Loading...
HomeMy WebLinkAboutR31-Economic Development Agency " . . ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Ann Harris, Director SUBJECT: Bus Retention, Recruitment & Revitalization DATE: September 7,2000 0 ,q / ~ : :1 A L JOINT PUBLIC HEARING SALE OF PROPERTY - 275 SOUTH "G" STREET Svnopsis of Previous Commissiou/Council/Committee Action(s): In April 1996, property was purchased during the assembling of property for construction of the Stadium, On August 10, 2000, the Redevelopment Committee recommended that a Joint Public Hearing be held and the sale of the property proceed. Recommended Motion(s): OPEN PUBLIC HEARING CLOSE PUBLICHEARING (Mavor and Common Council) MOTION!,: A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACKNOWLEDGING RECEIPT OF A REPORT RELATING TO TIlAT CERTAIN DlSPOSlTION AND DEVELOPMENT AGREEMENT BY AND BETWEEN TIlE REDEVELOPMENT AGENCY OF TIlE CITY OF SAN BERNARDINO AND JERRY AND LiLA BURNS (Community Development Commission) MOTION B: A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AS THE GOVERNING BODY OF TIlE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING THA T CERTAIN DlSPOSlTION AND DEVELOPMENT AGREEMENT BY AND BETWEEN TIlE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND JERRY AND LiLA BURNS, ON THE TERMS SET FORTIl IN SUCH AGREEMENT Contact Person(s): Gary Van Osdel/Ann Harris Project Area(s) Central City South (CCS) Phone: 663-1044 Ward(s): Three (3) Supporting Data Attached: IllStaffReport III Resolution(s) III Agreement(s)/Contract(s) 0 Map(s) 0 LetterlMemo FUNDING REQUIREMENTS Amount: $ None Source: N/A SIGNATURE: ~~- ~ ~r Bus Retention, Recruitment & Revitalization Commission/Council Notes: GVO:ABH:lag:09-l8-00 275 G Street COMMISSION MEETING AGENDA Meeting Date: 09/18/2000 Agenda Item Number: .Ii 31 . . . ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Sale of Pronertv Located at 275 South "G" Street BACKGROUND This property was purchased by the Agency in April 1996 for $94,429.99 as part of the assembling of property for the stadium. This property is comprised of approximately I acre of land with an 8,000 square foot building. The building is in very poor condition. Currently the Agency has a month-to-month lease with RTE Enterprises (the "tenant"). The tenant is paying $650.00 a month. The tenant, who has been operating under a temporary use permit that expired January 1999, has been given a 45-day notice to vacate. Recently the Agency was notified by the fire department that the building must be retrofitted with a fire sprinkler system. The property was appraised for $130,000.00 prior to the Agency receiving notice of the sprinkling requirement. The bid amount received by the Agency for sprinkling the building is $34,275.00. The building must be vacant in order to do the sprinkling system for this price. Also, once the sprinkler system is installed, there is a requirement to contract with a monitoring company at an approximate cost of $1 00.00 per month. The Agency has received an offer to purchase the property from Jerry and Lila Bums, the owners of High Desert Cable, Inc., a cable television installation company. The offer is a gross price of $130,000.00 minus the cost of sprinkling, ($34,275.00) resulting in an adjusted sales price of $95,725.00. All cash Escrow shall close in 45 days. The buyer will commission a Phase I Study of the site and confirm with the Planning Department that the property is properly z ned for their anticipated use. The sale of this property will put it back on the tax r les, establish a new business in San Bemardino (currently located in Moreno Valley) and provide 42 jo . At the Redevelopment Committee meeting August 10, the Committee recommended that staff proceed with the sale of the property and to advertise a joint pub ic hearing. FISCAL IMPACT No cost to the Agency. RECOMMENDATION and adopt the attached Resolutions. \ Ann Harris, Director Business Retention, Recruitment & Revitalization GVO:ABH:lag:09.18-00 275 G Street COMMISSION MEETING AGENDA Meeting Date: 09/18/2000 Agenda Item Number: /JJL , 1 r 2 L , ~ 4 5 6 7 .. ~(Q)~\7 RESOLUTrON NO. A RESOLUTrON OF THE ~YOR AND COMMON COUNCrL OF THE CrTY OF SAN BERNAlIDrNO ACKNOWLEDGrNG RECErPT OF A REPORT RELATrNG TO THAT CERTArN DrSPOSrTrON AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMEN'!' AGENCY OF THE CrTY OF SAN BEllNARDrNO AND JERRY AND LrLA BORNS WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), owns or has a beneficial interest in certain real property situated within the redevelopment project area of the Central 8 City South Project and commonly known as 275 South "G" Street, San 9 Bernardino, California (the "Property"); and 10 WHEREAS, the Agency staff has prepared a draft of a Disposition 11 and Development Agreement (the "Agreement") for the disposition of the 12 Property to Jerry and Lila Burns, husband and wife (the "Purchaser"), 13 together with a report which summarizes the key terms of the Agreement 14 and describes the manner in which the proposed disposition of the <::: 15 Property to the Purchaser will assist in the elimination of biight in 16 accordance with Health and Safety Code Section 33433 (the "33433 C 28 17 Report"); and 18 WHEREAS, it is appropriate for the Mayor and Common Council to 19 take action with respect to the 33433 Report and the 1I.greement in 20 accordance with Health and Safety Code Section 33433 (a) (1) . 21 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE 22 MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: ?' -~ Section 1. On September 18, 2000, the Mayor and Ccrr.!TIor. 24 Council conducted a full and fair j oint public hearing with the 25 Communi ty Development Commission of the Ci ty of San Bernardino 26 relating to the disposition and redevelopment of the Property by the 27 SBEO/0001/OOC/4160 8/25/00 200 drh 1 I , ~ I t v 9//juo . , I Purchaser pursuant to the terms and conditions of the Agreement. The <::: 2 minutes of the City Clerk for the September 18, 2000, meeting of the 3 Mayor and Common Council shall include a record of all communication 4 and testimony submitted to the Mayor and Common Council by interested 5 persons relating to the joint public hearing, the 33433 Report and the 6 approval of the Agreement. 7 Section 2. This Resolution is adopted in order to satisfy the 8 provisions of Health and Safety Code Section 33433 relating to the 9 disposition and sale of the Property by the Agency to the Purchaser 10 on the terms and conditions set forth in the Agreement. A copy of the 11 Agreement in the form submitted at the joint public hearing is on file 12 with the Agency Secretary. The Mayor and Common Council hereby fine 13 and determine as follows: 14 (i) the disposition and redevelopment of the Property by the C 15 Purchaser in accordance with the Agreement is consistent with the 16 Redevelopment Plan for the Central City South Project and the current c 17 Agency Implementation Plan for the Project; 18 (ii) the terms and conditions of the Agreement contain assurances 19 that the Property will be redeveloped as contemplated under the 20 Redevelopment Plan; 21 (iii) the purchase price for the Property payable by the Purchaser 22 to the Agency, subject to the satisfaction of the terms and conditions 7' -~ of the Agreement, is an amount which the Mayor and Common Counci: 24 determines to be fair, just and reasonable, and the disposition of the 25 Property on the terms set forth in the Agreement shall materially 26 27 28 SBEO/0001/DOC/4160 8/25/00 200 drh 2 . , 1 benefit and sustain the implementation of the Redevelopment Plan and c:: 2 assist the community to alleviate blighting conditions; C 15 16 17 18 19 20 21 22 23 24 25 26 c 3 (iv) the consideration payable by the Purchaser to the Agency for 4 the disposition of the Property ($130,000.00, less the cost of 5 installation of a fire sprinkler system on the Property, in cash) is 6 an amount which is not less than the fair market value of the Property 7 at its highest and best use in accordance with the Redevelopment Plan; 8 Section 3. The Mayor and Common Council hereby find and 9 determine that the activity to take place on the Property under the 10 terms of the Agreement involves negligible or no expansion of use 11 beyond that previously existing on the Property and is exempt from the 12 provisions of the California Environmental Quality Act ("CEQA") 13 pursuant to Section 21084 of the California Public Resources Code and 14 Article 19 of the State CEQA Guidelines developed thereunder. Section 4. The Mayor and Common Council hereby approve, receive and file the 33433 Report and the Agreement in the forms as submitted at the joint public hearing. Section 5. The Mayor and Common Council hereby approve the disposition of the Property by the Agency to the Purchaser on the terms set forth in the Agreement. 27 28 SBEO/0001/DOC/4160 8/25/00 200 drh 3 . c c c . 1 A RESOLtJTI:ON OF THE MAYOR AND COMMON COUNCI:L OF THE CI:TY OF SAN BERNJUIDI:NO ACKNOWLEDG::tNG RECZI:PT OF A REPORT RELAT::tNG TO THAT CERTAI:N 2 DI:SPOSI:TI:ON AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CI:n OF SAN BERNARDINO AND JERRY AND LI:LA BORNS 3 Section 6. 4 of its adoption. This Resolution shall take effect upon the date 5 6 7 8 9 10 11 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the , 2000, by the following vote, to wit: day of Council: 12 ESTRADA LIEN 13 MCGINNIS SCHNETZ 14 SUAREZ ANDERSON 15 McCAMMACK A:iE.S. ~ ABSTAIN ABSENT 16 17 18 19 20 21 City Clerk The foregoing resolution is hereby approved this , 2000. day of Judith Valles, Mayor City of San Bernardino 22 Approved as to form and legal content: 23 24 25 26 27 28 58EO/0001/DOC/4160 S/25/00 200 drh 4 , c c c 1 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO 2 CITY OF SAN BERNARDINO ss 3 I, Ci ty Clerk of the City of 4 San Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of Mayor and Common Council of the City of San Bernardino Resolution 5 No. is a full, true and correct copy of that now on file in this office. 6 IN WITNESS WHEREOF, I have hereunto set my hand and affixed 7 the official seal of the Mayor and Common Council of the City of San Bernardino this day of , 2000. 8 9 10 City Clerk City of San Bernardino II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SBEO/OOO1/DOC/4160 8/25/00 200 drh 5 c C 15 16 17 18 19 20 21 22 c ~(Q)~\7 I 2 3 4 5 RESOLO'TrON NO. A RESOLO'TrON OF THE COMMCNrTY DEVELOPMENT COMMrSSrON OF THE CrTY OF SAN BERNARDrNO, AS THE GOVElWrNG BODY OF THE REDEVELOPMENT AGENCY OF THE CrTY OF SAN BERNARDrNO, APPROVrNG THAT CERTArN DrSPOSrTrON AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CrTY OF SAN BElWARDrNO AND JERRY AND LrLA BURNS, ON THE TERMS SET FORTH rN SUCH AGREEMENT 6 WHEREAS, the Redevelopment Agency of the City of San Bernardino 7 (the ".ll.gency") owns or has a beneficial interest in certain real 8 property situated within the redevelopment project area of the Central 9 City South Project and commonly known as 275 South "G" Street, San 10 Bernardino, California (the "Property"); and 11 WHEREAS, the Agency staff has prepared a draft of a Disposition 12 and Development Agreement (the "Agreement") for the disposition of the 13 Property to Jerry and Lila Burns, husband and wife (the "Purchaser"), 14 together with a report which summarizes the key terms of the Agreement and describes the manner in which the proposed disposition of the Property to the Purchaser will assist in the elimination of blight (the "33433 Report") in accordance with Health and Safety Code Section 33433; and WHEREAS, it is appropriate for the Commission to take action with respect to disposition of the Property to the Purchaser and approve the Agreement as set forth in this Resolution. NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON 23 3EHA:F OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDI~O DCES 24 HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 25 Section 1. On September 18, 2000, the Commission conducted 26 a full and fair joint public hearing with the Mayor and Common Council 27 28 58EO/0001/DOC/4159 3/25/00 200 d:-h 1 1 of the City of San Bernardino relating to the disposition and C 2 redevelopment of the Property by the Purchaser pursuant to the terms 3 and conditions of the Agreement. The minutes of the Agency Secretary 8 9 10 11 12 13 14 C' 15 16 17 18 c 4 for the September 18, 2000, meeting of the Commission shall include 5 a record of all communication and testimony submitted to the 6 Commission by interested persons relating to the joint public hearing, 7 the 33433 Report and the approval of the Agreement. Section 2. A copy of the Agreement in the form submitted at the joint public hearing is on file with the Agency Secretary. The Commission hereby finds and determines as follows: (i) the disposition and redevelopment of the Property by the Purchaser in accordance with the Agreement is consistent with the Redevelopment Plan for the Central City South Project and the current Agency Implementation Plan; (ii) the terms and conditions of the Agreement contain assurances that the Property will be redeveloped as contemplated under the Redevelopment Plan; (iii) the purchase price for the Property payable by the Purchaser 19 to the Agency, subject to the satisfaction of the terms and conditions 20 of the Agreement, is an amount which the Commission determines to be 21 fair, just and reasonable, and the disposition of the Property on the 22 terms set forth in the Agreement shall materially benefit and sustain 23 the implementation of the Redevelopment Plan and assist the community 24 to alleviate blighting conditions; 25 (iv) the consideration payable by the Purchaser to the Agency for 26 the disposition of the Property ($130,000.00, less the cost of 27 28 5880/0001/00C/4159 8/25/00 200 drh 2 1 installation of a fire sprinkler system on the Property, in cash) is <::: 2 an amount which is not less than the fair market value of the Property 3 at its highest and best use in accordance with the Redevelopment Plan. c c 4 Section 3. The Commission hereby finds and determines that 5 the activity to take place on the Property under the terms of the 6 Agreement involves negligible or no expansion of use beyond that 7 previously existing on the Property and is exempt from the provisions 8 of the California Environmental Quality Act ("CEQA") pursuant to 9 Section 21084 of the California Public Resources Code and Article 19 10 of the State CEQA Guidelines developed thereunder. II Section 4. The Commission hereby approves, receives and files 12 the 33433 Report and the Agreement in the forms as submitted at the 13 joint public hearing. 14 Section 5. The Commission hereby approves the disposition of 15 the Property to the Purchaser on the terms set forth in the Agreement. 16 The Chair of Commission and the Executive Director are hereby 17 authorized and directed to execute the Agreement on behalf of the 18 Agency together with such technical and conforming changes as may be 19 recommended by the Executive Director and approved by the Chair of the 20 Commission. The signatures of the Chair of the Commission and the 21 Executive Director on the Agreement shall be conclusive evidence that 22 the Agreement has taken effect. In the event that the Agreemen~ may 23 not be fully executed by the parties for any reason within thirty (30\ 24 days following the date of adoption of this Resolution, the 25 authorization granted to the Chair of the Commission and the Executive 26 27 28 SBEO/0001/00C/'159 B/25/00 200 drh 3 c 1 Director to execute the Agreement on behalf of the Agency shall be of 2 no further force and effect. 3 Section 6. Provided that the Agreement has been fully 4 executed by the parties within the period of time set forth in Section 5 5 of this Resolution, the Executive Director of the Agency is hereby 6 authorized and directed to take all actions set forth in the Agreement 7 on behalf 8 therein. 9 10 11 12 13 C 14 15 16 17 18 19 20 21 22 23 24 c of the Agency to close the escrow transactions described 25 26 27 28 S8EO/0001/OOC/4159 S/25/00 200 drh 4 9 at a 10 of 11 12 Commission ESTRADA 13 LIEN MCGINNIS 14 SCHNETZ C SUAREZ 15 ANDERSON McCAMMACK 16 17 1 C 2 3 18 19 of 20 21 22 4 A RESOLUTION OF THE COMNONITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BEllNARDINO, AS THE GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BEllNARDINO, APPROVING THAT CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BEllNARDINO AND JERRY AND LILA BURNS, ON THE TERMS SET FORTH IN SOCH AGREEMENT Section 7. This Resolution shall become effective immediately 5 upon its adoption. 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted 8 by the Community Development Commission of the City of San Bernardino meeting thereof, held on the , 2000, by the following vote, to wit: day ~ ~ ABSTAIN ABSENT Secretary The foregoing Resolution is hereby approved this , 2000. day Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 23 24 By: 25 26 C 27 28 SBEO/0001/DOC/4159 8/25/00 200 drh 5 c c c 1 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO 2 CITY OF SAN BERNARDINO ss 3 I, Secretary of the Community Development Commission of the City of San Bernardino, DO HEREBY 4 CERTIFY that the foregoing and attached copy of Community Development Commission of the City of San Bernardino Resolution No. is 5 a full, true and correct copy of that now on file in this office. 6 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Community Development Commission of the City 7 of San Bernardino this day of , 2000. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SBEO/0001/OOC/4159 8/25/00 200 drh Secretary of the Community Development Commission of the City of San Bernardino 6 ~, RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 201 North "E" Street Suite 301 San Bernardino, California 92401 (Space Above Line for Use By Recorder) 2000 DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND JERRY AND LILA BURNS SBEO/0001/DOC/4156-1 8/25/00 drh '- Section 1.01. Section 1.02. Section 1.03. Section 1.04. Section 2.01, Section 2.02. Section 2.03. Section 2.04. Section 2.05. Section 2.06. Section 2.07. Section 2.08. Section 2.09. Section 2.10. Section 2.11. Section 2.12. Section 2.13. Section 2.14. Section 2.15. Section 2.16. Section 2.17. Section 2.18. Section 2.19. Section 2.20. Section 2.21. Section 2.22. Section 2.23. Section 2.24. SBEO/0001/DOC/4156-1 8/25/00 drh TABLE OF CONTENTS Purpose of Agreement . . The Property . . . . . . Parties to the Agreement Benefit to Project Area ARTICLE II DISPOSITION OF THE PROPERTY Purchase and Sale of the Property Deposit and Payment of Purchase Price Opening and Closing of Escrow Escrow Instructions . ,..... Conveyance of Title ........ Additional Closing Obligations of Agency Closing Obligations of Purchaser . . . . Inspections and Review ... .., Due Diligence Investigation of the Property By the Purchaser . ...... Due Diligence Approval Certificate Books and Records ...... Condition of the property-Purchaser's Release . . . . . . . . .. ... Review and Approval of Condition of Title by the Purchaser Survey,. .. . . . Extension of Due Diligence Period Purchaser's Conditions Precedent to Close Escrow . . , . . . . . The Agency's Conditions Precedent to Close of Escrow .,..... ...,.., Distribution of Documents and Purchase Price After Closing Date by Escrow Holder Satisfaction of Conditions . . . . . . [RESERVED -- NO TEXT] ....... Prorations, Closing Costs, Possession BREACH OF ARTICLE II BY THE AGENCY; LIQUIDATED DAMAGES PAYABLE BY THE AGENCY TO THE PURCHASER .. .. .. ... BREACH BY THE PURCHASER; LIQUIDATED DAMAGES PAYABLE BY THE PURCHASER TO THE AGENCY Damage, Destruction and Condemnation . . . . i ~ 1 1 1 2 2 2 3 4 4 5 6 6 7 9 10 11 11 13 14 14 15 15 16 16 16 17 18 19 19 Section 3,01. Section 3.02. Section 3,03. Section 3.04. Section 3.05. Section 3,06. Section 4.01. Section 4.02. Section 4.03. Section 4.04. Section 4.05. Section 5.0l. Section 5.02. Section 5.03. Section 5.04. Section 5.05. Section 5.06. Section 5.07. Section 5.08. Section 5.09. Section 5,10, Section 5.1l. Section 5.12. Section 6.01. EXHIBIT "A" EXHIBIT "B" SBEO/0001/DOC/4156-1 8/25/00 drh ARTICLE III USE AND MAINTENANCE OF THE oROPERTv Use of the Property Maintenance of the Property Taxes and Assessments Transfer of Property to Exempt Person Obligation to Refrain from Discrimination Form of Nondiscrimination and Nonsegregation Clauses ..,.......,...... ARTICLE IV DEFAULTS. REMEDIES AND TERMINATION Defaults - General , . , . . . . . Legal Actions . . . . . . . . . . Rights and Remedies are Cumulative Damages . . . . . . . . . . Specific Performance Prior to Close of Escrow , .... . . . . . . ARTICLE V GENERAL PROVISIONS . . . . . . . . Notices, Demands and Communications Between the Parties . . .. .......... Conflict of Interest ......,... Warranty Against Payment of Consideration for Agreement ..". .... Nonliability of Agency Officials and Employees , . . . . . . . . . . . . Enforced Delay: Extension of Time of Performance , . . . , . . . . . Inspection of Books and Records Approvals ,.,..., Real Estate Commissions . . . . Indemnification Release of Purchaser from Liability Attorneys' Fees Effect . . . . . . . ARTICLE VI ENTIRE AGREEMENT. WAIVERS AND AMENDMENT Entire Agreement , . . LEGAL DESCRIPTION AGENCY GRANT DEED ii 20 20 20 22 22 22 23 24 '24 25 25 26 26 26 26 27 27 28 28 29 29 29 29 30 30 30 30 30 2000 DISPOSITION AND DEVELOPMENT AGREEMENT (Jerry and Lila Burns) THIS 2000 DISPOSITION AND DEVELOPMENT AGREEMENT (the "Agreement") is entered into as of , 2000, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic (the "Agency"), and Jerry and Lila Burns, husband and wife (the "Purchaser"). The Agency and the Purchaser hereby agree as follows: Section 1.01. Puroose of Acrreement. The purpose of this Agreement is to implement the Redevelopment Plan for the Central City South Project (the "Project Area") by providing for the purchase, use and maintenance by the Purchaser of certain real property improved by a building. The land and building which are subject to this Agreement are referred to herein as the "Property". As of the date of this Agreement, the Property is owned by the Agency. The Property is more particularly described in the legal description attached as Exhibit "A" hereto. The purchase, use and maintenance of the Property pursuant to this Agreement is in the vital and best interests of the City of San Bernardino (the "City") and the health, safety and welfare of its residents, and is in accord with the public purposes and provisions of applicable state and local laws. The Agency has determined that the purchase, use and maintenance of the Property contemplated by this Agreement is consistent with the Redevelopment Plan for the Project Area. Section 1.02. The Prooerty. The Property consists of an approximately 8,000 square foot building situated on one acre of land, more or less, and is generally situated at 275 South "G" Street, San Bernardino, California. The Purchaser intends to use the building on the Property as a storage facility for cable installation equipment and the portion of the Property not improved by the building as parking for cable installation vans and as a van loading area. Section 1.03. Parties to the Acrreement. (a) The Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, ~ ~.) The principal office of the Agency is located at 201 North "E" Street, Suite 301, San Bernardino, California 92401. SBEO/0001/DOC/4156-1 8/25/00 drh 1 (b) Jerry and Lila Burns are husband and wife and the owners of High Desert Cable, Inc., a [California] corporatiion. The principal office and mailing address of the Purchaser for purposes of this Agreement is: Jerry and Lila Burns High Desert Cable, Inc. 275 South "G" Street San Bernardino, California 92401 (c) The City of San Bernardino is not a party to this Agreement. Section 1.04. Benefit to Proiect Area. The Agency has determined that the purchase, use and maintenance of the Property in accordance with this Agreement will materially assist in the elimination of blight and the implementation of the Redevelopment Plan for the Project Area. ARTICLE II DISPOSITION OF THE PROPERTY Section 2.01. Purchase and Sale of the PrODer~v. Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration of the Purchase Price as herein set forth, the Agency hereby agrees to sell via grant deed to the Purchaser merchantable lien free title and the Purchaser hereby agrees to purchase the following: all of the right, title and interest of the Agency in the Property as more fully described in the legal description attached hereto as Exhibit "A," including all right, title and interest of the Agency in and to any land lying in the right-of-way of any existing or proposed highway, street, road, avenue or alley abutting or adjoining the Property. The purchase price which the Agency agrees to accept from the Purchaser and which the Purchaser agrees to pay to the Agency for the Property is ONE HUNDRED THIRTY THOUSAND DOLLARS ($130,000.00) in United States currency (the "Purchase Price"); provided, however, that the cost of installation of a fire sprinkler system on the Property (currently estimated to be Thirty- Four Thousand Two Hundred Seventy Five Dollars ($34,275.00)) shall be applied as a credit to the Purchase Price. SBE0/0001/oOC/4156-1 8/25/00 drh 2 For all purposes of this Agreement, the legal description of the Property attached hereto as Exhibit "A" shall be definitive and controlling as to the location, size or other aspect of the Property. Section 2.02. Deoosit and Payment of Purchase Price. (a) Within five (5) calendar days following the execution of this Agreement by both parties, the Purchaser shall deliver to the Escrow Holder (as hereinafter defined) the sum of Five Thousand Dollars ($5,000.00). This sum, upon its receipt by the Escrow Holder, is referred to in this Agreement as the "Deposit." Upon receipt of the Deposit and a fully executed copy of this Agreement, the Escrow Holder shall cause the Escrow (as hereinafter defined) to be opened, as provided in Section 2.03. The Escrow Holder shall place the Deposit into an interest-bearing escrow account with the interest thereon to accrue to the benefit of the Purchaser. At the Close of Escrow (as hereinafter defined), the Deposit shall be applied as a credit to the Purchase Price. (b) pavrnent of Balance of Purchase Price. The Purchase Price, less the Deposit, shall be tendered by the Purchaser to the Escrow Holder on the Closing Date (as hereinafter defined) for disbursement to the Agency at the Close of Escrow in cash or immediately available funds. (c) The Deposit (less an amount equal to the customary and reasonable escrow cancellation charges of the Escrow Holder) shall be returned to the Purchaser in the event that: (i) the Agency or the Purchaser terminates this Agreement pursuant to Section 2.13(a); or (ii) the Purchaser does not deliver Diligence Approval Certificate (as hereinafter to the Escrow Holder pursuant to Section 2.03(b) Agreement is terminated; or its Due defined) and this (iii) the Purchaser's conditions precedent to the Close of Escrow described in Section 2.16 (1), (2), (3), (4) or (5) are not satisfied (unless satisfaction has been waived by the Purchaser) and this Agreement is terminated; or (iv) the Property is materially damaged prior to the Close of Escrow, or an action of eminent domain is SBEO/0001/DOC/4156-1 8/25/00 drh 3 commenced by a governmental entity with respect to the Property prior to the Close of Escrow, and the Purchaser elects to terminate this Agreement pursuant to Section 2.24. Section 2.03. Openina and Closina of Escrow. (a) The transfer and sale of the Property shall take place through an Escrow (the "Escrow") to be administered by First American Title Insurance Company Escrow Department or such other escrow or title insurance company mutually agreed upon by the Purchaser and the Agency (the "Escrow Holder"). The Escrow shall be deemed open ("Opening of Escrow") upon the receipt by the Escrow Holder of a copy of this Agreement fully executed by both parties hereto and the Deposit. The Escrow Holder shall promptly confirm to the parties the escrow number and the title insurance order number assigned to the Escrow. (b) In the event that the Purchaser has not delivered its Due Diligence Approval Certificate to the Agency and the Escrow Holder within thirty (30) days from the Opening of Escrow for any reason, then in such event this Agreement shall terminate upon written notice to the Escrow Holder from either the Agency or the Purchaser, whereupon the Deposit shall be returned by the Escrow Holder to the Purchaser (less an amount equal to the customary and reasonable escrow cancellation charges payable to the Escrow Holder) without further or separate instruction to the Escrow Holder, and the parties shall each be relieved and discharged from all further responsibility or liability under this Agreement. (c) Provided that the Purchaser has delivered its Due Diligence Approval Certificate within the period of time authorized in Section 2.03(b), then the Closing Date of the Escrow shall occur within fifteen (15) days thereafter, subject to the provisions of Section 2,16 and Section 2.17. The words "Close of Escrow," "Closing Date" and "Closing" shall mean and refer to the date when the Escrow Holder is in receipt of the Purchase Price and the related Escrow documents of the parties and the Escrow Holder is in a position to comply with the final written escrow closing instructions of the parties and cause the Agency Grant Deed for the Property to be recorded and the policy of title insurance for the Property to be delivered to the Purchaser. Section 2.04. Escrow Instructions. This Agreement shall also constitute the escrow instructions of the parties to the Escrow Holder. Additionally, the Purchaser and the Agency each agree to execute the customary supplemental escrow instructions of the Escrow Holder in the form provided by the Escrow Holder to its SBEO/0001/DOC/4156-1 8/25/00 drh 4 clients in real property escrow transactions administered by it. In the event of a conflict between the additional terms of such customary supplemental escrow instructions of the Escrow Holder and the provisions of this Agreement, this Agreement shall supersede and be controlling. Upon any termination of this Agreement or cancellation of the Escrow, the Purchaser shall be solely responsible for the payment of the escrow cancellation costs of the Escrow Holder and the Escrow Holder shall forthwith return all monies (as provided in this Agreement) and documents, less only the Escrow Holder's customary and reasonable escrow cancellation fees and expenses, as set forth herein. Section 2.05. Conveyance of Title. On or before 12:00 noon on the business day preceding the Closing Date, the Agency shall deliver to the Escrow Holder a grant deed in the form attached hereto as Exhibit "B" (the "Agency Grant Deed") duly executed and acknowledged by the Agency, which Agency Grant Deed shall convey all of its merchantable lien free right, title and interest in the Property to the Purchaser. The Escrow Holder shall be instructed to record the Agency Grant Deed in the Official Records of the Recorder of the County of San Bernardino, California, if and when Escrow Holder holds the various instruments and funds for the accounts of the parties, as set forth herein, and can obtain for the Purchaser an ALTA policy of title insurance ("Title Policy") issued by First American Title Insurance Company or such other title insurance company mutually agreed upon by the parties ("Title Company") with liability in an amount equal to the Purchase Price, together with such endorsements to the policy as may be reasonably requested by the Purchaser, insuring that the fee title to the Property vested in the Purchaser is free and clear of options, rights of first refusal or other purchase rights, leases or other possessory interests, lis pendens and monetary liens andlor encumbrances and subject only to: (1) non-delinquent real property taxes; (2) non-monetary title exceptions approved by the Purchaser pursuant to Section 2.13 below; (3) applicable provisions of the parcel maplsubdivision map for the Property; (4) the effect of the Redevelopment Plan for the Project Area; (5) the effect of any conditions imposed by the City in connection with the proposed use of the Property; SBEO/0001/DOC/4156-1 8/25/00 drh 5 (6) the provision of the Agency Grant Deed; (7) the applicable provisions of this Agreement; and (8) such other documents Escrow. title exceptions, if any, resulting from being recorded or delivered through Section 2.06. Additional ClosinQ Obliaations of Aaency. On or before 12:00 noon on the business day preceding the Closing Date (unless indicated otherwise), the Agency shall deliver to the Escrow Holder (unless indicated to be delivered directly to the Purchaser) copies of the following documents and other items: (1) a certificate of non-foreign status (the "Non- Foreign Affidavit") executed by the Agency, in the customary form provided by the Escrow Holder, and a California Franchise Tax Board Form 590-RE executed by the Agency; (2) all soils, seismic, geologic, drainage, and environmental reports, and surveys, with respect to the Property, if any, which the Agency has in its possession andlor control to the extent that originals of such items have not been delivered previously by the Agency to the Purchaser pursuant to Section 2.08 below; (3) two (2) duplicate original copies of the Closing Statement described in Section 2.21, duly executed by the Agency; (4) evidence of the existence, organization and authority of the Agency and of the authority of persons executing documents on behalf of the Agency reasonably satisfactory to the Escrow Holder and Title Company; and (5) any other documents, instruments, funds and records required to be delivered to the Purchaser under the terms of this Agreement which have not been previously delivered. Section 2.07. Closina Obliaations of Purchaser. On or before 12:00 noon on the business day preceding the Closing Date, the Purchaser shall deliver to the Escrow Holder copies of the following documents and other items: SBEO/0001/DOC/4156-1 8/25/00 drh 6 (1) an acknowledgment and acceptance of the Agency Grant Deed, duly executed and acknowledged by the Purchaser. (2) two (2) duplicate original copies of the Closing Statement, duly executed by the Purchaser. (3) evidence of the existence, organization and authority of the Purchaser and of the authority of persons executing documents on behalf of the Purchaser reasonably satisfactory to the Escrow Holder and the Title Company. (4 ) evidence of the ability any required permits, connection with the Property. of the Purchaser to obtain licenses or approvals in Purchaser's use of the (5) any other documents, instruments or funds required to be delivered by the Purchaser under the terms of this Agreement or as otherwise required by Escrow Holder or Title Company in order to close Escrow which have not previously been delivered. Section 2.08. InsDections and Review. (a) Due Diliaence Items. Within five (5) days after the execution of this Agreement, the Agency shall deliver true, correct and complete copies or originals of the following documents and items (collectively, "Due Diligence Items") to the Purchaser: (1) copies of all soils, seismic, geologic, drainage, engineering, environmental and similar type reports and surveys (including, but not limited to, any Property Environmental Site Assessments), surveys, relating to the Property if any, in the possession or control of the Agency. (2) notices of violations, including, but not limited to, zoning ordinances, development or building codes affecting the Property wi thin the Agency's possession or control. (3) disclosure of any legal matters affecting the use or condition of the Property within the knowledge of the Agency. SBEO/OOOI/DOC/4156-1 8/25/00 drh 7 (4) a copy of the Redevelopment Plan for the Project Area. (b) Certain Definitions. For the purpose of this Agreement, the terms set forth below shall have the following meaning: (i) uenvironmental laws" means all federal, state, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any government authority regulating, relating to, or imposing liability of standards of conduct concerning any hazardous substance (as later defined), or pertaining to occupational health or industrial hygiene (and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to hazardous substances on, under, or about the Property), occupational or environmental conditions on, under, or about the Property, as now or may at any later time be in effect, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") [42 USC Section 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 (URCRA") [42 USC Section 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act ("FWPCA") [33 USC Section 1251 et eq.]; the Toxic Substances Control Act ("TSCA") [15 USC Section 2601 et seq.]; the Hazardous Materials Transportation Act ("HMTA") [49 USC Section 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 USC Section 6901 et seq.] the Clean Air Act [42 USC Section 7401 et seq.]; the Safe Drinking Water Act [42 USC Section 300f et seq.]; the Solid Waste Disposal Act [42 USC Section 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 USC Section 101 et seq.] the Emergency Planning and Community Right to Know Act [42 USC Section 11001 et seq.]; the Occupational Safety and Health Act [29 USC Section 655 and 657]; the California Underground Storage of Hazardous Substances Act [H & S C Section 25288 et seq.]; the California Hazardous Substances Account Act [H & S C Section 25300 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [H & S C Section 24249.5 et seq.] the Porter-Cologne Water Quality Act [Water Code Section 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above and any other federal, state, or local law, statute, ordinance, or regulation now in effect or later enacted SBEO/0001/DOC/4156-1 8/25/00 drh 8 that pertains to occupational health or industrial hygiene, and only to the extent the occupational health or industrial hygiene laws, ordinances, or regulations relate to hazardous substances on, under, or about the Property, or the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use. (ii) "hazardous limitation: substances" includes without those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminate" in CERCLA, RCRA, TSCA, HMTA, or under any other environmental law; and those substances listed in the United States Department of Transportation (DOT)Table [49 CFR 172.101], or by the EPA, or any successor agency, as hazardous substances [40 CFR Part 302]; and other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and any material, waste, or substance that is: (1) a petroleum or refined petroleum product, (2) asbestos, (3) polychlorinated biphenyl, (4) designated as a hazardous substance pursuant to 33 USC Section 1321 or listed pursuant to 33 use Section 1317, (5) a flammable explosive, or (6) a radioactive material. Section 2.09. Due Property Bv the Purchaser. Diliaence Investiaation of the (al of Escrow, and Section 2.15, Within thirty (30) days from and after the Opening subject to the extensions of time set forth below in the Purchaser shall have the right to examine, SBE0/0001/DOC/4156-1 8/25/00 drh 9 inspect and investigate the Property (the "Due Diligence Period") to determine whether the condition of the Property is acceptable to the Purchaser and to obtain such approvals from the City in connection with the Purchaser's use of the Property, as the Purchaser may require in its sole and absolute discretion. (b) During the Due Diligence Period, the Agency shall permit the Purchaser, its engineers, analysts, contractors and agents to conduct such physical inspections and testing of the Property as the Buyer deems prudent with respect to the physical condition of the Property, including the inspection or investigation of soil and subsurface soil geotechnical condition, drainage, seismic and other geological and topographical matters, surveys the potential presence of any hazardous substances, if any. (c) Any such investigation work on the Property may be conducted by the Purchaser andlor its agents during any normal business hours upon seventy-two (72) hours prior notice to the Agency, which notice will include a description of any investigation work or tests to be conducted by the Purchaser on the Property. Upon the Agency's request, the Purchaser will provide the Agency with copies of any test results. (d) During the Due Diligence Period, the Purchaser shall also have the right to investigate all matters relating to the zoning, use and compliance with other applicable laws which relate to the use and development and improvement of the Property. (e) The Agency shall cooperate fully to allow the Purchaser to complete such inspections and investigations of the condition of the Property. The Agency shall have the right, but not the obligation, to accompany the Purchaser during such investigations andlor inspections. The Purchaser shall pay for all costs and expenses associated with the conduct of all such Due Diligence investigation. Section 2.10. Due Diliaence A99roval Certificate. Wi thin thirty (30) days following the Opening of Escrow, the Purchaser shall complete its Due Diligence investigation of the Property (subject to the extensions of time set forth in Section 2.15) and deliver a due diligence approval certificate signed by the Purchaser (the "Due Diligence Approval Certificate") to the Escrow Holder which either: (i) indicates that the Purchaser accepts the condition of the Property or; SBEO/0001/DOC/4156-1 8/25/00 drh 10 (ii) contains a description of the matters or exceptions relating to the condition of the Property which the Purchaser was not able to accept or resolve to its satisfaction during the Due Diligence Period. Section 2.11, Books and Records. As part of the Purchaser's Due Diligence investigations during the Due Diligence Period, the Purchaser shall be afforded full opportunity by the Agency to examine all books and records in the possession of the Agency and/or the Agency's agents or employees, which relate to the Property including the reasonable right to make copies of such books and records at the expense of the Purchaser. During the Due Diligence Period, the Agency will make sufficient staff available to assist the Purchaser with obtaining access to information relating to the Property which is in the possession or control of the Agency. Section 2.12. Condition of the ProDertv-Purchaser's Release. The Purchaser acknowledges and agrees that it shall be given a full opportunity under this Agreement to inspect and investigate every aspect of the Property during the Due Diligence Period. Upon issuance to the Escrow Holder of a Due Diligence Approval Certificate under Section 2.10 which accepts the condition of the Property, the Purchaser shall, thereafter, accept delivery of possession to the Property on the Close of Escrow in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. The Purchaser further agrees and represents to the Agency that by a date no later than the end of the Due Diligence Period, the Purchaser shall have conducted and completed (or waived the completion) of all of its independent investigation of the condition of the Property which the Purchaser may believe to be indicated. The Purchaser hereby acknowledges that it shall rely solely upon its own investigation of the Property and its own review of such information and documentation as it deems appropriate for the purpose of accepting the condition and possession of the Property. The Purchaser is not relying on any statement or representation by the Agency relating to the condition of the Property unless such statement or representation is specifically contained in this Agreement. Without limiting the foregoing, the Agency makes no representations or warranties as to whether the Property presently complies with environmental laws or whether the Property contains any hazardous substance, as these terms are defined in Section 2.08(b) hereof. Furthermore, to the extent that the Agency has provided the Purchaser with information relating to the condition of the Property, including information and reports prepared by or on behalf of the City, the Agency makes no representation or warranty with respect to the accuracy, completeness, methodology or content of such reports or information. SBEO/0001/DOC/4156-1 8/25/00 drh 11 Without limiting the above, except to the extent covered by an express representation or warranty of the Agency set forth in this Agreement, the Purchaser, on behalf of itself and its successors and assigns, waives and releases the Agency and its successors and assigns from any and all costs or expenses whatsoever (including, without limitation, attorneys' fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, arising from or relating to the physical condition of the Property, the condition of the soils, the suitability of the soils for the use of the Property as proposed, or any law or regulation applicable thereto, including the presence or alleged presence or harmful or hazardous substances in, under or about the Property including, without limitation, any claims under or on account of (i) CERCLA and similar statutes and any regulations promulgated thereunder or (ii) any other environmental laws. The Purchaser expressly waives any rights or benefits available to it with respect to the foregoing release under any provision of applicable law which generally provides that a general release does not extend to claims which the creditor does not know of suspect to exist in his or her favor at the time the release is agreed to, which, if known to such creditor, would materially affect a settlement. By execution of this Agreement, the Purchaser acknowledges that it fully understands the foregoing, and with this understanding, nonetheless elects to and does assume all risk for claims known or unknown, described in this Section 2.12 without limiting the generality of the foregoing: The undersigned acknowledges that it has been advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOWN OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." The undersigned, being aware of this code section, expressly waives any rights it may have thereunder, as under any other statutes or common law principles of effect. hereby well as similar Initials of Purchaser: The provisions of this Section 2.12 shall survive the Close of Escrow. SBEO/0001/DOC/41S6-1 8/25/00 drh 12 Section 2.13. Review and Aooroval of Condition of Title bv the Purchaser. (a) Within fifteen (15) days following the Opening of Escrow, the Agency shall cause to be delivered to the Purchaser a preliminary title report or title commitment for an ALTA policy of title insurance issued by the Title Company, describing the state of the title of the Property, together with copies of all exceptions specified therein and with all easements plotted, but excluding matters disclosed on a survey (the "Preliminary Title Report"). The Purchaser shall notify the Agency in writing of any objections the Purchaser may have to the title exceptions contained in the Preliminary Title Report ("Purchaser's Title Obj ection Notice") prior to the expiration of the Due Diligence Period. The Agency shall have a period of five (5) days after receipt of the Purchaser I s Title Obj ection Notice in which to deliver written notice to the Purchaser ("Agency's Title Notice") of the Agency's election to either (i) agree to remove the obj ectionable items prior to the Close of Escrow, or (ii) decline to remove any such ti tIe exceptions; provided, however, that the Agency shall be required to remove all monetary liens and encumbrances created by or as a result of the Agency's activities. If the Agency notifies the Purchaser of its election to terminate Escrow rather than remove the objectionable items, the Purchaser shall have the right, by written notice delivered to the Agency within five (5) days after the Purchaser's receipt of the Agency IS Title Notice, to agree to accept the Property subject to the objectionable items, in which event the Agency's election to terminate the Escrow shall be of no effect, and the Purchaser shall take title to the Property at the Close of Escrow subject to such objectionable title items. (b) The Agency hereby covenants not to encumber place any liens or encumbrances on the Property, including, but not limited to, covenants, conditions, restrictions, easements, liens, options to purchase, options to lease, leases, tenancies, or other possessory interests without the prior written consent of the Purchaser following execution of this Agreement by the Agency. Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions (including, but not limited to, adding additional exceptions for matters shown on the Survey as hereinafter defined), the foregoing right of review and approval shall also apply to said amendment or supplement (provided that the period for the Purchaser to review such amendment or supplement shall be the later of the expiration of the Due Diligence Period or ten (10) days from receipt of the amendment or supplement) and Escrow shall be deemed extended by the amount of time necessary to allow such review and approval in the time and manner set forth above. SBEO/0001/DOC/4156-1 8/25/00 drh 13 Section 2.14. Survev. The Purchaser may at its sole cost and separate expense obtain a survey of the Property prepared by a land surveyor duly licensed by the State of California and in compliance with ALTAIASCM standards (the "Survey"). The Survey shall be in a form acceptable to the Title Company for the deletion of the standard survey exception in the Title Policy relating to boundaries, without the addition of further exceptions, unless the same are acceptable to the Purchaser in its sole and absolute discretion. The Purchaser shall have until the end of the Due Diligence Period to complete and examine the Survey and to notify the Agency in writing of any objections the Purchaser has to the Survey ("Purchaser's Survey Objection Notice"). The Agency shall have a period of five (5) days after receipt of the Purchaser's Survey Objection Notice in which to deliver written notice to the Purchaser ("Agency's Survey Notice") of the Agency's election to either (i) agree to remove the objectionable items prior to the Close of Escrow or (ii) decline to remove such items. If the Agency notifies the Purchaser of its intention not to remove the objectionable items, the Purchaser shall have the right, by written notice delivered to the Agency within ten (10) days after the Purchaser's receipt of Agency's Survey Notice, to agree to accept the Property subject to the objectionable items, in which event, the Agency's election to terminate the Escrow shall be of no effect, and the Purchaser shall accept the Property at the Close of Escrow subject to such objectionable items. Prior to the Close of Escrow, the Survey shall be recertified to the Purchaser, Title Company and the Purchaser's lender, if any. Section 2.15. Extension of Due Diliaence Period. (al In the event the Agency fails to provide the Purchaser with documents or other information required by Sections 2.08 and 2.11 by the date(s) set forth therein, the Due Diligence Period regarding such information shall be extended by one (1) day for each day of the delay by the Agency to permit the Purchaser to perform an adequate due diligence review of such documents or information (but shall not exceed a total of sixty (60) days). The Purchaser will use its best efforts to notify the Agency of any documents or information the Agency has failed to deliver to the Purchaser within the time periods provided in Sections 2.08 and 2.10. (b) In the event that the Executive Director makes a finding that the Purchaser has undertaken substantial work to complete its due diligence in connection with the Property, the Executive Director shall upon the written request of the Purchaser authorize an extension of the Due Diligence Period for up to an additional thirty (30) days. SBEO/0001/DOC/4156-1 8/25/00 drh 14 Section 2.16. Purchaser's Conditions Pr@ced@nt to C1os@ Escrow. The Purchaser's obligation to complete the purchase of the Property and Close the Escrow shall be conditioned upon the fulfillment of the following conditions precedent, all of which shall be satisfied (or waived in writing pursuant to Section 2.19) prior to the Close of Escrow: (1) The Agency shall not have defaulted on any material term of this Agreement to be performed by the Agency, hereunder, and each representation and warranty made by the Agency in this Agreement shall remain true and correct. For purposes of this subsection (1) only, a representation that is limited to the Agency's knowledge or notice shall be false, if the factual matter that is subject to the representation is false, notwithstanding any lack of knowledge or notice to the Agency; (2) the Purchaser's approval of the Preliminary Title Report and the Survey, if applicable, within the time periods specified in Sections 2.13 and 2.14; (3) the Purchaser's approval of the contents of all due diligence items, and the other investigations of the Property made by the Purchaser and/or its designees pursuant to Sections 2.08 and 2.09 herein, on or before the expiration of the Due Diligence Period, or such later date, if the Due Diligence Period is extended pursuant to Section 2.15. The Purchaser shall be deemed to have disapproved such due diligence items unless they are approved on or before 5: 00 p.m. on the day ending the Due Diligence Period, or such later date, if the Due Diligence Period is extended pursuant to Section 2.15 herein; and (4) the Title Company has committed to issue the Title Policy, in favor of the Purchaser in the form described in Section 2.05. Section 2.17. The Aaencv's Conditions Precedent to Close of Escrow. The Agency's obligation to convey the Property to the Purchaser shall be conditioned upon the fulfillment of the following conditions precedent, all of which shall be satisfied (or waived in writing pursuant to Section 2.19) prior to the Close of Escrow: SBEO/0001/DOC/4156-1 8/25/00 drh 15 (1) the Purchaser has accepted the condition of the Property and submitted its Due Diligence Approval Certification to the Escrow Holder on or before the date set forth in Section 2.10 of this Agreement; (2) the Purchaser has accepted the condition of title of the Property on or before the date set forth in Section 2.13; (3) the Purchaser shall not be in default of any material term of this Agreement to be performed by the Purchaser hereunder and each representation and warranty of the Purchaser made in this Agreement shall remain true and correct; and (4) the Purchaser shall be satisfied (or waive satisfaction) of each of the conditions precedent set forth in Section 2.16 and the Escrow shall be in a condition to close within sixty (60) days following the Opening of Escrow (subject to Section 2.15, if applicable). Section 2.18. Distribution of Documents and Purchase Price After Closina Date bv Escrow Holder. The Escrow Holder shall deliver to the Purchaser, within three (3) business days following the Closing Date, a conformed copy of the Agency Grant Deed, as recorded, and the policy of title insurance issued by the Title Company in favor of the Purchaser. The Escrow Holder shall deliver to the Agency the Purchase Price, less sums paid to discharge any liens, less Escrow costs, expenses and the various prorations chargeable to the Agency hereunder. Section 2.19. Satisfaction of Conditions. Where satisfaction of any of the foregoing conditions requires action by the Purchaser or by the Agency, each party shall use its best efforts, in good faith, and at its own cost, to satisfy such conditions. Where satisfaction of any of the foregoing conditions requires the approval of a party, such approval shall be in such party's sole and absolute discretion. Either party may waive any of the conditions set forth in this Agreement, but any such waiver shall be effective only if contained in a writing signed by the applicable party and delivered to the Escrow Holder. Section 2.20. [RESERVED -- NO TEXT] SBEO/0001/DOC/4156-1 8/25/00 drh 16 S@ction 2.21. Prcrations. Closina Costs. Pos~ession. (a) Real and personal property taxes for the Property shall be prorated by the parties to the Close of Escrow on the basis of a three hundred sixty-five (365) day year. The Agency is responsible for (i) all taxes (if any) for the fiscal year of the applicable taxing authority occurring prior to the Current Tax Period (as defined below) and (ii) that portion of such taxes for the Current Tax Period to 11:59 p.m. upon the Close of Escrow, whether or not the same shall be payable prior to the Close of Escrow. The phrase "Current Tax Period" refers to the fiscal year of the applicable taxing authority in which the Close of Escrow occurs. All tax prorations shall be based upon the latest available tax statement. If the tax statements for the fiscal tax year during which the Close of Escrow occurs do not become available until after the Close of Escrow, then the rates and assessed values of the previous year, with known changes, shall be used, and the parties shall re-prorate said taxes outside of Escrow following the Close of Escrow when such tax statements become available. The Agency shall be responsible for and shall payor reimburse the Purchaser upon demand for any real or personal property taxes payable following the Close of Escrow applicable to any period of time prior to the Close of Escrow as a result of any change in the tax assessment by reason of reassessment, changes in use of the Property, changes in ownership, errors by the Assessor or otherwise. (b) The Purchaser shall be entitled to exclusive possession of the Property immediately upon the Close of Escrow. (c) The Agency shall pay the cost of the premium for an ALTA policy of title insurance on the Property in the amount of the Purchase Price, together with all title charges (including endorsements reasonably requested by the Purchaser to remove disapproved items shown on the Preliminary Title Report or Survey pursuant to Sections 2.13 and 2.14 above). The Agency shall pay one-half (~) of the customary and reasonable escrow fees which may be charged by the Escrow Holder in connection with the Close of Escrow. The Purchaser shall pay the additional cost of the Survey and requested ALTA survey policy endorsements (to the extent such endorsements are unrelated to removal of any disapproved items shown on the Preliminary Title Report or Survey pursuant to Sections 2.13 and 2.14 above) which exceeds the premium for an ALTA policy of title insurance on the Property, plus the cost of recording the Agency Grant Deed, together with one-half (~) of the cost of the customary and reasonable escrow fees charged by Escrow SBEO/0001/DOc/4156-1 8/25/00 drh 17 Holder in connection with the Close of Escrow. The Purchaser shall pay any documentary or other transfer taxes payable on account of the conveyance of the Property to the Purchaser. Any other Escrow-related transaction expenses or escrow closing costs incurred by the Escrow Holder in connection with this transaction shall be apportioned and paid for by the parties to this Agreement in the proportion of one-half (~) payable by each party. No later than three (3) business days prior to the Close of Escrow, the Escrow Holder shall prepare a closing statement ("Closing Statement") on the Escrow Holder's standard form indicating, among other things, the Escrow Holder's estimate of all closing costs, pay-off amounts for the release and reconveyance of all liens secured by the Property and prorations made pursuant to this Agreement for approval by the Purchaser and the Agency. The Purchaser and the Agency shall assist the Escrow Holder in determining the amount of all prorations. Section 2.22. BREACH OF ARTICLE II BY THE AGENCY; LIOUIDATED DAMAGES PAYABLE BY THE AGENCY TO THE PURCHASER. IN THE EVENT THAT THE AGENCY COMMITS A MATERIAL BREACH OF ITS OBLIGATIONS UNDER THIS ARTICLE II PRIOR TO THE CLOSE OF ESCROW, THE DAMAGES THAT THE Purchaser WILL INCUR BY REASON THEREOF ARE AND WILL BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTABLISH. THE Purchaser AND THE AGENCY, IN A REASONABLE EFFORT TO ASCERTAIN WHAT THE PURCHASER'S DAMAGES WOULD BE IN THE EVENT OF SUCH A DEFAULT BY THE AGENCY, HAVE AGREED THAT SUCH DAMAGES SHALL BE IN AN AMOUNT EQUAL TO THE SUM OF ONE THOUSAND DOLLARS ($1,000.00) AS LIQUIDATED DAMAGES. SUCH SUM SHALL BE PAID TO THE PURCHASER IN THE EVENT OF SUCH DEFAULT BY THE AGENCY UPON THE TERMINATION OF THIS AGREEMENT AND CANCELLATION OF THE ESCROW, AS LIQUIDATED DAMAGES, WHICH DAMAGES SHALL BE THE PURCHASER'S SOLE AND EXCLUSIVE REMEDY AT LAW OR IN EQUITY IN THE EVENT OF AND FOR SUCH DEFAULT BY THE AGENCY. WITHOUT LIMITING THE FOREGOING PROVISIONS OF THIS PARAGRAPH, THE PURCHASER WAIVES ANY AND ALL RIGHTS WHICH THE PURCHASER OTHERWISE WOULD HAVE HAD UNDER CIVIL CODE SECTION 3389 TO SPECIFICALLY ENFORCE THIS AGREEMENT. THE PURCHASER AND THE AGENCY ACRNOWLEDGE AND AGREE THAT EACH OF THEM HAS READ AND UNDERSTANDS THE PROVISIONS OF THIS SECTION AND EACH AGREES TO BE BOUND BY ITS TERMS. Initials of Purchaser Initials of Agency SBEO/0001/DOc/4156-1 8/25/00 drh 18 Section 2.23. BREACH BY THE PURCHASER OF ARTICLE II: LIOUIDATED DAMAGES PAYABLE BY THE PURCHASER TO THE AGENCY. IN THE BVlD1'.r THAT TD PURCHASBR COIGaTS A MATBlUAL BREACH OF ITS OBLIGATIONS UNDBR THIS ARTICLB II PRIOR TO THE CLOSE OF ESCROW, THE DAMAGES THAT THE AGENCY WILL INCUR BY REASON THEREOF ARE AND WILL BE IMPRACTICAL AND EXTREMELY DIF!'ICULT TO ESTABLISH. THE PURCHASER AND THE AGENCY I IN A REASONABLE EFFORT TO ASCERTAIN WHAT THE AGENCY'S DAMAGES WOULD BE IN THE BVlD1'.r OF SUCH A DEFAULT BY THE PURCHASER, HAVE AGBBED THAT SUCH DAMAGES SHALL BE IN AN AMOUNT EQUAL TO THE SUM OF ONE THOUSAND DOLLARS ($1,000.00) AS LIQUIDATED DAMAGES. SUCH SUM SHALL BE PAID TO THE AGENCY IN THE EVENT OF SUCH DEFAULT BY THE PURCHASER AS LIQUIDATED DAMAGES, WHICH DAMAGES SHALL BE THE AGENCY'S SOLE AND EXCLUSIVE REMEDY AT LAW OR IN EQUITY IN THE EVENT OF AND FOR SUCH DEFAULT BY THE PURCHASER. WITHOUT LIMITING THE FOREGOING PROVISIONS OF THIS PARAGRAPH, THE AGENCY WAIVES ANY AND ALL RIGHTS WHICH THE AGENCY OTHERWISE WOULD HAVE HAD UNDER CIVIL CODE SECTION 3389 TO SPECIFICALLY ENFORCE THIS AGREEMENT. THE AGENCY AND THE PURCHASER ACRNOWLEDGE AND AGREE THAT EACH OF THEM HAS READ AND UNDERSTANDS THE PROVISIONS OF THIS SECTION AND EACH AGREES TO BE BOUND BY ITS TERMS. Initials of Purchaser Initials of Agency Section 2.24. Damaae. Destruction and Condemnation. Prior to the Agency's delivery of possession of the Property to Purchaser at the Close of Escrow, the risk of loss or damage to the Property shall remain upon the Agency. If the Property suffers damages as a result of any casualty, prior to the Close of Escrow, which may materially diminish its value, then the Agency shall give written notice thereof to Purchaser promptly after the occurrence of the casualty. Thereafter the Purchaser can elect to either: (i) accept the Property in its damaged condition or (ii) the Purchaser may terminate this Agreement and recover the Deposit, as set forth in Section 2.02. The Purchaser shall confirm the exercise of its election under subparagraph (i) or (ii) of the preceding sentence within thirty (30) days of its receipt of notice from the Agency that the Property suffered material damages. In the event that, prior to the Close of Escrow, any governmental entity shall commence any actions of eminent domain or similar type proceedings to take any portion of the Property, the Agency shall give prompt written notice thereof to Purchaser, and Purchaser shall have the option either: (i) to elect not to acquire the Property, terminate the Agreement and recover the Deposit, as set forth in Section 2.02; or (ii) the Purchaser may complete the SBEO/0001/DOc/4156-1 8/25/00 drh 19 ~- acquisition of the Property under this Agreement, in which case the Purchaser shall be entitled to all of the proceeds paid in compensation for such taking; provided, however, that the Agency agrees that it shall not settle or compromise the proceedings before the Close of Escrow without the Purchaser's prior written consent, which consent will not be unreasonably withheld or delayed. The Purchaser shall confirm the exercise of its election under subparagraph (i) or (ii) of the preceding sentence within thirty (30) days of its receipt of notice from the Agency of commencement of eminent domain proceedings against the Property. ARTICLE III USE AND MAINTENANCE OF THE PROPERTY Section 3.01. Use of the ProDerty. The Purchaser covenants and agrees for itself, its successors and assigns that the Property shall be used in conformity with all applicable laws. Section 3.02. Maintenance Purchaser for itself, its successors and agrees that: of the PrODertv. The and assigns hereby covenants ...., '...; (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 twenty (20) years following the date of recordation of the Agency Grant Deed there is an occurrence of an adverse condition on any area of the Property which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Purchaser in writing of the Maintenance Deficiency and give the Purchaser thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as identified in the notice. In the event the Purchaser 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 Purchaser ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Purchaser has failed to comply with the provisions of this Section 3.02 (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 SBEO/0001/DOc/4156-1 8/25/00 drh 20 or in equity which 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 3.02(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 Purchaser, the Agency shall have the right to enforce the lien in the manner as provided in Section 3.02(c). (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of the building or any other structure on the Property which is visible from any public right-of-way adjacent or contiguous to the Property, shall be removed by the Purchaser 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 notice to the Purchaser. Any sum expended by the Agency for the removal of graffiti from the Property authorized by this Section 3.02(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 to the Purchaser by the Agency, the Agency shall have the right to enforce its lien in the manner provided in Section 3.02(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 3.02 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 an amount reasonably necessary to restore the Property to the maintenance standard required under Section 3.02 (a) or Section 3.02(b), including the reasonable attorneys' fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti. For the purposes of the preceding sentence the words "reasonable attorneys' fees and costs of the Agency" mean and include the salaries, benefits and costs of the City Attorney and the lawyers employed in the Office of the City Attorney The provisions of this Section 3.02 shall be a covenant running with the land for a term of twenty (20) years following the date of recordation of the Agency Grant Deed, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section 3.02 shall be deemed to preclude the Purchaser from making any alteration, addition, or other change to any structure or SBEO/0001/DOc/4156-1 8/25/00 drh 21 improvement or landscaping on the Property, provided that any such changes comply with applicable zoning and building regulations of the City. Section 3.03. Taxes and Assessments. The Purchaser shall pay, prior to delinquency, all real property taxes and assessments assessed and levied upon or against the Property subsequent to the Close of Escrow. Nothing herein contained shall be deemed to prohibit the Purchaser from contesting the validity or amounts of any tax or assessment, nor to limit the remedies available to the Purchaser in respect thereto. Section 3.04. Transfer of Prooerty to Exemot Person. The Purchaser covenants and agrees that in the event that the Property, or any portion thereof, shall be conveyed or transferred or sold by the Purchaser, its successors or assigns, to any entity or party that is partially or wholly exempt from the payment of ~ valorem property taxes pertinent to the Property, or any portion, within twenty (20) years from the date of recordation of the Agency Grant Deed, the Purchaser, its heirs or assigns shall pay the Agency a fee in lieu of payment of such taxes each year in an amount which is determined by the Agency to be one percent (1.0%) of the full cash value of the Property, or portion thereof, as may be subject to such exemption from payments of ~ valorem property taxes. Such determination of ~full cash value" for such in-lieu payment purposes under this Section 3.04 shall be established by the Agency each year, if necessary, by reference to the ~ valorem property tax valuation principles and practices as generally applicable to a county property tax assessor under Section 2 of Article XIIIA of the California Constitution. In the event that the Agency may hereafter determine that an amount is payable by the Purchaser to the Agency as an in-lieu payment under this Section 3.04 in any tax year, then such amount shall be paid to the Agency for that tax year within ninety (90) days following transmittal of notice of invoice for payment of the in-lieu amount by the Agency to the Purchaser. The provisions of this covenant shall be referenced in the Agency Grant Deed. Section 3.05. Obliaation to Refrain from Discrimination. The Purchaser covenants and agrees for itself, its successors, its assigns and every successor-in-interest to the Property or any part thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of sex, marital status, race, color, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property; nor shall the Purchaser, itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or SBEO/0001/DOC/4156-1 8/25/00 drh 22 segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The covenant of this Section 3.04 shall run with the land for the time period set forth in the Agency Grant Deed. S@ction 3.06. Form of Nondiscrimination and NonseQ'reaation Clauses. The Purchaser covenants and agrees for itself, its successors, its assigns, and every successor-in- interest to the Property, or any part thereof, that the Purchaser, such successors and such assigns shall refrain from restricting the sale, lease, sublease, rental, transfer, use, occupancy, tenure or enjoyment of the Property (or any part thereof) on the basis of sex, marital status, race, color, religion, creed, ancestry or national origin of any person. All deeds, leases or contracts pertaining thereto shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) In deeds: "The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee 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, sublessee, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." (2) In leases: "The Lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee itself, or any person claiming under or through it, establish or permit any such practice or practices SBEO/0001/DOc/4156-1 8/25/00 drh 23 of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants lessees, sublessee, subtenants, or vendees in the premises herein leased." (3) In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed or leased, nor shall the transferee 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, sublessees, subtenants, or vendees of the premises herein transferred." The foregoing provision shall be binding upon and shall obligate the contracting party or parties and any subcontracting party or parties, or other transferees under the instrument. The covenant of this Section 3.05 shall run with the land in perpetuity. ARTICLE IV DEFAULTS. REMEDIES AND TERMINATION Section 4.01. Defaults - General. (a) In the event that a breach or default may occur prior to the Close of Escrow, the remedies of the parties shall be as set forth in Article II of this Agreement. (b) From and after the Close of Escrow and subject tc the extensions of time set forth in Section 5.05 hereof, failure or delay by either party to perform any term or provision of this Agreement shall constitute a default under this Agreement; provided, however, that if a party otherwise in default commences to cure, correct or remedy such default within thirty (30) calendar days after receipt of written notice from the injured party specifying such default, and shall diligently and continuously prosecute such cure, correction or remedy to completion (and where any time limits for the completion of such cure, correction or remedy are specifically set forth in this Agreement, then within said time limits), such party shall not be deemed to be in default hereunder. SBEO/0001/DOc/4156-1 8/25/00 drh 24 (c) The injured party shall give written notice of default to the party in default, specifying the default complained of by the nondefaulting party. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default. (d) Any failure or delays by either party in asserting any of their rights and/or remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies. Delays by either party in asserting any of their rights and/or remedies shall not deprive either party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. Section 4.02. Leaal Actions. (a) In addition to any other rights or remedies, either party may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purposes of this Agreement. Such legal actions must be instituted in the Superior Court of the State of California in and for the County of San Bernardino in any other appropriate court within said County, or in the Federal District Court for the Central District of California. (b) The laws of the State of California shall govern the interpretation and enforcement of this Agreement. (c) In the event that any legal action is commenced by the Purchaser against the Agency, service of process on the Agency shall be made by personal service upon the Executive Director or Chair of the Community Development Commission, or in such other manner as may be provided by law. (d) In the event that any legal action is commenced by the Agency against the Purchaser, service of process on the Purchaser shall be made by personal service on Jerry Burns and/or Lila Burns, or in such other manner as may be provided by law, and shall be valid whether made within or without the State of California. Section 4.03. Riahts and Remedies are Cumulative. Except with respect to any rights and remedies expressly declared to be exclusive in Article II of this Agreement as relates to a default or breach occurring before the Close of Escrow, the rights and remedies of the parties as set forth in this Article V following the Close of Escrow are cumulative and the exercise by SBEO/0001/DOc/4156-1 8/25/00 drh 25 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. .j Section 4.04. Damaqes. If either party defaults with regard to any provision of this Agreement, the nondefaulting party shall serve written notice of such default upon the defaulting party. If the defaulting party does not diligently commence to cure such default after service of such notice of default and promptly complete the cure of such default within a reasonable time, not to exceed ninety (90) calendar days (or such shorter period as may otherwise be specified in this Agreement for default), after the service of written notice of such a default. In the event that a default relates to a matter arising after the Close of Escrow, the defaulting party shall be liable to the other party for damages caused by such default. In the event that a default relates to a matter arising before the Close of Escrow, the remedies of the parties shall be limited to the liquidated damage sums as set forth in Article II of the Agreement. Section 4.05. Specific Performance Prior to Close of Escrow. Prior to the Close of Escrow neither party shall have or assert the equitable remedy of specific performance in the event of a default or breach, and the remedies of the parties with respect to such a breach or default prior to the Close of Escrow shall be limited to the termination rights and liquidated damage amounts set forth in Article II of this Agreement. ARTICLE V GENERAL PROVISIONS Section 5.01. Notices. Between the Parties. Demands and Communications (a) Any and all notices, demands or communications submitted by any party to another party pursuant to or as required by this Agreement shall be proper if in writing and dispatched by messenger for immediate personal delivery, or by registered or certified United States mail, postage prepaid, return receipt requested, to the principal office of the Agency and the Purchaser, as applicable, as designated in Section 1.04(a) and Section 1.04(b) hereof. Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time to time designate, as provided in this Section. Any such notice, demand or communication shall be deemed to be received by the addressee, regardless of whether or when any return receipt is SBEO/D001/DOc/4156-1 8/25/00 drh 26 . received by the sender or the date set forth on such return receipt, on the day that it is dispatched by messenger for immediate personal delivery, or two (2) calendar days after it is placed in the United States mail, as heretofore provided. (b) In addition to the submission of notices, demands or communications to the parties as set forth above, copies of all notices shall also be delivered by facsimile as follows: to the Purchaser: Jerry and Lila Burns High Desert Cable, Inc. 275 South uG" Street San Bernardino, California 92401 Fax the Agency: Redevelopment Agency of the City of San Bernardino 201 North UE" Street Suite 301 San Bernardino, California 92401 FAX: (909) 384-5135 with copy to: Sabo & Green, LLP 201 North UE" Street Suite 300 San Bernardino, California 92401 FAX: (909) 383-9378 Section 5.02. Conflict of Interest. No member, official or employee of the Agency having any conflict of interest, direct or indirect, related to this Agreement and the development of the Property shall participate in any decision relating to the Agreement. The parties represent and warrant that they do not have knowledge of any such conflict of interest. Section 5.03. Warranty Aaainst Pavment of Consideration for Agreement. The Purchaser warrants that it has not paid or given, and will not payor give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section, shall not include persons to whom fees are paid for professional services if rendered by attorneys, financial consultants, accountants, engineers, architects and the like when such fees are considered necessary by the Purchaser. Section 5.04. Nonliabilitv of Aaencv Officials and Emolovees. No member, official or employee of the Agency shall be personally liable to the Purchaser, or any successor in interest, SBEO/0001/DOc/4156-1 8/25/00 drh 27 . in the event of any default or breach by the Agency or for any amount which may become due to the Purchaser or to its successor, or on any obligations under the terms of this Agreement, except for gross negligence or willful acts of such member, officer or employee. Section 5.05. Enforced D~lav: Extension of Time of Performance. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default, or considered to be a default, where delays or defaults are due to the force majeure events of war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes or lack of transportation, weather-caused delays, inability to secure necessary labor, materials or tools, delays of any contractors, subcontractor or supplier, which are not attributable to the fault of the party claiming an extension of time to prepare or acts or failure to act of any public or governmental agency or entity (provided that acts or failure to act of the City or Agency shall not extend the time for the Agency to act hereunder except for delays associated with lawsuit or injunction including but without limitation to lawsuits pertaining to the approval of the Agreement, and the like). An extension of time for any such force majeure cause shall be for the period of the enforced delay and shall commence to run from the date of occurrence of the delay; provided however, that the party which claims the existence of the delay has first provided the other party with written notice of the occurrence of the delay within ten (10) days of the commencement of such occurrence of delay. The parties hereto expressly acknowledge and agree that changes in either general economic conditions or changes in the economic assumptions of any of them which may have provided a basis for entering into this Agreement and which occur at any time after the execution of this Agreement, are not force majeure events and do not provide any party with grounds for asserting the existence of a delay in the performance of any covenant or undertaking which may arise under this Agreement. Each party expressly assumes the risk that changes in general economic conditions or changes in such economic assumptions relating to the terms and covenants of this Agreement could impose an inconvenience or hardship on the continued performance of such party under this Agreement, but that such inconvenience or hardship is not a force majeure event and does not excuse the performance by such party of its obligations under this Agreement. Section 5.06. Insoection of Books and Records. The Agency shall have the right at all reasonable times at the Agency's SBEO/0001/DOc/4156-1 8/25/00 drh 28 . cost and expense to inspect the books and records of the Purchaser pertaining to the Property and/or the development thereof as necessary for the Agency, in its reasonable discretion, to enforce its rights under this Agreement. Matters discovered by the Agency shall not be disclosed to third parties unless required by law or unless otherwise resulting from or related to the pursuit of any remedies or the assertion of any rights of the Agency hereunder. The Purchaser shall also have the right at all reasonable times to inspect the books and records of the Agency pertaining to the Property and/or the development thereof as pertinent to the purposes of this Agreement. Section 5.07. Ap9rovals. (a) Approvals required of the Agency or the Purchaser, or any officers, agents or employees of either the Agency or the Purchaser, shall not be unreasonably withheld and approval or disapproval shall be given within the time set forth in the Schedule of Performance or, if no time is given, within a reasonable time. (b) to sign on his which are of adjustments to The Executive Director of the Agency is authorized or her own authority amendments to this Agreement routine or technical nature, including minor the Schedule of Performance. Section 5.08. Real Estate Commissions. The Agency and the Purchaser acknowledge that the Agency has retained Robbins and Associates as the Agency's agent in connection with the purchase of the Property. The Agency shall pay all fees or commissions or other expenses related to its retention or employment of Robbins and Associates. Section 5.09. Indemnification. The Purchaser agrees to indemnify and hold the City and the Agency, and their officers, employees and agents, harmless from and against all damages, judgments, costs, expenses and fees arising from or related to any act or omission of the Purchaser in performing its obligations hereunder. The Agency agrees to indemnify and hold the Purchaser and its officers, employees and agents, harmless from and against all damages, judgments, costs, expenses and fees arising from or related to any act or omission of the Agency in performing its obligations hereunder. Section 5.10. Release of Purchaser from Liabilitv. Notwithstanding any provision herein to the contrary, the Purchaser shall be relieved of any and all liability for the obligations of the Purchaser hereunder with regard to the Property when a SBEO/0001/DOc/4156-1 8/25/00 drh 29 . Certificate of Completion has been issued by the Agency hereunder with respect thereto, other than any covenants and obligations provided by the grant deed by which the Property is conveyed to the Purchaser hereunder. Section 5.11. Attornevs' Fees. If either party hereto files any action or brings any action or proceeding against the other arising out of this Agreement, seeks the resolution of disputes pursuant to Section 4.02 hereof, or is made a party to any action or proceeding brought by the Escrow Agent, then as between the Purchaser and the Agency, the prevailing party shall be entitled to recover as an element of its costs of suit or resolution of disputes pursuant to Section 5.12 hereof, and not as damages, its reasonable attorneys' fees as fixed by the Court or other forum for resolution of disputes as set forth in Section 5.12 hereof, in such action or proceeding or in a separate action or proceeding brought to recover such attorneys' fees. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement shall be considered as "attorneys' fees" for purposes of this Section. Section 5.12. Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns. ARTICLE VI ENTIRE AGREEMENT. WAIVERS AND AMENDMENT Section 6.01. Entire Aareement. (a) This Agreement shall be executed in four (4) duplicate originals each of which is deemed to be an original. This Agreement includes ____ pages and ____ attachments, which constitute the entire understanding and Agreement of the parties. (b) This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to all or any portion of the Property and the development thereof. (c) conditions set with the grant Agreement shall such conveyance None of the terms, covenants, agreements or forth in this Agreement shall be deemed to be merged deed conveying title to the Property, and this continue in full force and effect before and after until issuance of the Certificate of Completion. SBEO/0001/DOc/4156-1 8/25/00 drh 30 (d) All waivers of the provisions of this Agreement and all amendments hereto must be in writing and signed by the appropriate authorities of the Agency and the Purchaser. SBEO/0001/DOc/4156-1 8/25/00 drh 31 . IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the dates set forth below. AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Judith Valles Chair of the Community Development Commission Date: By: Gary Van Osdel Executive Director APPROVED AS TO FORM: Agency Counsel Purchaser Date: Jerry Burns Date: Lila Burns [All Signatures Must Be Notarized] 32 . CAUFORNIA ALL-PURPOSE ACKNOWLEDGMENT County of ) ) ss. ) State of California On . before me, Name and Tille of OlIicer (e.g., "Jane Doe, Notary Public") Date personally appeared Name(s) of Signer(s) D personally known to me D provided to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislherllheir authorized capacity(ies), and that by hislherllheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form /0 another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual D Corporate Officer - Title( s): D Partner - D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Right Thumbprint of Signer Signer is Representing: . CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT County of ) ) ss. ) State of California On , before me, Name and rotle of Officer (e.g., . Jane Doe, Notary Publlcj Date personally appeared Name(s) of Signer(s) a personally known to me a provided to me on the basis of satisfactory evidence to be the person(s) whose name(s) isfare subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to pelSons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: a Individual a Corporate Officer - Title(s): a Partner - a Limited a General a Attorney in Fact a Trustee a Guardian or Conservator a Other: Right Thumbprint of Signer Signer is Representing: , . SBEO/0001/DOc/4156-1 8/25/00 drh EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Exh. "A" - 1 , . EXHIBIT "B" AGENCY GRANT DEED SBEO/0001/DOc/4156-1 8/25/00 drh Exh. "B" - 1 GRANT n121m Recording Requested By and After Recording Mail To: Jerry and Lila Burns 275 South "G" Street San Bernardino, CA (Space Above for Recorder's Use) For valuable consideration, the receipt of which is hereby acknowledged, the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic of the State of California ("Grantor") hereby grants to Jerry Burns and Lila Burns, husband and wife ("Grantee") the real property legally described in Exhibit A and by this reference incorporated herein ("Property"). 1. The Property is conveyed subject to that certain Disposition and Development Agreement dated as of 2000 ("Agreement"). The provisions of the Agreement are incorporated herein by this reference and shall be deemed to be a part hereof as if set forth at length herein. 2. The Grantee covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enj oyment of the Property, nor shall the Grantee 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 in or on the Property. All deeds, leases or contracts made relative to the Property shall contain the following nondiscrimination clauses: (a) In deeds: "The grantee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital SBEO/0001/DOc/4164 8/24/00 215 ct 1 .. .. status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee, or any person claiming under or through the grantee, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, locations, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in or on the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The lessee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall the lessee 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 in the land herein leased." (c) In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee 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 land." 3. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument permitted by the Agreement; provided, however, SBEO/0001/DOc/4164 8/24/00 215 ct 2 " that any successor of Grantee to the Property shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such successor's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 4. The terms and conditions set forth in Article III of the Agreement and the covenants otherwise contained in this Grant Deed shall remain in effect for a period of five (5) years from the date hereof, except that the covenants against discrimination set forth in Article IV of the Agreement shall remain in effect in perpetuity. 5. The covenants contained in this Grant Deed shall be binding for the benefit of the Grantor and its successors and assigns, and such covenants shall run in favor of the Grantor for the entire period during which such covenants shall be in full force and effect, without regard to whether the Grantor is or remains an owner of any land or interest herein to which such covenants relate. The Grantor, in the event of any breach of any such covenants, shall have the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings, to enforce the curing of such breach as provided in the Agreement or by law. The covenants contained in this Grant Deed shall be for the benefit of and shall be enforceable only by the Grantor and its successor. SBEO/0001/DOc/4164 8/24/00 215 ct 3 . . IN WITNESS WHEREOF, the Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers thereunto duly authorized this day of , 2000. [SIGNATURES TO BE ACKNOWLEDGED FOR RECORDATION] APPROVED AS TO FORM: SABO & GREEN, LLP By: ~K~ Agency Special Counsel Grantor: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Chairperson By: Secretary accepted. The provisions of this Grant Deed are hereby approved and SBEO/0001/DOc/4164 8/24/00 215 ct Grantee: Jerry Burns Lila Burns 4 . . CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT County of ) ) ss. ) State of California On . before me, Name and Tille of Otficer (e.g., 'Jane Doe, Notary Public") Date personally appeared Name(s) of Signer(s) o personally known to me o provided to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in hislherltheir authorized capacity(ies), and that by hislherltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual o Corporate Officer - Title(s): o Partner - 0 Umited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: Right Thumbprint of Signer Signer is Representing: . .. ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): q-l y,-e:o Item # Q 3 \ A Vote: Ayes 1-'") Nays -e- Abstain Change to motion to amend original documents: Resolution # 2CJ:::lU- Z q \ B- Absent -e ~<\E:E f25so. crx:./-zCCO-2', \ I Reso. # On Attachments: - Contract tenn: ~ Null/Void After: - Date Sent to Mayor: q-1.cJ-()() Date Returned from Mayor: Date of Clerk's Signature: q - d 1-00 Reso. Log Updated: q-.;l.~-CO ,/ Date of Mayor's Signature,c{- .;;;a-CD Seal Impressed: y'" Date Memo Sent to Department for Signature: See Attached: _-Date Returned: Date Letter Sent to Outside Party for Signature: 60 Day Reminder Letter Sent on 30th day: 90 Day Reminder Letter Sent on 45th day: See AttaChed:t Date Returned: See Attached: See Attached: Note on Resolution of Attachment stored separately: -=- Direct City Clerk (circle i): PUBLISH, POST, RECORD W/COUNTY Date: See Attached: - Request for Council Action & Staff Report Attached: Yes /" Updated Prior Resoiutions (Other Than Below): Yes Updated CITY Personnel Folders (64i3, 6429, 6433,10584,10585, i2634): Yes Updated CDC Personnel Folders (5557): Yes Updated Traffic Folders (3985, 8234,655,92-389): Yes No By No-L By No ,/ By No ..L- By No / By Copies Distributed to: City Attorney /" Parks & Rec. EDA ,/ Others: Finance MIS Code Compliance Dev. Services Police Public Services Water 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:~ Date: <1'- 2Z-ro .. .... ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): q - \ g -00 Item # Vote: Ayes 1-'1 Nays -G Change to motion to amend original documents: R-0lB Resolution # Abstain .-e--- r:..R'. cD::.- /7()(D-3 I Absent -B- /2€sC. 2cm- 2<:( I Reso. # On Attachments: .'-- Contract teoo: NulVVoid After: (tT .1 'g.7.CJ:X) Date Sent to Mayor: q - ZO -CD Date Returned from Mayor: Date of~ Signature: q- 2. '-00 Reso. Log Updated: tOtJA q - .Q. \-<::C / Date of Mayor's Signature: 9-~o-oO Seal Impressed: v'" wi A Date Memo Sent to Department for Signature: See Attached: _ -flate Returned: , See AttaChed:~ Date Returned: See Attached: See Attached: ~ Date Letter Sent to Outside Party for Signature: 60 Day Reminder Letter Sent on 30th day: 90 Day Reminder Letter Sent on 45th day: Note on Resolution of Attachment stored separately: -==- Direct City Clerk (circle I): PUBLISH, POST, RECORD W/COUNTY Date: See Attached: - - Yes / No By Yes No ----L- By Yes NO-L By Yes No ---L By Yes No -L By Request for Council Action & StalT 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 Police Public Services EDA / Finance MIS Water Others: 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: ~ Date: g- 22-~