record in the 22 office of the County Recorder of the County of San Bernardino, 23 State of California a written Declaration of Forfeiture referring 24 to this deed, then this deed and conveyance shall be null and 25 26 void and all interest hereby granted and conveyed shall forthwith and without further notice to the Grantee, become forfeited and 27 shall revert to the Grantor; prov ided, however, that the breach I of any such covenant and t~e f~rfe~t~re o~,~~ Gr~ntee'~ ~nter:::t5~ " ,,:.,,,..~.,.'; .......~::I1f.......-...;~.....~"...........,'.....~,... .1'....,..,~.~ t irlll, . :, r. _ "':'~.~.~"\. ,....... ;'_. .J;..;.,.. :.a....:)..... '.. -..-].zi..~.~ .~\...t>-...:~: "'~n'~.\I-';.......'f\r."'",_" ~,'~" . ~ 28 :--:~....,...., .~~~._=-..'.\.~.:",... -"~'~-::":~.;;~;-k., 1 in said real property by reason of such breach shall not in any 2 manner impair, defeat or render invalid the interest of any 3 4 5 mortgagee, trustee or beneficiary of any Deed of Trust executed by Grantee to secure a loan for the purpose of obtaining funds to acquire and/or develop all or part of the real property. 6 7 5. (a) Promptly after completion of the improvements in accordance wi th the prov isions 0 f sa id Ag reement, the Grantor 8 will furnish the Grantee with an appropriate instrument so 9 10 certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself), a conclusive 11 determination of satisfaction and termination of the agreements 12 13 14 and covenants in said Agreement and to Paragraph 4 of this Deed with respect to the obligation of the Grantee, and its successors assigns, provided, and that such certification and such 15 determination shall not constitute evidence of compliance with, 16 or satisfactions of, any obligation of the Grantee to any holder 17 of a Trust Deed or mortgagee, or any insurer of a Trust Deed or 18 19 securing money loaned to finance the improvements or mortgage, any part thereof. 20 (b) The certification provided for in this Section 21 shall be in such form as will enable it to be recorded with the 22 County Recorder of San Bernardino County. If the Grantor shall 23 refuse or fail to provide the certification in accordance with 24 the provisions of this Section, the Grantor shall within 90 days 25 after written request by the Grantee, provide the Grantee with a 26 written statement, indicating in adequate detail in what respects 27 the Grantee has failed to complete the improvements in accordance 28 with the provisions of said Agreement or is otherwise in default .'JJ.iIWt;\.:;~~.:~;JIf.:;~j".,.~:.;;.;~.,...~:....".t.:'~ ~:'i .....~ 'f;~\,.,,~t.V-1t.' ~)tI'_~":'I~1~~..:;'.~~~"'~~:'C~'; ..,.,..\. "-~~.'~,},J_'~:.. "' , . '., ',.' ',' . -38- " '" .',: .,.. . .....", .,.,. ~...;: :..J:~l,"'",,~ t:~f'\""'::;.,;-v. '~"~.~1'~1' ":"::~ "~..~.;;~....~....:~w..., ~:..W" ~ii 'P1:'';;'.'?A;,~~#<'.,.~~~':iJtt~.: ..l~": ;;t ~ ". ,....' ..' "" '" .' "'E;)CHIB IT Bit" ...," ", ..~....."';""'......,:.,:>.~ ... .".: '.i~", -~~~ \ .... ," .... ~. ........ 1 and what measures or acts it will be necessary in the opinion of 2 the Grantor, for the Grantee to take or perform in order to 3 obtain such certification. 4 6. None of the provisions of said Agreement described in 5 Section 4 hereof, are intended to or shall be merged by reason of 6 this deed transferring title to the property from the Grantor to 7 the Grantee in interest, and such deed shall not be deemed to 8 affect or impair the provisions and covenants of said Agreement. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ~, ' "4. 25 26 27 28 ......'t'.' """'--.,...."......., ..'......", ,.....;,..,:-~-...~7......~..'."HO".,~ """::'.'''f',~,, ~i L ,...!"k'...' .).-' ~""":J -. . ..-.-- '. .. .. ......"'" 39:...' ' '.~~1iol.~~.. ,7:~'.. ....-: ....~..~~;f'\r.I....~....~....;~I~.:.IIIII:~...::~~i.~.^:;...;. !#,~:~.~.i. /:....;: '+~;1<!'".':'~ ~~.:-".~.".'..i't~. ::~: '... ,~ . -.... .,-:~. .. -..... .. ..... "':'ZAltY8'IT".~"'-' "... " .. '. -- '. " ..... - '.. 1 IN WITNESS WHEREOF, the Grantor and the Grantee have 2 executed this Deed by their respective officers thereunto duly 3 qualified this 4 day of , 19_. 5 GRANTOR 6 GRANTEE 7 REDEVELOPMENT AGENCY OF THE CITY 8 OF SAN BERNARDINO, CALIFORNIA 9 10. 11 12 CHAIRMAN , 13 SECRETARY 14 15 APPROVED AS TO. LEGAL FORM AND ADEQUACY 16 17 AGENCY Co.UNSEL 18 19 20. 21 22 23 24 25 26 27 ,.....'!".:, ~..:. <, .:::,..,.....,4. ~':..:...~...,,1<t(t: ..~.....~,.'"r:.~.~.~..4r..-::..~.~.iI.~..~~'~..~ ~;.l~.;.....~~.. :.:;I.....,~:-:....~ :..,....~ ;,;."j,&.;.,;,,~..~~:1li. . ~"'~i"'~.~' " , -~a- ,. ' ..' .." .' . ;,,:-> ..::N:,:.'.~' '-I''-:.~''''~'!.,', ,~~,~.:ti!":"'~~ .....'t' i:';;-'j;!lR.f'eft~t...~..'-.i,';j~",,,:,,,,,,~.;,,:,,,,,,,:~~;;,,,,:.,,..}. fi.;: .: ':. 1 2 3 LEGAL DESCRIPTION 4 PARCEL 5 AS PER MAP RECORDED IN BOOK OF PARCEL MAP . 6 PAGE OF PARCEL MAPS IN THE OFFICE OF THE COUNTY 7 RECORDER OF THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA. 8 9 10 11 12 13 14 15 16 17 EXHIBIT "A" 18 19 20 21 (TO EXHIBIT "B") 22 23 24 25 26 27 28 i . ....: ~.V~. -.\ _..~"':'.'. .:.~...1...~"'..'M..'T" j..."{;:..;....~:;. ..,~...,.:............', ........,~.~...l:~~~.....:.I"!.....j".:..~...- .:-..........,.,y.\""'lI :.,..:..',.....,~, ' .""...>l.~..'~...~t:. .~. ' . , " " ' - -.41-"..:'" '.".. , ~": .~..~1.-:.~}1It~~. " \~i" :.~:4S.....,;,::~:.,:...~,..:~4-.~' :,....::~ '~~,.i\:: ~.fritirmW.;.;..:~~~./~;..f-.:.~~1'r~~:JJ..~;.~..:.~~.,. ."~ .-. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 EXHIBIT .C. 2 UNDERTAKINGS AND OBLIGATIONS OF AGENCY 3 4 Agency agrees to: 5 1. Sell subject property to Redeveloper for $537,000 6 in two or more phases, as follows: 7 Phase 1: To cover site for Building B and the 8 area necessary for improvements to Cooley Court, to be 9 developed first, with Cooley Court improvements to be completed prior to close of escrow on Phase 1. Price per square foot shall apply to building A area and Cooley Court area. Land involved is 9.6 acres, more or less, for Building A and .3 acres, more or less, for Cooley Court improvements. Phase 2: To cover site for Building C at least, with site for Building D at Redeveloper's option. Phase 3: To cover site for Building D, if not included in Phase 2; together with sites for Buildings A and E. Sites for Buildings A and E shall not be developed, or escrow closed thereon, until construction has been completed or satisfactory evidence is presented that construction will be completed, on sites C and D. 2. The price of $537,000 is based on $1.25 per square foot for the entire development. This price shall prevail only in the event Phase 1 and Phase 2 are both completed in a timely manner, and all undertakings of Redeveloper are current at the time escrow closes on Phase 3. If Phase 2 -42- fXHiGiT (; l 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 escrow is not closed on time, and no extension is obtained, Redeveloper shall lose the right to purchase Phase 2 at this rate. If Phase 3 escrow is not closed on time, or if a prior phase has not been completed as provided for, the Redeveloper shall lose the right to purchase Phase 3 at the $1.25 per square foot rate. 3. Agency shall grant and reserve an easement for ingress and egress in favor of all remaining parcels of land across Cooley Drive, a private road, unless such easement is granted or reserved in any applicable parcel map or other appropriate recorded document. 4. Agency shall convey title to property in each phase, in the specified order, upon Redeveloper providing to Agency unconditional evidence of financing satisfactory to Agency's Executive Director, and evidence Redeveloper has applied for the appropriate building permit(s) accompanied by all required working drawings. 5. Agency shall grant Redeveloper one extension of three months for close of escrow or for completion of any particular Phase if needed despite Redeveloper's best efforts to comply, upon payment of a fee in lieu of taxes based upon $4,000 per acre per year, but the granting of such one-time extension shall not obligate Agency to grant, nor provide precedent as to the bases for granting, additional extensions. If a default occurs, or other extension is sought, any and all penalty provisions shall be negotiable. If escrow on Phase 2 or Phase 3 is not closed on time, and no extension is granted, Agency may declare a -43- JJ(HIBIT C . 16 17 18 19 20 21 22 23 24 25 26 27 28 II 1 default. Agency shall grant Redeveloper the first option to purchase the remaining property after a default as a total package, upon Redeveloper's offering to pay in cash the then prevailing market value for the remainder of the property. Such market value shall be established by an independent 'appraisal by an appraiser agreeable to both Redeveloper and Agency. Such option shall expire 30 days after offered by 2 3 4 5 6 7 8 Agency. 6. Agency shall permit Redeveloper to close escrow on Phases 2 and 3 earlier than the dates specified in the Development schedule included in Exhibit -D- upon evidence 9 10 11 12 of financing satisfactory to Agency's Executive Director. 13 14 15 -44- EXHIBIT C I. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT -D- OBLIGATIONS AND UNDERTAKINGS OF REDEVELOPER Redeveloper agrees to: 1. Purchase the property described in Exhibit "A" for $537,000 upon the terms specified in Exhibit .C". 2. Develop the property in phases, to meet the following development schedule, including building size and estimated values as specified: PHASE 1 2 3 CLOSE ESCROW NOT LATER THAN: 6/1/85 2/28/86 2/28/87 START CONSTRUCTION NOT LATER THAN: 10/31/85 3/31/86 3/31/87 COMPLETE CONSTRUCTION NOT LATER THAN: 6/30/86 10/31/86 7/31/87 BUILDING SQUARE FOOTAGE 100,000 29,400 30,000 VALUE ON COMPLETION $1,500,000 $520,000 $570,000 Failure to close escrow by the date scheduled, or failure to meet any other time schedule, shall constitute a default in that phase, and in all subsequent phases of this agreement. -45- fXH1BIT 0 II 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3. Upon execution of this agreement, post a security deposit of $16,000 cash, letter of credit, or certificate of deposit, to assure the commencement of construction of Phase 1 in a timely manner; interest on this deposit shall be Redeveloper's property; this security deposit shall be refundable to Redeveloper upon completion of the improvements to Cooley Court; if such improvements are completed prior to close of escrow on Phase 1, the deposit may be credited to the purchase price of the land in Phase 1. If such improvements to Cooley Court are completed, no security deposit shall be required for any other phase, the Agency being satisfied that completion of improvements to Cooley Court shall be sufficient security for further performance. The security deposit shall be refundable for the first 60 days, during which time Redeveloper may withdraw from this Agreement without penalty, if soils are found to be unsatisfactory or if preliminary engineering approval is denied by the City of San Bernardino or Redeveloper's professional engineer. 4. Redeveloper shall be entitled to an extension of time as to any particular phase for start of construction if the City of San Bernardino's Building and Safety Department fails to issue a building permit within four months, where such delay is caused by the City's workload, and not because of any failure of Redeveloper. 5. Complete Cooley Court improvements before close of escrow on Phase 1; Redeveloper shall have license from Agency to go on the land before issuance of the deed, for the purpose of making the improvements to Cooley Court. -46- fXhli"ll U , ~ GENERAL DESIGN DATA General Design Cr iter ia In the preparation of any improvement plans, the following general design data, without limitation, shall be followed, as minimums, unless governmental specifications for such work establish higher standards: A. Sewer drainage and utility lines, conduits or systems shall not be constructed or maintained above the ground level of the Property unless such installations are within approved enclosed structures, and shall conform to, requirements of the City of San Bernardino or other applicable governmental or private agency having jurisdiction of the work. Storm drainage for all hard surfaced areas, including driveways, parking and service areas, terraces, plazas, marquees, and roofs, shall be drained or may be sheet flowed to storm sewers. No drainage shall flow across public sidewalks. All non polluted waste water, such as waste air conditioning water, shall be drained to the storm or sanitary drainage systems as permitted by local codes. -47- . ... ," .', ',.... ,", ,.....t:... ~""._"I.--.-. ..,..";.,:".....,..~...'............"':"::,,.t.~_....z;;.ir..'t'!~~.:."'._\ .;.'......~.~:l..;, .......,; ,..~~.,.....-="'...!.,:.:-...: .:-':'..'t...~....: '.: "':-.."':'''~'' ".......~..:. ''''.,.:- . ,.....(: _ _~ ~, ,of' ...... '.'~' .... ...... .. " _ ',. . . . "', ", EXHI~IT '~g", ' ".", . ' ' . ',' ,.' ',' .' ,: ,~:.,.,,~. "; , :~\~f:.~',,"":1!~".:':'~1i.i,;;r..~... ~~~~:.'~'~~;"''''.~~S;;;.~~).t'f~",.,i;'A~'~ \... '~~;~'~"":.t-~;,~\,,,,,,:~,"~'-.r:~.~..,~. r-'.",' ..'......I':.."t. .:. ~ .... _,., .f. REDEVELOPII:NT AGENCY OF THE CITY OF SAN BERNARDINO - REQUEST FOR AGENDA ITEM ACTION DEPARTMENT: REDEVELOP~NT AGENCY FROM: GLENDA SAUL, EXECUTIVE DIRECTOR SUBJECT: APPRDVE A DISPOSITION AND JOINT DEVELOP~NT AGREE~NT WITH MILES & HALL PARTNERSHIP DATE: JANUARV 25, 1985 SYNOPSIS OF PREVIOUS ClMIlSSION/COUNCIL ACTION: 10-15-84 Coomission granted a 60 day exclusive right to negotiate to Miles & Hall for the development of 9.9 acres of property in Southeast Industrial Park at Cooley & Tippecanoe. 12-17-84 30 day extension of Exclusive Right to Negotiate. 1-7-85 Approval in concept of Disposition and Joint Oevelopment Agreement with Miles & Hall Partnership. Set Public Hearing for 2-4-85. RECOIKNDED MOTI ON: Open Publ ic Hearing, Close Public Hearing. CIlC al Approve a Oisposition and Joint Development Agreement with Miles & Hall Partnership, ~YOR AND COMMON COUNCIL bl Adopt Resolution approving the sale of real property to Miles & Hall Partnership (Section 33433, Health & Safety Code), ~~ 'GLENDA SAUL Executive Oirector CONTACT PERSON: Glenda Saul PHONE: ~ SUPPORTING DATA ATTACHED: YES lIARD : FUNDING REQUIREMENTS: AMOUNT , NIA PROJECT: SEIP *NO ADVERSE IMPACT ON CITY: COUNCIL NOTES: AGENDA ITEM NO.*" \ \ DATE 2-4-85 652J REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO - REQUEST FOR AGENDA ITEM ACTION STAFF REPORT In October of 1984, the Commission granted a 60-day Exclusive Right to Negotiate to Miles & Hall Partnership, during which time staff was to reach tentative agreement on the terms of a Disposition and Joint Development. In December, 1984, the Exclusive Right to Negotiate was extended 30 days to allow for further negotiations. On January 7, 1985 the Commission approved in concept the following terms of the Agreement: 1. Sale price of the land shall be $1.25 per square foot, for a total cost of $537,000,00. Land shall be taken down Qy the developer Qy three phases, each phase for its proportionate cost. 2. Phases shall be developed in the following manner: II ESTIMATED DEVELOPIUT SQUARE FOOTAGE START COMPLETl ON VALUE 100,000 10/85 06186 $1,500,000 29,400 02/86 10/86 $ 520,000 30,000 02187 07/87 $ 570,000 159,400 $2,590,000 PHASE III The developer will deposit $16,000.00 with the Agency prior to the take-down for Phase I. This deposit will be deducted from the purchase price for Phase I providing development proceeds, Also under the terms of the Agreement, the Agency will grant a license to the developer for the construction of Cooley Court, Upon transfer of title for Phase I to the developer, title to Cooley Court shall be transferred as well. Access easements for the other parcels shall be recorded on Cooley Court. In case of default on the remaining parcels, the Agency shall have the right of access over Cooley Court, The cost of construction for Cooley Court is estimated at $50,000. This cost, coupled with the $16,000 cash deposit, exceeds the normal 10' down requirement of the Agency. Title for the three phases shall not be transferred until the Agency has received evidence of construction financing for the respective phases and evidence that the developer has applied for a building permit from the City. In the event that the developer is unable to meet the construction schedule for any phase, he may be granted one (1) 90 day extension providing he pay an amount equal to the in-lieu taxes for that phase, If the developer defaults in the agreement. he may cure default by paying an amount equal to the appraised value of the land to be appraised at time of default. Staff recommends approval of the attached Disposition and Joint Development with Miles & Hall Partnership, 652J 2-4-85 SUMMARY OF FINANCIAL ASPECTS OF A PROPOSED SALE OF REDEVELOPMENT AGENCY OWNED REAL PROPERTY WITHIN THE SOUTHEAST INDUSTRIAL PARK PROJECT AREA TO MILES & HALL PARTNERSHIP It is proposed that the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (wAgencyW) will sell to Hiles & Hall Partnership ("OfferorsW) that certain parcel of land further identified as APN 28l-03l-57, located the southwest end of Cooley Av., as set forth on the sap attached as Exhibit wBw. Offerors wish to purchase the property from the Agency for the development of commercial/industrial space. Since the real property to be sold has been acquired through the use of tax monies, the following Financial Summary is hereby submitted in accordance with Section 33433 of the California Health and Safety Code. l. Cost to Agency (Exhibit A) a) Total Cost to Agency for acq. Cost of Sale $752,003.59 $537,000.00 $215,003.59 b) Sales Price to Offerors 2. The estimated value of the interest to be sold is $537,000.00 3. There is a net cost to the Agency of $2l5,003.59. Estimated value of project - $2,590,000.00. Tax increment - $25,590.00. Agency's cost will be repaid in 8.4 years. 4. A copy of the form of Disposition and Joint Development Agreement is available upon request, and is referred to as Exhibit "CW to this summary . 5. A Joint Public Hearing of the City of San Bernardino and the Community Development Commission is scheduled for ll:OO a.m., February 4, 1985, in the Council Chambers, City Hall, San Bernardino, CA. , ~ ~"-f' GLENDA SAUL Executive Director January 25, 1985 718J " E .... ~ .. , ~ . ... .... e e~ ...... . .. ... l!:.. 8~ 1.... ..... .. '" < .. .. ..... "0 '1 ~~ .. o .. n . 'C" -.. . ~ n" o .. . ... " < c . ...... :::Ii ... . . - ..... .. . l~ ..0 .... o "0 00 l"8 .. .. 'C .. .. M .. ...... .0 . n .. .. 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