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HomeMy WebLinkAbout12-19-1988 Regular Meeting SHAUNA CLARK, CITY CLERK (2 SETS) 21 Floor A' REGULJ COMMUNITY DEVELOPMENT COMtw11~~.1UrHI\t.LlL"L.L."" ..-... December 19, 1988 - 11 :00 a.m. CALL TO ORDER ROLL CALL PRESENT: ABSENT: A. PUBLIC COMMENTS ON ITEMS NOT ON AGENDA: CONSENT CALENDAR Motion: That the motions, indicated by Consent Calendar Items 1 through 2, be adopted, except for ____'____'____1____. 1. Community Development Commission/Redevelopment Agency of the City of San Bernardino Minutes. (See Attached) MOTION: That the minutes of the meeting of the Community Development Commission/Redevelopment Agency of the City of San Bernardino held on December 5, 1988, be approved as submitted in typewritten form. v CONTINUED FROM NOVEMBER 7, 1988 2. SEIP - Auto Plaza - Friedlander Default - Parcel 6 of Parcel Map 9713, to be continued to Tuesday, January 17, 1989. (See Attached) MOTION: That the request to continue to Tuesday, January 17, 1988, be approved. END OF CONSENT CALENDAR / STAFF REPORTS 3. Cost of Living adjustments for the Management and Confidential Employees of the Redevelopment Agency of the City of San Bernardino. (See Attached) MOTION: To approve 5% cost of living adjustments for the #1 Management and Confidential Employees of the Redevelopment Agency of the City of San Bernardino effective January 1, 1989. MOTION: That the request to provide two additional days of #2 administrative leave per year be approved. MOTION To approve the request to increase the Redevelopment #3 Agency's Budget Line Item of Salaries and Benefits Account No. 50101 in the amount of $11,065.00 for the Fiscal Year 1988-89. v 4. Shandin Hills Golf Course request to renew Note between First Interstate Bank and the Redevelopment Agency. (See Attached) MOTION: #1 v MOTION: #2 That the request to authorize the Executive Director of the Redevelopment Agency to execute, on behalf of the Community Development Commission of the City of San Bernardino, the attached Note with First Interstate Bank in the amount of $253,400.00 be approved. v That the request to authorize renewal of the attached Promissory Note with Shandin Hills Golf Club in the amount of $253,400.00 under the same terms and conditions as the Note with First Interstate Bank be approved. 5. San Bernardino Valley Municipal Hater District - Proposed Settlement. (See Attached) MOTION: ,yl ~ Ii'~ , ' /''' v' if :v\ \y \ :', \J' . l,c ld (1 JI . JV \J, 1.1\1" ..li II' ,J (.,j-' \1' \ AI" \!' ,'- J~r ^ llJ lip r~ l J.!JI l' 1636H V ~ That the request to authorize execution of the attached agreements for cooperation between the Redevelopment Agency and the San Bernardino Valley Municipal Hater District be approved. 2 STAFF REPORTS 6. Request for Closed Session to discuss litigation. (See Attached) MOTION: That the Community Development Commission recess to Closed Session Pursuant to Government Code Section 54956.9(c), to decide whether to initiate litigation. HEARING TO BE HEARD AT 11:00 A.M. 7. Rockwell International - Public Hearing to approve the Lease And Option To Purchase and the execution of a Disposition and Development Agreement between Rockwell International Corporation and the Redevelopment Agency of the City of San Bernardino. (See Attached) Chairman/Mayor to open the hearing....... MOTION: That the hearing be closed. City Clerk reads resolution titles. .. i/~ ;1 U Mayor and Common Council Resolution of the City of San Bernardino approving the Lease with option to purchase of that certain property identified as APN 281-031-51 and 281-041-41, located on Cooley Avenue yJlJ.., I within the Southeast Industrial Park Project Area, by the ~J Community Development Commission of the City of San Bernardino to Rockwell International Corporation (Health and Safety Code Section 33433). #2 Community Development Commission Resolution of the Community Development Commission of the City of San Bernardino Authorizing and directing the Execution of a Disposition and Development Agreement by and among the Redevelopment Agency of the City of San Bernardino and Rockwell International Corporation. That further reading of the resolutions be waived MOTION: MOTION: That the resolutions be adopted. 3 1636H HEARING TO BE HEARD AT 11 :00 A.M.. CONTINUED FROM DECEMBER 5. 1988 8. YWCA - Joint Public Hearing to approve the sale of certain property and the execution of a Disposition Development Agreement by the Community Development Commission of the City of San Bernardino to the Young Women's Christian Association of Greater San Bernardino. (See Attached) PUBLIC HEARING PREVIOUSLY OPENED MOTION: That the hearing be closed. City Clerk reads resolution titles. (j Mayor and Common Council Resolution of the City of San Bernardino approving the Sale of that certain property identified as APN 135-061-10. located at 566 North Lugo Avenue within the Central City East ~/ Redevelopment Project Area. by the Community Development J~v . Commission of the City of San Bernardino to the Young ~~ Women's Christian Association of Greater San Bernardino (Health and Safety Code Section 33433). #2 Community Development Commission Resolution of the Community Development Commission of the City of San Bernardino, acting on behalf of the Redevelopment Agency of the City of San Bernardino, approving a certain Disposition and Development Agreement by and between the v Redevelopment Agency and Young Women's Christian Association of Greater San Bernardino, Inc. (Central City East Project Area). MOTION: That further reading of the resolutions be waived. MOTION: That the resolutions be adopted. " 1 02,/ /z/J> ,;f.-/ 9. Adjournment MOTION: That the meeting be adjourned to 11:00 a.m., on Tuesday, January 3, 1989, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. 4 1636H COMMUNITY DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO M I NUT E S REGULAR MEETING December 5. 1988 11:30 a.m. The Community Development Commission/Redevelopment Agency meeting was called to order at 11:30 a.m.. on December 5, 1988, in the Council Chambers of City Hall. 300 North "0" Street. San Bernardino, California. by Chairman Evlyn Wilcox. ROLL CALL Roll Call was taken with the following being present: Chairman Wilcox, Members Esther Estrada. Jack Reilly. Jess Flores. Tom Minor. Valerie Pope-Ludlam, Norine Miller. Absent: Michael Maudsley. STAFF PRESENT Steven H. Dukett, Executive Director; J. Lorraine Velarde, Manager. Administrative Service Division; John Hoeger, Development Division Manager; Sue Gonzales. Development Analyst; Dennis Barlow. Senior Assistant City Attorney; Bill Simon. Esq., Simon & Simon Law Firm; Doris Reese, Deputy City Clerk; Margie Vance. Recording Secretary. PUBLIC: Brief comments by general public. There were none. CONSENT CALENDAR COMMISSIONER REILLY LEFT THE COUNCIL TABLE (1) APPROVAL OF COMMISSION MINUTES Community Development Commission Commissioner Flores made a motion, seconded by Commissioner Minor to, aapprove the Commission minutes of November 21, 1988. The motion carried by the following vote: Ayes: Members Estrada, Flores, Minor. Pope-Ludlam. Miller. Noes: None. Abstain: None. Absent: Maudsley, Reilly. December 5, 1988 1594R i (2) REDEVELOPMENT CC ITTEE MINUTES Community Development Commission Commissioner Flores made a motion, seconded by Commissioner Minor to, receive and file the Redevelopment Committee minutes of October 27, 1988 and November 10, 1988. The motion carried by the following vote: Ayes: Members Estrada, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley, Reilly. (3) UPTOWN REDEVELOPMENT PROJECT AREA - CITIZEN ADVISORY COMMITTEE MINUTES Community Development Commission Commissioner Flores made a motion, seconded by Commissioner Minor to, receive and file the Uptown Redevelopment Project Area Citizen Advisory Committee Minutes of October 20, 1988. The motion carried by the following vote: Ayes: Members Estrada, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley, Reilly. (4) SEIP - AUTO PLAZA - FRIEDLANDER DEFAULT - PARCEL 6 OF PARCEL MAP 9713 (continued from November 7, 1988) Community Development Commission Commissioner Flores made a motion, seconded by Commissioner Minor to, continue this matter to December 19, 1988. The motion carried by the following vote: Ayes: Members Estrada, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley, Reilly. END OF CONSENT CALENDAR COMMISSIONER POPE-LUDLAM LEFT THE COUNCIL TABLE A discussion ensued. Chairman Wilcox requested that Item 11 be taken up at this time. 2 December 5, 1988 1594R (11) CLOSED SESSION Mayor and Common Council Proceed to conduct a Closed Session pursuant to Government Code Section 54956.8, to discuss with its negotiator the purchase, sale, exchange or lease of real property, and to give instructions to its negotiator concerning the price and terms of payment for the purchase, sale, exchange or lease of real property. The real property which the negotiations concern is generally located at 1535 W. Highland. Councilmember Estrada made a motion, seconded by Councilmember Flores to, recess to Closed Session. The motion carried by the following vote: Ayes: Members Estrada, Flores, Minor, Miller. Noes: None. Abstain: None. Absent: Reilly, Mauds1ey, Pope-Ludlam. Community Development Commission Proceed to conduct a Closed Session pursuant to Government Code Section 54956.8, to discuss with its negotiator the purchase, sale, exchange or lease of real property, and to give instructions to its negotiator concerning the price and terms of payment for the purchase, sale, exchange or lease of real property. The real property which the negotiations concern is generally located at 1535 W. Highland. Commissioner Estrada made a motion, seconded by Commissioner Flores to, recess to Closed Session. The motion carried by the following vote: Ayes: Members Estrada, Flores, Minor, Miller. Noes: None. Abstain: None. Absent: Reilly, Maudsley, Pope-Ludlam. MEETING RECESSED At 11:42 a.m. the Community Development Commission/Redevelopment Agency recessed to Closed Session. COMMISSIONER POPE-LUDLAM DID NOT PARTICIPATE IN THE CLOSED SESSION. MEETING RECONVENED At 11:47 a.m. the Community Development Commission/Redevelopment Agency meeting was called to order by Chairman Evlyn Wilcox. COMMISSIONERS POPE-LUDLAM AND REILLY RETURNED TO THE COUNCIL TABLE ROLL CALL Roll Call was taken with the following being present: Chairman Wilcox, Members Esther Estrada, Jack Reilly, Jess Flores, Tom Minor, Valerie Pope-Ludlam, Norine Miller. Absent: Michael Maudsley. 3 December 5, 1988 l594R STAFF PRESENT Steven H. Dukett, Executive Director; J. Lorraine Velarde, Manager, Administrative Service Division; John Hoeger, Development Division Manager; Sue Gonzales, Development Analyst; Dennis Barlow, Senior Assistant City Attorney; Doris Reese, Deputy City Clerk; Margie Vance, Recording Secretary. (8) PUBLIC HEARING - YHCA (Continued from November 21, 1988) At 11:48 a.m. Chairman Hi1cox opened the Public Hearing. A discussion ensued. Dennis Barlow, Senior Assistant City Attorney addressed the Commission and stated that he was distributing for their review additional documents with regards to the lease and also the following list of proposed changes on the Lease Agreement: IIYHCA PROPOSED CHANGES TO LEASE 1. Change to Memorandum of Lease 2. 50-year renewal 3. Allow use by other than just city residents (included) 4. Delete review of insurance every three years 5. Payment of insurnace proceeds to YHCA instead of City 6. Add that upon termination of lease, YHCA to be compensated for value of improvements 7. Add condemnation awards to be paid to YHCA instead of City. 8. Clarify that short-term room rentals need not be approved by City. YHCA PROPOSED CHANGES TO SALE 1. Substitute IIresidents of San Bernardino and surrounding ares: for lIyouthll in restrictions on use (we added that language rather than substitute it) 2. Substitute IInon-profitll for not-for-profitll 3. On buy-out provision, add fair market value for improvements.1I Phil Savage, YHCA legal representative addressed the Commission and stated that the proposed changes pertaining to the sale were essentially what YHCA staff was in agreement, but that there were significant differences with regards to the lease. Furthermore, he explained that they have not had an opportunity to discuss with legal counsel some prime issues. He asked the item be continued to December 19, 1988. A lengthy discussion took place. Commissioner Estrada made a motion, seconded by Commissioner Miller, to continue the Public Hearing to December 19, 1988. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Mauds1ey. 4 December 5, 1988 1594R (5) SEIP - RAIL REPAIR CONTRACTS Community Development Commission Commissioner Flores made a motion, seconded by Commissioner Reilly, to approve the following motions: A) Approve reimbursement of $3,750.00 to Scotfoam for repair of spur to their facility. B) Approve Jimco as contractor to repair lead line crossing Victoria Avenue, which is estimated to cost $21,000.00. C) Approve Agency cancellation of all contracts with Santa Fe Railroad and all supplemental contracts with respective businesses. D) Approve increase in budget authority in order to make additional repairs in Fiscal Year 1988-1989; such authority not to exceed $50,000.00. The motions carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley. (6) ROCKWELL INTERNATIONAL Mayor and Common Council Councilmember Estrada made a motion, seconded by Counci1member Flores, that the Mayor and Common Council set a joint public hearing for 11 :00 a.m. on December 19, 1988 to approve and ratify the final documents for the Lease and Option to Purchase with Rockwell International Corporation. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Mauds1ey. Community Development Commission Commissioner Estrada made a motion, seconded by Commissioner Flores, that the Mayor and Common Council set a joint public hearing for 11 :00 a.m. on December 19, 1988 to approve and ratify the final documents for the Lease and Option to Purchase with Rockwell International Corporation. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley. 5 December 5, 1988 1594R (7) HEALTH INSURANCE The City Clerk read the title of the Resolution. Community Development Commission RESOLUTION NO. 5170 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ELECTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO BE SUBJECT TO THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT AND FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT GREATER THAN THAT PRESCRIBED BY SECTION 22825 OF THE GOVERNMENT CODE. Commissioner Pope-Ludlam made a motion, seconded by Commissioner Reilly to waive further reading of the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley. Commissioner Pope-Ludlam made a motion, seconded by Commissioner Estrada to, adopt the resolution and to amend to increase the Redevelopment Agency of the City of San Bernardino Administrative Budget for FY 88/89 in the amount of $25,000.00 to provide continued health coverage at present level. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley. (9) TRANSITIONAL ADMINISTRATIVE ACTIONS The City Clerk read the titles of the Resolutions. Community Development Commission RESOLUTION NO. 5171 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE APPOINTMENT OF STEVEN H. DUKETT AS SECRETARY OF THE REDEVELOPMENT AGENCY. Commissioner Pope-Ludlam made a motion, seconded by Commissioner Flores to, waive further reading of the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley. 6 December 5, 1988 1594R RESOLUTION NO. 5172 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DESIGNATING CHECK SIGNERS AND COUNTERSIGNERS FOR REDEVELOPMENT AGENCY CHECKS AND VOUCHERS; AND RESCINDING RESOLUTION NO. 5125. Commissioner Pope-Ludlam made a motion, seconded by Commissioner Flores to, waive further reading of the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley. RESOLUTION NO. 5173 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING STEVEN H. DUKETT, EXECUTIVE DIRECTOR: GARY CLERMONT, ADMINISTRATIVE ASSISTANT: AND J. LORRAINE VELARDE, ADMINISTRATIVE SERVICES MANAGER, TO SIGN ON BEHALF OF THE REDEVELOPMENT AGENCY FOR SAFETY DEPOSIT BOX, AND REPEALING RESOLUTION NO. 5135. Commissioner Pope-Ludlam made a motion, seconded by Commissioner Flores to, waive further reading of the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Miller. Noes: None. Abstain: None. Absent: Maudsley. COMMISSIONER MILLER LEFT THE COUNCIL TABLE Community Development Commission Commissioner Reilly made a motion, seconded by Commissioner Estrada to, adopt the resolutions together with the following motions: A) That the action taken on May 16, 1988 be rescinded and that the Executive Director be allowed to supervise and implement the Agency's investment transactions. B) That the action taken on May 16, 1988 be rescinded and that the Executive Director be restored the authority to supervise and implement all hiring and firing of Agency staff. C) That the action taken on May 16, 1988 be rescinded and that the Executive Director be restored the authority to supervise and implement all requests for legal advice and opinions from outside counsel. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam. Noes: None. Abstain: None. Absent: Maudsley, Miller. 7 December 5, 1988 1594R (10) SAN BERNARDINO VALLEY MUNICIPAL HATER DISTRICT The City Clerk read the title of the Resolution Community Development Commission RESOLUTION NO. 5174 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT FOR COOPERATION BETHEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO VALLEY MUNICIPAL HATER DISTRICT. Commissioner Pope-Ludlam made a motion, seconded by Commissioner Minor to, waive further reading of the resolution and to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam. Noes: None. Abstain: None. Absent: Maudsley, Miller. A discussion ensued. Dennis Barlow, Senior Assistant City Attorney addressed the Commission and informed them that an additional Resolution of the same title needed to be adopted and that he was requesting adoption of the Resolution by number. RESOLUTION NO. 5175 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN AGREEMENT FOR COOPERATION BETHEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO VALLEY MUNICIPAL HATER DISTRICT. Commissioner Pope-Ludlam made a motion, seconded by Commissioner Minor to, waive further reading of the resolution and to adopt the resolution. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam. Noes: None. Abstain: None. Absent: Maudsley, Miller. COMMISSIONER POPE-LUDLAM LEFT THE COUNCIL TABLE Commissioner Minor made a motion, seconded by Commissioner Flores to, adjourn the meeting to December 19, 1988. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor. Noes: None. Abstain: None. Absent: Maudsley, Pope-Ludlam, Miller ADJOURNMENT Community Development Commission The Community Development Commission/Redevelopment Agency meeting adjourned to December 19, 1988 at 11:00 in the Council Chambers, 300 North "0" Street, San Bernardino, CA 92418. 8 December 5, 1988 1594R REDEVELOPMENT AU~liCY - REQUEST FOk ~OMMISSION/COUNCIL ACTION DATE: DECEMBER 13, 1988 SUBJECT: SEIP - AUTO PLAZA - FRIEDLANDER DEFAULT - PARCEL 6 OF PARCEL MAP 9713 Synopsis of Previous Commission/Council/Committee Action: 12-02-86 Approval in concept of an Owner's Participation Agreement (OPA) for development of an Auto Center. 12-23-89 Approval of Resolution 4831 authorizing an OPA with Orange Show Plaza Associates. 07-07-86 Set Joint Public Hearing for July 21, 1986 at 11 :00 a.m. to consider sale of certain real property. 07-21-86 Subsequent to a Public Hearing, the following items were approved: a. Resolution 86-300 authorized execution of Grant Deed. b. Resolution 86-301 approved sale of APN 141-251-39 to Orange Show Plaza Associates. c. Resolution 4900 authorized secretary to execute and accept conveyance from City. (Continued on page 2) (COMMUNITY DEVELOPMENT COMMISSION) Recommended Motion: Move to continue this matter to January 17, 1989. Director Contact Person: Steven H. Dukett Phone: 384-5081 3 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: None Project: SEIP Date: DECEMBER 19, 1988 Council Notes: SD:SG:rm:1631H Agenda Item No. :f- J:/ Synopsis of Previous Commission/Council action: (continued) e. Motion authorizing execution of Subordination Agreement subordinating a Redevelopment Agency Note, Trust Deed, and OPA to construction financing documents. f. Resolution 4901 authorized First Amendment to OPA. 05-02-88 Resolution 5111 authorizing Second Amendment to OPA. 07-05-88 Motion directing Counsel to prepare Notice of Default to Herbert T. Friedlander. 10-06-88 Redevelopment Committee Closed Session. 10-24-88 Community Development Commission continued matter to November 7, 1988. 11-07-88 Community Development Commission continued matter to December 5, 1988. 12-05-88 Community Development Commission continued matter to December 19, 1988. 1631H 2 S T A F F R E P 0 R T Agency Special Counsel is preparing an Agreement wherein Mr. Friedlander will deposit $75,000 with the Agency as security for completion of the dealership. Mr. Friedlander has agreed in principle to this arrangement. Special Counsel has advised staff that the Agreement will be ready for review and approval by Mr. Friedlander by December 16, 1988. To allow all affected parties time to review the agreement, staff recommends that the Commission continue this item to January 17, 1989. 1631H 3 REDEVELOPMENT AGLI1~Y - REQUEST FOR \lJMMISSION/COUNCIL ACTION DATE: DECEMBER 13, 1988 SUBJECT: COST OF LIVING ADJUSTMENTS FOR THE MANAGEMENT AND CONFIDENTIAL EMPLOYEES OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO Synopsis of Previous Commission/Council/Committee Action: 11-2-87 The Community Development Commission adopted Resolution No. 5051 approving salary adjustments for Management, Confidential and General Employees in accordance with the City's salary survey effective July, 1987. 12-8-88 The Redevelopment Committee reviewed the matter contained herein and recommended its approval. Recommended Motion: - (Community Development Commission) A) Move to approve 5% cost of living adjustments for the Management and Confidential Employees of the Redevelopment Agency of the City of San Bernardino effective January 1, 1989. B) Move to provide two additional days of administrative leave per year. C) Move to increase the Redevelopment Agency's Budget Line Item of Salaries and Benefits Account No. 50101 in the amount of $11,065.00 for the Fiscal Year 1988-89. Contact Person: STEVEN H. DUKETT Phone: 384-5081 Supporting data attached: Yes Ward: N/A FUNDING REQUIREMENTS: Amount: $11,065.00 Project: N/A No adverse impact on Ci ty: Date: DECEMBER 19, 1988 Council Note s : Agenda Item No. J ~J S T A F F R E P 0 R I The Redevelopment Agency has historically followed the City of San Bernardino for cost of living adjustments for the employees of the Redevelopment Agency. On September 19, 1988. the Community Development approved cost of living adjustments for the General Employees of the Redevelopment Agency. We have been advised that on December 19, 1988 the Common Council will consider certain adjustments in salary and benefits for the City's Management and Confidential Employees. Specifically, the following will be considered: 1. A 5% cost of living adjustment effective January 2, 1989; and 2. Two additional days (16 hours) of administrative leave per year. In keeping with the City's pending action on December 19, 1988, the following adjustments are recommended for the Management and Confidential Employees of the Redevelopment Agency of the City of San Bernardino: 1. A 5% cost of living adjustment effective January 1, 1989 (the beginning of the Agency's pay period); and 2. Two additional days (16 hours) of administrative leave per year. The 5% cost of living adjustment effective January 1, 1989 for the Management and Confidential Employees of the Redevelopment Agency will require a $11,065 increase to the salaries and benefits account in the Redevelopment Agency's Fiscal Year 1988-89 Budget. Staff, therefore, recommends an $11,065.00 increase to the Redevelopment Agency's Budget Line Item of Salaries and Benefits (Account No. 50101) for the Fiscal Year 1988-89. The funds for the increase will be transferred from the project area revenue on interest earned on investment. There are sufficient funds in the current budget to pay for the added personnel costs proposed herein. 2 1602R/JLV/mv 12/19/88 REDEVELOPMENT AGENLI - REQUEST FOR CUM~ISSION/COUNCIL ACTION DATE: DECEMBER 13, 1988 SUBJECT: SHANDIN HILLS GOLF COURSE Synopsis of Previous Commission/Council/Committee Action: 11-29-84 Resolution 4691 accepted in principle proposal of Shandin Hills Golf Club and specifying condition to be included in Lease and Operating Agreement. Joint Public Hearing set for 11 :00 a.m., December 17, 1984 to consider lease. Councilman Quie1 appointed representative to work with staff to negotiate lease terms. 12-17-84 Resolution 4695 authorized execution of lease. Appointed Golf Course Problem Solving Committee. 08-05-85 Resolution 4779 authorized the execution of a loan agreement with Shandin Hills Golf Club for $500,000. (continued) Recommended Motion: (COMMUNITY DEVELOPMENT COMMISSION) (A) Move to authorize the Executive Director of the Redevelopment Agency to execute, on behalf of the Community Development Commission of the City of San Bernardino, the attached Note with First Interstate Bank in the amount of $253,400.00. (B) Move to authorize renewal of the attached Promissory Note with Shandin Hills Golf Club in the amount of $253,400.00 under the same terms and c nditions as the Note with First Interstate Bank. Contact Person: Steven H. Dukett Phone: 384-5081 Supporting data attached: Yes Ward: 5th FUNDING REQUIREMENTS: None Project: SC Date: DECEMBER 19, 1988 Council Notes: I, t Y SHD:ND:sm:rm:4707G Agenda Item No. Synopsis of Previous Commission/Council action: (continued) 08-19-85 Resolution 4786 authorized First Amendment to lease changing payments from calendar year to fiscal year ending June 30. 01-06-86 Resolution 4835 approved Second Amendment to lease adjusting monthly payments, after the first year of the lease, on the one-time $700,000 payment to the Agency. Payment in full will be made by July 28, 1988. 02-03-86 Resolution 4845 authorizing Third Amendment increasing liability insurance requirements as of February 15, 1987, from $1,000,000 to $5,000,000. 11-03-86 Resolution 4948 authorized the execution of a supplemental loan agreement with Shandin Hills Golf Club. Resolution 4949 authorized the Redevelopment Agency to borrow $350,000 from First Interstate Bank to provide funds to loan to Shandin Hills Golf Club. 01-19-87 Resolution 4976 authorizing Fourth Amendment reducing insurance requirement (from $5,000,000 to $1,000,000) until January 1988. 02-16-87 Resolution 4984 authorizing Revised Fourth Amendment, requiring personal guarantees from Hank Bickler and Dave Hawley only for the Note and requiring annual personal financial statements and new Note. 01-05-88 Committee recommended denial of a request to restructure note. Request for approval of Fifth Amendment to extend reduced insurance requirements held over to January 19, 1988 meeting. 01-19-88 Committee recommended denial of request to extend reduced insurance rates. 03-10-88 Committee recommended that a meeting be scheduled between Staff and Mr. Bickler in which terms of an amendment to restructure the note and settlement of undercrossing fees would be determined. 05-02-88 Motion approved to reimburse Shandin Hills Golf Club $7,015.24 for expenses incurred in connection with the 1-215 undercrossing extension. Resolution 5111 authorized execution of the Fifth Amendment which provided for the execution of a Promissory Note in the amount of $195,175.66. Shandin Hills Golf Club also agreed to maintain a drainage easement located south of the condominiums on Little Mountain Drive. 12-08-88 Committee recommended that Commission approve renewal of the Note from First Interstate Bank to the Redevelopment Agency, and to renew the Note between the Redevelopment Agency and Shandin Hills Golf Club under identical terms. - 2 - S T A F F R E P 0 R T In December, 1984, the Agency entered into a Lease Agreement with Shandin Hills Golf Club for the operation of the Shandin Hills Golf Course in the State College Project Area. Under the terms of the agreement, the operator was obligated to construct a food and beverage facility within the first three years of the lease. On August 5, 1985, the Commission authorized and directed the execution of a loan agreement with the Shandin Hills Golf Club in the amount of $500,000, payable as a construction loan. Construction of the restaurant and beverage facilities was scheduled to be completed by September 15, 1986. The facility was completed ahead of schedule. The actual cost expended to complete the club house, pro shop, snack bar and storage building was $915,848. Mr. Bickler borrowed the additional funds over and above the $500,000 loan from another source on a short-term basis. He was unable to obtain a long-term note with favorable interest rates due to the fact that the real property was owned by the Agency. By Resolution Nos. 4948 and 4949 dated November 3, 1986, the Commission authorized the Redevelopment Agency to secure a loan in the amount of $350,000 for completion of the Club House Facility. The terms of the unsecured note were as follows: the interest rate would float with the prime rate, it would be amortized over seven years, and it would be due and payable in two years with provisions for renewal in two years. By Promissory Note effective January 1, 1987, the Agency loaned the money to Shandin Hills Golf Club under like terms. The Note to Shandin Hills provided that in lithe event that Agency is able to renew its Note... this Note shall likewise be renewed. ..11. The Note has now expired, and First Interstate Bank has offered to renew the Note under similar terms, with some minor changes. The changes are as follows: * The loan amount will be $253,400. This is less than the original note because payments have reduced the principal balance. * The terms of the Note provide for the full repayment of the outstanding principal balance. The interest rate will float daily at prime plus 1 percent. The term of the Note will be five years, maturing December 5, 1993. * * Payments will be $4,223.33 a month, plus interest, beginning January 5, 1989. Mr. Bickler, President of Shandin Hills Golf Club, has agreed to the terms of the new Note. Staff and the RDA Committee recommend approval. * - 3 - C7 '-irst "-I,, l~telState Bank DRAFT INSTALMENT NOTE . FLOATING RATE (Interest Extra) $ *253,400.00* San Bernardino , California , 19 _ For value received. tre undersjgned ("Borrower") promises to pay to the Q.rd~r 01 FIRST I~T~~STATE BANK OF CALIFORNIA (:'Bank"Lat its San Bernarchno Mam Office, at L9U North D Street, San Bernarchno, CA , the rincipal sum 01 *Two hundred fifty-three thousand. four hundred and no/lOO************** Dollars ($ ,r 253 , 400 . 00 * ** * ** * ** ), with interest on the unpaid principal balance payable on demand from the date of this Note until maturity. breach. acceleration or demand. at a rate per annum equal to one percent over Bank's Prime Rate, and thereafter. payable on demand. at the rate. calculated daily. which is the higher of (a) 2% per annum above the contractual rate set forth above or (b) 30/0 per annum above Bank's Prime Rate. until paid in lull. Prime Rate is an index rate which Bank establishes from time to time in connection with pricing certain of its loans. Bank may make loans at. above or below its stated index rate. Information on the current index rate can be obtained by contactil!9 Bank. In no el(.ent shall such floating rate(s) exceed the maximum rate permitted, by applicable law Any change in such floating rate(s} shall be effective tne day PrJ.ITe chanqes . Prjncipal shall be payable in Sixth instalments.Pf 46233 and 33/100 Dollars each Q(l the f1fth day Of each rront . beginning on the t:1ft day 01 January . 19~, and continuing rronth.lY until _ __ _ T)prpmhp-r 5 , 19~, on which last mentioned date all remaining principal and interest shall be due and payable. Interest shall be calculated on the basis 01 a 360-day year for actual days elapsed. If interest is not paid when due, it shall thereafter bear like interest as principal. Borrower may prepay this Note. without premium or penalty. in whole or in part, with accrued interest to the date of such prepayment on the amount prepaid. Borrower shall pay any loss resulting from such prepayment incurred by Bank in liquidating or redeploying deposits from which such loan funds were obtained. Any prepayment shall be applied to the instalment payments of principal in inverse order of maturity. Any of the following shall constitute an event of default under this Note whether committed by or against Borrower. any endorser or any guarantor: (a) The nonpayment when due of principal of or interest on this Note or any other obligation of any nature or description to Bank; (b) The death, dissolution or termination of business of any 01 them; (c) Any petition in bankruptcy being filed by or against any of them or any proceedings in bankruptcy, insolvency or under any other laws relating to the rehel 01 debtors. being commenced for the reliel or readjustment of any indebtedness of any of them, either through reorganization, composition, extension or otherwise; IrI) The making by any of them of an assignment for the benefit of creditors; The appointment of a receiver of any property of any of them; Any seizure. vesting of rights of or intervention by or under any authority of any government; (g) The entry of a judgment against any of them which, in Bank's opinion, materially impairs the ability of any of them to meet their obligations to Bank; (h) The failure to furnish any financial information upon the reasonable request 01 Bank; or (i) Any misrepresentation to Bank in obtaining credit by any of them. At any time after the occurrence of any such event of default. this Note and any other obligations to Bank of Borrower may. at Bank's discretion, become immediately due and payable. Both principal and interest on this Note are payable in lawful currency of the United States of America without deduction for or on account of any present or future taxes. duties or other charges levied or imposed on this Note. II this Note is placed in the hands of an attorney for collection, Borrower, each endorser and each guarantor agree to pay all costs and expenses of Bank. including reasonable attorneys' fees. whether or not a suit is brought. "Reasonable attorneys' fees" shaYI include reasonable attorneys' fees and allocated costs 01 in-house counsel incurred in any and all judicial, bankruptcy and other proceedings (including appellate level proceedings) whether such proceedings arise before or after entry of a final judgment. All extensions of time for payment, whether by operation of law, judicial proceedings, or otherwise. shall be included in the computation of interest All obligations under this Note shall be the individual obligation of Borrower unless requisite corporate action has been taken to make this Note an enforceable corporate obligation, and all such obligations shall be the joint and several obligations of each Borrower where there is more than one Borrower, each endorser and each guarantor waive diligence, demand, presentment, protest and any type 01 notice This Note shall be governed and construed in accordance with the laws of the State of California REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDIOO Name of Borrower Signature Signature TItle 300 North liD" Street, 4th Floor Address Signature Tltfe San Bernardino, CA 92418 Signature Title CL 2513 (360) (R~v. 6/B71 PROMISSORY fE $253,400 San Bernardino, California , 1989 FOR VALUE RECEIVED, the undersigned promises to pay to the order of THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("Agency") at 300 North "0" Street, San Bernardino, California 92418, the principal sum of Two Hundred Fifty Three Thousand Four Hundred Dollars ($253,400) with interest on the unpaid principal balance payable on demand from the date of this Note until maturity, breach, acceleration, or demand, at a rate per annum of PRIME RATE PLUS ONE PERCENT or such other rate as is established from time to time by First Interstate Bank of California as its prime rate. This Note shall be payable on demand, and shall bear interest at the rate, calculated daily, which is the prime rate established by First Interstate Bank of California plus one percent. First Interstate Bank's prime rate is an index rate which that Bank establishes from time to time in connection with pricing certain of its loans. That Bank may make loans at, above or below, its stated index rate. Information on the current index rate can be obtained by contacting First Interstate Bank of California at its San Bernardino Main Office, 290 North "0" Street, San Bernardino, California. Any change in the floating rate shall be effective the day First Interstate Bank of California changes its prime rate. Principal shall be payable in sixty (60) installments of FOUR THOUSAND TWO HUNDRED TWENTY THREE DOLLARS AND THIRTY THREE CENTS ($4,223.33) each, on the fifth day of each month beginning on the fifth day of January, 1989, and continuing each month until December 5, 1993, on which last mentioned date all remaining principal and interest shall be due and payable. Interest shall accrue beginning December 5, 1988, the date the previous Note expired. Interest shall be calculated on the basis of a 360-day year for actual days elapsed. If interest is not paid when due, it shall thereafter bear like interest as principal. Borrower may prepay this Note, without premium or penalty, in whole or in part, with accrued interest to the date of such prepayment on the amount prepaid. The undersigned promises to pay to the Agency, forthwith when billed, interest on a monthly basis, together with the principal amount specified hereinabove. Both principal and interest on this Note are payable in lawful currency of the United States of America without deduction for or on account of present or future taxes, duties or other charges levied or imposed on this Note. If this Note is placed in the hands of an attorney for collection, the undersigned, each endorser and each guarantor agree to pay all costs and expenses of Agency, including reasonable attorneys' fees, whether or not a suit is brought. "Reasonable attorneys' fees" shall include reasonable attorneys' fees and allocated costs of counsel for the Agency, including the City Attorney's Office, if any, for all judicial bankruptcy and other proceedings (including appellate level proceedings) whether such proceedings arise before or after entry of a final judgment. Any default in the pi ents due hereunl ,any default in the payments a prior loan pursuant to a prior loan agreement between the Agency and the undersigned, or any default in the terms of that certain lease between the Agency and the undersigned, shall constitute an event of default, in which event the entire principal balance outstanding, with interest, shall be forthwith due and payable in full, at the option of the Agency. IN WITNESS WHEREOF, the undersigned has executed this Note on the day and year first set forth above. SHANDIN HILLS GOLF CLUB A California Corporation By: HENRY A. BICKLER, President For good and valuable consideration, the receipt of which is hereby acknowledged, the undersigned hereby guarantees the foregoing Note, provided, however, that the liability of the undersigned shall be limited to the amount of $253,400. HENRY A. BICKLER, Individually 00841 REDEVELOPMENT t\utNCY - REQUEST F\JI\ C()\MISSION/COONCIL ACTION ( ~: SUBJECT: SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT - PROPOSED SETTLEMENT DECEMBER 14, 1988 SynopsiS of Previous Commission/Council/committee Action: 6-20-83 Ordinance MC-283 adopted Tri-City Redevelopment Project Area. 8-19-83 San Bernardino Valley Municipal Hater District {SBVMHD)filed a complaint to determine the validity of the Tri-City proceedings (Superior Court No. 219711). 5-14-84 Resolution No. 4615 authorized sale of Certificates of Participation in the amount of $2,740,000 for public improvements in the South Valle area. 6-20-84 The SBVMHD filed a petition for a peremptory writ of mandate regarding the South Valle proceedings (Superior Court No. 223718). 7-9-84 Ordinance MC-387 adopted South Valle Redevelopment Project Area. 9-7-84 The SBVMHD filed a complaint to determine the validity of the South Valle proceedings (Superior Court No. 224322). . 12-16-85 Council tabled a proposed settlement that involved a reimbursement for a high groundwater pumping program. 03-17-86 Motion approved Agency reimbursement to the City for $260,000 in interest expense. 03-23-87 Resolution No. 4988 approved the sale of Refunding Certificates of Participation in the amount of $3,280,0000 for the South Valle area. 12-05-88 Resolution No. 5174 and 5175 authorized execution of agreements of cooperation with the SBVMWD for South Valle and Tri-City Redevelopment Project areas. Recommended Motion: (community Development Commission) Move to authorize execution of the attached agreements for cooperation between the Redevelopment Agency and the San Bernardino Valley Municipal Hater Di stri t. {. FUNDING REQUIREMENTS: $35,000 for 188-189; to be increased 2% ea. year for the life of the projects. Council Notes: ~: 384-5081 Hard: 1st and 3rd Project: TC and SV ~: December 19, 1988 Contact Person: Steven H. Dukett Supporting data attached: Yes JH:rm:1630H Agenda Item No. 5 STAFF REPORT On Monday, December 5, 1988, the Commission approved two Agreements For Cooperation with the San Bernardino Valley Municipal Water District. One Agreement related to the Tri-City Redevelopment Project Area and the other related to the South Valle Redevelopment Project Area. At the time the Commission was informed that, although the Agreements had been approved in principle by the District's Board, there might be some clarifying changes brought back at a subsequent meeting. Attached are the revised Agreements signed by the District. The only changes from those previously approved by the Commission are as follows: 1. Wording was added to the last sentence of paragraph lA to insure that if the project areas are merged, payments will continue. (. 2. The last sentence was added to paragraph lC to clarify, for the purposes of the Agreements, when the two project areas would expire for the purpose of reducing the remaining payments. 3. The statutory reference noted in paragraph 7 was made more specific. -2- l AGREEMENT FOR COOPERATION BETWEEN THE SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA This Agreement is entered into this ____ day of 1988 by and between the SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT, a public agency ("District"), and the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body (" Agency" ) . WITNESSETH: WHEREAS, Agency, in the interest of the health, safety and r- general welfare of the people of the City of San Bernardino, is undertaking a program under the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) for the redevelopment within the City of the Tri-City Redevelopment Project Area (herein "the Project Area") and the South Valle Redevelopment Project Area; and WHEREAS, District is in receipt of Ordinance No. MC-283, adopted by the Mayor and Common Council of the City of San Bernardino, California on June 20, 1983, establishing the Tri- City Project (herein "the Project") and authorizing the redevelopment of areas within the territorial limits of the city of San Bernardino by the Redevelopment Agency of the City of San Bernardino; and DAB:cez December 8, 1988 1 ........- .;..- WHEREAS, District is an affected taxing entity which has general purpose property taxes levied on its behalf by the County of San Bernardino on all of the property located in the Project Area; and WHEREAS, the California Community Redevelopment Law (Health & Safety Code Sections 33000, et seq.) authorizes redevelopment agencies to make certain payments to affected taxing agencies pursuant to Section 33401 of the Health and Safety Code to alleviate financial burden or detriment, if any, resulting from a redevelopment plan; and WHEREAS, District has submitted objections to project's finanqia1 impact and has determined that project will cause r' financial burden or detriment; and WHEREAS, Agency and District agree that the implementation of this Agreement fully alleviates any financial burden or detriment resulting from the project or the South Valle project; and WHEREAS, Agency has found and determined that it would be appropriate to alleviate any financial burden or detriment caused to the District by the Project; and WHEREAS, Agency and District, in consideration of these mutual undertakings, desire to settle their differences and cooperatively provide for the redevelopment of certain areas of the City; NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants contained herein, the parties DAB:cez December 8, 1988 2 I i hereto agree as follows: 1. A. Subject to the dismissal with prejudice of actions filed by the District, as set forth in paragraph 7 of this Agreement, Agency agrees to pay, or cause ~o be paid, to District, beginning with the 1988-89 tax year, the annual sum of THIRTY-FIVE THOUSAND DOLLARS ($35,000). Said amount shall be increased each year beginning with the 1989-90 tax year by two percent (2%) or such lesser amount as is used by the Assessor of the County of San Bernardino to determine those increases in assessed value applicable pursuant to Section 110.1(f) of the Revenue and Taxation Code as are applied throughout the County pursupnt to Article XIIIA, Section 2(b) of the California (" Constitution. Payments shall be payable with respect to each year that the Agency receives tax allocation revenues from the property currently in the project area. B. The amount payable under subparagraph A above shall be reduced by that amount payable pursuant to that certain Agreement of even date between the parties relating to the South Valle Project Area. C. Should the South Valle Redevelopment Project expire prior to the expiration of the Tri-City Redevelopment Project, then the amount to be paid pursuant to paragraph 1.A of this Agreement shall be reduced one-third (1/3). For the purposes of this Agreement, the South Valle Redevelopment Project shall be considered to be in effect until such time as the proceeds of taxes upon the entire assessed value of the real property DAB:cez 3 December 8, 1988 currently located therein are permanentlY available to the applicable taxing agencies without any allocation to the special fund of the Agency established pursuant to Health and Safety Code Section 33670. 2. That portion of taxes which are allocated to Agency pursuant to Section 33670(b) of the Health and Safety Code and which are to be paid to District pursuant to Section 1 of this Agreement shall be paid to District in equal two installments, one on or before January 31 and the other on or before May 30 of each year and after taxes from property tax payments in relation to the secured roll are allocated and paid to Agency by the San Bernardino County Auditor or officer responsible for the payment of taxes. Agency agrees that all such taxes which are to be paid to the District, or equivalent monies, shall be held by the Agency in a special fund and specifically designated until paid r to District. 3. Funds allocated and paid to District pursuant to this Agreement shall be used for the construction, operation and maintenance of public facilities located within the boundaries of the City of San Bernardino. 4. Should future legislative or initiative action reduce the maximum amount permitted as a general purpose property tax levy, pursuant to Article XIII A of the California Constitution, the payments to be paid by Agency to District pursuant to paragraph 1.A of this Agreement shall be reduced in the same percentage as the maximum amount permitted as a general purpose DAB:cez December 8, 1988 4 ( property tax levy is reduced. 5. It is hereby agreed by District that it supports the plans of redevelopment for the Tri-City Redevelopment Project Area and supports the full implementation of said plan by all means provided by law including without limitation the issuance and incurring of bonds, notes and other forms of indebtedness the payment of which is secured by tax allocation revenues, and the District further agrees that it will not object to amendments to such plan other than those amendments specified in Section 33353.5(c)(1) of the Health and Safety Code. In the event that the plan is amended to extend the r'" perio? during which the Agency may receive tax allocation revenues, the District will accept as full payment to alleviate financial burden or detriment an amount annually determined pursuant to Section 1.A of this Agreement by extending the applicability thereof. 6. District agrees to dismiss, or cause to be dismissed, with prejudice, the following actions filed in the Superior Court for San Bernardino County: a. San Bernardino Valley Municipal Water District v. Redevelopment Agency, etc., et al.: SBSC Case No. 223718: b. San Bernardino Valley Municipal Water District v. All Persons, etc.; SBSC Case No. 219711: and c. San Bernardino Valley Municipal Water District v. All Persons, etc.: SBSC Case No. 224322. DAB:cez December 8, 1988 5 District shall refrain from initiating or participating in a capacity adverse to the Agency in litigation seeking to invalidate the plan or to enjoin or affect the .implementation of the plan unless said plan is amended as specified in Section 33353.5(c)(1) of the Health and Safety Code. 7. Any amounts received by the District under Section 33676(a)(2) of the Health and Safety Code with respect to the Project Area shall reduce the amounts payable by the Agency in like amount. 8. The obligations to make payments pursuant to this Agreement constitute an indebtedness of the project in the full amoun~ set forth in Section lA. f"- IN WITNESS WHEREFORE, the parties hereto have executed this Agreement as of the day and date first above shown. SAN B;'~ARDINO WATER ~ By It VALLEY MUNICIPAL Approved as to form and legal content ~ nu?~~) torney for COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By Approved as to form and legal on e DAB:cez December 8, 1988 6 <J'C AGREEMENT FOR COOPERATION BETWEE~ SAN BERNARDINO VALLEY MUNICIPAL ~ DISTRICT AND THE COMMUNITY DEVELOl COMMISSION OF THE CITY OF SAN BERNi ON BEHALF OF THE REDEVELOPMENT AG. OF THE CITY OF SAN BERNARDINO, CALIFORNIA This Agreement is entered into this ____ day of 1988 by and between the SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT, a public agency ("District"), and the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body (" Agency" ) . WITNESSETH: ~EREAS, Agency, in the interest of the health, safety and ( '. general welfare of the people of the City of San Bernardino, is undertaking a program under the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) for the redevelopment within the City of the South Valle Redevelopment Project Area (herein "the Project Area") and the Tri-City Redevelopment Project Area; and WHEREAS, District is in receipt of Ordinance No. MC-387, adopted by the Mayor and Common Council of the City of San Bernardino, California on July 11, 1984, establishing the South Valle Project (herein "the Project") and authorizing the redevelopment of areas within the territorial limits of the City of San Bernardino by the Redevelopment Agency of the City of San Bernardino; and DAB:cez December 8, 1988 1 WHEREAS, District is an affected taxing entity which has general purpose property taxes levied on its behalf by the County of San Bernardino on all of the property located in the Project Area; and WHEREAS, the California Community Redevelopment Law (Health & Safety Code Sections 33000, et seq.) authorizes redevelopment agencies to make certain payments to affected taxing agencies pursuant to Section 33401 of the Health and Safety Code to alleviate financial burden or detriment, if any, resulting from a redevelopment plan; and WHEREAS, District has submitted objections to Project's finanqial impact and has determined that Project will cause financial burden or detriment; and (' WHEREAS, Agency and District agree that the implementation of this Agreement fully alleviates any financial burden or detriment resulting from the project or the Tri-City Project; and WHEREAS, Agency has found and determined that it would be appropriate to alleviate any financial burden or detriment caused to the District by the Project; and WHEREAS, Agency and District, in consideration of these mutual undertakings, desire to settle their differences and cooperatively provide for the redevelopment of certain areas of the City; NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants contained herein, the parties DAB:cez December 8, 1988 2 hereto agree as follows: 1. A. subject to the dismissal with prejudice of actions filed by the District, as set forth in paragraph 7 of this Agreement, Agency agrees to pay, or cause to be paid, to District, beginning with the 1988-89 tax year, the annual sum of THIRTY-FIVE THOUSAND DOLLARS ($35,000). Said amount shall be increased each year beginning with the 1989-90 tax year by two percent (2%) or such lesser amount as is used by the Assessor of the County of San Bernardino to determine those increases in assessed value applicable pursuant to Section 1l0.1(f) of the Revenue and Taxation Code as are applied throughout the County pursu~nt to Article XIIIA, Section 2(b) of the California r Constitution. PaYments shall be payable with respect to each year that the Agency receives tax allocation revenues from the property currently in the project area. B. The amount payable under subparagraph A above shall be reduced by that amount payable pursuant to that certain Agreement of even date between the parties relating to the Tri-City Project Area. C. Should the Tri-City Redevelopment Project expire prior to the expiration of the South Valle Redevelopment project, then the amount to be paid pursuant to paragraph l.A. of this Agreement shall be reduced two-thirds (2/3). For the purposes of this Agreement, the Tri-City Redevelopment Project shall be considered to be in effect until such time as the proceeds of taxes upon the entire assessed value of the real property DAB:cez 3 December 8, 1988 ., currently located therein are permanently available to the applicable taxing agencies without any allocation to the special fund of the Agency establi:311ed pu::.-suant to Health and Safety Code Section 33670. 2. That portion of taxes which are allocated to Agency pursuant to Section 33670(b) of the Health and Safety Code and which are to be paid to District pursuant to Section 1 of this Agreement shall be paid to District in two equal installments, one on or before January 31, and the other on or before May 30 of each year and after taxes from property tax paYments in relation to the secured roll, are allocated and paid to Agency by the San Bernar~ino County Auditor or officer responsible for the paYment {. of taxes. Agency agrees that all such taxes which are to be paid to the District, or equivalent monies, shall be held by the Agency in a special fund and specifically designated until paid to District. 3. Funds allocated and paid to District pursuant to this Agreement shall be used for the construction, operation and maintenance of public fa:::ilities located within tht:! boundaries of the City of San Bernardino. 4. Should future legislative or initiative action reduce the maximum amount permitted as a general purpose property tax levy, pursuant to Arti.cle XIII A of the California Constitution, the payments to be paid by Agency to District pursuant to paragraph 1.A. of this Agreement shall be reduced in the same percentage as the maximum amount permitted as a general purpose DAB:cez December 8, 1988 4 ( property tax levy is reduced. 5. It is hereby agreed by District that it supports the plans of redevelopment for the South Valle Redevelopment Project Area, and supports the full implementation of said plan by all means provided by law including without limitation the issuance and incurring of bonds, notes and other forms of indebtedness the payment of which is secured by tax allocation revenues, and the District further agrees that it will not object to amendments to such plan other than those amendments specified in Section 33353.5(0)(1) of the Health and Safety Code. In the event that the plan is amended to extend the perioQ during which the Agency may receive tax allocation r revenues, the District will accept as full payment to alleviate financial burden or detriment an amount annually determined pursuant to Section 1 of this Agreement by extending the applicability thereof. 6. District agrees to dismiss, or cause to be dismissed, with prejudice, the following actions filed in the Superior Court for San Bernardino County: a. San Bernardino Valley Municipal Water District v. Redevelopment Agency, etc., et al.; SBSC Case No. 223718; b. San Bernardino Valley Municipal Water District v. All Persons, etc.; SBSC Case No. 219711; and c. San Bernardino Valley Municipal Water District v. All Persons, etc.; SBSC Case No. 224322. DAB:cez 5 December 8, 1988 / District shall refrain from initiating or participating in a capacity adverse to the Agency in litigation seeking to invalidate the plan or to enjoin or affect the implementation of the plan unless said plan is amended as specified in Section 33353.5(c)(1) of the Health and Safety Code. 7. Any amounts received by the district under Section 33676(a)(2) of the Health and Safety Code with respect to the Project Area shall reduce the amounts payable by the Agency in l.ike amount. 8. The obligations to make payments pursuant to this Agreement constitute an indebtedness of the project in the full amount. set forth in Section 1A. ( IN WITNESS WHEREFORE, the parties hereto have executed this Agreement as of the day and date first above shown. ~:~l:1 MUNICIPAL By Approved as to form and legal content By ))??U,,/J ta~ ~ttorney for District COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By DAB:cez December 8, 1988 6 REDEVELOPMENT AGENLI - REQUEST FOR ClJl'l,~ISSION/COUNCIL ACTION DATE: DECEMBER 13, 19B8 SUBJECT: ROCKWELL INTERNATIONAL Synopsis of Previous Commission/Council/Committee Action: 3/10/88 Committee received and filed report on Rockwell financing. 3/21/88 Commission approved hiring appraiser to evaluate Thomason land and for staff to negotiate with Thomason estate representative Bob Holcomb. 5/2/88 Commission considered proposed hazardous waste clause; continued matter to May 9, 1988. 5/19/88 Committee received and filed information on proposed OPA, parking solutions and hazardous waste clause. 6/23/88 Committee received and filed draft OPA. (Continued on page 3) (MAYOR AND COMMON COUNCIL) Recommended Motion: A) Move to adopt a RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE LEASE WITH OPTION TO PURCHASE OF THAT CERTAIN PROPERTY IDENTIFIED AS APN 281-031-51 and 281-041-41, LOCATED ON COOLEY AVENUE WITHIN THE SOUTHEAST INDUSTRIAL PARK PROJECT AREA, BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO TO ROCKWELL INTERNATIONAL CORPORATION (HEALTH AND SAFETY CODE SECTION 33433). (continued on page 2) Contact Person: STEVEN H. DUKETT Phone: 384-5081 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: All funding Project: SEIP previously approved by CDC on 10/24/88 Date: DECEMBER 19, 1988 Council Notes: ,-; SHD: JW: sm: 4689G Agenda Item No. (COMMUNITY DEVELOPMENT COMMISSION) B) Move to adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND ROCKWELL INTERNATIONAL CORPORATION. C) Move to approve the Lease And Option To Purchase with RocKwell International Corporation. SHD:JW:sm:4689G 2 Synopsis of Previous Commission/Council/Committee Action: (Continued) 10/6/88 Committee recommended that the Commission: A) Approve for execution an OPA, DDA, Lease And Option To Purchase, Edison Agreement, Declaration of Reciprocal Easement and Drainage Easement; B) Adopt a form motion finding that the Rockwell project is consistent with the Preferred Land Use Alternative; C) Approve the payment of $10,137 to Wi11dan Associates, for consulting engineering work on the parking lot. 10/24/88 Commission took the following actions: A) Resolution 5154 approved Owner's Participation Agreement. B) Resolution 5155 approved Disposition and Development Agreement. C) Resolution 5156 approved Lease And Option To Purchase. D) Resolution 5157 approved Edison Agreement. E) Resolution 5158 approved Declaration of Reciprocal Easement. F) Resolution 5159 approved Drainage Easement. G) Motion finding that Rockwell project is consistent with the Preferred Land Use Alternative. H) Motion approving payment of $15,937 to Wi11dan Associates, for consulting engineering work on the parking lot. 12/5/88 Commission and Council approved and set joint public hearing for December 19, 1988 at 11:00 a.m. SHD:JW:sm:4689G 3 S T A F F R E P 0 R T Staff recommends that the Mayor and Common Council and the Community Development Commission approve and ratify the final documents for the Lease and Option to Purchase with Rockwell International Corporation. On October 24. 1988. the Commission adopted the principal agreements for the Rockwell transaction. Under Section 33433 of the California Health and Safety Code. a joint pUblic hearing and the adoption of a final resolution is required to complete the matter. Said joint public hearing has been set for December 19. 1988 at 11:00 a.m. in the Council Chambers. Motion A) will adopt the 33433 findings. Motions B) and C) will ratify the Commission's previous actions. BACKGROUND Rockwell closed escrow July 22. 1988 on two buildings (totaling 133.000 SF) and a vacant lot (2.06 acres) on Cooley Court. The impacts of this new facility on the City of San Bernardino include: Investments - Main Rail Spur - Branch Spurs - Office Tenant Improvements - Furniture & Office Equipment - Rail Docks and Covers - Parking Improvements - Electronic Laboratory Equipment & Improvements - Telecom and Computer Equipment New Assessed Value Yearly new tax increment from project Other City benefits from project: - One-Time City Fees - Utility Tax - Jobs Value - $ 1 00 .000 450,000 3.000.000 4.000.000 300.000 200,000 1.600,000 2.600.000 $12.250.000 $ 122.500 $ 1 80 .000 $ 108.000 per year 700 We recently completed negotiating an Owner's Participation Agreement (OPA) with Rockwell. The following is an itemization of proposed incentives to be provided by the Redevelopment Agency: Incentive Value 1) Relocate Sewer Line 2) Traffic and Parking Study 3) Rail Spur 4) Employment Linkage 5) Traffic Signal 6) Sewer Capacity Rights 7) Excess Parking Area 8) Parking Lot Engineering $ 45,000 10,000 250.000 50.000 120.000 45.000 200.000 35,000 Total Proposed Assistance: $ 755,000 SHD: JW: sm: 4689G 4 The above described incentives are proposed to be provided to Rockwell on a reimbursable basis. In return for the Agency's assitance, Rockwell has agreed to maintain a 90,000 square foot facility for research, development, offices and manufacturing, and employ 250 persons for 5 years. The OPA also contains language obligating Rockwell to maintain its landscaping, parking areas (including that constructed on the RDA-owned land) and the exterior of its buildings in accordance with industry standards, as determined by the Redevelopment Agency. Rockwell has also agreed to join any maintenance and security district created in the future, and is responsible for any additional parking costs above the $200,000 to be provided by the Agency. Attached, for reference. are copies of a site map and the necessary resolutions cited in the recommended motion. SHD:JW:sm:4689G 5 - ---~--~ '," .....i ~ . . r . . , . .'. . ...... " ~ .' ~il ., ~ i · " I .. ~ . /# .... e i I ..-... ' ., '.~ .. ....' to ~ . .1,; I '. : ~ . I · . . ..1.,",,: . .' ........1.. I' . :.... ,. "'1 e" :...:~ 1il ,'. i" .'.;:.~ ~ ': · ~~ .;'I~lhi~ I I ."..t ~., ' Ii'" ..~ffl~r I I ,.' . 1,lf!!f.l~ eo .1. '1 : II"". .,BUU . . .. . ..,~ .,. ~. tl~ , II . . ...~ -; . - ----. .. , e . ; 1 t. -i. . r' I &. . . ___= __ I...___~~_ oJ . ," i' '. I _I i - \J .. · ---:----t:------,:-- ------ . I L' 11-1>" - iii ~"'_ ~ . I: _ ----:---.1 -- ~__.1'______ ; t .... .~.1 - 1. ~- -; -----, ~.----; C------- -e }. . --~--; '~ · 1r .1 . I i 'Ii . . 1. t '. . · 1 I'" -. -f-----.t-.~I. '. . ~ . .. II. . . I . ....:...... '.".'r.. ., . '... f.' . , . ' :. '. :-~, .." :.' . . . . '",~_._._- .O'- S.. . .. I . -. ! o ..., .0'. .1...., ~I . - . . . .' --' . .. ..0,. ~~.j:;.,.::; . ~ )~ . .... ,.~ ,. .,.'. ~1. . ~:.:;. .~~ '. t ~ . ~ .:::; . ....~ . . '.;,,'oi ' '. ' , '" . '. .,. '. . " ., . , , . . . . .! \II- . . " . .":' l .'.' . 1~~~.n:.:"~/"it.'. ~ - ..-..... . 1 2 3 4 5 6 7 8 9 RESOLUTION NO. aBSOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE LEASE WITH OPTION TO PURCHASE OF THAT CERTAIN PROPERTY IDENTIFIED AS APN 281-031-51 AND 281-041-41, LOCATED ON COOLEY AVENUE WITHIN THE SOUTHEAST INDUSTRIAL PARK PROJECT AREA, BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO TO ROCKWELL INTERNATIONAL CORPORATION (HEALTH AND SAFETY CODE SECTION 33433). BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. A. The Community Development Commission of the City of 10 San Bernardino (hereinafter "Commission") proposes to lease, with 11 option to purchase, to Rockwell International Corporation 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (hereinafter "Developer"), those certain parcels of property identified as APN 281-031-51 and 281-041-41, located on Cooley Avenue within the Southeast Industrial Park Redevelopment Project Area, the legal description of which is set forth in Exhibit "A" attached hereto and incorporated herein by reference as though fully set forth in full for the sum of $1.00 per year during the ten-year term of the lease, with the sale price at the exercise of the option to be the fair market value as determined by appraisal. - --B.. Notice of the time and place of hearing has been given as required by law. C. The Commission has made available for public inspection and copying a summary of financial aspects of the proposed sale. D. The summary of financial aspects represents that the fair market value of the interest to be conveyed by the DAB:cez December 1, 1988 1 1 2 3 4 RESOLUTION APPROVING THE LEASE WITH OPTION TO PURCHASE OF PROPB!TY ON COOLEY AVENUE TO ROCKWELL INTERNATIONAL CORPORATION -......,. "",OM ~.: 'l-,."" , )iJ Commission, determined at the highest use permitted for such 5 property is $485,000. 6 E. All hearings have been held as required by Health and 7 Safety Code Section 33433. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 SECTION 2. Determination. Based upon the representations made to the Commission, it is found and declared that the .''f~~: ~~ consideration for the real property describ~:.boY., in ...~. ...~ ,., accordance with covenants and conditions governing tb. lea88 y1th '5..' ,,'..,:'..~' :::::::0 d:::::::~ :: :::s h:::stt:s:a;~::::t z:.1~~:: for the Southeast Industrial Park Project Redevelo~nt Area, and that such lesser consideration is necessary to effectuate the purposes of the plan as shown on the Summary of Financial Aspects. SECTION 3. Approval. The Mayor and Common Council of the City of San Bernardino hereby approve the lease with option to purchase of said property upon the terms and conditions set forth in th~ resolution and the summary of financial aspects. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San 24 Bernardino at a meeting thereof, held on the day 25 of , 1988, by the following vote, to wit: 26 III 27 III 28 DAB:cez 2 December 1, 1988 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 RESOLUTION APPROVING THE LEASE OF PROPERTY ON COOLEY AVENUE TO ROCKWELL INTERNATIONAL CORPORATION AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this day of , 1988. ~ :t. ,;; ; "" -. EvlYn Wilcox, Mayor City of San Bernardino 16 Approved as to form and legal content: 1 i 17 18 19 20 21 22 23 24 25 26 27 28 DAB: cez December 1, 1988 3 BXHIBI'l' wAw LEGAL DESCRIPTION That certain parcel of land ~n ~he C1~y of San Bernardino, County of San Bernardino, State of California, de.cribed 8. follows: DAB:cez 9/29/88 PARCEL MAP .781 THAT PTN PARCEL NO 6 LYING WEST OF EAST LINE LOT 11 BLOCK 72 R S B RECORDED MAP BOOK 7 PAGE 2 OFFICIAL RECORDS AND PARCEL MAP 4781 THAT PTN PARCEL NO 6 LYING EAST OF THE EAST LINE LOT 11 BLIt 72 R S B AS RECORDED IN MAP BOOK 7 PAGE 2 OFFICIAL RECORDS ; ~ .. .~ SUBJECT TO: Covenant., conditions, restrictions, reservations, easements and rights of way of record, if any. 27 .' .' ,',.;. ~>~~:"; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND ROCKWELL INTERNATIONAL CORPORATION BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Executive Director of the Redevelopment Agency of the City of San Bernardino is hereby authorized and directed to execute for and on behalf of the Redevelopment Agency of the City of San Bernardino, a Disposition and Development Agreement with Rockwell International Corporation (Southeast Industrial Project Area). A copy of this Agreement is attached hereto as Exhibit "A" and incorporated herein by reference as though fully set forth at length. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meeting thereof, held on the , 1988 by the following vote, to wit: day of AYES: Commissioners NAYS: ABSENT or ABSTAIN: 25 26 27 28 Secretary DAB:cez December 9, 1988 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RESOLUTION AUTHORIZING AND DIRECTING THE EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT WITH ROCKWELL INTERNATIONAL CORPORATION The foregoing resolution is hereby approved this day of , 1988. Chairman of the Community Development Commission of the City of San Bernardino Approved as to form and legal content: By: '~ 25 26 27 28 DAB:cez December 9, 1988 2 . .. Recording Requested by: REDEVELOPMENT AGENCY When Recorded Mail to: REDEVELOPMENT AGENCY OF '1'HE CITY OF SAN BERNARDINO 300 North "0" Street, 4th Floor San Bernardino, CA 93418 DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG '1'HE COMMUNITY DEVELOPMENT COMMISSION OF '1'HE CITY OF SAN BERNARDINO ON BEHALF OF '1'HE REDEVELOPMENT AGENCY OF '1'HE CITY OF SAN BERNARDINO, CALIFORNIA AND ROCKWELL INTERNATIONAL CORPORATION (SO~HEAST INDUSTRIAL PROJECT AREA) DAB:cez 9/29/88 1 to I REDEVELOPMENT AGENCY OF ~HE CITY OF SAN BERNARDINO DISPOSITION AND DEVELOPMENT AGREEMENT SOt1THEAST INDUSTRIAL PROJECT AREA THIS AGREEMENT ~s made and entered ~nto tbds ~ day of ^J C \/ . , 1988, by.and among the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a public body corporate and pOlitic, hereinafter called the "Agency", and ~ ROCKWELL INTERNATIONAL CORPORATION, a Delaware corporation, hereinafter ~ndividually and cOllectively called the "Redeveloper". RECITALS This Agreement ~s made with reference to the fOllowing facts: (a) In furtherance of the objectives of the Community Redevelopment Law of the State of California (Health and Safety Code of the State of California, Sections 33000 et seq.), the Agency has undertaken a program for development of blighted areas in this City of .San Bernardino, California, and, in this connection, pursuant to Ordinance No. 3583 of the City of San Bernardino, California, adopted 6-21-76, the City and the Agency have approved and adopted the "Redevelopment Plan". Pursuant to the provisions of the Redevelopment Plan, the Agency and the City have undertaken and are now carrying out the responsibility for a redevelopment project, designated as the Southeast Industrial Park Redevelopment Project (hereinafter called the "Project") DAB:cez 9/29/88 2 ... . and ~he area wi~hin ~he Projec~ (being hereinaf~er called the .Project Area"). ~he boundaries of ~he Projec~ Area are described in ~he Redevelopment Plan which, by this reference, is incorporated herein and made 8 part hereof. (b) That certain parcel ~f real property more particularly described in Ezh1bit wA", attached hereto and by this reference made a part hereof (hereinafter called the "Property"), is located within the boundaries of sa~d Redevelopment Project, and under said Redevelopment Plan may be developed for private use. (c) The Redeveloper has made an offer for a ten (10) year lease of such property with an option to purchase and to redevelop such property in accordance with the uses specified in the Redevelopment Plan. It is recognized that it may be necessary to modify the actual improvements, and such modifications will be subject to the approval of the Agency. Cd) The agency has considered all pertinent data and analysis, including the reports of its consultants and the reports and recommendations of its staff, and the Agency believes that the redevelopment of the Property pursuant to the provisions of this agreement is in the best interests of the City and employment growth, and is in accord with the public purposes and provisions of applicable laws and regulations under which the Project is governed. (e) Pursuant to the proviSions of California Health and Safety Code Section 33433, the Agency gave notice and held a DAB:cez 9/29/88 3 public hearing on , at which time the form of this agreement was available for public examination. By Resolution No. , adopted on ., 'the Agency approved the execution of this agreement, and determined that the method of disposition provided for in this agreement is the most effective method for accomplishing the objectives of this Agency. (f) On the basis of the foregoing, and the undertakings of the Agency and the Redeveloper under this agreement, the Agency desires to lease with an option to purchase and the Redeveloper desires to lease with an option to purchase 8aid Property in accordance with the provisions of the Redevelopment Plan and this Agreement. NOW, ~HEREFORE, X~ XS AGREED between the parties hereto as follows: 1. Lease and Sale of Property, Conveyance Terms. A. Subject to all terms, covenants, and conditions of this agreement, the Agency agrees to lease the property to the Redeveloper for a term of ten (10) years at a lease rate of One Dollar ($1.00) per year with an option to purchase said property on or before the termination of the lease. Said option shall be exercised in writing. Upon the exercise of said option the Agency and the Redeveloper shall each select an appraiser. These two appraisers shall select a third appraiser which appraiser shall appraise the property for fair market value without the improvements constructed by Redeveloper. Such value shall reflect any encumbrances imposed on the property by Lessor or its DAB:cez 9/29/88 4 predecessors-~n-~nterest. Such fair market value shall be the ~otal acquisition pr~ce of ~e property and ahall be paid ~n cash at close of escrow. B. Upon delivery of the grant deed, ~~tle to the Property ahall be conveyed to the Redeveloper. ~itle shall be conveyed by grant deed(s) aubstant~ally ~n ~e form attached hereto as Exhibit -B", and by ~s reference made a part hereof. The Agency shall prepare such deed(s). C. ~he Redeveloper ahall have ~he r~ght ~o enter ~nto possession of ~he Property upon execution of ~he lease from Agency. D. The ~itle ~o ~he Property conveyed by the Agency ~o ~he Redeveloper ahall be .v~denced by a CLTA title pOlicy provided by Agency which shows a marketable title free and clear of all encumbrances and exceptions, except as follows: (i) The title shall be subject to ~he conditions and restrict~ons set forth ~n the Declaration of Restrictions, recorded ~n Book 9033, Page 813, ~n the official records ~n the County of San Bernardino, which Declaration ~s ~ncorporated herein by reference. (ii) All of the agreements, covenants and conditions undertaken by the Redeveloper under this agreement. 2. Obligations of Agency. The Agency shall be responsible for and complete the actions set forth ~n Exhibit "C" and agrees to complete them prior to, or concurrently with, DAB:cez 9/29/88 5 ~he completion of ~he required actions ~o be ~aken by the Redeveloper. 3. Obligations of Redeveloper. A. ~he Redeveloper agrees ~o be responsible for and complete ~he actions set forth in Exhibit WD" wi~hin ~he time schedule set fo~h ~herein. B. Prior ~o ~he commencement of the above improvements, ~e Redeveloper agrees ~o submit ~o the Agency a design sketch and elevations ~erefor. If .aid design .ketch and elevations conform ~o said Redevelopment Plan and ~o ~he provisions of ~h1s agreement, ~e Agency shall approve ~hem in writing. Redeveloper shall also comply fully with City policies and procedures, and obtain all requisite City permits. C. All improvements shall be constructed in accordance with all applicable State and local laws and regulations and shall conform to ~he provisions of this agreement. D. Prior to ~he execution of the lease, and as a condition precedent to the obligation of ~he Agency to complete the actions set forth in Exhibit .C", the Redeveloper shall submit to the Agency satisfactory evidence that the Redeveloper has the capital and financing commitments necessary for the construction of the improvements. ~hroughout ~he entire term of the construction of the project contemplated herein, Redeveloper shall maintain, at its own expense, signs provided by the Agency or containing language approved by the Executive Director of DAB:cez 9/29/88 6 Agency advising ~he public of Agency's coopera~ion in ~he redevelopmen~ of ~e Property. E. During ~e periOd of cons~ruc~ion, "the work of ~he Redeveloper shall be subjec~ ~o inspec~ion by repre.en~a~ives of ~he Agency. F. Prior ~o delivery of ~he Proper~y ~o ~he Redeveloper, ~he Agency shall permi~ ~he Redeveloper access ~here~o, whenever and ~o ~he exten~ necessary ~o carry out the provisions of ~h1s agreement. In no case ahall ~here be any compensation payable or charge made in any form by or ~o either par~ for any such access. 4. Certificate of Completion. A. Promptly after completion of ~he improvements in accordance wi~h the provisions of ~his agreemen~, ~he Agency will furnish ~he Redeveloper wi~h an appropriate Cer~ifica~e of Completion, substantially in ~he form a~~ached hereto and marked Exhibi~ "E". Such ce~ifica~e by the Agency ahall be conclusive de~ermina~ion of sa~isfac~ory ~ermina~ion of all agreements and covenan~s of ~his agreemen~ and ~he gran~ deed, .xcep~ for ~he covenan~s provided for in Paragraphs 5 and 6, with respect ~o ~he obligation of ~he Redeveloper, and i~s successors and assigns, provided that such cer~ification and such determination shall not cons~i~ute evidence of compliance wi~h, or sa~isfaction of, any obliga~ion of ~he Redeveloper ~o any holder of any mor~gage, securing money loaned ~o finance ~he improvemen~, or any part ~hereof. DAB:cez 9/29/88 7 B. ~he certification provided for ~n ~~s Section shall be ~n such form as will enable ~t ~ be recorded with the County Recorder of San Bernardino County, and ahall be substantially like ~at ~n Exhibit "E". If ~he Agency shall refuse or fail to provide the certification ~n accordance with the provisions of the Section, ~e Agency shall, within thirty (30) days after written request by ~e Redeveloper, provide the Redeveloper with a written statement indicating in detail in what respects the Redeveloper has failed to complete ~e improvements ~n accordance with the provisions of this agreement or is otherwise in default and what measures or acts will be necessary in the opinion of the Agency, for the Redeveloper to take or perform in order to obtain such certification. S. Maintenance. A. The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to ~e Property, or any part thereof, that ~e Redeveloper and such successors and assigns, shall, to the Agency's satisfaction, properly maintain the parking areas and landscaped areas and parkways on the Property as shown on the specifications for the Property approved by the Agency, and required by the conditions and restrictions referred to in Paragraph lD(i). B. In the event Redeveloper, its successors or assigns fails to perform the maintenance as provided herein, the Agency or City shall give Redeveloper written notice of any such failure, and, if not remedied by Redeveloper within twenty (20) DAB:cez 9/29/88 8 days after receipt of 8uch notice, the only remedy ~s that the City and/or Agency shall have the right to enter the Property and undertake, or cause to be undertaken, such .aintenance activities. In such event, Redeveloper shall reimburse the City and/or the Agency for all reasonable sums ~ncurred by it for such maintenance activities. 6. Restrictions on Use. ~he Redeveloper agrees for itself, and its successors and assigns, and every successor in interest to the Property, or any part thereof, that the Redeveloper and such successors and assigns ahall: A. Devote the Property to and in accordance with the uses specified in the Redevelopment Plan. ~he terms "uses specified in the Redevelopment Plan" and "land use" referring to provisions of the Redevelopment Plan, or similar language in this agreement, shall include the Property and all buildings, and shall include all requirements or restrictions of the Redevelopment Plan pertaining to such Property. B. Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap,. national origin or ancestry in the sale, lease, sublease, rental, or transfer or in the use, occupancy, tenure, or enjoyment of the Property or any improvements erected or ~o be erected thereon, or any part thereof, nor shall the Redeveloper itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, DAB:cez 9/29/88 9 use or occupancy of ~enant, 1888ees, subtenants, .ublessees, or vendees of the Property, or any part thereof. 7. Agency Rights to Enforce. In amplification, and not in restriction of the provisions of the preceding Section, it is intended and agreed ~hat the Agency and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in Section 6 hereof, both for and in their or its own right, and a180 for ~he purposes of protecting the interests of ~he community and other parties, public or private, in whose favor or for whose benefit such agreements and covenants , have been provided. Such agreements and covenants shall run in favor of the Agency, for ~he entire period during which such agreements and covenants ahall be in force and effect, without regard to whether the Agency has at any time been, remains, or becomes an owner of any land or interest ~herein to, or in favor of which, such agreements and covenants relate. The Agency shall have the right, in the event of any breach of any such agreement or covenant, to exercise all of the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled. Any leases made by the Redeveloper covering the subject Property shall include notice of the applicable restrictions, covenants and conditions set forth in Section 6 of this agreement. The Redeveloper and the Agency agree to cooperate in enforcing such DAB:cez 9/29/88 10 -L--__._ _ _____._ ~_J _ __ ___.__. restrictions, covenants and conditions. 8. Equal Employment Opportunity. !'he Redeveloper, for ~tself and its auccessors and assigns, agre.s .~hat during the construction of the improvements provided for in the agreement that: A. The Redeveloper shall not 'discriminate against any employee or applicant for employment because of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. !'he Redeveloper agrees ~o post .in conspicuous places, available to employees and applicants for emploYment, notices to be provided by the Agency setting forth the provisions of the nondiscrimination clause. B. The Redeveloper shall, in all solicitations or advertisements for employees placed by or on behalf of the Redeveloper, state that all Qualified applicants will receive consideration for employment without regard to race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. c. The Redeveloper shall comply with all applicable local, State and Federal laws and regulations relating to equal employment opportunity. D. In the event of the Redeveloper's noncompliance with the nondiscrimination clause of this Section, or with any of said laws, rules or regulations, the Agency shall have the right to compel full compliance through an action for specific performance of this Agreement. DAB:cez 9/29/88 11 E. ~he Redeveloper ahall ~nclude no~ice of ~he provisions of subdivisions (A) through (C) of ~his Sec~ion ~n every construction contract, and shall require the ~clusion of notice of these provisions ~n every construc~ion .ubcontract entered in~o by any of its contractors, unless exempted by ~he applicable laws, rules or regulations and such provisions shall be binding upon each such contractor, 8ubcontrac~or, or vendor, as ~he case may be. ~he Redeveloper shall ~ake such action with respec~ ~o any construc~ion contrac~ or subcon~ract, as ~he Agency may direct, as a .eans of enforcing such provisions, inCluding sanctions for noncompliance, provided, however, ~hat in ~he event the Redeveloper becomes involved in, or ~s ~hreatened with, litigation wi~h a 8ubcontractor or vendor as a result of such direction by ~he Agency, ~he Redeveloper may require the Agency ~o enter ~nto such litigation to protect its interest. 9. Prohibition Against ASSignment and Transfer. A. Representations as ~o ~he Redevelopment: The Redeveloper represen~s and agrees ~hat ~he Property acquired hereunder, and Redeveloper's other unde~akings pursuant ~o this agreement, are and will be used for the purpose of redevelopment of ~he Proper~y and not for speculation in landhOlding. The Redeveloper further recognizes: (1) ~he importance of the redevelopment of the property to the general welfare of the community; (2) ~hat ~he qualifications and identity of the Redeveloper are of particular concern to the community and the DAB:cez 9/29/88 12 Agency. B. Prohibition Against ~ransfer of Property and Assignment of Agreement: (1) ~he Redeveloper represents and agrees for itself, and its auccessors and assigns that except only by way of . security for, or except if necessary to jOint venture, for (i) the purpose of obtaining financing necessary ~o enable the Redeveloper or any 8uccessor in interest to the Property, or any part thereof, to perform its obligations with respect to making ~he improvements under this agreement, and (ii) any other purposes authorized by this Agreement, ~e Redeveloper (except as 80 authorized) has not made or created, and that it will not, prior to the proper completion of the improvements as certified by the Agency, make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or grant any trust or power, or transfer in any other mode or form with respect to, this agreement or the property, or any part thereof or any interest therein, or enter into any contract or agreement to do any of the same, without the prior written approval of the. Agency, provided that, prior to the issuance by the Agency of the certificate provided for in Section 4A hereof as to the completion of construction of the improvements on the Property, the Redeveloper may enter into any lease of office space, facilities, or suites in the ordinary course of business. (2) The Agency shall be entitled to require, except as otherwise provided in this agreement, as conditions to DAB:cez 9/29/88 13 any 8uch approval, that: ea) Any proposed transferee ahall have the qualifications and financial responsibility, as determined by the Agency, necessary and adequate to fulfill ~. obligations undertaken in the agreement by the Redeveloper (or, ~n the event the transfer is of, or relates to, part of the Property, such obligations to the extent that they relate to such part). eb) Any proposed transferee, by instrument in writing satisfactory to the Agency and in recordable form, shall, for itself and its successors and assigns, and expressly for the benefit of the Agency, have expressly assumed all of the obligations of the Redeveloper under this agreement and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject (or, in the event the transfer is of, or relates to part of, the Property, such obligations, conditions, and restrictions to the extent that they relate to such part); provided that, if any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof shall not have assumed such obligations or so agreed, the fact shall not (unless and only to the extent otherwise specifically provided in this agreement or agreed to in writing by the Agency) relieve or excuse such transferee or successor of or from such obligations, conditions, or restrictions, or deprive or limit the Agency of, or with respect to, any rights or remedies or controls with respect to the Property or the construction of the improvements. Redeveloper shall also remain fully liable DAB:cez 9/29/88 14 hereunder unless specifically excused by agreement of the Agency ~n writing. It is the intent of this subsection, ~ether with other provisions of this agreement, that (to the ~ullest extent permitted by law and equity and excepting only in the aanner and to the extent specifically provided oth~rwise in this agreement) no transfer of or change with respect to ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether VOluntarily or involuntarily, .hall operate legally or ,practically, to deprive or limit the Agency of, or with respect to, any rights or remedies or controls provided in, or resulting from, this agreement with respect to the Property and the construction of the improvements that the Agency would have had, had there been no such transfer or change. (c) There shall be submitted to the Agency for review all instruments and other legal documents involved in effecting any such proposed transfer; and if approved by the Agency, its approval shall be indicated to the Redeveloper in writing. (d) The consideration payable for the transfer by the transferee, or on its behalf, shall not exceed an amount representing the actual cost (including carrying charges) to the Redeveloper of the Property (or allocable to the part thereof or interest therein transferred) and the improvements, if any, theretofore made thereon by it, it being the intent of this provision to preclude assignment of this agreement or transfer of DAB:cez 9/29/88 15 ~he Property (or any parts ~ereof other ~an ~ose referred to ~n ~his Section 9 (relating to security ~or ~inancing), for profit prior ~o the completion of the ~mprov..ents and to provide that, ~n ~e event any such assignment or ~ransfer is made (and is not canCelled), the AgeDcy shall be entitled to ~ncrease the purchase price to the Redeveloper by the amount that the consideration payable ~or the assignment or transfer is ~n excess of the amount that may be authorized pursuant to this subdivision. Such consideration received by Redeveloper in any ~orm whatever ahall, to the extent it ~s ~n excess of the amount ao authorized, belong to, and forthwith be paid to, the Agency. (e) The Redeveloper and its transferee shall 90mply with such other conditions as the Agency may find desirable in order to achieve and comply with the purposes of the Community Redevelopment Law; provided that, in the absence of apecific written agreement by the Agency to the contrary, no such transfer or approval by the Agency thereof shall be deemed to relieve the Redeveloper, or any other party bound ~n any way by this agreement or otherwise with respect to this construction of the improvements, from any of its obligations with respect thereto. 10. Default by Redeveloper Subsequent to Execution of Lease. A. Any of the fOllowing circumstances shall constitute an event of default: (1) The Redeveloper (or successor in interest) DAB:cez 16 9/29/88 ahall default ~n, or violate, its obligations with respect to ~e construction of the ~provements (including the nature and the dates for the beginning and completion ~ereof), or shall abandon or substantially suspend construction work, or (2) The Redeveloper (or successor ~n ~nterest) shall fail to pay real estate taxes or assessments on the Property or any part thereof when due, or shall place thereon any encumbrance or lien not authorized by this agreement, or ahall suffer any levy or attachment to be made, or any materialmen's or mechanic's lien or any other unauthorized encumbrance or lien to attach, and such taxes or assessments ahall not have been paid, or the encumbrance or lien removed or discharged, or provision satisfactory to the Agency made for such paYment, removal or discharge, within thirty (30) days after written demand by the Agency so to do; provided, however, the Redeveloper ahall have the right to contest, in good faith, by . appropriate proceedings, any such lien or encumbrance, and to substitute an appropriate bond in lieu of the paYment, removal, or discharge of such lien or encumbrance; or (3) There is, in violation of this agreement, any transfer of the Property, or any part thereof. B. In any such event, the Agency shall have the right to reenter and take possession of the Property and to terminate (and revest in the Agency) the estate conveyed by the lease or deed(s) to the Redeveloper. It is the intent of this subsection, DAB:cez 17 9/29/88 ~oge~her wi~h ~e o~her provisions of ~is agreement, ~at ~he lease and/or conveyance of ~e Prope~ ~o ~e Redeveloper shall be .ade upon, and ~hat ~e ~ransfer documents ahal1 contain a condition sUbsequent to the effect ~hat, in ~he event of any default, failure, violation, or other action or inaction by the Redeveloper specified in clauses (1); (2) and (3) of this subsection A above, ~e Agency at its option may, after notice, opportuni~y ~o cure, and after a fair hearing, declare a ~ermination in favor of the Agency of ~e ~it1e, and of all ~e rights and interest in ~he Property conveyed by the transfer documents ~o the Redeveloper. The procedure for notice, opportunity ~o cure, and hearing ahall be as follows: If Agency staff believes Redeveloper has failed to comply with the terms of this agreement and ~hat a default has occurred under the provisions of Paragraph lOA, the Executive Director shall give Redeveloper written notice of such claim, and shall specify the means by which Redeveloper may cure the default. If Redeveloper fails ~o remedy such alleged default wi thin thirty (30) days after receipt of such notice, Agency shall notify Redeveloper of ~e date and time, not sooner than sixty (60) days from the date of such notice, at which the Community Development Commission shall afford to Redeveloper an opportunity to show cause why a default should not be declared, which opportunity shall include the right to present documentary evidence, and the right to make reasonable argument. If, after such hearing, the Commission determines by majority vote that a DAB:cez 9/29/88 18 defaul~ has occurred and no good reason .xis~s ~o delay declara~ion of defaul~, the Commission may declare a forfei~ure and direc~ ~he recording of the no~ice of forfeiture provided for. If ~he Agency records in ~he office of ~he County Recorder of San Bernardino Coun~y a vri~ten Declaration of Forfeiture referring ~o ~he ~ransfer documents by which ~he Property is conveyed ~o the Redeveloper, ~hen said transfer documents are null and void, and all interest thereby leased-or conveyed shall for~hwith and without fur~her notice to the Redeveloper become forfeited and shall revert to the Agency; provided, tha~ such condition subsequent and any reves~ing of ti~le as a result thereof in the Agency shall always be subject to and limited by, and shall not defeat, render invalid, or limi~ in any way (i) the lien of any mor~gage authorized by ~his agreemen~ and .xecu~ed for the purpose of ob~aining funds ~o acquire and/or develop ~he Proper~y, and (ii) any righ~s or interes~s provided in this agreemen~ for the pro~ection of ~he holders of such mortgages. C. The Agency shall have ~he right to ins~i~u~e each ac~ion or proceeding as i~ may deem desirable for effectuating ~he purpose of this Section, including also the right to execute and record or file wi~h the County Recorder of San Bernardino County a written Declaration of Termination of all rights and title of ~he Redeveloper, and (subject to such mortgages, liens and leasehold interest as provided in subsection B of ~h1s DAB:cez 9/29/88 19 Section) ~ts auccessors ~n ~nterest and assigns, ~n the Property and the revesting of ~itle thereto ~n the Agency, provided that any delay by the Agency ~n ~nstituting or prosecutLng any such actions or proceedings or otherwise asserting ~ts r~ghts under this Section 10 ahall not operate as a waiver of such rights or to deprive it of, or l~it, auch rights ~n any way (it being the ~ntent of this provision ~hat the Agency should not be constrained, 80 as to avoid the risk of being deprived of, or limited in, the exercise of the remedy provided ~n this Section because of concepts of waiver, laches, or otherwise, to axercise such remedy at a time when ~t may still hope otherwise to resolve the problems created by the default ~nvolved), nor shall any waiver in fact made by the Agency with respect to any specific default by the Redeveloper under this Section be considered or treated as a waiver of the rights of the Agency with respect to any other defaults by the Redeveloper under this Section or with respect to the particular default, except to the extent 8pecifically waived. D. In the event that title to the Property shall revest in the Agency in accordance with the provisions of this Section 10, after the conveyance to Redeveloper, the Agency shall, pursuant to its responsibilities under the Community Redevelopment Law, use it best efforts to resell the Property (subject to such mortgage liens as provided in subsection B of this Section) as soon and in such manner as the Agency shall find feasible and consistent with the objectives of 8uch law, and of DAB:cez 9/29/88 20 ~e Redevelopment Plan as hereafter amended from t~e to time, to a qualified and responsible party or parties (as determined by the Agency) who will assume the obligation of _aking or completing the ~provements or such other ~provements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified in ~e Redevelopment Plan, as hereafter amended from time to time. Upon such resale of the Property, the proceeds thereof shall be applied: First: ~o re~bur.e the Agency, on its own behalf or on behalf of the City, for all costs and expen.e. incurred by the Agency, including, but not liDdted to, real estate broker commissions, if any, paid by the Agency, attorneys fees and salaries of personnel, in connection with the sale and recapture, management and resale of the Property (but less any income derived by the Agency from the Property in connection with such management), all taxes and assessments with respect to the Property (or, in the event the Property is exempt from taxation or assessment during the period of ownership thereof by the Agency, an amount equal to such taxes and assessments, or charges (as determined by proper assessing officials) as would have been payable if the Property were not so exempt), and paYments made or necessary to be made to discharge any encumbrance or -liens existing on the Property at the time of revesting of title thereto in the Agency or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Redeveloper, its successors DAB:cez 9/29/88 21 . . or ~ransferees, and expenditures made or obligations incurred with respect ~o the making or completion of the ~provements or any part ~hereof on ~he Prope~: and any amounts o'therwise owing the Agency by ~he Redeveloper and i~s successors or transferees. Second: ~o reimburse the Redeveloper, ~ts 8uccessors or transferees up ~o the amount equal'~o (i) the sum of the purchase price paid by it for the Property and the cash actually invested by it in making any of the improvements on the Property less (ii) any gains or income withdrawn or made by it from this agreement or the Property. ~h1rd: Any excess remaining ahall be retained by ~he Agency. In the event that title to ~he property shall revest in the Agency in accordance with the provisions of this Section 10, after execution of the lease to Redeveloper, but before the conveyance by deed, Redeveloper shall have no right to any compensation. 11. Default by Agency Subsequent to Lease or Conveyance. In the event ~hat the Agency is unable ~o comply with each and every condition hereinabove set forth, with the exception of those conditions which are to be performed by the Redeveloper, the Redeveloper and its successors and assigns may initiate an action to compel the Agency to take back or repurchase the Property at the price specified in Section 1 with interest, and, in addition, to compel the Agency to reimburse the : ~ Redeveloper for any and all sums expended by the Redeveloper for DAB:cez 9/29/88 22 'the undeveloped portions of 'the Property, :If any. 12. Cumulative Remedies: Waivers. 'l'he rights and remedies of 'the parties ~o 'this agreement .hall be cumulative, and the ezercise by either party of anyone or ~re of such remedies ahall not preclude 'the ezercise by :It, at 'the .ame or different times, of any other such remedies for any other default or breach by the other party. No waiver by either party with respect to the performance, or manner, or ~:lme thereof, or any obligation of the other party or any condition to :lts own obligation under this agreement, .hall be considered . waiver of any rights of the party making the waiver with respect to the particular obligation of the other party or condition to its own obligation beyond those expressly waived and ~o ~he extent thereof. No such waiver shall :In any respect affect any other rights of the party making the waiver or any other obligations of the party. 13. Agency Employees, Members. No member, official, or employee of the Agency ahall have any financial :lnterest, direct or indirect, in this agreement or in the Property, nor shall any such member, official, or employee participate in any decision relating to this agreement or to the Property, which affects his financial interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Agency shall be personally liable to the Redeveloper or any successor in interest in the event of any DAB:cez 9/29/88 23 default or breach by the Agency or ~or any amount which may become due to the Redeveloper or successor or on any obligations under the terms of this agreement. 14. Attorneys Fees. The parties agre. that if any action is brought for breach of any of the covenants or conditions of this agreement, the pr~vailing party shall be entitled to recover attorney ~ees and costs ~n accordance with Civil Code Section 1717. 15. Notice. Any notice to be given by either party to the other ahall be given by certified mail, return receipt requested, postage prepaid, addressed as follows: ~ Redeveloper Rockwell International Corp. Real Estate Department 2230 E. Imperial Highway El Segundo, CA 90245 Redevelopment Agency of the City of San Bernardino 300 North D Street, 4th Fl. San Bernardino, CA 92418 Nothing in this paragraph shall be construed to prevent the giving of such notice by personal service. 16. Merger. None of the provisions of this agreement are intended to or shall be merged by reason of any lease or deed(s) transferring title to the Property from the Agency to the Redeveloper or any successor ~n ~nterest, and any such lease or deed(s) shall not be deemed to affect or impair the provisions and covenants of this agreement. 17. Lease. The parties acknowledge that a lease of even date, covering the same property as this Agreement, is being executed by the parties and if this Agreement and the DAB:cez 9/29/88 24 lease are ~n conflict, .aid lease ahall control with respect to ~he creation of a leasehold ~nterest and as ~o all other particulars this Agreement shall control. 18. Right to Modify, Terminate, Amend. ~s agreement may be terminated, extended, modified or amended as to all of the Property or any part thereof, for which a Certificate of COmpliance has not been ~ssued, with the consent of the Agency and/or the City and all parties then having an interest in the Property. No such termination, extension, modification or amendment ahall be effective until a written instrument setting forth the terms of the same has been executed, acknowledged and recorded in the Office of the Recorder of San Bernardino, California. 19. Time is of the Very Essence. Agency shall have every right to exercise its options upon any breach of time constraints, whatever. All parties recognize that time is of the very essence of this agreement. 20. Validity Contingency. This agreement shall not become effective for any purpose unless the original, duly executed by the Redeveloper, is returned and received by the Agency within ten (10) days from the receipt thereof by the Redeveloper. 21. Execution. This agreement is executed in counterparts, each of which shall be deemed to be an original and such counterparts shall constitute one and the same DAB:cez 9/29/88 25 - J__ l.nstrument. IN WITNESS WHEREOF, ~he par~ies hereto have entered l.nto ~is Agreement as of ~e day and date first above .hown. AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By ~ Pdbl~ -~a1rm n By /jh::~~ Approved as ~o form and legal content: AGENCY COUNSEL By~t&4) ./ De is A. Barlow DAB:cez 9/29/88 REDEVELOPER: ROCKWELL INTERNATIONAL CORP. By . ~d~ - By fiO~~.__~~ 26 l.nstrument. IN WITNESS WHEREOF, ~he parties hereto have entered into this Agreement as of the day and date ~irst above shown. . . AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By 4,~aI7 BY~~ ~vad.....-..- c.# STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO ) ) ) ss REDEVELOPER: ROCKWELL INTERNATIONAL CORP. By .~~~ By /fJ~~_~ --~~ ,On jJ0l1<i..kA3?~ ID . 19H... before me. Katharine Peake. a Notary Public, personally appeared EVLYN HILOOX and JESS FLORES. personally known to me to be the perso~ who executed this instrument as Chairman and Acting Secretary, respectively. of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, and !~~~~~~d?!d to me that the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO &AT. NO. NNOO737 10 2'Mfi CA (1-83) (Corporation) . STATE OF CA.....FORNIA COUNTYOF~AJJ 13'~~)f\ebl ND On <c Gct:.(L t) n said State, personally appeared personally known to me or proved to me on the basis of satisfactory evidence to be the penon who executed the ~ithin instrffient as the f-'ffC-L.r~1 u'~ U~C[ President, and \ l"+lAe-D ~ -A personally known to me or proved to me on the basis of satisfactory evidence to be ~~n who executed the within instrUment as the <;'\ <:)'\A,.yj Secretary of the Corporation rhat executed the within instrument and acknowledged .0 me that such corporation executed the within instrU- ment pursuant to its by-laws or a resolution of its board of directors. WJTNESS~~ SIgnature aiJ TICOR TITLE INSURANCE }a 1 t before me, the undersigned, a Notary Public ill and for cz: .. IE .. z t = ~ .' OFFICIAL SEAL \ .";.; :, KATHARINE PEAKE . NOTARY PU8UC. CALIFORNIA # ",' SAN BERNARDINO COUNTY , My Comm, Expires Sept, 27, 1991 ''I' . '''r''-''-:":'~:--' -,..- ,- (Tbil area for ofl"lCiII noariaI Inl) EXHIBIT wA" LEGAL DESCRIPTION That certain parcel of land in ~he City of San Bernardino, County of San Bernardino, State of California, described as follows: PARCEL MAP 4781 'l'HAT PTN PARCEL NO 6 LYING WEST OF EAST LINE LOT 11 BLOCK 72 R S B RECORDED MAP BOOK 7 PAGE 2 OFFICIAL RECORDS AND PARCEL MAP 4781 'l'HAT PTN PARCEL NO 6 LYING EAST OF THE EAST LINE LOT 11 BLK 72 R S B AS RECORDED IN MAP BOOK 7 PAGE 2 OFFICIAL RECORDS SUBJECT TO: Covenants, conditions, restrictions, reservations, easements and rights of way of record, if any. DAB:cez 9/29/88 27 EXHIBIT wB" GRANT DEED (Subject ~o COnditions Subsequent) ~he REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a public corporation, hereinafter called the Grantor, in consideration of the sum of , ($ ) to be paid by ROCKWELL INTERNATIONAL CORPORATION, a California corporation, hereinafter called Grantee, and in further consideration of the covenants and conditions herein contained and to be kept and performed by the Grantee, does hereby grant to the Grantee all that real property in the City of San Bernardino, County of San Bernardino, State of California, hereinafter called the wProperty", described as follows: SEE EXHIBIT "A" ATTACHED HERETO ~he Grantee does hereby acknowledge receipt of a copy of the Redevelopment Plan for the Southeast Industrial Project Area, approved by Ordinance No. 3583 of the City of San Bernardino, which Ordinance was adopted 6-21-76, which is hereinafter referred to as ~he "Redevelopment Plan", said Redevelopment Plan containing as a part thereof that certain Declaration of Restrictions which became effective under said Ordinance and which is hereinafter referred to as the "Restrictions". The Grantee, for itself, its successors and assigns, does hereby covenant and agree with, and for the benefit of, the DAB:cez 9/29/88 28 . . Grantor, ~ts Buccessors and assigns, as follows: 1. Grantee, ~ts Buccessors and ass~gns, will hold, occupy and use ~he aforesaid real property Bubject ~o and in accordance with all the terms, conditions, l~mitations, restrictions, requirements and covenants set forth in the Redevelopment Plan and the Restric't~ons. Said terms, conditions, limitations, restrictions and covenants -running with the land" and shall be binding for the benefit and in favor of, and be enforceable by, the Grantor, ~ts BucceSBors and assigns, the City of San Bernardino, and any successor in ~nterest to the Grantee of the Property or any part thereof, and the owner of any other land ~n the Project Area. 2. (a) ~he Grantee herein covenants by and for himself, his heirs, executors, administrators, and his successors and assigns, and every successor in interest to the Property, or any part thereof, and all persons claiming under or through them, that the Grantee, and such successors and assigns, shall (1) Devote the Property to uses consistent with the purposes of the Redevelopment Plan. (2) Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin, ancestry, age or handicapped status in the sale, lease, sublease, rental or transfer or in the use, occupancy, tenure or enjoyment of the Property or any improvement erected or to be erected thereon, or any part thereof, nor shall the Grantee DAB:cez 9/29/88 29 himself or any person claiming under or through him, establish or permit any 8uch practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, aublessees, or vendees of the property, or any part thereof. (3) To properly maintain the parking areas, landscaped areas and parkways on the Property, and that, if Grantee fails to remedy any failure after twenty (20) days' notice from Agency, Agency shall have the right to enter the Property, and undertake or cause to be undertaken such maintenance activities. In such event, Grantee, its Successors or assigns, shall reimburse Agency for all reasonable sums incurred for such maintenance activities. (b) The foregoing agreements and covenants, as set forth in subdivision (a) of Section 2 of this Deed, shall be covenants running with the land, and they shall in any event, without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding to the fullest extent permitted by law and equity, for the benefit and in favor of, and be enforceable by the Grantor, its successors and assigns, the City of San Bernardino, California, and any successor in interest to the Property or any part thereof, and the owner of any other land (or of an interest in such land) in the subject Project Area, which is subject to the land use requirements and restrictions of the assigns, and every successor in interest to the Property, or any DAB:cez 9/29/88 30 part ~hereof or any ~nterest therein, and any party ~n possession or occupancy of the Property or any part thereof. It ~s further ~ntended and agreed that the agreement and covenant provided in subsection (1) of subdivision (a) of Section 2 of this Deed shall remain ~n effect for a period of forty-five (45) years from the date upon which said Ordinance became effective, at which time such agreement and covenant shall terminate, and that the agreement and covenant provided ~n subsection (2) of subdivision (a) of Section 2 hereof ahall remain ~n effect without limitation as to t~me; provided that auch agreements and covenants ahall be binding on the Redeveloper ~tself, each auccessor in interest to the Property, and every part thereof, and each party in possession or occupancy, respectively, only for such period as such successor or party shall have title to, or an ~nterest in or possession or occupancy of, -the Property or part thereof. The term "uses specified in the Redevelopment Plan" and "land use" referring to provisions of the Redevelopment Plan, or similar language, in the agreement shall ~nclude the land and all buildings, housing, and other requirements or restrictions of the Redevelopment Plan pertai~ng to such land. 3. In amplification and not in restriction of, the provisions of Section 2 hereof, ~t is intended and agreed that the Grantor and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in said Section 2 hereof, both for and in their or its own right and also for the purpose of protecting the interests of the City and other DAB:cez 9/29/88 31 parties, public or private, ~n whose favor or for whose benefit such agreements and covenants have been prov~ded. Such agreements and covenants shall run ~n favor of the Crantor, for ~he entire period during which such agreements and covenants shall be ~n force and effect, without regard ~o whether the Grantor has at any time been, remains, Dr ~s an owner of any land Dr ~nterest therein, or ~n favor of which, such agreements and covenants relate. The Grantor ahall have the right, ~n the event of any breach of any such agreement Dr covenant, to exercise all the rights and remedies, and to maintain any actions or suits at law Dr ~n equity Dr other property proceedings to enforce the curing of such breach of agreement Dr covenant, ~o which it or any other beneficiaries of such agreement or covenant may be entitled. THIS DEED IS GIVEN SUBJECT TO A CONDITION SUBSEQUENT, AS FOLLOWS: 4. In the event Grantee shall default in the performance of Grantee's undertakings for the construction of certain improvements on the aforesaid real property within the t~me and ~n the manner set forth in that certain Disposition and Development Agreement between the Grantor and the Grantee, dated A1btl"lVV\b-lr, 1 () ,1988, and hereinafter referred t.o as the "Agreement": Dr if the Grantee shall fail to pay real estate taxes or assessments when due: or shall place thereon any encumbrance or lien unauthorized by the agreement, or shall suffer any levy, lien, Dr attachment to be made, Dr there is in DAB:cez 9/29/88 32 violation of ~he agreement, any ~ransfer of the Property or any part thereof, and if, prior ~o execution and delivery by Agency of a Certificate of Compliance, Grantor shallr.cord in the office of the County Recorder of the County of San Bernardino, State of California, a written Declaration of Forfeiture referring ~o ~h1s deed, then this deed and conveyance shall be null and void and all interest hereby granted and conveyed shall forthwith and without further notice to Grantee, become forfeited and shall revert to the Grantor: provided, however, that ~he breach of any auch covenant and the forfeiture of the Grantee's interest in said real property by reason of such breach shall not in any manner impair, defeat or render invalid the interest of any mortgagee, ~rustee or beneficiary of any Deed of Trust executed by Grantee to secure a loan for ~he purpose of obtaining funds ~o acquire and/or develop all or part of the real property. THIS CONDITION SUBSEQUENT IS CANCELLED UPON RECORDING OF THE CERTIFICATE OF COMPLIANCE DULY EXECUTED BY AGENCY AS HEREINAFTER SPECIFIED. 5. (a) Promptly after completion of ~he improvements in accordance with the provisions of said agreement, the Grantor will furnish ~he Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself), a conclusive determination of satisfaction and termination of the agreements and covenants in said agreement and paragraph 4 of this deed DAB:cez 9/29/88 33 except ~he covenan~s contained ~n paragraph 2(a)1, 2(a)2, and 2(a)3 of ~his deed. (b) ~he certification provided 10r in ~his Section shall be in such form as will enable i~ ~ be recorded with ~he County Recorder of San Bernardino Coun~y. If the Grantor shall refuse or fail ~o provide ~he cer~ification in accordance wi~h ~he provisions of ~h1s Section, ~e Grantor shall within 90 days after written request by ~e Grantee, provide the Grantee with a written statement, ~ndicating ~n adequate detail in what respects ~he Grantee has failed ~o complete the ~provements in accordance with ~e provisions of said agreement or is otherwise in default and what measures or acts will be necessary in ~he opinion of ~he Grantor, for ~he Grantee ~o take or perform in order ~o obtain such certification. 6. None of ~he provisions of said agreement described in Section 4 hereof, are intended ~o or ahall be merged by reason of ~his deed ~ransferring ~itle ~o ~he Property from the Grantor to ~he Grantee in interest, and such deed shall not be deemed to affect or impair ~he provisions and covenants of said agreements. III III III III III III DAB:cez 9/29/88 34 IN WITNESS WHEREOF, ~he Gran~or and Gran~ee have .xecu~ed ~h~s deed by ~eir respec~ive off~cers ~her.un~o duly qualif~ed ~Ms 10 day of /VI) V. , 1988. GRANTOR: GRANTEE: REDEVELOPMENT AGENCY OF '!'HE ROCKWELL INTERNATIONAL CORP. CITY F SAN BERNARDINO By By ~2/~ ~ Approved as ~o form and legal content: AGENCY COUNSEL BY~~) / Dennis A. arlow DAB:cez 9/29/88 35 EXHIBIT wAw ~O GRANT DEED LEGAL DESCRIPTION That certain parcel of land in ~he City of San Bernardino, County of San Bernardino, State of California, described as follows: PARCEL MAP 4781 THAT PTN PARCEL NO 6 LYING WEST OF EAST LINE LOT 11 BLK 72 R S B RECORDED MAP BOOK 7 PAGE 2 OFFICIAL RECORDS AND PARCEL MAP 4781 THAT PTN PARCEL NO 6 LYING EAST OF THE EAST LINE LOT 11 BLK 72 R S B AS RECORDED IN MAP BOOK 7 PAGE 2 OFFICIAL RECORDS SUBJECT TO: Covenants, conditions, restrictions, reservations, easements and rights of way of record, if any. DAB:cez 9/29/88 36 EXHIBIT .e" UNDERTAKINGS AND OBLIGATIONS OF 'I'HE AGENCY AGENCY AGREES TO: 1. Lease ~he proper~y lis~ed in Ezhibi~ "A" ~o Redeveloper for ~en (10) years a~ a ra~~ of One Dollar ($1.00) per year, wi~h a lease ~o be delivered coinciden~ wi~h ~he execu~ion of ~his .greemen~, or wi~hin ~en (10) days after Redeveloper shall present ~o Agency evidence of i~s abili~y ~o finance ~his project, as required by Paragraph 3D of this agreemen~, whichever ahall las~ occur. Such lease shall also con~ain an op~ion ~o purchase ~e property at a price deterulined in accordance with Paragraph lA of ~e Agreement. 1. Provide Redeveloper wi ~h ~he sum of $200,,000 coincident with ~he delivery of ~he lease for ~e development of at least 200 parking spaces on ~he property. DAB:cez 9/29/88 37 EXHIBIT -D" UNDERTAKINGS AND OBLIGATIONS OF DEVELOPER REDEVELOPER AGREES TO: 1. Lease ~he property listed ~n Exhibit -A" from Agency as outlined in Exhibit -C". 2. Develop upon said prope~, a parking lot c)f at least 200 spaces with attractive landscaping ~o be approvEld in advance by Agency. 3. (a) Site Plan shall be submitted ~o Design RlBview Committee of ~he City of San Bernardino within ninety (90) days of execution of ~his Agreement. (b) Working drawings shall be submitted to Building and Safety Department of ~he City of San BernaI~dino within 240 days of execution of ~his Agreement. (c) Development shall be completed by /I DAB:cez 9/29/88 38 EXHIBIT -E" CERTIFICATE OF COMPLETION FOR REDEVELOPER'S DISPOSITION AND DEVELOPMENT AGREEMENT WHEREAS, ROCKWELL INTERNATIONAL CORPORATION, here~nafter called ~he -Redeveloper-, has entered ~nto an Agreement with ~he REDEVELOPMENT AGENCY OF ~HE CITY OF SAN BERNARDINO, CALIFORNIA, hereinafter called ~e -Agency"; and WHEREAS, said Agreement, dated , l.9~, was recorded on , 19__, Document No. , in ~he Official Records of ~he County Recorder of ~he County of San BernarMno, State of Califo~a; and WHEREAS, ~he Agency agreed ~n Section ., of lsaid Agreement to furnish the Redeveloper with an instrument certifying completion of said improvements in accordance 'with ~he provisions of said Agreement upon Redeveloper's completion ~hereof; and WHEREAS, ~he Agency, having considered the report and recommendations of its staff, has determined that the Redeveloper has fully satisfied its obligations for the construction of ~mprovements on that certain parcel of real property more particularly described in Exhibit "1", attached hereto and by this reference made a part hereof. NOW, THEREFORE, the Agency ~n accordance with the Agreement does hereby conclusively certify and give notice that ~he Redeveloper has fully satisf~ed, terminated, and completed, DAB:cez 9/29/88 39 I ~or j,~..lf" j,~. .ucc...or. an4 ...ign., all cov.nant. and .gr....nt. provid.4 ~or j,n .aid Agr....nt upon the .bove d..cribe4 r.al prop.rty, which j,. 100at.4 wi~ the Soutbest %n4u.trial Park proj.ct ar.a, exc.pt the oovanant. ~n S.ctions 2(a)1, 2(a)2, an4 2(a)3 of the De.d. %N WI~NESS WHEREOF, ~h. Ag.ncy ha. cau..4 this . Certificate ~ be duly ex.cut.4 on j,'t. behalf an4 j,t8 ..al 'tc> be h.r.un'to affia.4 an4 a1:1:..t.eS on 'this day of , 19__ aEDEVELOPMEN'l' AGENCY OF !'HE CITY or SAN BERNARDINO., ~IFORNIA By Chairman (-- By S.cr.tary Approv.eS a. 'to form and l.gal content: ~~ ncy Counael DAB: cez 9/29/88 40 ____~_"._ __ ~__ __I EXHIBIT "1" LEGAL DESCRIPTION That certain parcel of ~and :in the Ci t:y of San Be:rnardino, County of San Bernardino, State of California, described as follows: PARCEL MAP 4781 THAT PTN PARCEL NO 6 LYING WEST OF EAST LINE LOT 11 BLK 72 R S B RECORDED MAP BOOK 7 PAGE 2 OFFICIAL RECORDS AND PARCEL MAP 4781 THAT PTN PARCEL NO 6 LYING EAST OF THE EAST LINE LOT 11 BLK 72 R S B AS RECORDED IN MAP BOOK 7 PAGE 2 OFFICIAL RECORDS SUBJECT TO: Covenants, conditions, restrictions, reservation, easements and rights of way of record, if any. DAB:cez 9/29/88 41 ...JMMARY OF FINANC1.... ASPECTS OF PROPOSED AGREEMENTS WITH THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO .- PROPOSED,~EMENTS: Lease And Option To Purchase and DhposUion and reement coverin land located north of Coole Avenue and west of 1 (APN 281-031-51 and 281-041-41) between the Redevelo ment Ctt of San Bernardino (Lessor) and Rockwell International essee>. PROJECT AREA: Southeast Industrial Park It is proposed that the Redevelopment Agency of the City of San Bernardino lease with an option to purchase to Rockwell Int~rnational Corporation the property described on the attached Exhibit A. 1) The cost of the agreement to the Agency. including land acquisition cost and the costs of any improvements to be provided by the Agency, plus the expected interest on any loans or bonds to finance the lease is J275.000. 2) The estimated value of the interest to be conveyed or leased. determined at the highest uses permitted under the plan. is not less than J485.000. 3) The sum of the lease payments for the original term of the Lease And Option To Purchase, exclusive of any extensions. is J10.0(). The reason this is less than the fair market value is: I Rockwell closed escrow July 22, 1988 on two buildings (totanng 133.000 ff> and a vacant lot (2.06 acres) on Cooley Court. The following 1s1. sUllNry of the impact of this new facility on the City of San Bernardino: Investments: - Main Rail Spur - Branch Spurs - Office Tenant Improvements - Furniture & Office Equipment - Rail Docks and Covers - Parking Improvements - Electronic Laboratory Equipment & Improvements - Telecom and Computer Equipment TOTAL New Assessed Value Yearly new tax increment from project Other City benefits from project: - One-Time City Fees - Utility Tax - Jobs $100.000 $450.000 $3,000.000 $4 .0()0 .000 $300.000 $200.000 $1.600.000 $2.600.000 $12.250.000 $122.500 $180,000 $108.000 per year 700 Because of the significant benefits to the City and Redevelopment Agency. it is felt that the lease rate of $l.OO/year to Rockwell is justified. Should the option to purchase be exercised. the price would be the fair market value at the time of exercise, as determined by appraisal. 1608H REDEVELOPMENT AGENCY - REQUEST FOR COMMISSION/COUNCIL ACTION ( DATE: DECEMBER 14, 1988 SUBJECT: YWCA JOINT PUBLIC HEARING Synopsis of Previous Commission/Council/Committee Action: 07/10/75 Adopted Resolution #3070 authorizing execution of all documents regarding relocation of 1) County Facilities, 2) YWCA Facilities and 3) SAFECO Title Insurance. 10/23/75 Adopted Resolution #3123 authorizing rehabilitation of the County Agriculture Building for temporary occupancy of YWCA. 09/19/83 Adopted Resolution #4512 to install new roofing 02/06/84 Adopted Resolution #4576 to sell building to YWCA 04/09/84 Adopted Resolution #4593 to convey adjacent land to State of California. (Continued on page 3) Recommended Motion: ('. (MAYOR AND COMMON COUNCIL) A) Move to adopt a RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF THAT CERTAIN PROPERTY IDENTIFIED AS APN 135-061-10, LOCATED AT 566 NORTH LUGO AVENUE WITHIN THE CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA, BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO TO THE YOUNG W<>MEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO (HEALTH AND SAFETY CODE SECTION SECTION 33433). (Continued on Page 2) Contact Person: Steven H. Dukett Phone: 384-5081 - Supporting data attached: Yes Ward: 1st FUNDING REQUIREMENTS: None Project: CCE Date: DECEMBER 19, 1988 Council Notes: SHD:SG:sm:rm:4709G Agenda Item No, <t (COMMUNITY DEVELOPMENT COMMISSION) B) Move to adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING A CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND YOUNG HOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO, INC. (CENTRAL CITY EAST PROJECT AREA). (' SHD:SG:sm:rm:4709G 2 Synopsis of Previous Commission/Council action: (continued from page 1) 05/09/84 Adopted Resolution #84-176 authorizing vacation of Lugo Street adjacent to YHCA Building. 03/07/85 Adopted Resolution #4735 to grant easement to Southern California Ed 150n . 09/22/86 Motion to set Public Hearing for October 20, 1986. 10/20/86 Adopted Resolution #86-442 approving sale of property to YHCA. 10/20/86 Adopted Resolution #4942 authorizing and directing execution of DDA. 02/02/87 Commission directed that City consider waiving fees for YHCA rehabilitation -- with YHCA obtaining permit as tenant. Commission further approved reimbursement to YHCA for Workman's Compensation Insurance up to $2500. 02/09/87 Mayor and Common Council authorized (by motion) Agency to obtain building permits as owner/builder for rehabilitation of YHCA Building and waived fees required. 02/16/87 Community Development Commission authorized the Executive Director to sign on behalf of the RDA as owner/builder for the YHCA remodeling with all City fees being waived. 10/08/87 Set Joint Public Hearing of Mayor and Common Council and Community Development Commission for October 19, 1987. 10/19/87 Mayor and Common Council/Community Development Commission continued Public Hearing to November 16, 1987, and referred to Redevelopment Committee for review. 10/19/87 Mayor and Common Council instructed Parks and Recreation Department to contact State of California for preparation of Lease Agreement for use of park land for Teddy Bear Tymes. 11/16/87 Public Hearing continued to 12/21/87. Staff and Counsel directed to research lease. 01/04/88 Community Development Commission directed staff to begin procedures needed to convey property to the City of San Bernardino for $1.00. 02/01/88 Motion to Set Joint Public Hearing for March 10, 1988, at 11:00 a.m., Authorized RDA staff to retain $5,000 deposit by YWCA pending negotiations. 03/07/88 Resolutions No. 88-80 and No. 5098 authorized Lease between the Redevelopment Agency, City and YWCA. Return of the $5,000 deposit was authorized by motion. 04/27/88 Redevelopment Committee reviewed letter from YWCA regarding lease terms. Referred to YWCA Ad Hoc Committee. SHD:SG:sm:rm:4709G 3 - Synopsis of Previous ConInis, In/Council actiol, (continued) l 08/29/88 YHCA Ad Hoc ConInittee recommended sale and referred to Hays and Means ConInittee to determine sales price. 09/06/88 Set Joint Public Hearing to consider sale for September 19, 1988. 09/19/88 Joint Public Hearing continued to Monday, October 3,1988. 09/26/88 Hays and Means Committee continued to October 10, 1988. 10/03/88 Redevelopment Agency and City staff directed to research and to prepare an in-house analysis of 1976-property values to assist in the determination of a sales price. Joint Public Hearing continued to November 21, 1988. 10/10/88 Hays & Means Committee recommended lease with YWCA with reduced insurance requirements. 10/24/88 Set Joint Public Hearing to consider lease for November 21, 1988. Staff instructed to retain $5,000 until further notice by Community Development Commission. 11/21/88 Continued Joint Public Hearing to December 5, 1988, staff instructed to notify YWCA representatives of new date and time. 12/05/88 Continued Joint Public Hearing to December 19, 1988. (" SHD:SG:sm:rm:4709G 4 (- S T A F F R E P 0 R T In early 1975, the Redevelopment Agency purchased the previous YHCA site at 5th and Arrowhead Avenue and relocated the YHCA offices to the former County Agriculture building on Lugo Street. From October 1975 to February 1979, the Agency leased the Agricultural Building site from the County in order to sub-lease it to the YHCA. The lease provided for the eventual transfer of the property to the Agency and in May of 1981, the Redevelopment Agency acquired ownership of the parcel. In the summer of 1983, the YHCA approached the Agency about purchasing the property for $5.000. On October 20. 1986. the Commission approved the sale of the facility for $5,000 plus reimbursements and repayment of advances made by the Redevelopment Agency to pay for utilities. roof repairs and the boiler or a total of $34,203. The YHCA did not execute the sale agreement because they were undergoing a reorganization and then were unable to make the $350 per month payments required in the agreement. On March 3, 1988, the Commission approved a 50-year lease beginning January 1, 1976 and ending December 31, 2025 for $1 per year. The YHCA could not sign the lease because they could not accept the insurance provisions. Resolution of the issue to lease or sell was referred to various committees including the YHCA Ad Hoc Committee. the Redevelopment Committee. and the Hays and Means Committee. The current situation is that the Commission has adopted conflicting resolutions, one for sale and one for lease and the YHCA has now agreed to either buy or lease the property, subject to the conditions of their attorney's letter of October 27. 1988 (attached). However. it is important to note that the Agency's proposed conditions for a sale are close to those the YHCA can accept and the Agency's proposed conditions for a lease do not conform with those the YHCA can accept. Further. the YHCA has now indicated that they are willing to buy the property in question under the terms embodied in the attached agreement. For your information, the specific problem areas in the lease approach are a 50-year extension provision, increased insurance limits due to the child care operation and adding earthquake insurance requirements. There is also an underlying difference of opinion that affects the structure of a lease. The YWCA believes the lease was intended to be a ground lease because the deteriorated buildings were of little or no value. The City has approached the matter from the view that it is dealing with buildings that have considerable value. These differences affect proceeds of insurance. Acts of God, condemnation awards and compensation upon termination of lease. To see the many differences that result you can compare the attached Draft Lease (prepared by Agency Counsel) and proposed Memorandum of Lease (prepared by YWCA legal counsel). SHD:SG:sm:rm:4709G 5 STAFF RECOMMENDATION In view of the difficulties posed by a lease. especially the long-term liability exposure that it would create for both the Agency and City. it appears that the sale approach is the more rational business decision and is therefore recommended by staff. Under the original concept (as approved by the Commission/COuncil on October 20, 1986) the proceeds of the sale will now be $26,701. This is because the YHCA has already made full payment of outstanding utility bills. The provisions in the attached Disposition and Development Agreement are: A) The selling Price is $26,071. The YHCA has paid a deposit of $5,000 and will execute a secured promissory note for the remaining $21.071 at 71 interest, amortized over 7 years. B) City/Agency has a first right of refusal in perpetuity to repurchase the property in the event of a sale to other than a not-for-profit charitable organization serving youth and residents of the City of San Bernardino and surrounding areas. C) The repurchase price will be $26.071, plus the fair market value of improvements made by the YHCA, less any outstanding CDBG monies received from the City of San Bernardino and not repaid. D) An escrow agent will handle the transaction as a neutral third party. The attached Summary of Financial Aspects contains the information required by Section 33433 of the Health and Safety Code. r" SHD:SG:sm:rm:4709G 6 ( SUMMARY OF FINANCIAL ASPECTS OF A PROPOSED AGREEMENT HITH THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO PROPOSED AGREEMENT: D1spos1t1on & Jo1nt Development Agreement PROJECT AREA: CENTRAL CITY It 1s proposed that the Redevelopment Agency of the C1ty of San Bernardino sell to the Young Homen's Christian Assoc1at10n (YHCA) the property descr1bed on the attached Exh1b1t A. to. 1) The cost of the agreement to the Agency, 1ncluding land acquisition cost. clearance costs, relocation costs, the costs of any improvements to be provided by the Agency, plus the expected 1nterest on any loans or bonds to finance the lease is $225,251 . 2) The estimated value of the 1nterest to be conveyed or leased, determined at the highest uses permitted under the plan is not less than $1,175,000. The estimated value 1s due 1n large part from remode11ng and renovat10n work done by the YHCA for Teddy Bear Tymes and other YHCA programs. 3) The purchase pr1ce or sum of the lease payments 1s $26,071. The reason this 1s less than the fa1r market value 1s: It w111 ass1st 1n causing the e11mination of blight, create employment opportun1t1es, st1mulate aesthetic improvement and an 1ncrease in real property value of the property and nearby property and will cause the generation of revenues to the City and the Agency. 4628G ~.__. ~._-~._~_-.-~_.-.._. ,.. -~_. -- ... --~"-_._--- --~-- .._. / . lED f VEL 0 PilE I T A' E ICY or 11( an Of SAN BEWRDIMl WARD 1. PROJECT CCE / ~/' ,/ ( LOCATION' -tAlC!~ 8u/UJ'~v ~ · .If.H~ s-r '. SIn: . . I .. I. I ~ aTIIUf I ...J . ... ...: ,. . · t f ---,,--- P I . ...---".--- I . .... I . ~ I r---"'..-. , ..-."a..- f !-._."..~. I . 'l~:$'";.. ~ .1JIA---- . . I · t.-- "a.--- . . r---tI'--~ :. .. . !tie ". ~ .~'. <if f '''''" - ~ ? (' . 41. . ~. @ e' 1"' . r :c - i I .... ... I Ie ~ -, l E~HIOlr JJ ') .- o.~ .......... SAVAGE. .t.....d ._0 lAw -..ca -.0 IJOa'a ~aaAD &"DU&. RID eoo ... .....1IIlDDIO. CAI.IJIODU ..... . ....,.....n . 11M) eM-MU SG- t.& ". ( . ... ..-. .......... ....,.. ......... UI ..... c..... ."WIIIMII __ ..... .... .... &.-..ca ~ .. <MClIRGP ....... .. MLDC* _arT w. 1IInS..... - ~aauwr .... ..~ I'Ilra ..-.a ....,. L ......_a~. -.. -.nu. .--.;a ..1DCaIAJr 8IC-.aD .. ~ II&DICIl e.1II'Ima.a. ..... w....... -- October 27,1'88 . ftL8cclIoIn PMI"'--.o City of San Bernardino CITY AT'.l'ORNEY'S OFFICE 300 Borth -D- Street, 80am 668 San Bernardino, California '2410 Attn: Dennis A. BarloW, Senior ~sistant City Attorney Be: YWCA Memorandum of Lease ROUTING / ~e-..r <.., . Dear Mr. Barlow: Set ,forth below are my comments aa to both a sale or lease JH ~ of the property to the YWCA.. It is my opinion that the aale of ME , p". the property ia in the beat interest interest of all concerned, BL I- t and I will, therefore, aet forth my CODDllents and auggestions LV ..:; concerning the aaid documents firat, and my comments and GC" auggestions as to 'the leaaehold arrangement second. .~ro 1. Sale of Property to YWCA. I believe the purchaae price should be based on the $34,204.00 arrived at with the . Redevelopment Agency in 1986. Enclosed is a copy of a February ORIQ.~~ 4, 1987, letter from the Redevelopment Agency, page 2 of which ~~E~ shows how that figure was arrived at. - ~he YWCA has DOW paid off the past due utilities reducing the figure to $26,070.60. After being given credit for the $5,000.00 prior payment, that leaves $21,070.60 remaining to be paid. These figures should be inserted, where indicated, in the Disposition and Development Agreement, the Secured Promissory Note, Exhibit -E" (Obligations of Agency), and Exhibit "F" (Obligations of Redeveloper). I suggest that the Loan Amortization Schedule be done on a aimilar basis as the one attached to the 1987 documents, which provided for payoff over about 13 years with increasing monthly payments on into the future. ;,..- I.. ,~..... . -A.: ~_.;_ .~ . -..... . t :~...-; :'alWl. -"Da. uv~..IioLAJf.DLDD ... ..x:aa (n, e .. el!'Y AftORNEY' S OFFICE -cOctober 27, 1'88 .age 2 - . c' .;.. .age 11 of 't.he Disposition and Development Agreement contains 1anguage as ~o permissible use of the premises by the DCA (wthe RedeveloperW). Since the YWCA serves other than just youths, it is suggested that the word WyouthW at the end of the ~irst sentence of paragraph A. of Section 16 be deleted and replaced by 'the words wresidents of San Bernardino and surrounding areasw. As ~o Section 23 of ~he Disposi tion and Development Agreement, the California Corporation Code uses the designation wnon-profitW rather than WDot-for-profitw. Additionally, I suggest that further changes be made in ~his section in setting forth the buyout value in the event of such a conveyance. Set forth below is my suggestion as to the ~ext of Section 23: Should 'the Redeveloper convey ~he the property, which is the subject of this Agreement, or enter into escrow to convey said property at any time in perpetui ty ~o any Grantee other 'than a Don-profit charitable organization which is committed and legally required ~o use the property as required by paragraph 16.A. of this Agreement, the Agency, its assigns and successors-in-interest shall have the option ~o repurchase said property at an amount equal to the fair market value' of said property on January 1, 1976, plus the fair market value at the ~ime of purchase of all improvements on the premises. In paragraph numbered 1 on ~he second page of the Grant Deed as well as subpart 1 of Section 2(a) on said page, the word Wyouth- at the end of the first sentence of each provision should be deleted and replaced by the words wresidents of San Bernardino and surrounding areas.. Paragraph" of the Deed should be modified in the same manner as I suggested for Section 23 of the o Disposition and Development Agreement. 2. Leasehold Arranqement. Enclosed herewith please find a Memorandum of Lease I have prepared to document the lease between the YWCA and the City of San Bernardino. Changes from the proposal provided by your office (.City Proposal- Lease) are noted on an enclosed copy of it as well as on the enclosed copy of my Memorandum of Lease. . ~ -. . . . . ~ ;IUX,......SAVMJZ. .~E1 ... ...-.:as C- .') . CIn ATTORREY' S Ol"FICE October 27, 1988 .age 3 Many provisions vere reorganized and duplica~ive provisions were .i~er .ltmina~.d or combined in the Memorandum. I viII describe below 80me of the ..jor revisions in the Memorandum: ~he chanqe of forma~ ~o a Memorandum of Lea."e and the addi~ion of the "ci~als are ..de in order ~o reflec~ ~he fac~ tha~ this is a Memorandum of a Lease exis~ing since 1975 or 1976. Similarly, .ome other language change. have been ..de a~ various places to be consi.~en~ vi~h this. ,('" 4J'he language conc.rning.the renewal terms of the Lease, as .e~ forth in ~he Lease Aqreemen~ signed in 1975 by Mayor Holcomb, has been re-in.er~ed a~ the end of paragraph 2 of the Memorandum, 8liqh~ly revised. Provisions concerning building and tmprovemen~s have been reloca~ed ~o paragraph 5 of the Memorandum. ~he in~r04uc~ory aen~ence of paragraph 5 has been expanded ~o make i~ clear tha~ the premises ..y be used by o~her than legal residen~s of the Ci ~y of San Bernardino or YWCA members. New language in subparaqraph (a) of paraqraph 5 of the Memorandum clarifies tha~ al though the building and tmprovemen~s are par~ of ~he real proper~y, they (and the liabili~y for ~hem) remain the re.ponsibili~y of Le.see. 'lhe insurance language has been somewha~ clarified and appears in paragraph 6 of ~he Memorandum. ~he language as ~o war damage, ahock, and ear~hquake insurance dele~ed. Alao, the four~h paragraph of paragraph 6 of the Ci~y Proposal providing for review of the insurance amoun~s every ~hree years has been dele~ed. In view of ~he oriqinal concept of ~his Lease, and the fact that a fund creating the value of all present buildings was derived from the YWCA and other resources i~ obtained, in paragraph 7 of the Memorandum (revised from paragraph 9 of the City Proposal), the insurance proceeds are stated as. passing to Lessee rather than Lessor in ~he event of a destruction of these improvements. Similarly, as set forth in paragraph 8 of the Memorandum, the City is to compensate the YWCA for any termination of the Lease for the value of its buildings and improvements, and in paragraph 9 any condemnation awards for the building and improvements should be paid to the YWCA. I - .. - . .. r 'lUll, .....t SAUGE. WOU! ntDg lAW anxas . ) ::( CITY ATTORNEY' S OFFICE October 27, 1988 .age 4 Paragraph 12 of the Memorandum is the aame a8 paragraphs 15 and 24 of the City Proposal, except that a aentence is added to the effect that short term room rentals are deemed approved and Deed DO individual approval by the City. I look forward to bearing from you concerning these documents at your earliest convenience. - .JA-. PHS/mlv Enclosures C-" ( . i. , { MEMORANDUM OF LEASE (YWCA) (" THIS MEMORANDUM OF LEASE is made and entered into this day of , 1988, by and between the CITY OF SAN BERNARDINO, a municipal corporation and a Charter City of the State of California, and the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public agency, both as their interests shall appear, hereinafter both called -Lessor", and the YOUNG WOMEN'S CHRISTIAN ASSOCIATION of San Bernardino, California, a corporation, hereinafter called "Lessee". Recitals A. In 1975, the YWCA relocated its facilities from 5th and Arrowhead to the present location at Seccombe Park (originally on Lugo Street), with all parties assuming there to be a One Dollar ($1.00) per year, fifty (50) year Lease between the appropriate Lessor (whether that be the County of San Bernardino, CITY OF SAN BERNARDINO, or the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO) and the YWCA. While in possession and in reliance on said Lease, over one million dollars ($1,000,000.00) of improvements have been made to the premises. B. No one has been able to locate a signed copy of the Lease between the parties. ) N--e '- tV ~ Cc; ~!.-P ~___ l C. The parties agree it is in the best interests of everyone to set forth in writing the terms of the Lease between them and to hereby confirm the details of said leasehold arrangement and set forth the full terms and details of their N--&c- leasehold arrangement in accordance with this Memorandum. AGREEMENT 1. Lessor for and in consideration of the rental payments to be made, and the covenants and agreements to be kept and performed, by and on the part of Lessee as hereinafter set forth and contained, ~se.vto Lessee for the term and uses and A~ CeJ purposes hereinafter stated, those parcels of land described on Exhibit "A" attached hereto and incorporated herein. ( 2. This Lease is for the term and period of fifty (50) years from and including the first day of January, 1976, to and including the 31st day of December, 2025. This Lease may be -- renewed and extend upon the written consent of Lessor for the further term of fifty (50) years or lesser term as agreed upon by the parties hereto from the expiration of the term granted hereby Ner.- upon such terms, conditions, covenants, restrictions and rent as may be approved by Lessor in its reasonable discretion in order to carry out and accomplish the purposes giving rise to this - Lease. 3. As rental for the parcel of land hereby leased, and the occupancy, use and enjoyment thereof, Lessee shall pay to Lessor the yearly rental of One Dollar ($1.00) per year for each and 2 ( every year of the term of this Lease, which rental shall be paid annually in advance. 4. Lessee covenants and agrees with Lessor as follows: '9- Lj is i- t. v' ~ 11 '> (a) That Lessee will not use said premises for any unlawful purposes1 (b) That Lessee will pay rent as abovespecified1 (c) That Lessee will use said premises in a careful and proper manner1 (d) That Lessee will comply with such lawful requirements of state, municipal and public authorities as relate to its use and occupancy of said premises1 (e) That Lessee will maintain said premises and r", improvements and make all replacements and repairs necessary to said premises and improvements during the term hereof, ordinary wear and tear excepted1 (f) That Lessee will permit Lessor to examine said premises during usual business hours1 (g) That Lessee will pay for all gas, electricity, light, heat, power, water and other service or utility used on or supplied to said premises1 (h) That Lessee will not commit or suffer, or permit any waste of the leased premises, or any building or buildings placed on the leased premises by Lessee1 (i) That Lessee will, at all times, maintain the leased premises and any such building or buildings in a neat and orderly condition1 3 ""ITh? (j) ~~' Lessee will, at its own expense, landscape, beautify, plant and maintain the entire available area of the leased premises, subject to the approval of the Planning (-', . .... " )...~ c f./.- c c y ( ,.." . t.... ", and Parks, Recreation and Community Services Director of i r,-, "c: r. ) of San Bernardino. (k) That Lessee will pay all real and personal /-..1 C-'" c.-' A; property taxes of any character or description including both those on the possessory and reversionary interests, assessed by any taxing authority on the leased premises at any time during the term of the Lease; and R- - 5 (1) That Lessee will be responsible for and pay any and all costs of the management, maintenance, and repair of the leased premises including any improvements placed thereon and for (" all utilities used in the operation, use or occupancy of said premises. -J 5. The YWCA building and improvements currently upon the said premises, or to be erected in the future, shall be used for recreational, cultural and educational activities for the benefit f--." 0.- .........., ~ ~ of YWCA members and the residents of the City of San Bernardino and surrounding areas. r ' - \d. '.\ - (a) All buildings and improvements which now exist ~~ have been, or may during the term of the Lease, be erected on the leased premises by Lessee, shall immediately become part of the leased property and may not be removed therefrom. All such improvements shall be owned by Lessee until expiration of the term or sooner termination of this Lease. Lessee shall not, [~' fr,c;. ...., f! G 4 however, remove any improvements from the premises nor waste, --- . destroy, or modify any improvements on the premises, except as ;~ permitted by this Lease. (b) Lessee shall, at Lessee's expense, obtain all 1- ~ C '"I necessary permits and licenses for the construction of any $ improvements, give all necessary notices and pay all fees and taxes required by law. Plans and specificat~ons or improvement ~ to the real property shall be prepared by the Lessee at its expense, and all plans, specifications and improvements shall be subject to the approval of the Planning Director and the Director of Parks, Recreation and Community Services Department of the City of San Bernardino. Each set of the said plans and ("' specifications will be identified by the signature of the Director of Public Works of the City of San Bernardino and thel ; signature of a representative of Lessee. One of which sets of! plans and specifications will be delivered promptly to Lessor.~ --... (c) Lessee shall furnish or cause to be furnished all \ material, equipment, labor and supervision to complete the \ construction of all improvements to the leased premises according I ! to said plans and specifications, and all construction and work \ therein specified shall be in accordance with the provisions of the ordinances and laws of the City of San Bernardino and any other governmental authority applicable thereto. In the event of conflict between any of such specifications and any of such ordinances or laws, Lessee shall be governed by and comply with such ordinances or laws insofar as they conflict with such 5 l =ir ./ "-\ / .,~ 'H- .;:; .:?'" Lt I L- ~..;;-<.. ...,.:~ ~ ) '(' "'" t= 4 / , !-v...;......' specifications but shall not otherwise deviate from Said)' ').. ~ 4}- &/"' 't specifications. (d) Lessee covenants and agrees that it will keep th~ ;~J~ leased premises free from laborers' and materialmens' liens and \~~~ I 0;"" ~ l that it will fully pay and discharge all labor and materialmens' I I ! bills arising from construction, repair or alteration work done I I by it, and will hold Lessor and the above described property ! harmless from any and all demands and claims which mayor could \ ! ripen into liens. Lessor shall, at all times, have the right to enter upon the leased premises and to post and maintain notices thereon of non-responsibility for the cost of any construction, / , alteration or repair by Lessee of any structures or improvements/ / at any time upon said premises. / ('" Lessee shall provide the insurance described below \ through insurance companies approved by Lessor and licensed to do 1 6. I .rC:-... ~ L~~~ ~~ H 7 business in the State of California. ~Renewal policies shall be procured not less than ten (10) days prior to the expiration of any such policy. The policies of insurance*or certificates of ..; / i, I / \ iI....' 1'1 . "r ~- \ f I 4.,' "......, '> the insurers evidencing insurance carried on or respecting the premises hereby leased shall be~deposited with Lessor, and Lessor and Lessee shall be named as joint assureds by said policies during the full term of this Lease. Such policies or certificates shall provide that such insurance may not be cancelled or reduced in coverage without thirty (30) days' written notice to Lessor. All insurance shall be at the sole cost of Lessee. The policies shall cover for accident or damage 6 f'. on or in the premises, sidewalks in front thereof, entrance-ways and other areas in the control or use of the Lessee. (a) Lessee shall, at all times on and after the date on which the term of this Lease commences, and at its own expense, keep all of the improvements on the leased premises /-l-t..:.;.~ , .- f } \ ~ C .., . I.-~ ~,'t( insured against loss or damage by fire and other risks covered by: IJ ,L/""t\: 'C"< standard extended coverage endorsement and for vandalism and malicious mischieffin an amount equal to not less than the / I replacement cost of such improvements. (b) +Lessee will procure and maintain in force during the term of this Lease an insurance policy or policies insuring Lessee and Lessor and their officers, employees and agents ,-' I-~...;'~ ...:1-.:.1 " <; '1- " 'H- .:;.;' 7 against public liability and property damage in the amount of one! Million Dollars ($1,000,000) Combined Single Limit. e c) Any sublessee for day care services which sublease \ ,-t..; ~ is approved and entered into, pursuant to paragraph 12 hereof, or \ (^;~ otherwise, shall provide an additional insurance policy or i 'i-J-- ..;..;. I I 'I I I policies insuring Lessor and its officers, employees and agents I against public liability and property damage in the amount of one) Million Dollars ($1,000,000) Combined Single Limit. 7. Notwithstanding any law now in force or hereafter '\ enacted, this Lease shall not terminate or be affected in any ~ manner, except as herein otherwise provided, by reason of the damage to, or total or substantial or partial destruction of, any building currently or hereafter erected upon the leased premises, 7 .-.... -- v -, ' '-" . \" -\ or by reason of the untenantability of the leased premises or any part thereof. Should the whole or any part of said building at any time be partially or totally destroyed by any cause during the term of this Lease, such building may at Lessee's option be exercised by written notice to Lessor within thirty (30) days after such partial or total destruction, and at its own expense, be restored or repaired by Lessee, or replaced by it, with a modern building~suitable to the same needs of Lessee. .i 4.:./"I'c, (a) In the event such option is so exercised, Lessee shall so proceed and the proceeds of any fire or property damage insurance shall be available to Lessee for use by Lessee in such amount as may be necessary for the purpose of clearing, repairing (' or removing damage or restoring or rebuilding the building, and Lessee shall have the right and authority to adjust losses and execute proofs of such losses in the name of Lessor, Lessee, or both. (b) In the event Lessee shall fail to exercise its option to restore or repair, or rebuild as herein provided, or to communicate notice of such election in writing to Lessor, all such insurance proceeds received on account of such destruction or damage shall belong to and be delivered to~'and this ;'i...,. ""~ i Lease will terminate upon notice by either party to the other. ( ",.' , '___ _n_ .~ At the expiration of this Lease, Lessee agrees that \ I.~' : . Lessor shall have the right to enter into and upon the land and l .'c' Ii <.:: 8. premises, and repossess itself thereof, and that all buildings, { I .' 8 / i structures and improvements of whatever kind and nature erected upon said land during the life of this Lease shall revert to the Lessor and become its property in fee simple without process of law1 however, as a condition thereof, Lessor shall pay Lessee for .'" ::""'f... '-- the then fair market value of all improvements determined with reference to the expected use of them by Lessor. -Notwithstanding anything to the contrary provided herein, Lessee shall have the right to remove from said premises all personal property and equipment used by it during the term of this Lease. At the end of the Lease term hereof, or any extension hereof, or upon any termination hereof, Lessee agrees to vacate the premises and to leave same in good condition, reasonable wear and tear excepted. 9. In the event of the commencement, prosecution or 1 1- 1-: _ (" consummation during the term of this Lease of any condemnation \..j I j proceedings or proceedings in eminent domain covering, touching, or affecting all or any part of the leased property, the award payable on account of such taking or condemnation shall be payable to Lessor and Lessee in such proportions as the parties may agree upon or as may be determined in any such condemnation or eminent domain proceedings 1 provided, however, in the event such condemnation is by the CITY OF SAN BERNARDINO or the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, or the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, or any subservient or other government organization related thereto, all proceeds of such condemnation shall be awarded to Lessee to the extent of the full value of all improvements to the premises. In 9 ( the event a part of the premises is taken, this Lease shall continue in force and effect as to that part of the premises not taken. I),:-i -c' .'~ '- --- 10. Lessor reserves the right to grant such easements or \ r::L. . establish such rights-of-way over, under, along and across said i. - ~l I WI? leased premises for utili ties, thoroughfares or access as it may \. '-<- l' ~ deem advisable for the public good and do not unreasonably ,i'i-~ \" _'< interfere with Lessee's use of the premises in accordance with -- this lease. 11. Except for reasonable janitorial, utility and \ ,- i- 0_ maintenance costs, Lessee agrees to provide free use of available\ p {~ rooms and other facilities on the premises to Lessor at such i / I times and under such conditions as Lessee and Lessor shall (~- jointly determine to be reasonable. \ 12. Lessee covenants not to sublet the demised premises or \ \ I I I 1 I I I ! I ,.-\ ~' ..;.. "" any part thereof, nor to grant any concession to be operated on the demised premises, nor to assign, hypothecate, mortgage, make 't-i ,~ over or encumber this Lease, or the term of the leasehold hereby created or any portion of the Lease of the herein demised premises, without having first obtained the written consent of the Lessor. No person, persons, firm or corporation shall acquire, in any manner, any right to this Lease, or the term hereby created, or to the premises herein demised by the Lease, through any act, or acts of the Lessee~ without having first obtained the written consent of the Lessor. 10 Lessee may rent or sublet space or rooms in the bUildings\ erected on the leased premises for recreational, cultural and i~j..,,,,,"'::. i 'H- ,.;, educational purposes to civic groups and organizations, providing ! . i &;y~' ~ the schedules of rental rates for said room are approved by the }~"'/eo~ Administrative Officer of Lessor. S~bject to the following ~:'\ sentence, approval is hereby given for such rentals of rooms on .A. ,/ J " I I ,. -, .:. . agreements terminable on not more than thirty (30) days written ------- .--- ---------..--..------------ - . notice without cause. Lessor reserves the right to review all --- rates or charges of whatever nature and for whatever purposes un !t/'I use of the building or equipment therein, imposed by Lessee. If Lessor rejects such rates or charges as being excessive, Lessee agrees to submit new rates or charges that meet with Lessor's approval. r'O 13. Lessee agrees for itself, and its successors and assigns, and every successor-in-interest to the demised premises, or any part hereof, that the Lessee and such successors and assigns shall not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin, or ancestry in the sublease, renewal or transfer, or in the use, occupancy, tenure, or enjoyment of the demised premises or any improvements erected or to be erected thereon, or any part thereof, nor shall the Lessee itself of 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 11 , - , f'" .5.......... ....:... 'u \ I I i \ I I I tenants, subtenants, or sublessees of the demised premises, or any part thereof. 14. Lessee, for itself and its successors and assigns, agrees that: (a) Lessee shall not discriminate against any employee or applicant for emploYment because of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. Lessee shall take reasonable action to insure that applicants are employed and that employees are treated, during emploYment, without regard to their race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. Such action shall include, but not be limited to the (' following: emploYment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection for training, including apprenticeship, Lessee agrees to post in conspicuous places, available to employees and applicants for emploYment, notices setting forth the provisions of this non-discrimination clause. (b) Lessee shall, in all solicitations or advertisements for employees placed by or on behalf of Lessee, I state that all qualified applicants will receive consideration for emploYment without regard to race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. 12 '\ \ '- ~ .. ---- \ \ 'j..; \ , ... "'" I I I I i / ..... ( (c) Lessee shall comply with all applicable local, state and federal laws and regulations relating to equal employment opportunity. (d) Lessee shall include the provisions of subdivisions (a) through (c) of this paragraph 14 in every 1,--' r._. -..... ;:L ;} contract, and shall require the inclusion of these provisions in every subcontract entered into by any of its contractors, unless exempted by applicable laws, rules or regulations, and such provisions shall be binding upon each such subcontractor, or vendor, as the case may be. contractor, / 15. In the event (a) that Lessee shall default in the r--' I - ~._..; ._,.. performance or fulfillment of any covenant or condition herein contained on its part to be performed or fulfilled, and shall R t.S (0 fail to cure such default within thirty (30) days following the service on it of a written notice from Lessor specifying the default or defaults complained of and the date on which its rights hereunder will be terminated as hereinafter provided of such default or defaults is or are not cured, or (b) that Lessee shall file a voluntary petition in bankruptcy, or (c) that Lessee shall be adjudicated a bankrupt, or (d) that Lessee shall make a general assignment for the benefit of creditors then, and in either or any of said events, Lessor may at its option, without further notice or demand upon Lessee or upon any person or persons claiming by, through or under Lessee, immediately cancel and terminate this Lease and terminate each, every and all rights of Lessee and of any and all persons claiming by, through or 13 (- ( under Lessee, in or to the leased premises and in or to the further possession thereof, in which event the leased premises -- f,_ I j It -.:... shall immediately revert to the Lessor, together with any and all improvements placed thereon and Lessor may thereupon enter into and upon the leased premises and repossess the same and expel Lessee and any and all persons claiming by, through or under Lessee. The rights and remedies of Lessor, as hereinabove set ~ l:i forth, are cumulative only and shall in no way be deemed to limit any of the other provisions of this Lease or otherwise to deny to Lessor any right or remedy at law or in equity which Lessor may have or assert against Lessee under any law in effect at the date hereof, or which may hereafter be enacted or become effective, it r being the intent hereof that the rights and remedies of Lessor, as hereinabove set forth, shall supplement or be in addition to or in aid of the other provisions of the Lease and of any right or remedy at law or in equity which Lessor may have against said Lessee. 16. Lessor reserves, and shall always have the right to~ enter said premises for the purposes of viewing and ascertaining the condition of the same and for the purpose of operating and ,........ ..;, '- maintaining pipelines on said premises and for the purpose of making repairs to or developing the water system of Lessor, or to protect its interests in the premises or to inspect the operations conducted on said premises. The Lessor hereby reserves all rights, title and interest in any and all gas, oil, mineral and water upon or beneath said leased premises. Lessor , , 14 ( shall have the right to enter upon said leased premises for the purpose of drilling, operating and maintaining such installations as are necessary or desirable for the development of said gas, oil, mineral and water rights. In the even that such entry or inspection by Lessor discloses that said premises are not in a safe or healthy condition, Lessor shall have the right, after ten (10) days I written notice to Lessee, to have any necessary maintenance work done for and at the expense of Lessee, and Lessee hereby agrees to pay promptly any and all costs incurred by Lessor in having such necessary maintenance work done in order to keep said premises in a safe or health condition. In the event said costs are not paid by Lessee to Lessor within twenty r""' . --.. (....... ~-.. <t-) - I{ (20) days after the request therefor by Lessor, then said sums {' shall bear interest at the rate of (seven percent (7%) ~'per annum. '- Lz .L7_'~ The rights reserved in this section shall not create any obligations on Lessor or increase obligations elsewhere in this / Lease imposed on Lessor. 17. The voluntary or other surrender of this Lease by \, Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subleases or subtenancies, or may at the option of Lessor, operate as an assignment to it of any or all such a waiver or such terms, covenant or condition or any subsequent 15 -, --, "...-...... . .--.."-.... iJ ., ,t-- ....__ ,-- . ~.v ./ ./ breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach I , J ',- 1 by Lessee of any term, covenant or condition of this Lease, other ~I .. I .i_I than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent, nor shall any failure on the part of Lessor to require or exact full and complete compliance with any of the covenants, conditions or agreements of this Lease be construed as in any manner changing the terms hereof, or estop Lessor from enforcing the full provisions hereof, nor shall the terms of this Lease be changed or altered in any manner whatsoever other than by written (' agreement of the Lessor and Lessee. 19. Any holding-over after the expiration of said term fO~\ ~ \ -, \ ;~.:: "- any cause shall be construed to be a tenancy from month-to-month, . \ . IJJ at any rental selected by Lessor which has been in effect during \ ~ L the term, and shall otherwise be on the terms and conditions herein specified so far as applicable. Such holding-over shall include any time employed by Lessee in removing fixtures. 20. Lessor reserves the right to review the rules and~\ _ c- " regulations promulgated by Lessee for the use of space or rooms) -~ erected on the leased premises. If Lessor rejects such rules and; 1~1) I regulations, Lessee agrees to submit new rules and regulations I that meet with Lessor's approval. / 16 ( 21. All notices herein required shall be in writing and delivered in person or sent by certified mail, postage prepaid, as follows: --.. I ~[. ~ -" -, W 2,>- City Administrator City Hall 300 North -D- Street San Bernardino, CA 92418 Young Womens' Christian Association 567 Sierra Way San Bernardino, CA 92418 22. If any section, subsection, paragraph, '\ i sentence, \ _ , ,.\ r f'-' or shall be \' " \ , .. clause, phrase, or portion of this Lease is invalid, held to be invalid, such invalidity shall not affect the validity \ '." .:, \ of the balance or remainder. 23. The provisions of this Lease shall bind the assigns and successors-in-interest of the parties hereto. (' , I 24. Time is of the essence with respect to the performance / ! ; of the terms, provisions, covenants and conditions of this Lease. I / IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease on the date first hereinabove written. CITY OF SAN BERNARDINO By Mayor ATTEST: City Clerk COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By Chairman 17 i (' Approved as to form and legal content: AGENCY COUNSEL YOUNG WOMEN I S ASSOCIATION "Lessee" By CHRISTIAN Title Approved as to form and legal content: City Attorney PMS12 18 ~FI LEA S E (YWCA) THIS LEASE is made and entered into this ___ day of , 1988, by and between the CITY OF SAN BERNARDINO, a municipal corporation and a Charter City of the State of California, and the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public agency, both as their interests shall appear, hereinafter both called "Lessor", and the YOUNG WOMEN'S CHRISTIAN ASSOCIATION of San Bernardino, California, a corporation, hereinafter called "Lessee". WITNESSETH: (' 1. Lessor for and in consideration of the rental payments to be made, and the covenants and agreements to be kept and performed, by and on the part of Lessee as hereinafter set forth and contained, does hereby lease to Lessee for the term and uses and purposes hereinafter stated, those parcels of land described on Exhibit "An attached hereto and incorporated herein. 2. This Lease is, and shall be, for the term and period of fifty (50) years from and including the first day of January, 1976, to and including the 31st day of December, 2025. 3. As rental for the parcel of land hereby leased, and the occupancy, use and enjoyment thereof, Lessee shall pay to Lessor the yearly rental of One Dollar ($1.00) per year for each and every year of the term of this Lease, which rental shall be paid annually in advance. DAB:cez December 9, 1988 1 4. Plans and specifications for all improvements to the real property shall be prepared by the Lessee at its expense; said plans, specifications and all improvements shall be subject to the approval of the Planning Director and the Director of Parks, Recreation and Community Services Department of the City of San Bernardino. Each set of the said plans and specifications will be identified by the signature of the Director of Public Works of the City of San Bernardino and the signature of a representative of Lessee; one of which sets of plans and specifications will be delivered promptly to Lessor. Furthermore, the Lessee shall, at its own expense, landscape, beautify, plant and maintain the entire available area ( of the leased premises, subject to the approval of the Planning Director and Parks, Recreation and Community Services Director of the City of San Bernardino. Lessee shall furnish or cause to be furnished all material, equipment, labor and supervision to complete the construction of all improvements to the leased premises according to said plans and specifications, and all construction and work therein specified shall be in accordance with the provisions of the ordinances and laws of the City of San Bernardino and any other governmental authority applicable thereto. In the event of conflict between any of such specifications and any of such ordinances or laws, Lessee shall be governed by and comply with such ordinances or laws insofar as they conflict with such specifications but shall not otherwise deviate from said DAB:cez December 9, 1988 2 I specifications. During the construction of any improvements, an engineer or architect designated by the Lessor, or his -duly appointed representative, shall have complete access to the site, structures, improvements and equipment. Lessee shall designate some responsible person to be in charge of said construction who will be available to confer with such engineer or architect. Any amendments to the approved plans and specifications or change orders, relating to the building and landscaping projects for the leased premises, and the construction and maintenance thereof by the Lessee, shall be subject to the prior written approval of the Planning Director and Parks, Recreation and r Community Services Director of the City of San Bernardino. 5. Lessee covenants and agrees with Lessor as follows: (a) That Lessee will not use said premises for any unlawful purposes; (b) That Lessee will pay rent as above specified; (c) That Lessee will use said premises in a careful and proper manner; (d) That Lessee will comply with such lawful requirements of state, municipal and public authorities as they relate to its use and occupancy of said premises; (e) That Lessee will maintain said premises and improvements and make all replacements and repairs necessary to said premises and improvements during the term hereof, ordinary wear and tear excepted; DAB:cez December 9, 1988 3 (f) That Lessee will permit Lessor to examine said premises during usual business hours: (g) That Lessee will pay for all gas, electricity, light, heat, power, water and other service or utility used on or supplied to said premises: (h) That Lessee will not commit or suffer, or permit any waste of the leased premises, or any building or buildings placed on the leased premises by Lessee: (i) That Lessee will, at all times, maintain the leased premises and any such building or buildings in a neat and orderly condition: (j) That Lessee will, at all times, keep the leased r premises free and clear of mechanic's liens that might arise out of making any repairs or improvements on said premises by Lessee: (k) That lessee will pay all real and personal property taxes of any character or description including both those on the possessory and reversionary interests assessed by any taxing authority on the leased premises at any time during the term of the Lease: and (1) That Lessee will be responsible for and pay any and all costs of the management, maintenance, and repair of the leased premises including any improvements placed thereon and for all utilities used in the operation, use or occupancy of said premises. 6. Said YWCA building and improvements currently upon the said premises, or to be erected in the future, shall be used for DAB:cez December 9, 1988 4 ( recreational, cultural and educational activities for the benefit of YWCA members and the residents of the City of San Bernardino and surrounding areas. All buildings and improvements which now exist or may during the term of the Lease be erected on the leased premises by Lessee shall immediately become part of the leased property and may not be removed therefrom. Lessee covenants and agrees that it will keep the leased premises free from laborers' and materialmens' liens and that it will fully pay and discharge all labor and materialmens' bills arising from construction, repair or alteration work done by it, and will hold Lessor and the above described property harmless from any and all demands and claims which mayor could ripen into liens. The (" Lessor shall, at all times, have the right to enter upon the leased premises and to post and maintain notices thereon of non- responsibility for the cost of any construction, alteration or repair by Lessee of any structures or improvements at any time upon said premises. 7. Lessee shall, at all times on and after the date on which the term of this Lease commences, and at its own expense, keep all of the improvements on the leased premises insured against loss or damage by fire and other risks covered by standard extended coverage endorsement, and by vandalism and malicious mischief, and insured against loss or destruction due to shock or earthquake, and war damage (when procurable) in an amount equal to not less than the replacement cost of such improvements. That Lessee will procure and maintain in force DAB:cez 5 December 9, 1988 , during the term of this Lease an insurance policy or policies insuring Lessor and its officers, employees and agents against public liability and property damage in the amount of One Million Dollars ($1,000,000) Combined Single Limit. All insurance shall be carried with insurance companies approved by Lessor and licensed to do business in the State of California. A renewal pOlicy shall be procured not less than ten (10) days prior to the expiration of any such policy. The policies of insurance as above provided or certificates of the insurers evidencing insurance carried on or respecting the premises hereby leased shall be forthwith deposited with Lessor, and Lessor and Lessee shall be named as joint assureds by said r policies during the full term of this Lease. Such policies or certificates shall provide that such insurance may not be cancelled or reduced in coverage without thirty (30) days' written notice to Lessor. All insurance shall be at the sole cost of Lessee. The pOlicies shall cover for accident or damage on or in the premises, sidewalks in front thereof, entrance-ways and other areas in the control or use of the Lessee. It is further agreed that, following three (3) years after the date of this lease, and every three (3) years thereafter, the parties may negotiate a change in the insurance limits outlined in this paragraph. Written notice from one party to the other shall initiate such negotiations. Unless the parties agree to an extension, the failure of the parties to reach an agreement on such a change within forty-five (45) days of such written notice DAB:cez December 9, 1988 6 I I shall act to automatically terminate this lease. Any sublessee for day care services which sublease is approved and entered into, pursuant to paragraph 15 hereof, or otherwise, shall provide an additional insurance policy or policies insuring Lessor and its officers, employees and agents against public liability and property damage in the amount of One Million Dollars ($1,000,000) Combined Single Limit. 8. Lessee shall, at Lessee's expense obtain all necessary permits and licenses for the construction of such improvements, give all necessary notices and pay all fees and taxes required by law. 9. Notwithstanding any law now in force or hereafter (" enacted, this Lease shall not terminate or be affected in any manner, except as herein otherwise provided, by reason of the damage to, or total or substantial or partial destruction of any building currently or hereafter erected upon the leased premises, or by reason of the untenantability of the leased premises or any part thereof. Should the whole or any part of said building at any time be partially or totally destroyed by any cause during the term of this Lease, such building may at Lessee's option be exercised by written notice to Lessor within thirty (30) days after such partial or total destruction, and at its own expense, be restored or repaired by Lessee, or replaced by it, with a modern building of equal or greater value and suitable to the same needs of Lessee. In the event such option is so exercised, Lessee shall DAB:cez December 9, 1988 7 so proceed and the proceeds of any fire or property damage insurance shall be available to Lessee for use by Lessee in such amount as may be necessary for the purpose of clearing, repairing or removing damage or restoring or rebuilding the building, and Lessee shall have the right and authority to adjust losses and execute proofs of such losses in the name of Lessor, Lessee, or both. In the event Lessee shall fail to exercise its option to restore or repair, or rebuild as herein provided, or to communicate notice of such election in writing to Lessor, all such insurance proceeds received on account of such destruction or damage shall belong to and be delivered to Lessor. In such event, Lessor may terminate this Lease without further notice to Lessee. (-~ 10. At the expiration of this Lease, the Lessee agrees that the Lessor shall have the right to enter into and upon the land and premises, and repossess itself thereof, and that all buildings, structures and improvements of whatever kind and nature erected upon said land during the life of this Lease shall revert to the Lessor and become its property in fee simple without process of law. Notwithstanding anything to the contrary provided herein, Lessee shall have the right to remove from said premises all personal property and equipment used by it during the term of this Lease. At the end of the Lease term hereof, or any extension hereof, or upon any termination hereof, Lessee agrees to vacate the premises and to leave same in good condition, reasonable wear and tear excepted. DAB:cez December 9, 1988 8 11. In the event of the commencement, prosecution or consummation during the term of this Lease of any condemnation proceedings or proceedings in eminent domain covering, touching, or affecting all or any part of the leased property, the award payable on account of such taking or condemnation shall be payable to Lessor and Lessee in such proportions as the parties may agree upon or as may be determined in any such condemnation or eminent domain proceedings. In the event a part of the premises is taken, this Lease shall continue in force and effect as to that part of the premises not taken. 12. Building, improvement and landscaping plans and specifications, the location and size of buildings, structures ('. and improvements and the type of construction, style of architecture, and materials to be used in such buildings, structures or improvements, shall be subject to the approval of the Lessor as hereinabove set forth. 13. Lessor reserves the right to grant such easements or establish such rights-of-way over, under, along and across said leased premises for utilities, thoroughfares or access as it may deem advisable for the public good. 14. Except for reasonable janitorial and maintenance costs, Lessee agrees to provide free use of available rooms and other facilities on the premises to Lessor at such times and under such conditions as Lessee and Lessor shall jointly determine to be reasonable. DAB:cez December 9, 1988 9 ( 15. The Lessee covenants not to sublet the demised premises or any part thereof, nor to grant any concession to be operated on the demised premises, nor to assign, hypothecate, mortgage, make over or encumber this Lease, or the term of the leasehold hereby created or any portion of the Lease of the herein demised premises, without having first obtained the written consent of the Lessor. No person, persons, firm or corporation shall acquire, in any manner, any right to this Lease, or the term hereby created, or to the premises herein demised by the Lease, through any act, or acts of the Lessee, without having first obtained the written consent of the Lessor. ( Lessee may rent or sublet space or rooms in the buildings erected on the leased premises for recreational, cultural and educational purposes to civic groups and organizations, providing the schedules of rental rates for said room are approved by the Administrative Officer of Lessor. 16. Lessee agrees for itself, and its successors and assigns, and every successor-in-interest to the demised premises, or any part hereof, that the Lessee and such successors and assigns shall not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin, or ancestry in the sublease, renewal or transfer, or in the use, occupancy, tenure, or enjoYment of the demised premises or any improvements erected or to be erected thereon, or any part thereof, nor shall the Lessee itself or any DAB:cez December 9, 1988 10 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, subtenants, or sublessees of the demised premises, or any part thereof. 17. The Lessee, for itself and its successors and assigns, agrees that: A. The Lessee shall not discriminate against any employee or applicant for employment because of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. The Lessee shall take reasonable action to insure that applicants are employed and that employees ( are treated, during emploYment, without regard to their race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. Such action shall include, but not be limited to the following: emploYment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection for training, including apprenticeship, Lessee agrees to post in conspicuous places, available to employees and applicants for emploYment, notices setting forth the provisions of this non-discrimination clause. B. Lessee shall, in all solicitations or advertisements for employees placed by or on behalf of the Lessee, state that all qualified applicants will receive consideration for emploYment without regard to race, sex, marital DAB:cez December 9, 1988 11 ( status, color, creed, religion, physical handicap, national origin or ancestry. c. Lessee shall comply with all applicable local, state and federal laws and regulations relating to equal emploYment opportunity. D. Lessee shall include the provisions of subdivisions A through C of this paragraph 17 in every contract, and shall require the inclusion of these provisions in every subcontract entered into by any of its contractors, unless exempted by applicable laws, rules or regulations, and such provisions shall be binding upon each such contractor, subcontractor, or vendor, as the case may be. r 18. In the event (a) that Lessee shall default in the performance or fulfillment of any covenant or condition herein contained on its part to be performed or fulfilled, and shall fail to cure such default within thirty (30) days following the service on it of a written notice from Lessor specifying the default or defaults complained of and the date on which its rights hereunder will be terminated as hereinafter provided of such default or defaults is or are not cured, or (b) that Lessee shall file a voluntary petition in bankruptcy, or (c) that Lessee shall be adjudicated a bankrupt, or (d) that Lessee shall make a general assignment for the benefit of creditors then, and in either or any of said events, Lessor may at its option, without further notice or demand upon Lessee or upon any person or persons claiming by, through or under Lessee, immediately cancel DAB:cez December 9, 1988 12 ( and terminate this Lease and terminate each, every and all rights of Lessee and of any and all persons claiming by, through or under Lessee, in or to the leased premises and in or to the further possession thereof, in which event the leased premises shall immediately revert to the Lessor, together with any and all improvements placed thereon and lessor may thereupon enter into and upon the leased premises and repossess the same and expel Lessee and any and all persons claiming by, through or under Lessee. The rights and remedies of Lessor, as hereinabove set forth, are cumulative only and shall in no'way be deemed to limit any of the other provisions of this Lease or otherwise to deny to Lessor any right or remedy at law or in equity which Lessor may r have or assert against Lessee under any law in effect at the date hereof, or which may hereafter be enacted or become effective, it being the intent hereof that the rights and remedies of lessor, as hereinabove set forth, shall supplement or be in addition to or in aid of the other provisions of the Lease and of any right or remedy at law or in equity which lessor may have against said Lessee. 19. Lessor reserves, and shall always have the right to enter said premises for the purposes of viewing and ascertaining the condition of the same and for the purpose of operating and maintaining pipelines on said premises and for the purpose of making repairs to or developing the water system of Lessor, or to protect its interests in the premises or to inspect the operations conducted on said premises. The Lessor hereby DAB:cez December 9, 1988 13 / reserves all rights, title and interest in any and all gas, oil, mineral and water upon or beneath said leased premises. Lessor shall have the right to enter upon said leased premises for the purpose of drilling, operating and maintaining such installations as are necessary or desirable for the development of said gas, oil, mineral and water rights. In the event that such entry or inspection by Lessor discloses that said premises are not in a safe or healthy condition, Lessor shall have the right, after ten (10) days' written notice to Lessee, to have any necessary maintenance work done for and at the expense of Lessee, and Lessee hereby agrees to pay promptly any and all costs incurred by Lessor in having such necessary maintenance work done in r order to keep said premises in a safe or health condition. In the event said costs are not paid by Lessee to Lessor within twenty (20) days after the request therefor by Lessor, then said sums shall bear interest at the rate of ten percent (10%) per annum. The rights reserved in this section shall not create any obligations on Lessor or increase obligations elsewhere in this Lease imposed on Lessor. 20. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subleases or subtenancies, or may at the option of Lessor, operate as an assignment to it of any or all such subleases or subtenancies. DAB:cez December 9, 1988 14 ; 21. The waiver by Lessor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver or such terms, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant or condition of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent, nor shall any failure on the part of Lessor to require or exact full and complete compliance with any of the covenants, conditions or (" agreements of this Lease be construed as in any manner changing the terms hereof, or estop Lessor from enforcing the full provisions hereof, nor shall the terms of this Lease be changed or altered in any manner whatsoever other than by written agreement of the Lessor and Lessee. 22. Any hOlding-over after the expiration of said term for any cause shall be construed to be a tenancy from month-to-month, at any rental selected by Lessor which has been in effect during the term, and shall otherwise be on the terms and conditions herein specified so far as applicable. Such hOlding-over shall include any time employed by Lessee in removing fixtures. 23. Lessor reserves the right to review the rules and regulations promulgated by Lessee for the use of space or rooms erected on the leased premises. If Lessor rejects such rules and DAB:cez 15 December 9, 1988 ( regulations, Lessee agrees to submit new rules and regulations that meet with Lessor's approval. 24. Lessor reserves the right to review all rates or charges of whatever nature and for whatever purposes for use of the building or equipment therein, imposed by Lessee. If Lessor rejects such rates or charges as being excessive, Lessee agrees to submit new rates or charges that meet with Lessor's approval. 25. The parties understand that this lease may create a possessory interest in the subject property subject to property taxation. If such interest is created, Lessee, hereby agrees to pay, obtain exemptions or otherwise be responsible for such tax as may be imposed. (' 26. All notices herein required shall be in writing and delivered in person or sent by certified mail, postage prepaid, as follows: City Administrator City Hall 300 North "D" Street San Bernardino, CA 92418 Young Womens' Christian Association 567 Sierra Way San Bernardino, CA 92418 27. If any section, subsection, paragraph, sentence, clause, phrase, or portion of this Lease is invalid, or shall be held to be invalid, such invalidity shall not affect the validity of the balance or remainder. 28. The provisions of this Lease shall bind the assigns and successors-in-interest of the parties hereto. DAB:cez December 9, 1988 16 29. Time is of the essence with respect to the performance of the terms, provisions, covenants and conditions of this Lease. IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease on the date first hereinabove written. CITY OF SAN BERNARDINO By Mayor ATTEST: City Clerk COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ('" By Chairman Approved as to form and legal content: Agency Counsel YOUNG WOMEN'S CHRISTIAN ASSOCIATION "Lessee" By Title Approved as to form and legal content: City Attorney DAB:cez December 9, 1988 17 1 2 3 4 5 6 7 8 9 10 11 12 13 (' 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE SALE OF THAT CERTAIN PROPERTY IDENTIFIED AS APN 135-061-10, LOCATED AT 566 NORTH LUGO AVENUE WITHIN THE CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA, BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO TO THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO (HEALTH AND SAFETY CODE SECTION 33433). BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. A. The Community Development Commission of the City of San Bernardino (hereinafter "Commission") proposes to sell to the Young Women's Christian Association of Greater San Bernardino (hereinafter "Developer"), that certain parcel of property identified as APN 135-061-10, located at 566 North Lugo Avenue within the Central City East Redevelopment Project Area, the legal description of which is set forth in Exhibit" A" attached hereto and incorporated herein by reference as though fully set forth in full and to enter into a Disposition and Development Agreement therefor, for the sum of $26,071. B. Notice of the time and place of hearing has been given as required by law. C. The Commission has made available for public inspection and copying a summary of financial aspects of the proposed sale. D. At the time of approving the Redevelopment Plan, the Mayor and Common Council approved and certified an Environmental Impact Report (the "EIR") by Resolution No. 12393 adopted on April 14, 1976, and the Mayor and Common Council are relying DAB:cez December 14, 1988 1 1 2 3 4: 5 6 7 8 9 10 11 12 13 ( 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION APPROVING THE SALE OF PROPERTY LOCATED AT 566 NORTH LUGO AVENUE TO THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO upon the EIR for purposes of considering the approval of the proposed Agreement and sale. E. The summary of financial aspects represents that the fair market value of the interest to be conveyed by the Commission, determined at the highest use permitted for such property is $1,175,000. F. All hearings have been held as required by Health and Safety Code Section 33433. SECTION 2. Determination. Based upon the representations made to the Commission, it is found and declared that the consideration for the real property described above, in accordance with covenants and conditions governing the sale, is less than the fair market value of the property determined at the highest use permitted under the plan for the Central City East Project Redevelopment Area, and that such lesser consideration is necessary to effectuate the purposes of the plan as shown on the Summary of Financial Aspects. SECTION 3. Approval. The Mayor and Common Council of the City of San Bernardino hereby approve the sale of said property upon the terms and conditions set forth in this resolution and the summary of financial aspects. III III III DAB:cez December 14, 1988 2 ( ('" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION APPROVING THE SALE OF PROPERTY LOCATED AT 566 NORTH LUGO AVENUE TO THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO 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 day of , 1988, by the following vote, to wit: AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this day of , . Evlyn Wilcox, Mayor City of San Bernardino Approved as to form and legal content: n DAB:cez December 14, 1988 3 / (0. 1 2 3 " 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING A CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO, INC. (CENTRAL CITY EAST PROJECT AREA) BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: WHEREAS, the Redevelopment Agency of the City of San Bernardino, California (the "Agency") and the Young Women's Christian Association of Greater San Bernardino, Inc. (the "Redeveloper") have proposed to enter into a certain Disposition and Development Agreement (the "Agreement") by and between the Agency and the Redeveloper concerning certain real property (the "Property") located within the area (the "Project Area") subject to the Central City East Redevelopment Plan (the "Redevelopment Plan"); and WHEREAS, the Community Development Commission of the City of San Bernardino (the "Commission"), on behalf of the Agency, has duly conducted a public hearing concerning the proposed Agreement in accordance with Health and Safety Code Section 33431, and has considered all evidence and testimony submitted to the Commission pertinent thereto; and WHEREAS, the Mayor and Common Council of the City of San Bernardino have duly conducted a public hearing concerning the proposed Agreement in accordance with Health and Safety Code Section 33433, and have approved the Agreement in accordance therewith; and DAB:cez December 14, 1988 1 ( (" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO (CENTRAL CITY EAST PROJECT AREA) WHEREAS, at the time of approving the Redevelopment Plan, the Agency approved and certified an Environmental Impact Report (the "EIR") by Resolution No. 3193 adopted on April 19, 1976, and the Commission is relying upon the EIR for purposes of considering the approval of the proposed Agreement; and WHEREAS, the Commission has determined that it is reasonable and appropriate for the Agency to enter into the proposed Agreement. NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Commission hereby determine that the project described in the proposed Agreement is adequately described in and covered by the EIR, that the project described in the proposed Agreement does not constitute a change in the Redevelopment Plan for which the EIR was prepared, that there are no new significant environmental impacts concerning the proposed project not considered in the EIR, and that there are no substantial changes with respect to the circumstances under which the project will be undertaken which occurred following the certification of the EIR. The Commission hereby relies upon the EIR for purposes of considering the approval of the proposed Agreement. DAB:cez December 14, 1988 2 1 2 3 4 5 6 7 8 9 10 11 12 13 (~. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO Section 2. The Commission hereby finds and determine that the purchase price for the Property is the fair market value thereof. To the extent that the purchase price for the Property may be deemed to be less than the fair market value thereof, the Commission hereby finds that the lesser consideration is needed to effectuate the purposes of the Redevelopment Plan in that the Redeveloper would otherwise not acquire the Property for redevelopment and use in accordance with the Redevelopment Plan. The sale of the Property for less than the fair market value thereof will assist in causing the elimination of blight, create emploYment opportunities, stimulate aesthetic improvement and an increase in real property value of the Property and nearby property, and will cause the generation of revenues to the City and the Agency. Section 3. The Commission hereby approves the proposed Agreement as attached hereto as Exhibit "A" and incorporated herein by reference. The Chairman and Secretary of the Commission are hereby authorized and directed to execute the Agreement for and on behalf of the Agency, with such nonsubstantive changes thereto as may be approved by the Chairman and Agency Counsel. Section 4. This Resolution shall take effect upon adoption. DAB:cez December 14, 1988 3 ( ('~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO, INC. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meeting thereof, held on the ___ day of , 1988, by the following vote, to wit: AYES: Commissioners NAYS: ABSENT: Secretary The foregoing resolution is hereby approved this ___ day of , 1988. Chairman of the Community Development Commission of the City of San Bernardino Approved as to form and legal content: BY:~) / Agenc ounse DAB:cez December 14, 1988 4 Recording Requested by, and when Recorded Mail to: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 300 North "0" Street, 4th Floor San Bernardino, CA 93418 (ABOVE SPACE FOR RECORDER'S USE ONLY) DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY ( OF SAN BERNARDINO, CALIFORNIA AND YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO, INC. (CENTRAL CITY EAST PROJECT AREA) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DISPOSITION AND DEVELOPMENT AGREEMENT CENTRAL CITY EAST PROJECT AREA THIS AGREEMENT is made and entered into this ___ day of 1988, by and between the COMMUNITY DEVELOPMENT , COMMISSION OF THE CITY OF SAN BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a public body corporate and politic, hereinafter called the "Agency", and the YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO, INC., a California non-profit corporation, hereinafter called the "Redeveloper". RECITALS This Agreement is made with reference to the following (' facts: (a) In furtherance of the objectives of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000, et seq.), the Agency has undertaken a program for redevelopment of blighted areas in the City of San Bernardino, California (the "City"), and, in this connection, pursuant to Ordinance No. 3571 of the City, adopted May 3, 1976, the City and the Agency have approved and adopted the Redevelopment Plan (hereinafter called the "Redevelopment Plan") for the Central City East Redevelopment Project (the "Project"). Pursuant to the provisions of the Redevelopment Plan, the Agency and the City have undertaken and are now carrying out the responsibility for the Project in the area subject to the Redevelopment Plan (hereinafter called the "Project Area"). The DAB:cez December 14, 1988 2 boundaries of the Project Area are described in the Redevelopment Plan which, by this reference, is incorporated herein and made a part hereof. (b) That certain parcel of real property more particularly described in Exhibit" A", attached hereto and by this reference made a part hereof (hereinafter called the "Property"), is located within the Project Area, and under the Redevelopment Plan may be developed for private use. (c) The Redeveloper has made an offer to purchase and to redevelop the Property in accordance with the uses specified in the Redevelopment Plan. It is recognized that it may be necessary to modify the actual improvements currently located on r-- the Property, and such modifications will be subject to the approval of the Agency. (d) The agency has considered all pertinent data and analysis, including the reports of its consultants and the reports and recommendations of its staff, and the Agency believes that the redevelopment of the Property, pursuant to the provisions of this agreement, is in the best interests of the City, will cause employment growth, and the elimination of blight, will enhance real property values and the public health, safety and welfare, and is in accord with the public purposes and provisions of applicable laws and regulations under which the Project is governed. (e) Pursuant to the provisions of California Health and Safety Code Sections 33431 and 33433, the Agency and the DAB:cez December 14, 1988 3 ( Mayor and the Common Council of the City gave notice and held public hearings concerning the approval of this Agreement, and the Agency and the Mayor and Common Council 'of the City have approved the execution of this Agreement and have determined that the method of disposition of the Property as provided in this Agreement is the most effective method for accomplishing the objectives of the Agency. (f) On the basis of the foregoing, and the undertakings of the Agency and the Redeveloper under this agreement, the Agency desires to sell and Redeveloper desires to purchase the Property in accordance with the provisions of the Redevelopment Plan and this Agreement. ( NOW, ~FORE, IT IS AGREED between the parties hereto as follows: 1. Purchase and Sale of Property A. Subject to all terms, covenants, and conditions of this Agreement, the Agency agrees to sell the Property to the Redeveloper and the Redeveloper agrees to purchase the Property from the Agency for a total acquisition price of Twenty-Six Thousand Seventy-One Dollars ($26,071) (hereinafter called the "Purchase Price"). The sum of Five Thousand Dollars ($5,000) of the Purchase Price has heretofore been paid by the Redeveloper to the Agency; the Redeveloper's covenant and obligation to pay to the Agency the remaining Twenty-One Thousand Seventy-One Dollars ($21,071) of the Purchase Price shall be evidenced by a certain promissory note (hereinafter called the "Note") secured DAB:cez December 14, 1988 4 by deed of trust (hereinafter called the "Deed of Trust"), which shall be executed by the Redeveloper substantially in form and substance as set forth in Exhibits "B" and "C" which are by this reference made a part hereof. Within ten (10) calendar days following the date of this Agreement, the Redeveloper shall execute and deposit the Note and Deed of Trust into the escrow hereinafter described. 2. Opening of Escrow. In order to consummate the sale of the Property pursuant to this Agreement, the parties shall cause an escrow (the "Escrow") to be opened with First American Title Insurance Company (the "Escrow Agent") within five (5) business (~. days from the date of this Agreement. The close of Escrow shall occur and all obligations of the parties required to be performed, prior to the close of Escrow hereunder, shall be completed not later than sixty (60) days thereafter. 3. Condition for Close of Escrow. The close of Escrow, the Redeveloper's obligation to purchase the Property and the Agency's obligation to sell the Property, pursuant to this Agreement, are conditioned upon: (a) The conveyance to the Redeveloper of good and marketable title to the Property by means of a grant deed substantially in the form and substance as set forth in Exhibit "D" attached hereto and incorporated herein by reference, subject to any and all encumbrances of record as may exist as of the date of this Agreement and subject to all documents to be recorded pursuant to this Agreement including, but not limited to, (1) DAB:cez December 14, 1988 5 ( that certain Declaration of Restrictions (the "Declaration") recorded as Document No. 82-163589 in August, 1982 in the Office of the Recorder for San Bernardino County; (2) this Agreement; (3) the Redevelopment Plan; and (4) the Deed of Trust. (b) Delivery of possession of the Property to the Redeveloper "as-is", in its condition as of the date of this Agreement, immediately on the close of Escrow. (c) The Redeveloper's deposit into Escrow of the Note and Deed of Trust fully executed by the Redeveloper. Should any of the conditions, 4. Failure of Conditions. specified in Section 3 of this Agreement, fail to occur on or before the date set for close of Escrow as provided in Section 2 (~ of this Agreement, the party who is the beneficiary of the condition shall have the authority to be exercised by giving written notice to the Escrow Agent and to the other party, to cancel the Escrow, to terminate this Agreement, and to recover any amounts paid to, or documents deposited with, the Escrow Agent on account of the purchase and sale of the Property hereunder. The exercise of such authority shall not, however, constitute a waiver of any other rights which that party may have for any breach of this Agreement. The Escrow Agent shall be, and is hereby, irrevocably instructed by the parties to return immediately to each party, on any such failure of conditions and receipt of such notice from any party, all documents deposited with the Escrow Agent pursuant to this Agreement. DAB:cez December 14, 1988 6 5. Jo~nt Escrow Instruct~ons. Th~s Agreement shall const~tute jo~nt escrow ~nstruct~ons of the Agency and the redeveloper for the sale of the Property hereunder. The Agency and the Redeveloper agree to execute any and all reasonable and appropriate additional escrow instructions and to perform any and all reasonable and appropriate acts as may be necessary in order to expedite and facilitate the close of the Escrow hereunder. 6. Proration of ~axes. There shall be prorated between the Agency and the Redeveloper on the basis of thirty (30)- day/months as of twelve o'clock midnight Pacific Time on the date of the close of Escrow, any and all real property taxes levied or assessed against the Property, including any water tax or water (" rate levied against the Property, as shown on the latest available tax bills. 7. Comm~ss~ons. The Agency and the Redeveloper, respectively, represent and warrant that the Agency and the Redeveloper, respectively, have not retained or used the services of a real estate broker or other agent for purposes of undertaking the purchase or sale of the Property hereunder. Any and all commissions due to real estate brokers or other brokers as a result of the sale of the Property to the Redeveloper hereunder shall be paid by any party which as retained or used the services of any such real estate or other broker. 8. Escrow Costs. The expenses of Escrow shall be paid in the following manner: (a) The full cost of securing any title insurance DAB:cez December 14, 1988 7 policy shall be paid by the Redeveloper. (b) The cost of preparing, executing and acknowledging any deeds or other instruments required to convey title to the Property to the Redeveloper in the manner described in this Agreement shall be paid by the Agency. (c) The cost of recording a grant deed or other instruments required to convey title to the Property to the Redeveloper in the manner described in the Agreement shall be paid by the Agency. (d) Any tax imposed upon the conveyance to the Redeveloper of title to the Property under the Documentary Transfer Tax Act shall be paid by the Redeveloper. (~ (e) Any Escrow fees charged by the Escrow Agent in addition to the foregoing shall be paid by the Agency and by the Redeveloper in equal proportions. 9. Escrow Account. All funds in the Escrow shall be deposited with other Escrow funds in a general Escrow Trust Account earning interest at the highest rate which may reasonably be obtained for such Account, and may be transferred into any other such general Escrow Trust Account; provided, however, that any and all such Accounts shall be in any state or national bank doing business in the state of California. Interest on any funds deposited with the Escrow Agent shall be credited and paid to the party making such deposit into Escrow. All disbursements pursuant to this Agreement shall be made by check from such Accounts. DAB:cez December 14, 1988 8 10. Close of Escrow: Author~zed Acts. The term "Close of Escrow" herein shall mean the date on which necessary instruments of conveyance are recorded in the office of the County Recorder of San Bernardino County, California. The Escrow Agent is authorized and directed to record (a) this Agreement; (b) a grant deed conveying title to the Property from the Agency to the Redeveloper; and (c) the Deed of Trust. Upon the close of Escrow, the Escrow Agent shall deliver to the Agency the original fully executed Note. 11. Extensions of T1.me: All time limits within which any matter herein specified, related to the Escrow hereunder is to be performed, may be extended by mutual agreement of the Agency and (-. the Redeveloper. Any amendment of, or supplement to, the Escrow instructions hereunder shall be in writing. 12. Add~ tional Authority of Escrow Agent. Agent is authorized to and shall: The Escrow (a) Pay and charge the Agency for any and all current and/or delinquent taxes, and any penalties and interest thereon, and for any delinquent or non-delinquent assessments or bonds pertaining to the Property. (b) Pay and charge the Agency and the Redeveloper for any Escrow fees, costs and charges which might arise in this Escrow, as set forth herein. (c) Disburse and record documents described herein when conditions of the close of Escrow have been fulfilled. DAB:cez December 14, 1988 9 13. Ob1~gat~ons of Agency. The Agency shall be responsible for and complete the actions set forth in Exhibit "E" attached hereto and incorporated herein by reference. 14. Obl~gat~ons of Redeveloper. The Redeveloper shall be responsible for and complete the actions set forth in Exhibit "F" attached hereto and ~ncorporated herein by reference. 15. Maintenance. A. The Redeveloper agrees for itself, its successors and assigns, and every successor-in-interest to the Property, or any part thereof, that the Redeveloper and such successors and assigns shall, to the Agency's satisfaction, properly maintain the parking areas, landscaped areas and parkways on the Property, as required by the Declaration. In addition, the Redeveloper to shall maintain the Property in such a manner so as to avoid the reasonable determination of a duly authorized official of the City that a public nuisance has been created by the absence of adequate maintenance, and that the resulting condition is detrimental to public health, safety or general welfare, or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of the boundary of the Property. B. In the event that the Redeveloper, its successors or assigns fail to perform the maintenance as provided herein within twenty (20) calendar days after receipt of notice from the Agency or City to do so, the City and/or the Agency, as their sole remedy under this Section 15, shall have the right to enter DAB:cez December 14, 1988 10 the Property and undertake, or cause to be undertaken, such maintenance activities. In such event, the Redeveloper shall reimburse the City and/or the Agency for all reasonable sums incurred by the City and/or the Agency for such maintenance activities in accordance with the procedure set forth in Section 20 hereof. 16. Restrictions on Use. The Redeveloper agrees for itself, and its successors and assigns, and every successor-in- interest to the Property, or any part thereof, that the Redeveloper and such successors and assigns shall in perpetuity: A. Devote the Property to, and only to and in accordance with, the uses specified in the Redevelopment Plan, r and specifically for use by the Redeveloper for the instruction, enjoYment and betterment of youth and other residents of San Bernardino and surrounding areas. The terms "uses specified in the Redevelopment Plan" and "land use" referring to provisions of the Redevelopment Plan, or similar language in this Agreement, shall include the Property and all buildings, and shall include all requirements or restrictions of the Redevelopment Plan pertaining to such Property. B. Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry in the sale, lease, sublease, rental, or transfer or in the use, occupancy, tenure, or enjoyment of the Property or any improvements erected or to be erected thereon, or any part thereof, nor shall the Redeveloper DAB:cez December 14, 1988 11 { ~tself or any person cla~m~ng under or through ~t, establ~sh or perm~t any such pract~ce or pract~ces of discr~mination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property, or any part thereof. 17. Agency R~ghts to Enforce. In ampl~fication, and not in restriction of the provisions of the preceding Sections 15 and 16, ~t ~s intended and agreed that the Agency and ~s successors and ass~gns shall be deemed to be benefic~ar~es of the agreements and covenants provided in Sections 15 and 16 hereof, both for and ~n their or ~ts own right, and also for the purposes of protect~ng the interests of the community and other parties, (,.\ publ~C or pr~vate, ~n whose favor or for whose benefit such agreements and covenants have been provided. Such agreements and covenants shall run ~n favor of the Agency, for the entire period during which such agreements and covenants shall be in force and effect, without regard to whether the Agency has at any time been, remains, or becomes an owner of any land or interest therein to, or ~n favor of which, such agreements and covenants relate. The Agency shall have the right, in the event of any breach of any such agreement or covenant, to exercise all of the rights and remedies, and to maintain any actions or suits at law or ~n equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which ~t or any other beneficiaries of such agreement or covenant may be entitled. Any leases made by the Redeveloper concerning all or any portion of DAB:cez December 14, 1988 12 ( the Property shall include all applicable restrictions, covenants and conditions set forth in Sections 15 and 16 of this Agreement. The Redeveloper and the Agency agree to cooperate in enforcing such restrictions, covenants and conditions. 18. Equal Emp10yment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that: A. The Redeveloper shall not discriminate against any employee or applicant for employment because of race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. The Redeveloper shall take reasonable action to ensure that applicants are employed and that employees are treated, during emplOYment, without regard to their r" race, sex, marital status, color, creed, religion, physical handicap, national origin or ancestry. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection for training, inCluding apprenticeship. The Redeveloper agrees to post in a conspicuous places, available to employees and applicants for employment, notices to be provided by the Agency setting forth the provisions of the nondiscrimination clause. B. The Redeveloper shall, in all solicitations or advertisements for employees placed by or on behalf of the Redeveloper, state that all qualified applicants will receive consideration for employment without regard to race, sex, DAB:cez December 14, 1988 13 marital status, color, creed, religion, physical handicap, national origin or ancestry. c. The Redeveloper shall comply with all applicable local, state and federal laws and regulations relating to equal emploYment opportunity. D. In the event of the Redeveloper's noncompliance with the nondiscrimination clause of this Section 18, or with any of the aforementioned laws, rules or regulations, the Agency shall have the right to compel full compliance of this Agreement through an action for specific performance. E. The Redeveloper shall include the provisions of subdivisions (a) through (c) of this Section 18 in every ro, contract, and shall require the inclusion of these provisions in every subcontract entered into by any of its contractors, unless exempted by applicable laws, rules or regulations, and such provisions shall be binding upon each such contractor, subcontractor, or vendor, as the case may be. 19. Default Prior to Conveyance. In the event that, prior to conveyance of the Property to the Redeveloper and in violation of this Agreement, (i) the Redeveloper (or any successor-in-interest) assigns or attempts to assign this Agreement or any rights therein or in the Property, or (ii) the Redeveloper fails to deposit into the Escrow a properly executed Note and Deed of Trust, in satisfactory form and in the manner and by the date respectively provided in this Agreement therefor, or (iii) the Redeveloper fails to take title to the Property upon DAB:cez December 14, 1988 14 tender of conveyance by the Agency pursuant to this Agreement, then this Agreement and any and all rights of the Redeveloper or of any assignee or transferee thereof in this Agreement with respect to the Property shall, at the option of the Agency and upon written notice given by the Agency to the Redeveloper, be terminated. Upon such termination, neither the Redeveloper (nor any of its assignees or transferees), nor the Agency shall have any further rights against or liability to the other party under this Agreement. 20. Lien on Property. In the event that the Agency enters the Property for the purpose set forth in Section 15(B), the ( Agency shall have the right to recover from the Redeveloper, in addition to all costs and other sums expended in connection therewith, interest on such costs and sums calculated at the rate of ten percent (10%) per annum. All costs and expenses incurred by the Agency in curing the default by the Developer and any interest thereon shall be assessed against the Redeveloper and shall constitute a lien against the Property until paid effective upon the recording of a notice thereof in the Office of the County Recorder for the County of San Bernardino; provided, however, that any such lien shall be subordinate to any bona fide mortgage or deed of trust encumbering any portion of the Property, and any purchaser at any foreclosure or trustee's sale (as well as any grantee by deed in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such lien, but otherwise subject to all DAB:cez December 14, 1988 15 of the provisions of this Agreement, which shall run with the land. 21. Agency Employees, Members. No member, official, or employee of the Agency shall have any financial interest, direct or indirect, in this Agreement or in the Property, nor shall any such member, official, or employee participate in any decision relating to this Agreement or to the Property, which affects his financial interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly interested. No member, official, or employee of the Agency shall be personally liable to the Redeveloper or any successor-in-interest in the event of any default or breach by ( the Agency or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of this Agreement. 22. Attorneys' Fees. The Redeveloper agrees that if any action is brought by the Agency against the Redeveloper for breach of any of the covenants or conditions of this Agreement, the Redeveloper shall pay to the Agency reasonable attorneys' fees and court costs incurred by the Agency as a result thereof. 23. Option to Purchase. Should the Redeveloper convey the property, which is the subject of this Agreement, or enter into escrow to convey said property at any time in perpetuity to any Grantee other than a non-for-profit charitable organization, which is committed and legally required to use the property as required by paragraph l6.A. of this Agreement, the Agency, its DAB:cez December 14, 1988 16 assigns and successors-in-interest shall have the option to repurchase said property for Twenty-Six Thousand Seventy-One Dollars ($26,071) plus the fair market value at the time of the repurchase of all improvements built on the premises by Redeveloper in compliance with the codes and regulations of the City of San Bernardino less any Community Development Block Grant funds received from the City of San Bernardino and not repaid. 24. At any time in perpetuity, Redeveloper, its successors or assigns may encumber said property by means of a mortgage or deed of trust only with the prior written approval of Agency, which approval may be given, withheld, or given conditionally in the sole, unfettered discretion of Agency. (0 25. Notice. Any notice to be given by either party to the other shall be given by certified mail, return receipt requested, postage prepaid, addressed as follows: To Agency: Executive Director Redevelopment Agency of the City of San Bernardino 300 North wDw Street San Bernardino, California 92418 To Redeveloper: Executive Director Young Women's Christian Association 566 North Lugo Avenue San Bernardino, California 92410 26. Merger. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed(s) transferring title to the Property from the Agency to the Redeveloper or any successor-in-interest, and any such deed(s) DAB:cez December 14, 1988 17 shall not be deemed to affect or impair the provisions and covenants of this Agreement. Any lease heretofore executed, 27. Termination of Lease. or claimed to exist, between the parties relating to use and occupancy of the Property conveyed herein is terminated effective upon the recordation of the Deed conveying the Property to the Redeveloper hereunder. 28. Time 1.s of the Very Essence. The Agency shall have every right to exercise its options upon any breach of time constraints whatever. All parties recognize that time is of the very essence of this Agreement. 29. Assigns and Successors-1.n-Xnterest. All provisions, (" rights and privileges of this Agreement shall apply to Agency, its assigns and successors-in-interest and Redeveloper and its assigns and successors-in-interest. 30. Redeveloper shall not assign, transfer or null this Agreement without the written permission of Agency, its assigns or successors-in-interest. Said permission shall be granted or denied at the full discretion of Agency, its assigns and successors-in-interest. III III III III III III DAB:cez December 14, 1988 18 ( 31. Execu1:1.on. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. EXECUTED at , California this day of , 1988. AGENCY: REDEVELOPER: REDEVELOPMENT AGENCY OF YOUNG WOMEN'S CHRISTIAN THE CITY OF SAN BERNARDINO ASSOCIATION OF GREATER SAN BERNARDINO, INC. By Chairman (0. By Secretary By By Approved as 1:0 form and 1ega1 content: BY~~ ~Agency sel DAB:cez December 14, 1988 19 EXHIBIT -A- LEGAL DESCRIPTION LOTS 19, 20, 21, 22, 23 AND 24, TRACT NO. 2030, FIFTH STREET PLACE SUBDIVISION, AS PER PLAT THEREOF RECORDED IN BOOK 29 OF MAPS /'" PAGE 49, RECORDS OF SAN BERNARDINO COUNTY, STATE OF CALIFORNIA. DAB:cez December 14, 1988 20 ( SECURED PROMISSORY NOTE $ , 1988 San Bernardino, California A. For value received, the undersigned, Young Women's Christian Association of Greater San Bernardino, Inc., (the "Maker"), unconditionally promises to pay to the order of the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Payee" or "Agency"), the principal sum of together with interest thereon calculated at the rate of seven percent (7%) per annum. (. B. This Note has been issued, executed and delivered in connection with the financing of a redevelopment project including, but not limited to, the acquisition of certain real property, as provided in that certain Disposition and Development Agreement by and between the Maker and the Payee dated , (the "Agreement"). Such project is located on the real property described in Exhibit "A" attached to that certain Deed of Trust and Assignment of Rents (the "Mortgage" ), dated as of the date hereof, and made from the owners of said property to First American Title Insurance Company, as Trustee, for the Agency's benefit, and the Agency is entitled to the benefit and security of the Mortgage. Reference is made to the Mortgage for provisions relating to conditions of default under this Note and the acceleration of the indebtedness evidenced by the occurrence of certain events stated therein and for all other relevant purposes. C. The Agency has provided such financing in accordance with the Agreement. All capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Agreement. Pursuant to the Agreement, the Agency has agreed to assist the undersigned in the acquisition and development of the project (as more fully described in the Agreement) subject to the conditions precedent thereof, and the undersigned have agreed to repay the principal amount of this Note, together with interest thereon, in accordance with and under the terms provided in the Agreement and as hereinafter set forth. D. Other than as a result of any default by the Maker under this Note or the Agreement, this Note shall be due and payable in installments in the amounts and on the dates set forth in the Loan Amortization Schedule set forth in Exhibit "A" DAB:cez December 14, 1988 21 attached hereto and ~ncorporated here~n by reference. Notwithstanding any provision herein to the contrary or in Exhibit "A", the first ~nstallment payment shall be due and payable by the Maker to the Payee on or upon the close of Escrow, as set forth in the Agreement, whichever date occurs later. This Note may be paid in whole or ~n part at any time prior to the maturity date hereof at the option of the undersigned and without any penalty or premium whatsoever; provided, however, that any such payment or paYments in part shall not postpone or delay the remaining payments due and payable. E. All payments pursuant to this Note shall be made in lawful money of the United States of America, payable at the office of the Redevelopment Agency of the City of San Bernardino, 300 North "D" Street, San Bernardino, California 92418, or such other place as the holder of this Note may from time to time designate to the Maker hereof ~n writing. If the prescribed date of paYment is a Saturday, Sunday or legal holiday at the location of the office of the Payee, such paYment shall then be due and payable on the next succeeding business day. (" F. If (~) there is a default by the Maker under the terms of this Note, or under the Deed of Trust securing this Note and (ii) the holder of this Note refers it to an attorney for collection or seeks legal advice for default under this Note or under the Deed of Trust securing this Note or any judicial or non-judicial action is instituted by the Holder hereof, and an attorney is employed by the holder hereof to appear in any such action or proceeding or to reclaim, sequester, protect, preserve or enforce the hOlder's security for this Note, including but not limited to, proceedings to foreclose the loan evidenced hereby, proceedings under the Federal Bankruptcy Code, or for the appointment of a receiver, the undersigned promises to pay reasonable attorneys' fees for services performed by the holder's attorneys and all costs and expenses incurred incident to such emploYment. G. Upon any event of default hereunder or under the Agreement, or in the event the principal and/or interest is not timely paid to the holder, the principal and interest then due and payable but which are delinquent and have not so been paid by the undersigned shall bear interest from the date such paYment was due on the total paYment amount then due and owing until paid at the rate of fifteen percent (15%) compounded per annum; provided, however, that such interest rate shall never exceed that amount which Maker is permitted by law to be charged. The failure to exercise, in case of one or more events of default, any right or remedy given in this paragraph shall not preclude the hOlder of this Note from exercising any right or remedy given in this paragraph in case of one or more subsequent events of default. DAB:cez December 14, 1988 22 f H. The Maker and the Payee believe that any amounts payable hereunder will not exceed the maximum amount permissible under applicable law, as a result of the Wtime-price" differential doctrine in California. The parties agree that the agreements between the Maker and the Payee are &xpressly limited so that in no contingency or event whatsoever (whether by reason of acceleration or otherwise), shall the amount paid, or agreed to be paid to the Payee, exceed the maximum amount permissible under applicable usury laws. If, from any circumstance whatsoever, fulfillment of any provision hereof shall involve transcending the limit of validity prescribed by law which a court of competent jurisdiction may deem applicable hereto, then ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity. If, from any circumstances, the Payee shall ever receive as interest hereunder an account which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to reduction of the unpaid principal balance due hereunder and not paYment of interest. (" I. The obligation of the undersigned to make or provide for the payment required hereunder shall be absolute and unconditional and the undersigned shall make or provide for such paYment without abatement, diminution, or deduction regardless of any cause or circumstances whatsoever including, without limitation, any defense, set-off, recoupment or counterclaim which the undersigned may have or assert against the Agency or any other person. J. The Maker, to the extent permitted by law, waives demand, presentment for paYment, notice of dishonor, protest and notice of protest, with respect to any and all lack of diligence or delays in the collection of enforcement hereof, and consents that the time of payment may be extended or this Note may be renewed without notice, and without releasing the undersigned or any subsequent surety, guarantor or endorser. K. All covenants and agreements herein shall be deemed material, and shall bind the Maker's successors and assigns, whether so expressed or not, and all such covenants and agreements shall inure to the benefit of the Payee hereof and its nominees, successors and assigns, whether so expressed or not. L. This Note has been issued, executed and delivered in the State of California and shall be governed by and construed in accordance with the laws of the State of California. 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Go . ~\....- . . . ,,-..;c, ~... ~~"'I'~.,.-~...........,.."?':';"6I:;w. .:>-.~~~":<""~......._-.~ .,.""_~'\~.'..-.'~~ ~ . . . ~ _~__-':__L~---.:; ;_______~__ . . . . = "i' '_ ~ to ~{:.~:;,~~,~'''''2'',....... . :;,).. " - - ..;..'. -" '- : . ~. ~ ---.. . ,. ... Clll . o ... .. '" '" . '" .... -0 '" .... '" 0- 0. .. --:':~~. ~ .... ~"~ -0:" . ~------------ -, - . . . . ~ SI c' ~ a, .li ~I ! <Ii ~I I : ! ~: .. i ....1 ,! ~i ~i ~! i I , I , I I I I M \1 oj f'\' I ~: ~ ~, I I I I . , . ----~--~---c-_ . - - - ~ - .-'-'.-----. . -.~ " EXHIBIT wBw GRANT DEED The COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, on behal f of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, a public body, corporate, and politic (hereinafter called the "Grantor"), and in further consideration of the of the covenants and conditions herein contained and to be kept and performed by the Grantee, does hereby grant to the YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER SAN BERNARDINO, INC. (hereinafter called the "Grantee"), all that real property in the City of San Bernardino, County of (0' San Bernardino, State of California, (hereinafter called the "Property", described as follows: SEE EXHIBIT W A. ATTACHED HERETO The Grantee does hereby acknowledge receipt of a copy of the Redevelopment Plan (hereinafter called the "Redevelopment Plan") for the Central City East Redevelopment Project, approved by Ordinance No. 3571 of the City of San Bernardino, which Ordinance was adopted May 3, 1976, said Redevelopment Plan containing as a part thereof that certain Declaration of Restrictions which became effective under said Ordinance and which is hereinafter referred to as the "Restrictions". The Grantee, for itself, its successors and assigns, does hereby covenant and agree with, and for the benefit of, the Grantor, its successors and assigns, as follows: DAB:cez December 14, 1988 26 1. The grantee, its successors and assigns, will hOld, occupy and use the Property subject to and in accordance with all the terms, conditions, limitations, restrictions, requirements and covenants set forth in the Redevelopment Plan and the Restrictions, and specifically for uses primarily for the instruction, enjoyment and betterment of youth and other residents of San Bernardino and surrounding areas. Said terms, conditions, limitations, restrictions and covenants run with the land and shall be binding for the benefit and in favor of, and be enforceable by, the Grantor, its successors and assigns, the City of San Bernardino, and any successor-in-interest to the Grantee of the Property or any part thereof, and the owner of any other (" \ land in the Project Area. 2. ( a ) The Grantee herein covenants by and for himself, his heirs, executors, administrators, and his successors and assigns, and every successor-in-interest to the Property, or any part thereof, and all persons claiming under or through them, that the Grantee, and such successors and assigns, shall (1) Devote the Property to uses consistent with the purposes of the Redevelopment Plan, and specifically for the instruction, enjoyment and betterment of youth and other residents of San Bernardino and surrounding areas. (2) Not discriminate upon the basis of race, sex, marital status, color, creed, religion, physical handicap, national origin, ancestry, age or handicapped status in the sale, DAB:cez December 14, 1988 27 I lease, sublease, rental or transfer or ~n the use, occupancy, tenure or enjoyment of the Property or any improvement erected or to be erected thereon, or any part thereof, nor shall the Grantee himself or any person cla~ming under or through him, establish or permit any such practice or practices of d~scr~mination or segregation w~th reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the property, or any part thereof. (3) Properly mainta~n the parking areas, landscaped areas and parkways on the Property, and that, if the Grantee fails to remedy any failure after twenty (20) days' notice from the Grantor or City of San Bernardino (the "City"), r" \ then the Grantor or City shall have the r~ght to enter the Property, and undertake or cause to be undertaken such maintenance activities. In such event, Grantee, ~ts successors or assigns, shall reimburse Grantor or City for all reasonable sums incurred for such maintenance activities, together with ~nterest thereon calculated at the rate of ten percent (10%) per annum. (b) The foregoing agreements and covenants, as set forth ~n subdivision (a) of Section 2 of this Deed, shall be covenants running with the land, and they shall in any event, without regard to technical classification or designation, legal or otherwise, and except only as otherwise specif~cally provided ~n this Deed, be binding to the fullest extent permitted by law and equity, for the benefit and in favor of, and be enforceable DAB:cez December 14, 1988 28 by the Grantor, its successors and assigns, the City and any owner of any other land (or of an interest in such land) in the redevelopment project area subject to the Redevelopment Plan. It is further intended and agreed that, except as otherwise provided herein, the agreement and covenant provided in subsection (1) of subsection (a) of Section 2 of this Deed shall remain in effect in perpetuity and that the agreement and covenant provided in subsection (2) of subsection (a) of Section 2 hereof shall remain in effect without limitation as to time: provided that such agreements and covenants shall be binding on the Redeveloper itself, each successor-in-interest to the Property, and every part thereof, and each party in possession or occupancy, (" respectively, only for such period as such successor or party shall have title to, or an interest in or possession or occupancy of, the Property or part thereof. 3. In amplification and not in restriction of, the provisions of Section 2 hereof, it is intended and agreed that the Grantor and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in said Section 2 hereof, both for and in their or its own right and also for the purpose of protecting the interests of the Grantor and the City of San Bernardino and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor, its successors and assigns for the entire period during which such agreements and covenants shall be in DAB:cez December 14, 1988 29 ( force and effect, without regard to whether the Grantor, its successors and assigns have at any time been, remain, or are owners of any land or interest therein, or in favor of which, such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled. 4. Should Grantee convey the Property or enter into escrow to convey said property at any time in perpetuity to any r Grantee other than a not-for-profit charitable organization which is committed and legally required to use the property as required by paragraph 2(a)(1) of this Deed, Grantor shall have the option to repurchase said property for Twenty-Six Thousand Seventy-One Dollars ($26,071) plus the fair market value at the time of the purchase of all improvements built on the premises by Grantee in compliance with the codes and regulations of the City of San Bernardino less any Community Development Block Grant funds received from the City of San Bernardino and not repaid. 5. At any time in perpetuity, Grantee may encumber said property by means of a mortgage or deed of trust only with the prior written approval of Agency, which approval may be given, withheld, or given conditionally in the sole, unfettered discretion of Agency. DAB:cez December 14, 1988 30 ( 6. THE PROVISIONS OF PARAGRAPHS 1 2 AND 5 OF THIS DEED SHALL BE CONDITIONS SUBSEQUENT, UPON THE OCCURRENCE OF WHICH THE GRANTOR, ITS SUCCESSORS OR ASSIGNS SHALL HAVE THE RIGHT TO REENTER AND TAKE POSSESSION OF THE LAND AND TO TERMINATE (AND REVEST IN THE AGENCY) TITLE TO THE LAND, IN THE EVENT THAT A DEFAULT HAS BEEN DECLARED BY THE GRANTOR, ITS SUCCESSORS OR ASSIGNS. THE PROVISIONS OF THIS PARAGRAPH 6 SHALL APPLY ONLY IF SUCH DEFAULT SHALL NOT BE CURED WITHIN THREE (3) MONTHS AFTER WRITTEN DEMAND BY GRANTOR, ITS SUCCESSORS OR ASSIGNS SO TO DO. THE THREE-MONTH TIME PERIOD SPECIFIED ABOVE SHALL COMMENCE UPON SERVICE OF THE WRITTEN NOTICE ALLEGING THE POSSIBLE EXISTENCE OF A DEFAULT AND RECORDATION OF A NOTICE OF DEFAULT WITH THE r RECORDER OF SAN BERNARDINO COUNTY. IT IS THE INTENT OF THIS PROVISION THAT THE CONVEYANCE OF THE LAND HEREIN MADE BY THE GRANTOR WILL BE SET ASIDE AND TITLE TO THE LAND SHALL REVERT TO GRANTOR, IT SUCCESSORS OR ASSIGNS UPON FAILURE OF GRANTEE, ITS SUCCESSORS OR ASSIGNS, TO REMEDY AND/OR ABROGATE ANY SUCH DEFAULT WITHIN THE PERIOD SET FORTH ABOVE. UPON SUCH CIRCUMSTANCES, THE GRANTOR, ITS SUCCESSORS OR ASSIGNS, MAY DECLARE A TERMINATION IN FAVOR OF THE GRANTOR, ITS SUCCESSORS OR ASSIGNS OF THE TITLE, AND A TERMINATION OF ALL OF THE RIGHTS AND INTEREST IN THE LAND CONVEYED HEREIN. IF THE GRANTOR, ITS SUCCESSORS OR ASSIGNS RECORDS, AFTER SUCH THREE-MONTH PERIOD EXPIRES, IN THE OFFICE OF THE COUNTY RECORDER OF SAN BERNARDINO, A WRITTEN DECLARATION OF FORFEITURE DAB:cez December 14, 1988 31 REFERRING TO THIS DEED, THEN SUCH DEED AND CONVEYANCE SHALL BE NULL AND VOID, AND ALL INTEREST HEREBY CONVEYED SHALL FORTHWITH AND WITHOUT FURTHER NOTICE TO THE GRANTEE, ITS SUCCESSORS OR ASSIGNS BECOME FORFEITED AND SHALL REVERT TO THE GRANTOR, ITS SUCCESSORS, OR ASSIGNS; PROVIDED THAT ANY REVESTING OR TITLE AS A RESULT OF THESE CONDITIONS SUBSEQUENT SHALL ALWAYS BE SUBJECT TO AND LIMITED BY, AND SHALL NOT DEFEAT, RENDER INVALID, OR LIMIT IN ANY WAY (I) THE LIEN OF ANY MORTGAGE AUTHORIZED BY PARAGRAPH 5 OF THIS DEED, AND (II) ANY RIGHTS OR INTEREST PROVIDED IN THIS DEED FOR THE PROTECTION OF THE HOLDERS OF SUCH MORTGAGES. IN WI~NESS WHEREOF, the Grantor and Grantee have executed this deed by their respective officers thereunto duly qualified this r-- day of , 1988. GRANTOR: GRANTEE: COMMUNITY DEVELOPMENT COMMISSION OF ~HE CITY OF SAN BERNARDINO YOUNG WOMEN'S CHRIS~IAN ASSOCIATION OF GREATER SAN BERNARDINO, INC. By Chairman By Its By Secretary Approved as to form and legal content: By Agency Counsel DAB:cez December 14, 1988 32 EXHIBIT · A. TO GRANT DEED LEGAL DESCRIPTION LOTS 19, 20, 21, 22, 23 AND 24, TRACT NO. 2030, FIFTH STREET PLACE SUBDIVISION, AS PER PLAT THEREOF RECORDED IN BOOK 29 OF MAPS, PAGE 49, RECORDS OF SAN BERNARDINO COUNTY, STATE OF CALIFORNIA. .....' .' DAB:cez December 14, 1988 33 ( r< EXHIBIT -E- OBLIGATIONS OF AGENCY THE AGENCY SHALL: 1. Convey to Redeveloper the Property described in Exhibit "A" for the sum of $26,071, $5,000 of which has been paid. 2. Accept a promissory note secured by deed of trust executed by the Redeveloper providing for paYment of the $21,071 balance of the Purchase Price in accordance with the amortization schedule attached as Exhibit "G", which shall bear interest at the rate of seven (7%) percent per annum. DAB:cez December 14, 1988 34 EXHIBIT WF" OBLIGATIONS OF REDEVELOPER '!'HE REDEVELOPER AGREES TO: 1. Devote the Property to activities conducted by the Young Women's Christian Association, and other uses primarily for the instruction, enjoyment and betterment of youth, exclusively, until December 31, 2025. 2. Not later than ten (10) calendar days after the date of this Agreement, execute and deposit into Escrow a promissory Note in the sum of Twenty-One Thousand Seventy-One Dollars $21,071 setting forth the Agency as the payee, secured by a first deed of trust on the Property, payable with interest at the rate of seven (00. 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